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Qualitative Analysis: Global Site-to-Site VPN Market by Segmentation, Key Vendors and Opportunities in 2026

Apr 22nd 2019 at 6:21 AM

Site-to-site VPN is used in connecting the networks placed at different locations using Internet. The solutions incorporated in the site-to-site VPN helps in connecting various branches or remote offices to the network headquarters wherein each site is equipped with a VPN gateway, such as a router, firewall, VPN concentrator, or security appliance. A virtual private network (VPN) consists of multiple remote peers transmitting private data securely to one another over an unsecured network, such as the Internet. In such cases, site-to-site VPN plays a vital role in secure transmission of data by using tunnels to encapsulate data packets within normal IP packets to forward over IP-based networks, and also uses encryption to ensure privacy and authentication.

In the recent decade, virtual private network is the most trending and discussed concept in networking industry. Many organizations across various regions are adopting VPN networks across their remote offices in order to keep a track of the office operational data. VPN networks provide many beneficial solutions to large enterprises, and small & medium enterprises (SMEs). Today, VPNs are equally appealing to companies of all sizes. Even midsized companies, that are almost always the last to adopt new technology, are finding compelling reasons to implement VPNs.

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Key drivers for the site-to-site VPN market is majorly the increase in adoption of VPN networks and also growing investments by companies on networking solutions. Large enterprises viewed VPNs as an efficient solution for the ever-increasing WAN costs, connecting remote users and integrating partners, suppliers, and customers into their networks. Very small companies adopted VPNs because they were the first real WAN or remote-access solution that they could afford. It is anticipated that VPNs enable enterprises to save between 30% and 70% over competing remote-access solutions. Many enterprises view VPNs as a competitive advantage, specifically because of their global coverage and the relative ease with which they can be extended to create extranets. Furthermore, roughly 30% of those who have WANs are now piloting or using a VPN and another 35% of WAN users have plans to implement VPNs in the coming years. Adoption of VPN solutions help in overcoming the challenges of implementing WAN solutions as VPN networks are expanding the market for WAN services. Moreover, significant rise in number of cyber-attacks, and surge in demand for cloud-based security solutions is expected to boost the global site-to-site VPN market over the forecast period. Furthermore, end-user demand for virtual communication networks is anticipated to boost the site-to-site VPN market in the near future. Demand for secure remote access and increased adoption of private clouds are anticipated to create lucrative market opportunities for VPN software vendors over the forecast period.

The site-to-site VPN market can be segmented on the basis of component, application, enterprise size, end-use industry, and region. Components for the site-to-site VPN market comprise software and services. The software segment is further segmented into on premise and cloud based. Cloud based is further classified as private, public, and hybrid. Services segment consists of professional and managed services. On the basis of application, the site-to-site VPN market is segmented into remote access, extranet, and intranet. Based on enterprise size, the site-to-site VPN market can be segregated into small and medium enterprise (SMEs) and large enterprise. Based on end-use industry, the site-to-site VPN market is segmented into healthcare, transportation and logistics, IT and telecom, banking, financial services and insurance (BFSI), government and public sector, military and defense, consumer electronics, retail education etc.

Based on region, site-to-site VPN market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America and Europe are likely to hold a prominent share of the global site-to-site VPN market due to the presence of developed countries such as the U.S., the U.K, France, and Germany in these regions. The site-to-site VPN market in Asia Pacific is expected to expand at a rapid pace due to expansion in the IT and telecom industry and rise in adoption of networking technologies in countries such as China, India, Japan, Singapore, and Thailand.

Major players operating in the site-to-site VPN market are Cisco systems, Palo Alto Networks, Inc., Oracle Corporation, Microsoft Corporation, Google, NCP Engineering, Huawei Technologies, Robustel, Contemporary Controls, Singtel, Private Internet Access, CenturyLink etc.

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