16.2 C
New York
Saturday, Sep 19, 2020
Image default
VPN

The VPN Market Is Set to Grow From $20 Billion to $36 Billion by 2022

The Why Axis VPN Market Size

Virtual private networks (VPNs) have become a necessary tool for many internet users around the world. Regardless of the primary reasons consumers use VPNs, whether to access entertainment content or to maintain anonymity and security while browsing, VPN usage has skyrocketed over the past several years and is trending nowhere but up.

The Why Axis BugAccording to data from Orbis Reserach and Statista, the global VPN market was worth $15.64 billion in 2016. Over the next five years, it’s set to grow from an estimated $20.6 billion in 2018 to nearly $36 billion in 2022.

As for how that market value is distributed and the factors affecting the VPN industry’s transformation, a recent report from VPNRanks.com broke down the changes in the industry. According to VPNRanks.com’s research, the VPN industry now faces more intense competition and a slew of new entrants, a higher cost of advertisements, and factors such as brand recognition that affect VPN conversion rates.

Related

  • What Is a VPN, and Why You Need One

    What Is a VPN, and Why You Need One

  • How to Set Up and Use a VPN

    How to Set Up and Use a VPN

  • Breaking Down VPN Usage Around the World

    Breaking Down VPN Usage Around the World

One important change called out in the report, especially as it relates to free VPNs (which carry their own set of risks) is the rising cost of ads. Initially, as VPNRanks.com explained in the report, VPN providers and affiliate marketers were operating on a fixed, commission-based structure.

The introduction of the cost per acquisition (CPA) advertising model, which means advertisers pay only when an affiliate makes a sales, has raised the average cost of a CPA ad by 2,000 percent, from $2 in 2016 to $40 in 2018, according to the VPNRanks.com study.

As for competition, the field has grown far more crowded. Whether a consumer is looking for the fastest VPN, VPN apps for Android or iOS, or the best VPNs for everything from BitTorrent to gaming and Netflix, there are countless more players in the game. The VPN market is growing at a rapid pace, but VPN companies are fighting for an ever-smaller piece of the pie.

Related posts

Dashlane Password Manager Adds VPN, Dark Web Monitoring

Onlineservice

Fewer Than One-Third of Consumers Use a VPN

Onlineservice

How to Set Up and Use a VPN

Onlineservice

2 comments

Leave a Comment