09-30-2018 , 10:11 PM
https://www.pcmag.com/news/364037/the-vp...dium=title The VPN Market Is Set to Grow From $20 Billion to $36 Billion by 2022
The VPN industry grows by billions of dollars each year. New entrants, changes in advertising, and other market factors are turning the space into one of tech's most hotly competitive markets.
By
Rob Marvin
September 28, 2018 8:00AM EST 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. 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.
The VPN industry grows by billions of dollars each year. New entrants, changes in advertising, and other market factors are turning the space into one of tech's most hotly competitive markets.
By
Rob Marvin
September 28, 2018 8:00AM EST 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. 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.