VPN, Security Services to Hit $37B

The VPN services market took in a whopping $23 billion in 2005 and is expected to grow another 22 percent to hit $29 billion in 2009

CAMPBELL, Calif. -- The VPN services market took in a whopping $23 billion in 2005 and is expected to grow another 22% to hit $29 billion in 2009. Meanwhile, the managed security services market grew to nearly $5 billion in 2005 and is forecast to jump 68% to $8 billion in 2009.

Both markets are increasingly lucrative due to increased worldwide deployment of MPLS and the complexity of deploying VPN and security solutions, says Infonetics Research in its latest market size and forecast report, VPN and Security Services.

"The number and variety of attacks affecting most organizations is increasing at an alarming rate, and the technologies needed to effectively combat all of the possible attacks are simply too difficult for many organizations to deploy themselves," said Jeff Wilson, principal analyst for VPNs and security at Infonetics Research. "In particular, attacks aimed at specific types of content (from business applications like Oracle and SAP to instant messenger traffic) are wreaking havoc on organizations-and not just big companies; companies of all sizes are being affected."

Report Highlights

  • Every year through 2009, IPSec revenue will decline, while MPLS, MPLS/IPSec, and SSL revenue will rise
  • 77% of VPN service revenue came from site-to-site VPNs, remote access VPNs 23% in 2005
  • In 2005, almost half of managed security service revenue came from large organizations, around a third from medium, and 21% from small

The report tracks annual VPN service revenue by service type, technology, remote access vs. site-to-site, intranet vs. extranet, and organization size, and tracks security services by service type and organization size. Market size and forecasts are presented for North America, EMEA, Asia Pacific, CALA, and worldwide, and the North American forecast includes US and Canada breakouts.

Infonetics Research Inc.