Managed Vpn Market Drivers, End User, Top Key Players, Challenges by 2032

Persistence Market Research (PMR) has published a new report on the managed VPN market titled “Managed VPN Market: Global Industry Analysis 2013-2017 and Forecast 2018-2026.” The number of worldwide Internet users is increasing due to the decreasing prices of Internet services. This rise in the number of users has resulted in an increase in cyber threats such as security breaches, data loss, and data phishing. In order to prevent such threats, organizations are employing managed services such as managed VPNs for monitoring and managing their communication networks.

Companies operating in the global market for managed VPN services are focusing on expanding their services and developing new concepts in order to capture a wider customer base. For instance, in September 2016, AT&T Inc. started providing dynamic traffic management by using 4G LTE Quality of Service (QoS). Through this solution, customers will be able to prioritize their critical business applications with simplicity. Customers will be able to monitor and maintain Class of Service (CoS) from an AT&T Virtual Private Network through the AT&T 4G LTE[1] network in order to avoid workflow latency. This new solution will save enterprises from mobile traffic congestion whenever they connect to a network. The other leading companies operating in the market are Cisco Systems, Inc., BT Group PLC, CenturyLink, Inc., Vodafone Group Plc., and Verizon Communications Inc., among others.

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According to the report, the global managed VPN market is expected to grow at a CAGR of 13.3% from 2018 to 2026. The market was worth US$ 10,300 Mn in 2017 and is projected to reach a valuation of US$ 31,747 Mn by the end of 2026.

Business Expansion to Act in Favor of Market Revenue Growth

Business expansion is becoming one of the prime strategies of companies to expand their footprint across the globe. Businesses are turning to managed services for long-term strategic and short-term tactical considerations. The main component to be taken care of in expanding a business is basically safe and secure communication, which can be implemented by a secure network. This factor is driving the adoption of virtual private networks, where companies can have a private international network to access data across all the business subsidiaries and branch offices in a secure manner. Enterprises are also adopting services to manage and monitor their entire local and global communication networks centrally, which is further driving the adoption of managed VPNs, thus fueling revenue growth of the global market.

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For instance, the companies in Germany have over half of their employees working abroad. These companies can employ managed VPN services to remotely access the resources and the data of the company in a secure manner.

Lack of Skilled Labor to Have a Negative Impact on the Market

A leading factor impeding the progress of the global managed virtual private network market is lack of skilled labor. These services demand critical management and monitoring of networks, and in order to implement such services, highly skilled labor is required. Moreover, professionals dealing in managed VPN services need to be well aware of advanced and multiple new skills and keep reskilling all the time. Many regions are not able to procure enough skilled labor to suffice this growing demand. This can restrict revenue growth of the global managed VPN market to a great extent.

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