The global Virtual Private Cloud (VPC) market was valued at USD 38.34 billion in 2022 and expected to grow at a CAGR of 15.3% during the forecast period. A Virtual Private Cloud (VPC) is a private and secure cloud environment created within a public cloud provider's infrastructure. It allows businesses to use cloud computing services within a virtual network that is isolated from other users of the public cloud.
In a VPC, businesses can create multiple subnets, assign IP addresses, and configure network gateways, security groups, and access control lists to control traffic to and from their resources. This provides greater control and flexibility compared to using a public cloud provider's default network settings.
Some of the key benefits of using a VPC include:
Improved security: By using a VPC, businesses can create a private and secure network environment that is isolated from other users of the public cloud.
Customizable networking: VPCs allow businesses to create custom subnets, assign IP addresses, and configure network gateways, security groups, and access control lists to control traffic to and from their resources.
Scalability: VPCs can be easily scaled up or down to accommodate changing business needs.
Cost-effective: VPCs offer a cost-effective way to use cloud computing services by providing businesses with greater control and flexibility over their network settings.
Hybrid cloud integration: VPCs can be integrated with on-premises infrastructure and other cloud environments to create a hybrid cloud environment that meets the specific needs of the business.
Overall, VPCs provide businesses with a private, secure, and customizable cloud computing environment that can be tailored to meet their specific needs. By using a VPC, businesses can take advantage of the benefits of cloud computing while maintaining greater control and flexibility over their network settings.
A Virtual Private Cloud (VPC) is a private and secure cloud environment created within a public cloud provider's infrastructure. It offers businesses a customizable and secure way to use cloud computing services by allowing them to create private networks that are isolated from other users of the public cloud.
The key benefits of using a VPC include improved security, customizable networking, scalability, cost-effectiveness, and hybrid cloud integration. By using a VPC, businesses can take advantage of the benefits of cloud computing while maintaining greater control and flexibility over their network settings.
Overall, VPCs provide businesses with a private, secure, and customizable cloud computing environment that can be tailored to meet their specific needs. They offer a cost-effective way to use cloud computing services while providing businesses with greater control and flexibility over their network settings.
Market Size in 2022
USD 38.34 Billion
Market Forecast in 2031
USD 107.12 Billion
CAGR % 2023-2031
Production, Consumption, company share, company heatmap, company production capacity, growth factors and more
By Component (Software, Service), Organization Size (Small and Medium-Sized Enterprises, Large Enterprises), Vertical (Banking, Financial Services, Insurance, IT and Telecom, Government, Defense, Healthcare, Media, Entertainment, Retail, Manufacturing, Others), Delivery Model (Software as a service (SaaS), Platform as a service (Paas) and Infrastructure as a service (IaaS)
North America, Europe, APAC, South America and Middle East and Africa
U.S.; Canada; U.K.; Germany; France; Italy; Spain; Benelux; Nordic Countries; Russia; China; India; Japan; South Korea; Australia; Indonesia; Thailand; Mexico; Brazil; Argentina; Saudi Arabia; UAE; Egypt; South Africa; Nigeria
Amazon Web Services, Inc. (U.S.), IBM (U.S.), Microsoft (U.S.), Cisco Systems Inc., (U.S.), Siemens (Germany), ANSYS, Inc (U.S.), SAP SE (Germany), Robert Bosch GmbH (Germany), NetApp (U.S.), Atos SE (U.S.), Fujitsu (Japan), Oracle (U.S.), Google Inc., (U.S.), Atos SE (France), Hewlett Packard Enterprise Development LP (U.S.), Dell Inc., (U.S.) and RACKSPACE TECHNOLOGY (U.S.).
Impact of COVID
The COVID-19 pandemic has had a significant impact on the Virtual Private Cloud (VPC) market. With many businesses transitioning to remote work and online operations, there has been a surge in demand for cloud computing services, including VPCs.
One of the main impacts of COVID-19 on the VPC market has been an acceleration in the adoption of cloud computing services. With many businesses facing the need to quickly transition to remote work, there has been a greater focus on cloud-based solutions that can be easily accessed from anywhere with an internet connection.
Another impact of COVID-19 on the VPC market has been an increased focus on security and data privacy. With many businesses handling sensitive data and operations in the cloud, there has been a greater emphasis on secure and private cloud environments such as VPCs.
However, the pandemic has also had some negative impacts on the VPC market. With many businesses facing economic uncertainty and budget constraints, there has been a greater focus on cost-effectiveness and optimizing cloud spending. This has led some businesses to shift away from more expensive VPC solutions in favor of more cost-effective cloud computing options.
Overall, the COVID-19 pandemic has accelerated the adoption of cloud computing services, including VPCs. While there have been some challenges, the increased focus on remote work, security, and data privacy is likely to drive continued growth in the VPC market in the years to come.
In terms of market share, the software segment is expected to hold a larger share compared to the services segment. This is because software components such as virtualization software, network security, and management tools are essential for the creation and management of VPCs, and are therefore in high demand.
However, the services segment is expected to grow at a faster rate due to the increasing adoption of cloud computing services and the need for support and consulting services to help businesses migrate to and manage VPCs.
Overall, both the software and services segments are expected to experience significant growth in the coming years as businesses continue to adopt cloud computing services and VPCs as a way to improve their agility, security, and flexibility.
Delivery Model Insights
In terms of market share, the infrastructure as a service (IaaS) segment is expected to hold the largest share due to the high demand for cloud infrastructure services, including computing resources, storage, and networking, that are necessary for the creation and management of VPCs.
The platform as a service (PaaS) segment is expected to grow at a faster rate due to the increasing adoption of cloud-based application development and deployment platforms that provide businesses with the necessary tools to develop and deploy applications in VPCs.
The software as a service (SaaS) segment is also expected to experience significant growth due to the increasing demand for cloud-based software solutions that can be accessed from anywhere with an internet connection.
Overall, the growth of the Virtual Private Cloud (VPC) market is being driven by the increasing adoption of cloud computing services, with infrastructure as a service (IaaS) being the largest segment, followed by platform as a service (PaaS) and software as a service (SaaS).
The BFSI segment is expected to hold a significant share of the VPC market due to the need for secure and compliant cloud environments for financial transactions and data handling.
The IT and telecom segment is expected to grow at a faster rate due to the increasing demand for cloud-based IT infrastructure and services in these industries.
The government and defense segment is also expected to experience significant growth due to the increasing adoption of cloud computing services in these industries for secure data storage and operations.
Other industries such as healthcare, media and entertainment, retail, and manufacturing are also expected to adopt VPCs as a way to improve their agility, security, and flexibility.
North America is expected to hold the largest share of the VPC market due to the presence of major VPC providers and the high adoption of cloud computing services in the region.
Europe is also expected to hold a significant share of the market due to the increasing adoption of cloud computing services and the presence of several VPC providers in the region.
The Asia Pacific region is expected to grow at a faster rate due to the increasing adoption of cloud computing services in the region and the growing demand for VPCs as a way to improve agility and flexibility.
The Middle East and Africa and Latin America regions are also expected to experience significant growth due to the increasing adoption of cloud computing services in these regions.
Overall, the growth of the Virtual Private Cloud (VPC) market is being driven by the increasing adoption of cloud computing services across various regions, with North America being the largest market, followed by Europe, Asia Pacific, Middle East and Africa, and Latin America.
Some of the major companies operating within the market are Amazon Web Services, Inc. (U.S.), IBM (U.S.), Microsoft (U.S.), Cisco Systems Inc., (U.S.), Siemens (Germany), ANSYS, Inc (U.S.), SAP SE (Germany), Robert Bosch GmbH (Germany), NetApp (U.S.), Atos SE (U.S.), Fujitsu (Japan), Oracle (U.S.), Google Inc., (U.S.), Atos SE (France), Hewlett Packard Enterprise Development LP (U.S.), Dell Inc., (U.S.) and RACKSPACE TECHNOLOGY (U.S.). These players are focusing on product innovation, expansion, and partnerships to strengthen their market position and meet the growing demand for Virtual Private Cloud (VPC) globally.
· In May 2019, Node4, the UK-based hybrid cloud, data centre and communications managed services provider, has acquired virtual private cloud provider, Secura. The fifth and largest acquisition made in Node4’s history, will see Secura become part of its already comprehensive portfolio of services, and strengthen its managed cloud hosting offering to the Software-as-a-Service (“SaaS”) market.
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