The global mobile virtual private network (VPN) market is expected to reach $1,560.7 million by 2023. The rising threats to cyber security, growing demand for remote accessibility of data in business organizations, and increasing organizational need for secure wireless accessibility to critical applications are the key factors driving the growth of the market.
Insights on market segments
On basis of end user, the healthcare category is projected to witness the fastest growth in the mobile VPN market during the 2018–2023. Physicians, field workers, and medical staff are increasingly adopting these solutions to access confidential medical records and other healthcare applications through wireless networks. On the basis of distribution channel, the online distribution channel is expected to witness the highest CAGR during the forecast period.
Asia-Pacific (APAC) is predicted to be the fastest growing mobile VPN market
Geographically, APAC is expected to witness the fastest growth in the market during the forecast period. This can be attributed to the increasing use of mobile devices in the region, primarily in China and India. In addition, the increasing internet penetration, stringent regulatory norms, significant economic growth, and rapid industrialization are also fueling the growth of the mobile VPN market in the region.
Growingneed for remote accessibility in organizations accelerates the global market growth
Remote accessibility introduces working flexibility for workers in an organization and can prove to be a significant factor in empowering communication and productivity. Organizations these days require a simplified and centrally managed remote office, which enables them to provide a reliable and secure access to data at a lower cost to their employees, which in turn, drives the mobile VPN market. Mobile VPN extends the VPN concept to employees, who, instead of laptops, now carry pocket-sized devices. These devices combine a cellular phone with a small computer that support common office applications, such as e-mail, word processing, and presentations.
Premium pricing of mobile VPN is restraining the growth of the market
The pricing of mobile VPN differs from traditional internet protocol security (IPSec) vendors, who charge for the number of deployed users, while mobile VPN vendors have a variety of sales models. The revenue generated from different models may vary in terms of the price charged from a user. Mobile VPN pricing depends on the featured set or solution and the contract size. The pricing can sometimes also vary depending on the service or the maintenance model the client chooses. Due to the varying models and premium pricing of mobile VPN, the demand from users is somewhat limited, thereby hampering the growth of the mobile VPN market.
Rising demand from the utility sector is offering immense growth opportunities to the market players
Utility companies require mobile technology, which enables field crews to access mission-critical information about the jobs assigned to them. Mobile VPN offers a secure access to reports and retrieves real-time customer data, such as that related to service interruptions and power outages, which help utilities companies to offer a secure and continuous transmission of data to the company without any interruptions.
Mobile VPN market competitiveness
The global mobile VPN market is fragmented in nature with the presence of a large number of players. Several major market players are focusing on mergers & acquisitions, partnerships, and service launches to expand their market foothold. For instance, in November 2017, Cisco Systems Inc. completed the acquisition of Perspica Inc., a machine learning and data processing technology company. This acquisition offers Cisco access to the machine learning and data processing expertise of Perspica Inc.
Moreover, in September 2017, Cisco Systems Inc. acquired SpringPath Inc., a Sunnyvale-based company dealing in hyperconvergence software, for $320 million in cash and assumed equity awards, plus additional retention-based incentives. This acquisition helps Cisco deliver next-generation data center innovations to its customers. Some of the other players operating in the mobile VPN market are Radio IP Software Inc., Netmotion Software Inc., Check Point Software Technologies Limited, Smith Micro Software Inc., IBM Corporation, Columbitech, Techstep Technology, Anthasoft S.A. De C.V., and TheGreenBow.
Global Mobile VPN Market Segmentation
Market Segmentation by End User
Market Segmentation by Distribution Channel
Market Segmentation by Geography