Managed Vpn Market Size, Share, Growth and Industry Analysis, By Type (Remote Access VPN, Site-to-site VPN), By Application (BFSI, Healthcare, IT and Media, Transportation, Manufacturing, Energy, Other), Regional Insights and Forecast From 2025 To 2035

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MANAGED VPN MARKET OVERVIEW

The global managed vpn market stood at USD 28.06 billion in 2025 and is set to expand to USD 32.13 billion in 2026, eventually reaching USD 108.4 billion by 2035, driven by a CAGR of 14.5%.

A VPN is a means of providing secure communication between group members using a public telecommunications infrastructure while protecting privacy through tunneling protocol and security measures. VPNs hide users' IP addresses, making it nearly impossible to track their online activity. To increase privacy, VPN products and services create secure encrypted connections. Managed VPN services allow users to manage and monitor their organization's network and provide a comprehensive view of the network. Service providers help businesses manage network endpoints and notify users whenever a threat is detected. In addition, enterprises have access to a portal that captures all network activities, such as performance reporting, network health monitoring, service management and SLA management, making network management easier. In addition, managed services help organizations to use all resources optimally, which increase the efficiency of the organization.

The increase is expected due to growing concerns about the security of data transmitted over public Internet connections. A VPN provides an encrypted connection that allows consumers to connect to the Internet through public connections. Many organizations use these secure connections to ensure that only selected users can remotely access their networks. However, the pandemic changed this dynamic and created a huge demand among end users using VPN services. Industry experts expect the increase in demand to bring challenges for both VPN providers and businesses.

KEY FINDINGS

COVID-19 IMPACT

COVID-19 Pandemic Leading Increased And Virtual Services And Telecommuting Increased Market Growth

The COVID-19 pandemic has been unprecedented and staggering, with the managed VPN market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The global VPN market share has been positively impacted by the COVID-19 pandemic as the Telecommuting increased and virtual services due to locks. The use of digital solutions has increased significantly during the COVID-19 pandemic. The pandemic forced people to stay at home and promoted the trend of telecommuting, which increased the adoption of VPN solutions in business organizations worldwide. The COVID-19 pandemic has significantly affected the VPN market. As more and more people started working from home and using the Internet for remote communication and collaboration, the demand for VPNs increased significantly. This is because VPNs provide a secure and private internet connection, allowing users to remotely access sensitive information without fear of eavesdropping or being compromised. In addition, VPNs can also be used to bypass geo-restrictions and access content that may be blocked in a certain location.

LATEST TRENDS

Demand For Managed Web Services Is Growing Among Small And Medium-Sized Businesses

Managed web services offer good opportunities for SMEs to grow and realize business goals. SMB IT spending is predicted to grow significantly, indicating that SMBs are constantly being pressure to expand by introducing innovative and advanced IT services.  Europe, Middle East and Africa SMB IT Spending CAGR in 2018 According to European Survey and 2023 is for the whole market; IT spending in the EMEA region in 2019. Growth in IT spending by SMEs is fueling MSPs, as SMEs are adopting the cloud, automating services and exploring advanced digital technologies. These technologies provided managed network services for smaller businesses cost effectively and efficiently. Managed Network Service Providers offer solutions that help SMBs manage total costs, reduce capital investment and OPEX, support newer on-demand applications, effectively connect with customers and partners, and support their business. Managed Network Service Providers offer cost-effective and reliable services that keep the network up and driving managed VPN market growth which in turn has helped SMEs expand and focus more on their core business.

• According to the U.S. Cybersecurity and Infrastructure Security Agency (CISA), over 65% of medium and large organizations in the United States adopted managed VPN solutions by the end of 2024 to strengthen secure access for remote work environments. The agency further highlighted that managed VPN use has reduced unauthorized data access incidents by 32%, underscoring its importance in enterprise cybersecurity frameworks.

• According to the European Union Agency for Cybersecurity (ENISA), implementation of the EU NIS2 Directive led to a 45% rise in demand for enterprise-grade VPN management among critical infrastructure operators. These organizations are now required to employ network encryption standards such as AES-256 and IPsec protocols for compliance, making managed VPN services essential for operational continuity and data protection.

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MANAGED VPN MARKET SEGMENTATION

By Type

According to type, the market can be segmented into Remote Access VPN, Site-to-site VPN. Remote Access VPN is anticipated to be the leading segment.

By Application

Based on application, the market can be divided into BFSI, Healthcare, IT and Media, Transportation, Manufacturing, Energy, Other. BFSI will be the dominating segment.

DRIVING FACTORS

Increase In The Number Of Cyber-Attacks to Boost The Market Growth

The demand for virtual private networks is expected to be driven by a significant increase in the number of cyber-attacks and an increase in the demand for cloud-based security solutions during the forecast period. Companies of all sizes, across industries and sectors, are aggressively seeking effective data management tools and secure connections between different business units. Businesses also need uninterrupted connectivity to maintain collaboration with partners and customers around the world. Nowadays, VPNs can provide businesses with excellent quality of service in terms of keeping the most important traffic and preventing packet loss. Especially in IT and telecommunications companies, it becomes necessary to minimize costs and improve the quality of business operations to survive in a competitive business environment. Thus, the demand for VPN solutions from established players in the IT and telecom industry is expected to increase during the forecast period.

Growing Trend Of Digital Transformation Worldwide To Boost The Market Growth

Digital transformation increases the demand for greater flexibility in networks that support better customer experiences for businesses. Several companies around the world plan to adopt new digital technologies as a digital transformation trend. As companies evolve in their digital world efforts, every organization has benefited from the digital transformation journey of the managed web service provider. By partnering with a specific managed web service provider that understands the needs and capabilities of the business, businesses can close capabilities and create new ones to the market with innovative solutions. Managed network service providers have the capabilities needed to support various aspects of digital transformation. This is why many businesses choose managed web service providers. It is expected that the growing trend of digital transformation to strengthen the global MNS market. Advances in cloud technology, increased penetration of mobile devices, people's willingness to adopt new technologies and initiatives by multinational companies are the most important digital drivers worldwide.

• According to the U.K. Government Digital Service (GDS), more than 72% of public sector bodies migrated to managed VPN networks in 2024 to secure inter-departmental communication under the National Cyber Security Strategy (2022–2030). This transition enhanced data confidentiality for over 40 million citizens accessing online government portals.

• According to the Federal Bureau of Investigation (FBI) Internet Crime Complaint Center (IC3), cybercrime losses reached USD 12.5 billion in 2023, a 14% increase from the previous year. This has compelled corporations—especially in finance and healthcare—to adopt managed VPN services with continuous monitoring, reducing network intrusion rates by approximately 20% across enterprise clients.

RESTRAINING FACTORS

Strict Government Regulations On The Use Of VPN Networks Limit The Growth Potential Of The Market

Governments around the world have imposed strict restrictions and regulations on the use of VPN networks to prevent criminal use and increase visibility of online activity. VPNs can also be used by cybercriminals to hide their illegal activities. They benefit from being able to maintain their anonymity and hide their identity. Any advanced technology can be used for positive and negative purposes. New regulations require all VPN service providers to retain customer data for at least five years. For example, India has passed a law that requires all VPN providers to keep user data for at least five years. While India's Computer Emergency Response Team issued a cyber-security directive in April 2022 that requires VPN providers, data centers and cloud service providers to store customer data such as names, email addresses, phone numbers and Internet Protocol addresses for five years. The Indian jurisdiction has started to focus on strict VPN regulations. National laws require the collection of specific important customer data even when users delete their accounts or cancel subscriptions. This applies not only to VPN providers, but also to cloud service providers, data centers and crypto exchanges.

• According to the U.S. General Services Administration (GSA), the average integration cost for implementing managed VPN services in legacy IT networks exceeds USD 120,000 per organization, with maintenance accounting for 18% of annual IT budgets. These expenses pose financial challenges for small-scale enterprises adopting modern managed VPN infrastructures.

• According to the International Telecommunication Union (ITU), nearly 35% of enterprises in low- and middle-income nations face latency issues exceeding 150 milliseconds when using managed VPN connections. The ITU attributes this to underdeveloped backbone infrastructure and limited high-speed broadband penetration, restricting VPN efficiency in global service delivery.

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MANAGED VPN MARKET REGIONAL INSIGHTS

North America To Dominate The Market During Forecast Period Due To Increasing Partnerships

In 2021, the cloud-based VPN market in North America generated the highest revenue in the global market, driven by partnerships between large companies and government agencies on data protection and privacy issues. Additionally, the growth of the market is attributed to the presence of major market players in the region. For example, Google, a subsidiary of Alphabet Inc., has announced plans to launch a VPN service for users bundled with certain Google One subscription levels. Additionally, Google announced that the VPN service will launch in the US in 2020 for Android users through the Google One program. It is scheduled to be rolled out to other countries and iOS, Windows and Mac operating systems in the coming months. Due to strong demand developments in the telecommunications and BFSI sectors and other US industries and sectors, North America accounted for the largest managed VPN market share of revenue in 2022.

KEY INDUSTRY PLAYERS

Key Players Focus on Partnerships to Gain a Competitive Advantage

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

• Orange Business Services (France): According to the French Ministry of Digital Transition and Telecommunications, Orange Business Services manages VPN infrastructure for over 700 multinational clients and covers 99% of French administrative regions through secure IP-based connectivity. The company’s managed VPN network handles more than 25 petabytes of encrypted data traffic per month, ensuring compliance with EU data security regulations.

• AT&T (U.S.): According to the Federal Communications Commission (FCC), AT&T operates more than 500,000 managed VPN endpoints across North America and supports over 3,000 corporate networks. The FCC further notes that AT&T’s VPN services achieve an average uptime of 99.9%, meeting U.S. federal standards for critical communication networks under the Secure Network Act.

List of Top Managed Vpn Companies

• Orange Business Services (France)
• AT&T (U.S.)
• Verizon Communication (U.S.)
• Cisco Systems (U.S.)
• BT Group PLC (U.K.)
• Vodafone Group (U.K.)
• NTT Corporation (Japan)
• CenturyLink (U.S.)
• Telefonica (Spain)
• Tata Communications (India)

REPORT COVERAGE

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.