Asia Pacific VPN Market size exceeded USD 7 billion in 2020 and is poised to expand at a CAGR of 15% between 2021 and 2027. The development of innovative VPN services by SMEs will boost the market expansion.
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Increasing smart phones users and the adoption of cloud services are fueling the Asia Pacific VPN market growth. The people in Asia pacific countries such as India, China, Japan are spending larger portion of their income in mobile phone devices and in network connectivity. Moreover, growing demand for cloud computing technology across the globe is providing significant growth opportunity to the market. The government of various countries such as India is embracing cloud computing technology through its e-governance initiative. The main aim of e-governance initiative is to reduce corruption and avail government scheme to the people of rural areas.
Asia Pacific Market, By Component
The hardware segment dominated over 40% Asia Pacific VPN market share in 2020, owing to growing requirement for security and improved functionality and increasing concern for data protection. Hardware VPN provide smooth remote access for the employees working virtually. The major players of market working on developing more advanced and integrated VPN router solutions.
Asia Pacific Market, By Type
The MPLS segment accounted a market share of more than 35% in 2020, due to growing internet traffic and surging demand for cloud services. Business enterprises across the verticals are adopting MPLS VPN due to it provides high quality of services (QoS), VoIP services and video conferencing facilities. The growing internet traffic is increasing the demand for advanced capacity enabled VPN solution. MPLS VPN services help in reducing the internet traffic, controlling security risk and offer scalable bandwidth.
Asia Pacific Market, By Connectivity
The site-to-site connectivity segment acquired around 40% market share in 2020, driven by government initiative to develop robust security solution. The growing instance of cyber-attacks has led the government to launch initiative to increase threat prevention and minimize threat surface. Moreover, the growing enterprise mobility has also increased the demand for VPN solutions. Employees of various organizations are demanding remote access, which is up lifting the trend of BYOD solutions.
Asia Pacific Market, By Country
China VPN market size is anticipated to cross USD 10 billion by 2027, attributed to digitalization activities in the region and the rapid adoption of the cloud & digital mobility solutions among SMEs. Moreover, the government agencies in the country are playing a critical role in safeguarding the network infrastructure by forming various cybersecurity policies and programs. During pandemic Chinese government has restricted VPN usage due to increasing instances of cyberattacks.
Asia Pacific Market, By Application
The BFSI application segment held 30% market share in 2020, led by growing technological development such as IoT, AI, cloud, 5G technology across fintech industry. Banks and other financial institutions are increasingly using wireless technology solution for measuring network traffic and determining optimal location of the branches, which has increased the demand for secure VPN solution. Moreover, growing instances of cyber threats in the sector is impelling the growth of the market. In Asia Pacific region, banks and other organizations has suffered from financial loss due to rising ransomware cases in all over the region during pandemic.
Competitive Industry Landscape
Major participants involved in the Asia Pacific VPN market are Array Networks, Barracuda Networks, Cato Networks, Check Point Software Technologies, Cisco Systems, Citrix Systems, Express VPN, F5 Networks, Microsoft Corporation, Nord VPN, QNO Technologies and Symantec Corporation.