VPN market set for massive growth

The virtual private network (VPN) market looks set to explode over the next four years, with Infonetics Research predicting that end user VPN product and service expenditures will grow by 117% between 2002 and 2006.

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By  Zoe Moleshead Published  September 1, 2002

The virtual private network (VPN) market looks set to explode over the next four years, with Infonetics Research predicting that end user VPN product and service expenditures will grow by 117% between 2002 and 2006.

The research group also estimates that the market will grow from US$21.3 billion in 2002 to reach US$46.2 billion in 2006.

“Because of the cost savings potential of VPNs, and general interest in security, the VPN market is still growing despite a nearly two-year old economic downturn,” said Jeff Wilson, executive director, Infonetics Research.

According to the research group, IPSec will remain the dominant tunnelling and encryption protocol for VPNs. However, other technologies, such as multi protocol label switching (MPLS) and secure sockets layer (SSL) will begin to gather momentum in the market.

“Rollout of MPLS services and SSL-based VPN products will help the VPN market maintain solid growth through 2006. The US and Canada continue to lead end user expenditures for both VPN products and services, but deployments around the globe are becoming more common, and by 2004 the rest of the world leads in end user expenditures for both VPN products and services,” Wilson added.

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