Mobile Virtual Private Network (VPN) Market by End User (Telecommunications, Government, Healthcare, Financial, Military, Utilities, Mining, Oil & Gas), by Distribution Channel (Partners & Distributors, VARs, Direct Sales, Online), by Geography (U.S., Canada, Germany, France, U.K., China, Japan, India, Brazil) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

Mobile VPN Market Overview

The global mobile VPN market was valued $525.4 million in 2017 and is forecasted to witness a CAGR of 19.7% during 2018–2023. Growing organizational need for secure wireless accessibility to critical applications, surge in cyber threats, and growing demand for remote accessibility of data in business organizations are the key growth drivers for the market.

 

ASIA-PACIFIC MOBILE VPN MARKET, BY COUNTRY, $M (2013-2023)

On the basis of end user, the mobile VPN market is categorized into telecommunications, government, healthcare, utilities, financial, oil & gas, mining, military, and others, where “others” include retail, transportation, media, hospitality, and manufacturing. Of these, telecommunications accounted for over 25% revenue share in the market in 2017. This can be attributed to increased smartphone penetration, which led to the need for secure transmission of business-critical information in mobile devices.

Based on distribution channel, the mobile VPN market is classified into partners and distributors, value-added resellers (VARs), direct sales, and online. Of these, partners and distributors contributed more than 40% share to the market in 2017. The category is also projected to be the largest revenue generator in the market during the forecast period.

Globally, North America held the largest share in the mobile VPN market in 2017. It is also expected to contribute the highest revenue to the market during the forecast period. Among the end users, telecommunications generated the highest revenue in the North American market in 2017, owing to the increased adoption of mobile devices in the region.

During the forecast period, the mobile VPN market is projected to witness the fastest growth in APAC, at a CAGR of over 30%. The increasing demand for the network in the region can be mainly attributed to its strong encryption algorithms with long key strength support that help protect data confidentiality during data transmission, which is crucial for public and private enterprises.

Mobile VPN Market Dynamics

Trend

Growing application of mobile virtual private network for security purposes is the key trend observed in the mobile VPN market. This can be attributed to the increasing demand for smart devices, such as smartphones, laptops, and tablets, and growing focus of enterprises on mobility and mobile security solutions. Mobile VPN creates a reliable and continuous user experience when devices switch networks and move out of coverage. Thus, vendors are aggressively investing in and working toward building cost-effective mobile security solutions. This helps end users to reduce their overall cost incurred due to mobile security solutions. Increase in investment by vendors in mobile security solutions is leading to increased demand for mobile security products and services.

Drivers

Key factors driving the growth of the mobile VPN market are the growing need for remote accessibility in organizations and the increasing number of cyber threats. Organizations, nowadays, prefer having a simple and centrally managed setup that enables them to provide secure data access to their employees at low cost. To cut down operating costs and maintain a local presence, organizations are employing people who can work remotely, with easy access to business-critical applications. Hence, mobile VPN is a great solution for such organizations where employees need to access the organizational network from outside, using wireless devices.

The growth of an organization also elevates the chances of mobile device theft and loss, cyberattacks, and data breach. With increasing cases of cyberattacks, data security has become a major concern for organizations. Thus, the demand for the network is increasing, which, in turn, is driving the growth of the market.

Restraint

High price of mobile virtual private network is a key factor impeding the growth of the mobile VPN market. The price of mobile VPN differs in the case of traditional vendors, who charge for the number of deployed users. Besides, pricing depends on the featured set or solution, the contract size, and the service or the maintenance model the client chooses. The varying models and premium pricing of mobile VPN can hamper market growth.

Opportunity

The increasing use of mobile devices in organizations are creating growth opportunities for the players in the mobile VPN market. It has been observed that the banking, financial services, and insurance (BFSI) sector spends a major portion of its revenue in the adoption of mobile security products and services. Besides, banks are focusing on securing customers’ account credentials in addition to safeguarding payment gateways.

The healthcare sector is another major end user of the network, as field workers, physicians, and medical staff require access to confidential medical records and other healthcare applications through wireless networks. Thus, the growing need for data protection in organizations is expected to create growth opportunities for the players in the mobile VPN market.

Mobile VPN Market Competitive Landscape

To stay ahead of the competition, players in the mobile VPN industry are developing transparent, flexible, and robust mobile VPNs for enhanced user experience. Some of the key players operating in the global mobile VPN market are Netmotion Software, Inc., Radio IP Software Inc., Smith Micro Software Inc., Cisco Systems Inc., IBM Corporation, Columbitech, Techstep Technology, Check Point Software Technologies Limited, Anthasoft S.A. De C.V., and TheGreenBow.