VPN Market Still Growing Strongly
September 2002
Worldwide end-user VPN product and service expenditures will grow 117%, from $21.3 billion to $46.2 billion between 2002 and 2006, according to Infonetics Research's latest study, User Plans for VPN Products and Services, US/Canada 2002. The study splits the VPN service forecast between IPSec, MPLS, and SSL.Because of the cost savings potential of VPNs, and general interest in security, the VPN market is still growing strongly despite a nearly two-year-old economic downturn," said Jeff Wilson, executive director of Infonetics Research. "Rollout of MPLS services and SSL-based VPN products will help the VPN market maintain solid growth through 2006. US/Canada continues to lead in end-user expenditures for both VPN products and services, but deployments around the globe are becoming more common, and by 2004 ROW leads in end-user expenditures for both VPN products and services."
Some trends in the VPN market:
- IPSec remains the dominant tunneling and encryption technology for VPNs, but MPLS and SSL are making interesting entrances to the arena
- SSL-based products will see ready acceptance in certain verticals, or when used for certain applications like secure remote access to Web-based ERP
- Between 2002 and 2006, worldwide end-user expenditures for managed CPE-based VPN services grow 178%, and for managed network-based services they grow 283%, while unmanaged service expenditures decline 8%
- Worldwide end-user IPSec-based VPN service expenditures grow 49%, MPLS-based services grow almost 800%, and SSL-based services grow over 1,000% during the same period
- The vast majority of respondents are deploying remote access VPN CPE themselves, either handling all aspects of deployment and management themselves, or outsourcing some aspects of design, installation, or ongoing management
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