Market Trends of Cloud VPN Industry
Telecom and IT Segment to Grow Significantly
- Cloud VPN is becoming increasingly popular due to new, increasing needs from the telecom industry for security and quick VPN networks, which is boosting this segment's revenue development. With the growing requirement for VPN services in the telecom sector, many companies are launching new solutions to increase their market share.
- For instance, in 2022, Huawei and China Mobile Guangdong jointly released a Mobile VPN Solution. This solution allows enterprise users to access the Internet and campus intranet anytime and anywhere securely. Mobile VPN makes the mobile office more flexible and helps build a more digital and information-based campus. These advantages make Mobile VPN an optimal choice for campus dedicated networks.
- Flexible VPN technology is also required due to the rise in powerful devices like PCs, phones, and others. Modern VPN technology's software-defined WAN (SD-WAN) capabilities, which provide granular reporting and sophisticated network information, are also propelling the cloud VPN industry.
- The need for encrypted network traffic, distributed global IP addresses, deployable private servers, the ability to manage network activity, the ability to conduct geo-targeting, and quality assurance are additional benefits of cloud VPNs that are becoming more widely known in the telecom industry and are further boosting the market's expansion.
- Cloud-based VPNs have grown significantly during the last five years, impacting the business, technology, and information technology sectors. Due to this, there has been an increase in global investment in cloud computing. It is assumed that the user and device on the other end of a VPN connection are safe.
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Asia Pacific to Hold Largest Share
- Most regional VPN providers are highly active in expanding the VPN scope and adoption among various end users. Cloud services provide enhanced characteristics, so the cloud VPN market has a massive growth opportunity.
- VPN providers in the region offer various features enabling their subscribers to access information and content unavailable. And with the availability of cloud VPN services, this can be enhanced further.
- With the onset of COVID-19, there were various steps taken by the government of Japan to contain the spread of the virus, such as lockdowns, social distancing, and many more. These led to increased adoption of work-from-home and remote working. This created an upsurge in adopting BYOD policies in various organizations for business uses in the country. With BYOD and work-from-home policies, cloud VPN solutions have been adopted for businesses to function.
- However, cyber security concerns in the region are restricting the implementation of cloud VPNs in the country. According to the prefectural police departments, out of 47 ransomware cases detected that had an apparent reason for the security breach, 70% of them were caused by using a VPN.
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