Virtual Private LAN Service Market - Forecast(2022 - 2027)

The Global market for Virtual Private LAN Service Market is estimated to reach $2.5 billion by 2026, growing at a CAGR of 18.2% from 2021 to 2026. VPLS is one of the most significant Ethernet technologies with broad market prospects. Furthermore, VPLS is one of the most widely used Ethernet technologies in the market owing to its simplicity, reliability and ease of use. VPLS has many advantages among which it has wide variety of applications including L2VPN for VIP customers, municipal communications infrastructure and personal distributed services. Growing penetration of mobile devices, technological advancements in cloud, multiprotocol label switching, border gateway protocol, spanning tree protocol, route reflectors  and virtualizations are driving the market growth of Virtual Private LAN Service Market. Cloud-managed LAN technology nowadays has become a popular source of communication network with broader market prospects. Cloud-managed LAN services are influencing the market prospects as it provides secure connectivity, cloud hosted centralized platform and an intuitive browser-based dashboard.

Report Coverage

The report: “Virtual Private LAN Service Market – Forecast (2021-2026)”, by Industry ARC covers an in-depth analysis of the following segments of the Virtual Private LAN Service Market. 
By Deployment: Cloud, On premises.
By Application: Healthcare, Manufacturing, Telecommunications, Retail, BFSI and Others.
By Geography: North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, Others), APAC (China, Japan India, Australia, Others), South America(Brazil, Argentina, Others), RoW (Middle East, Africa). 

Key Takeaways

• Increased advancement towards cloud technology, mobile VPN technology and others has led to keep the foundation of Virtual Private LAN Service in the market. Factors like high security, efficiency, and high redundancy are major points towards the growth of VPLS.
• VPLS are use in remote offices, multinational organizations and others for server connection and high speed cloud technology facility.
• Europe region is expected to dominate the global Virtual Private LAN Market during the forecast period 2026 due to their high investments in technological growth related to internet facilities, cellular M2M technologies and others are driving the growth of the market.

Virtual Private LAN Service Market Segment Analysis - By Deployment 

By deployment Virtual Private LAN Service Market is segmented into cloud and on premises. By deployment cloud Services are dominating the market at 62% in 2020 due to its flexibility to scale and control workloads connected regionally and globally. Before connecting to the on premises remote or remote resources IP addresses can be brought to the Google’s network to connect to the Google cloud. Deployment of Cloud Services offers open and secure network for business of various multinational industries. Furthermore, many software industries provide next generation hybrid multicloud platform, advanced data and deep enterprise expertise increasing the cloud services deployment in various enterprises.

Virtual Private LAN Service Market Segment Analysis - By Application

By application the market is segmented into healthcare, manufacturing, telecommunications, retail and others. Telecommunications sector is witnessing significant growth rate in VPLS market at 22.3% CAGR through 2026 owing to its wide use in telecommunication sectors as it is used for joining remote networks over a single connection for safe and secure communications. Therefore, it is widely used in various multinational software industries for safe and secure communications. Moreover, VPLS in telecommunication industries provides most secure connections to an off – site storage or data center in a communication channel. These features of VPLS are aiding the growth of the market in field of telecommunications.

Virtual Private LAN Service Market Segment Analysis - By Geography

Global Virtual Private LAN Service Market is dominated by Europe. Europe is dominating the VPLS market share in 2020 at 34.2% owing to its advanced technologies and well equipped industries which are using the cloud services and internet services in a wide range. Furthermore, advanced use of internet, rise in industrialization and innovations of new generations cellular data are increasing the use of LAN services thereby increasing the communication between the various servers fueling the growth of the VPLS Market. New technologies in infrastructure and operations including Ethernet exchanges are aiding the growth of the market by allowing to share and exchange data through various servers.  The growth factors in Europe are witnessed owing to the various features of VPLS which includes infrastructure management, public and private cloud deployments, disaster recovery and backups, IT support services and management, networking, cyber security, data storage and web design.   Furthermore, increasing penetration of Ethernet service providers in this region are also anticipated to fuel the growth of the market.  According, to the Erostat Statistics in 2020, 28% of European Union used cloud services for storage of data and email purposes.

Virtual Private LAN Service Market Drivers

Enhanced Security Advantages:

Through VPLS network the data is kept secured and encrypted from being hacked. In case of companies the information can be accessed remotely through VPLS by this feature VPLS can increase productivity within the company. Through VPLS data can be browsed with a complete anonymity. Furthermore, VPLS allows accessing both web applications and websites in a complete anonymity. VPLS is used by most of the industries as they provide an opportunity to the enterprises to simplify and improve the performance of their network. Due to this VPLS is used more in the industries owing to their Ethernet technology. VPLS networks allow users to communicate over Ethernet links whether these links are on LANs or WANs thereby allowing services to be flexibly deployed and used by various multinational firms driving the growth of the market.

Cheaper Cost:

If a VPLS network is created in business, remote offices and others, the maintenance cost is very low. Furthermore if a service provider is used the network surveillance and network setup becomes much easier. This reduced cost along with redundancy is driving the growth of the market.

Virtual Private LAN Service Market Challenges

Large Organizations prefer private networks

VPLS is a great service provider but it is not appropriate for all the business applications. An alternate method, Random Access Memory (RAM) can bring the technical resources to help educate and recommend the best VPLS solutions for business model. Larger organizations to have their own network rather than using VPLS hindering the growth of the market. A big challenge that VPLS faces is managing with large numbers of media access control (MAC) addresses since there is no hierarchy like IP addresses. 

Virtual Private LAN Service Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Virtual Private LAN Service Market are given in this report. Virtual Private LAN Service Market is dominated by major companies such as VPLS Solutions, Array Networks Inc, Avast Software s.r.o , Blackberry Limited, Buffered Inc., Cysco Systems Inc., Citrix Systems Inc., Columbitech AB, Cryptzone , Cyber Ghost , Evocative Inc., among others.

 Acquisitions/Technology Launches

• November 14, 2019- Evocative acquired VPLS Inc., and VPLS solutions to form one of the fastest growing cloud managed services.

• February 13, 2019- Evocative announced that its investment and partnership with Fiber Internet Center and Fiber International. The two companies will start together to integrate their layer1-3 network and services immediately to offer network collocation, hosting and multi cloud service solutions.