The VPN Software Market is estimated to be valued at USD 2.2 billion in 2025 and is projected to reach USD 8.3 billion by 2035, registering a compound annual growth rate (CAGR) of 14.1% over the forecast period.
| Metric | Value |
|---|---|
| VPN Software Market Estimated Value in (2025 E) | USD 2.2 billion |
| VPN Software Market Forecast Value in (2035 F) | USD 8.3 billion |
| Forecast CAGR (2025 to 2035) | 14.1% |
The VPN software market is expanding steadily as enterprises and consumers prioritize data privacy, secure connectivity, and regulatory compliance in an increasingly digital economy. Rising cyber threats, remote work adoption, and stringent data protection laws are reinforcing demand for secure communication solutions across multiple geographies.
Organizations are investing in advanced VPN technologies that integrate multi-factor authentication, zero trust frameworks, and cloud-native architectures to ensure seamless yet secure access. Meanwhile, consumer adoption has accelerated due to heightened awareness of digital surveillance and the need to safeguard personal data on public networks.
The market outlook remains positive, supported by technological innovation, subscription-based service models, and continued focus on ensuring confidentiality, anonymity, and compliance in digital interactions.
The on-premise VPN software segment is projected to hold 54.20% of the market revenue by 2025, making it the leading deployment mode. This dominance is supported by organizations’ preference for direct control over infrastructure, data handling, and security configurations.
High-security industries such as finance, government, and healthcare have reinforced adoption due to compliance requirements and risk mitigation needs. The on-premise model enables customization, advanced monitoring, and alignment with legacy systems, which appeals to enterprises with strict governance policies.
Despite the rise of cloud-based alternatives, reliance on on-premise VPN solutions remains strong among businesses prioritizing data sovereignty, resulting in its leadership within the deployment mode category.
The small and medium-sized enterprises segment is expected to contribute 47.60% of the overall revenue by 2025 within the enterprise size category, establishing it as the dominant segment. Growth has been fueled by the rapid digitalization of SMEs, increased adoption of remote work models, and heightened vulnerability to cyberattacks.
Cost-effective VPN solutions offering scalability and subscription flexibility have further supported uptake among SMEs with limited IT budgets. Vendors are increasingly targeting this segment with easy-to-deploy solutions that minimize technical barriers while delivering enterprise-grade security.
As digital transformation accelerates in the SME sector, the demand for VPN software continues to surge, securing its stronghold as the leading enterprise size segment.
The consumer segment is anticipated to hold 42.80% of total market revenue by 2025, positioning it as the leading application category. Growth is being driven by rising concerns over online privacy, identity theft, and data protection in personal digital usage.
The increase in remote entertainment consumption, cross-border content access, and reliance on public Wi-Fi has further elevated adoption rates. Subscription-based consumer VPN services offering multi-device compatibility and user-friendly interfaces have broadened appeal across demographics.
With growing public awareness of surveillance risks and cybercrime, consumers are actively integrating VPN software into their daily digital routines, thereby reinforcing the dominance of this application segment.
Virtual Private Networks (VPNs) are software and services used to attain security and confidentiality for data in motion by means of encryption and access controls. A remote-access VPN secures connections for remote users, such as mobile users or telecommuters, to corporate LANs over shared service provider networks.
Sales of VPN software are projected to grow at a 14.1% CAGR between 2025 and 2035, in comparison with the 11.8% CAGR registered during 2020 to 2025.
VPN software providers use corporate VPNs to provide secure, encrypted, and remote access to the company's internal network available for employees. Employees can use the corporate network to access apps, files, printers, and other business resources at the workplace.
The demand for cloud-based VPN software is increasing among enterprises across various industries to provide remote-access VPN. The growing need to help users access their organization's applications, migrate access to cloud providers, reduce third-party dependencies, improve security resources, and reduce latency issues will continue driving sales of cloud-based VPN.
Further, increasing implementation of cloud-based VPN software in the government, banking, financial services, and insurance (BFSI), and IT & telecom industries is boosting VPN software sales across the globe.
Cloud-based VPN software offers various benefits such as a secure internet network, preventing data throttling, hiding private information, avoiding bandwidth throttling, improved efficiency, and network scalability. Surging adoption of cloud-based VPN for improving network security and enabling network encryption will continue augmenting the growth in the market.
Growing Demand for Secure Internet Network in the USA is Fueling Sales of VPN Software
As per FMI, the total demand for VPN software in the USA is expected to account for over 80.3% of the North American market share through 2035. VPN software providers in the USA are utilizing VPN services for various applications such as consumer, commercial, and other services.
Increasing demand for secure Internet network connections across the country is creating opportunities for growth in the VPN software market. It offers different features such as plentiful server locations, integrated kill switch, anonymous DNS servers, support for OpenVPN, and router support at lower prices. The reliability of such features is expected to boost sales of VPN software in the USA
Growing Trend of Remote Work in Japan is Boosting VPN Software Sales
Demand for VPN software in Japan is expected to rise at an impressive 18.0% CAGR over the forecast period. The rising incidence of cyber-attacks and the growing adoption of cloud-based VPN software is expected to boost the market in the forthcoming years.
Moreover, VPN software can be utilized for unblocking websites, local blackouts, bypassing restrictions, and streaming live events. In such ways, VPN software improves network security and scalability.
The existence of many organizations with innovative and progressive IT network infrastructure, developments in new technologies, and increased acceptance of Software-as-a-service (SaaS) and Platform-as-a-service (PaaS) platforms are all driving demand for cloud computing technology.
Cloud computing simplifies IT management while also providing enhanced security solutions. Increasing adoption of cloud computing applications will fuel sales.
Growing Concerns Regarding Cyber Security are Spurring Demand for VPN Software
Sales of VPN software in India are expected to grow at a prolific 21.4% CAGR between 2025 and 2035. The increasing need secure remote access, the development of a remote work security policy, and the rising demand for cloud communication solutions are spurring demand in the market.
In the past few years, the trend of digitizing workspaces has fueled demand for remote solutions in enterprises, which further is creating opportunities for growth in the VPN software market. VPN software suppliers in India are offering cloud-based VPN for remote access. Such developments are expected to bode well for the market in the forthcoming years.
Demand for Cloud-based VPN Software to Remain High
By deployment mode, the cloud-based VPN software segment is set to expand at a CAGR of 15.5% from 2025 to 2035. Cloud VPN allows businesses to move their VPN hosting to the cloud in order to increase access to their existing cloud services.
Enterprises have started adopting and deploying cloud-based applications to deliver better experiences and improve productivity, mobility applications, and remote access. Due to this factor, many countries around the globe are moving toward the deployment of VPN software, which is expected to drive sales in this segment.
Adoption of VPN Software in Small and Mid-Size Enterprises Will Gain Momentum
In terms of enterprise size, the small and medium-sized enterprises (SMEs) segment is forecast to expand at a CAGR of 16.3% over the forecast period.
Moreover, VPN software solutions are supreme for SMEs businesses for connecting remote offices and workers to a company network at a low cost without compromising security. SMEs are rapidly adopting VPN software to find better ways to innovate their business and gain a competitive advantage.
As per FMI, the commercial application segment is expected to account for 42% of the total market share by 2035. VPNs can securely connect a user to an organizational internal network or to the public internet. There are two types of VPN connectivity that are used in commercial applications such as remote access VPNs and site-to-site VPNs.
Growing demand for remote access VPN across various organizations worldwide will continue pushing sales in this segment over the assessment period.
Applications of VPN Software in IT and BFSI Sectors Will Gain Traction
Based on industry, the market is segmented as IT & telecom, retail, government, healthcare, BFSI, manufacturing, and others.
Sales in the BFSI segment are projected to increase at a CAGR of 18.1% during the forecast period. However, the IT and telecom industry segment accounted for the largest market share of 21.9% in 2025.
IT and telecommunication and BFSI sectors are the largest adopters of cloud-based VPN technology currently. VPN software helps the BFSI industry in running various kinds of applications more efficiently on a rationally private and secure network. It is also easy to manage high uptime for different businesses in the banking, financial, and risk management industry.
The VPN software providers are improving their existing products and are launching new products for existing as well as new markets. This strategy helps the company diversify its product offerings and enhance its customer base & user experience.
For instance:
| Attributes | Details |
|---|---|
| Forecast Period | 2025 to 2035 |
| Historical Data Available for | 2020 to 2025 |
| Market Analysis | USD Billion for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; Middle East & Africa |
| Key Countries Covered | The USA, Canada, Brazil, Mexico, Germany, the United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, Malaysia, Indonesia, Singapore, Australia & New Zealand, GCC Countries, Turkey, North Africa, and South Africa |
| Key Segments Covered | Deployment Mode, Enterprise Size, Application, Industry, and Region |
| Key Companies Profiled |
Cisco Systems, Inc.; GZ Systems Ltd.; Nord Security; CactusVPN; NCP Engineering GmbH; Netgear Inc.; Huawei Technologies Co., Ltd.; Array Networks, Inc.; Microsoft Corporation; Virtela; Robustel; Singtel; Oracle Corporation; Contemporary Controls; Sophos |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The global vpn software market is estimated to be valued at USD 2.2 billion in 2025.
The market size for the vpn software market is projected to reach USD 8.3 billion by 2035.
The vpn software market is expected to grow at a 14.1% CAGR between 2025 and 2035.
The key product types in vpn software market are on-premise vpn software and cloud-based vpn software.
In terms of enterprise size, small and medium-sized enterprises (smes) segment to command 47.6% share in the vpn software market in 2025.
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