Mobile Virtual Private Network (VPN) Market Analysis, Growth Opportunities
Posted by Devanshu Shrivastava on February 12th, 2020
Organizations’ increasing demand for protected wireless accessibility for critical application areas, surging prevalence of cyber threats, and growing need for remote data accessibility in businesses are strengthening the prospects for the mobile virtual private network market. In the year 2017, the market attained a size of 5.4 million, and it is predicted to register a CAGR of 19.7% during the forecast period (2018–2023). Mobile VPN creates a private network around the public network and helps users send and receive data securely and secretly from smartphones and PC to and from a network.
Based on end user, the mobile VPN market is classified into healthcare, utilities, telecommunications, oil and gas, government, financial, mining, and military. In 2017, among these, the telecommunications classification held more than 25.0% revenue share in the market and is predicted to maintain its lead during the forecast period. This can be ascribed to the surging smartphone penetration, which is escalating the demand for secure transmission of data to and from mobile devices. However, the demand for mobile VPN is predicted to witness highest CAGR in the healthcare sector.
Field workers, physicians, and the medical staff are rapidly adopting these solutions to access sensitive medical records and healthcare applications via wireless networks. On the basis of distribution channel, the mobile VPN market is categorized into direct sales, value-added resellers, partners and distributors, and online. Out of these, in 2017, the partners and distributors category contributed over 40.0% revenue to the market. The category is also predicted to dominate the market during the forecast period, as they offer better on-premises services compared to other suppliers.
Geographically, in 2017, North America contributed the largest revenue to the mobile VPN market, and it is also anticipated to continue leading it during the forecast period. Within the continent, in 2017, the telecommunications sector registered the dominating revenue share in the North American market, due to the significant adoption of mobile devices here. However, the Asia-Pacific region is predicted to witness the highest CAGR, of more than 30.0%, in the market during the forecast period.
This is mainly attributed to the strong encryption algorithms of VPN with long-key strengths that help in securing confidential data at the time of transmission, which is critical for private and public enterprises. Nowadays, organizations prefer using centrally managed remote offices that help them provide a secure access to confidential data to their workforce at a low cost. Further, to reduce operational costs and maintain a local presence, enterprises are providing remote access to business-critical applications so that their employees can work from anywhere. Hence, mobile VPN is a vital solution for such enterprises, where employees have to access the company’s network via wireless devices.
Hence, the increasing adoption of mobile VPN in various industries is expected to boost the growth potential for the market.
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About the AuthorDevanshu Shrivastava
Joined: January 31st, 2020
Articles Posted: 105
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