Managed VPN Market Trends and Forecast
The future of the global managed VPN market looks promising with opportunities in the BFSI, healthcare, IT & media, transportation, manufacturing, and energy markets. The global managed VPN market is expected to grow with a CAGR of 14.5% from 2025 to 2031. The major drivers for this market are the increasing demand for secure communication, the rising adoption of remote work, and the growing need for network privacy.
• Lucintel forecasts that, within the type category, remote access is expected to witness higher growth over the forecast period.
• Within the application category, bfsi is expected to witness the highest growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.
Emerging Trends in the Managed VPN Market
The managed VPN market is rapidly changing, spurred by emerging trends in technology and business requirements. These trends are dictating the future of the way companies and individuals protect their network communications and data. Listed below are five important trends that are having a significant impact on the managed VPN market.
• Cloud-based VPN Transition: Cloud-based VPN services are gaining ground as companies adopt cloud environments. Conventional on-premises VPNs are being substituted with scalable, versatile cloud-based models that provide superior performance, advanced security, and ease of compatibility with cloud environments. Cloud VPN services offer an integrated solution to provide remote access for employees and improved management of network resources. This trend is revolutionizing the managed VPN space by providing organizations with more secure, cost-efficient, and efficient network solutions.
• Growing Need for Remote Access Solutions: With the growth in remote working, especially as a result of the COVID-19 pandemic, demand for VPNs enabling secure remote access to company networks from anywhere has grown immensely. Organizations are spending on managed VPN solutions to provide secure connectivity for remote employees. These solutions enable encrypted communication and secure access to sensitive company information, thus preserving business continuity. The trend for hybrid and remote workforces will continue to fuel the Managed VPN market as organizations seek dependable, secure access to their networks.
• Integration with Zero Trust Security Models: Zero Trust security models, based on the premise that no one within or outside the network can be trusted by default, are becoming a key feature of the managed VPN market. VPNs that incorporate Zero Trust principles ensure increased security by authenticating all users and devices prior to allowing access. This trend is transforming the VPN market, as companies place greater emphasis on securing their networks in a world where remote access and cloud computing are becoming ubiquitous. Zero Trust VPNs play a vital role in safeguarding against sophisticated threats and reducing security risks.
• AI and Automation in VPN Security: Artificial intelligence (AI) and automation are being integrated into VPN solutions to enhance threat identification and response time. AI-powered VPNs have the ability to detect and remediate security threats automatically, delivering real-time threat protection against cyber threats. Automation makes it possible to monitor and manage VPN connections with no need for human intervention, enhancing operation efficiency. Adoption of AI and automation in managed VPN services is revolutionizing the market by turning VPNs intelligent, responsive, and proactive at anticipating new emerging security threats.
• Privacy and Data Protection Focus: As data breaches and privacy infringement concerns grow, there is a growing emphasis on privacy and data protection in the managed VPN market. VPN companies are strengthening encryption protocols, providing end-to-end security, and making sure that user data is not logged or stored. With strict privacy regulations such as GDPR and CCPA, companies are focusing on implementing VPN solutions that provide high privacy capabilities. This phenomenon is transforming the market by amplifying the need for secure, privacy-oriented VPN solutions suitable for organizations working in highly regulated setups.
The new trends of cloud-based solutions, remote access, Zero Trust models, AI integration, and data protection are transforming the managed VPN market. Such trends are propelling increased use of VPN services across various industries in the form of more secure, flexible, and intelligent solutions to meet the changing security requirements of businesses and individuals.
Recent Development in the Managed VPN Market
The managed VPN industry has witnessed a few major developments over the last few years, as companies focus on obtaining secure communication solutions in todayÄX%$%Xs increasingly digital world. The following are five major developments that have greatly influenced the Managed VPN industry.
• Implementation of SD-WAN Technology: Software-Defined Wide Area Network (SD-WAN) technology is being incorporated with managed VPN services to provide more flexible, cost-efficient, and secure network connections. SD-WAN enables companies to leverage multiple internet connections, such as MPLS, broadband, and LTE, to optimize traffic and enhance network performance. This innovation is transforming the managed VPN market by enabling enterprises to have scalable and secure network solutions that are more flexible and lower in operational costs.
• Growing Adoption of 5G Networks: As 5G networks are being deployed, managed VPN providers are providing services that use the high speed and low latency of 5G to provide superior performance and security. The capacity of the 5G network to support more data and provide faster speeds is enhancing VPN services through enabling high-definition video conferencing, real-time collaboration, and secure communication over global networks. This evolution is compelling the managed VPN market to evolve in accordance with the increasing requirement for high-speed, low-latency solutions.
• Advanced Encryption and Security Features: With the increasing sophistication of cyber threats, managed VPN providers are adopting advanced encryption protocols and security features to safeguard data from attacks. Multi-layer encryption, secure tunneling, and identity verification techniques are now supported by VPN services to ensure that data is secure while in transit. This advancement is enhancing the security and reliability of VPN solutions, prompting businesses to adopt more secure managed VPN services.
• Cloud Platform Integration: Integration of managed VPNs with cloud platforms such as AWS, Microsoft Azure, and Google Cloud is emerging as a major trend. These integrations provide businesses with the functionality to securely integrate their on-premises environment with cloud infrastructure. With its ability to establish seamless, secure communication between on-premise networks and cloud-based services, this trend is causing managed VPNs to be used by enterprises as a means of improving their hybrid IT environments.
• Growth of VPN Services for IoT Devices: As more IoT devices are connecting to enterprise networks, managed VPN providers are launching solutions tailored for securing IoT communication. VPN for IoT devices is assisting organizations to safeguard sensitive data from IoT security vulnerabilities and to provide secure device-to-device communication. This evolution is transforming the market by breaking down VPN services from conventional applications, solving the increasing security issues related to IoT networks.
Innovative developments such as the use of SD-WAN, integration with 5G, advanced encryption, integration with cloud platforms, and IoT VPN services are leading the managed VPN market. These developments are enabling companies to protect their networks, improve performance, and address increasing demand for scalable, secure, and reliable network solutions.
Strategic Growth Opportunities in the Managed VPN Market
The managed VPN market is expected to experience tremendous growth with growing demand for secure, efficient communication and network solutions. Remote work, cloud computing, and enterprise security are some of the sectors driving the growth. The following are five major growth opportunities in the managed VPN market based on different applications.
• Remote Workforce Solutions: With remote work on the rise, companies are making investments in managed VPN services to protect employee connections and maintain data privacy. VPN solutions providing secure, remote access to corporate networks are a must to support productivity while protecting sensitive information. This opportunity for growth is especially robust for industries like IT, finance, and healthcare where data security is paramount.
• Cloud Security: The growing use of cloud computing is a growth opportunity for the managed VPN market. As companies move to the cloud, they require secure solutions to safeguard their data and communications. Secure, cloud-integrated services from managed VPN providers are in high demand. Cloud security is an important part of the digital transformation process, offering companies secure connections to cloud platforms.
• Enterprise Networking Solutions: Enterprises are embracing managed VPN services to provide secure communication among branch offices, remote sites, and headquarters. Managed VPNs allow businesses to securely transfer sensitive data over global networks. This growth opportunity is fueled by the demand for hassle-free communication and data security, especially in multinational companies with complex network environments.
• Government and Public Sector: Governments are increasingly investing in secure communication networks to safeguard sensitive information and national security. Managed VPNs are being used by public sector entities to secure the data of citizens and protect secure communication links among government departments. This increased demand for government-level security solutions creates a tremendous growth opportunity in the managed VPN market.
• Small and Medium-sized Businesses: Managed VPN solutions are being adopted by small and medium-sized businesses to protect their networks at relatively low costs. As cyber-attacks become more common, SMBs are relying more on VPN providers that can deliver scalable, affordable solutions to secure their communications and data. The increasing demand from SMBs presents a great opportunity for managed VPN providers.
The managed VPN market provides strong growth prospects in numerous markets, such as remote work solutions, cloud security, enterprise networking, government services, and SMBs. These prospects are motivating the ongoing growth of the managed VPN market as governments and enterprises look for secure, scalable network solutions.
Managed VPN Market Driver and Challenges
The managed VPN industry is driven by numerous technological, economic, and regulatory forces. Knowing these drivers and challenges is essential for navigating the future of the market. Following are the main drivers and challenges affecting the managed VPN market.
The factors responsible for driving the managed VPN market include:
1. Increasing Cybersecurity Awareness: With cyberattacks becoming more intelligent, businesses and users are placing greater emphasis on security. Managed VPN provides a secure way of encrypting data and protecting communications, and this is fueling demand. This enhanced awareness regarding cybersecurity threats is one of the key drivers of the managed VPN market.
2. Remote Work Surge: The trend towards remote work, further fueled by the COVID-19 pandemic, has created a demand for secure, scalable VPN solutions. Managed VPN services play a vital role in ensuring secure access to corporate networks, enabling businesses globally to incorporate remote work into their operations. The trend will likely persist as companies adopt hybrid work styles.
3. Compliance with regulations: Strict data protection laws like GDPR, CCPA, and others are compelling organizations to implement VPN solutions to maintain compliance. Managed VPN services enable organizations to achieve the compliance requirements of these regulations through secure, encrypted communication pathways, further propelling the VPN service adoption.
4. Cloud Adoption and Digital Transformation: As companies move to cloud-based systems and digital infrastructures, there is a growing need for secure, managed VPN services. Cloud adoption raises the demand for secure communication among cloud applications, on-premise systems, and remote employees, making the demand for managed VPN services grow.
5. Technological Progress in VPN Solutions: Technological progress in VPN solutions, such as quicker encryption protocols, enhanced performance, and simplicity of integration, is leading companies to move towards managed VPN services. The providers are making constant improvements to their services based on the changing needs of clients, making the VPNs more efficient and affordable.
Challenges in the managed VPN market are:
1. High Initial Setup Charges: The initial setup charges for installing a managed VPN system, such as hardware, software, and installation, can be prohibitive to some organizations. Although long-term advantages are realized, the initial investment can make small and medium-sized enterprises shy away from VPN implementations.
2. Integration with Legacy Systems: Most organizations have legacy systems that are incompatible with contemporary VPN technologies. Integrating managed VPN services with legacy systems is a complicated and expensive process, which restricts adoption in some industries.
3. Cybersecurity Threats: Though managed VPNs offer secure connections, they are not entirely safe from cyber-attacks. Hackers can attack the vulnerabilities of VPNs, which can result in data breaches. This creates a major challenge for VPN providers to make their solutions secure and current.
Several drivers like the rising cybersecurity challenges, remote workforce practices, regulation demands, cloud transition, and advanced technologies affect the managed VPN industry. Challenge of high implementation fees, interfacing with aged equipment, as well as cyber-threats require that they must be overcome if expansion in the marketplace is to endure.
List of Managed VPN Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies managed VPN companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the managed VPN companies profiled in this report include-
• Orange Business Services
• AT&T
• Verizon Communication
• Cisco Systems
• BT Group
• Vodafone Group
• NTT Corporation
• CenturyLink
• Telefonica
• Tata Communications
Managed VPN Market by Segment
The study includes a forecast for the global managed VPN market by type, application, and region.
Managed VPN Market by Type [Value from 2019 to 2031]:
• Remote Access
• Site-to-site
Managed VPN Market by Application [Value from 2019 to 2031]:
• BFSI
• Healthcare
• IT & Media
• Transportation
• Manufacturing
• Energy
• Others
Managed VPN Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Managed VPN Market
The managed VPN market has witnessed rapid growth in the last few years as a result of the growing demand for secure and stable network connections across industries. The growth has been boosted by the adoption of remote working, cyber-attacks, and increasing demand for companies to protect their communication infrastructure. Markets such as the United States, China, Germany, India, and Japan have been at the forefront of adopting and evolving managed VPN solutions. These markets are experiencing innovations that improve security, scalability, and integration with cloud technologies, responding to the changing needs of global businesses and end-users.
• United States: The managed VPN market in the United States has experienced significant growth with the growing use of remote work and digital transformation. The need for secure, scalable, and dependable network links has led companies to implement VPNs for data protection and safe communication. The U.S. also boasts a high level of cloud adoption, with most VPN providers providing solutions integrated with cloud technologies. Regulation requirements for data privacy, including GDPR and CCPA, have also fueled demand for safe VPN services. The market is further driven by emerging cyber threats, which have pushed companies to heavily invest in managed VPN solutions.
• China: In China, the managed VPN market has been driven by a heightened emphasis on cybersecurity and ensuring secure cross-border communication. Given the countryÄX%$%Xs strict data protection regulations, businesses are embracing managed VPN services in order to achieve secure data transmission between China and other areas. The government in China has also focused on ensuring safe communication by businesses, particularly the tech and manufacturing industries. Yet, regulatory frameworks can prove tricky, since China exercises rigorous control over VPN usage, forcing some firms to turn to domestic service providers in a bid to be compliant with domestic laws but at the same time maintain data security and confidentiality.
• Germany: GermanyÄX%$%Xs managed VPN market has increased with the nationÄX%$%Xs high preference for keeping data private and secure, particularly under rules such as the GDPR. With more and more businesses going digital, secure remote access has become a more important aspect of business operations. The nationÄX%$%Xs high-level cybersecurity framework has compelled most firms to move towards managed VPN solutions that guarantee adherence to tight regulations. VPN service providers in Germany are now increasingly providing services with robust encryption, secure tunneling, and built-in cloud services, making the market more attractive to businesses of all sizes. Furthermore, GermanyÄX%$%Xs increasing need for digitalization and Industry 4.0 solutions is fueling the use of managed VPN services in the manufacturing industry.
• India: IndiaÄX%$%Xs managed VPN market is growing very fast with the growing demand for cloud-based solutions and the necessity for secure digital communication. Enterprises, particularly in industries such as IT, telecom, and finance, are adopting VPNs to protect confidential data and provide secure remote access for employees. With an increase in cyberattacks, the Indian market is witnessing a surge in providers providing cost-effective and scalable managed VPN solutions. The development of digital infrastructure, coupled with the governmentÄX%$%Xs efforts towards digital India initiatives, is also driving the demand for secure network connectivity. The increasing e-commerce and online services are also driving VPN adoption.
• Japan: In Japan, the managed VPN market is led by the requirement for quality security solutions within public and private domains. With more and more businesses embracing cloud computing and IoT devices, VPNs are being utilized to provide secure data transfer and avoid cyberattacks. JapanÄX%$%Xs stringent data protection regulations and focus on cybersecurity have resulted in increased demand for managed VPN services. The use of VPNs with emerging technologies such as AI and machine learning is also becoming popular, as companies seek smart, automated security solutions. In addition, the technological expertise in robotics and automation in Japan serves to drive increased demand for safe networks.
Features of the Global Managed VPN Market
Market Size Estimates: Managed VPN market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Managed VPN market size by type, application, and region in terms of value ($B).
Regional Analysis: Managed VPN market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the managed VPN market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the managed VPN market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for managed VPN market?
Answer: The global managed VPN market is expected to grow with a CAGR of 14.5% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the managed VPN market?
Answer: The major drivers for this market are the increasing demand for secure communication, the rising adoption of remote work, and the growing need for network privacy.
Q3. What are the major segments for managed VPN market?
Answer: The future of the managed VPN market looks promising with opportunities in the BFSI, healthcare, IT & media, transportation, manufacturing, and energy markets.
Q4. Who are the key managed VPN market companies?
Answer: Some of the key managed VPN companies are as follows:
• Orange Business Services
• AT&T
• Verizon Communication
• Cisco Systems
• BT Group
• Vodafone Group
• NTT Corporation
• CenturyLink
• Telefonica
• Tata Communications
Q5. Which managed VPN market segment will be the largest in future?
Answer: Lucintel forecasts that, within the type category, remote access is expected to witness higher growth over the forecast period.
Q6. In managed VPN market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the managed VPN market by type (remote access and site-to-site), application (BFSI, healthcare, IT & media, transportation, manufacturing, energy, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Managed VPN Market, Managed VPN Market Size, Managed VPN Market Growth, Managed VPN Market Analysis, Managed VPN Market Report, Managed VPN Market Share, Managed VPN Market Trends, Managed VPN Market Forecast, Managed VPN Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.