Euro VPN spending to grow 150% by 2006

23 September 2002 -- European end-user VPN product and service expenditures will grow 150%, from USD5.4bn to USD13.2bn between 2002 and 2006, says Infonetics Research.

23 September 2002 -- European end-user VPN product and service expenditures will grow 150%, from USD5.4bn to USD13.2bn between 2002 and 2006, says Infonetics Research's latest study "User Plans for VPN Products and Services, Europe 2002".

The UK and Germany represent the bulk of the opportunity, but Scandinavia and France are strong as well. Due to the cost-saving potential of VPNs, and significant interest in security, the VPN market is still growing strongly despite the nearly two-year-old global economic downturn. Europe is second only to the US/Canada in expenditures on VPN products and services, and the share of the market that Europe represents is growing.

"VPN services and service providers are getting much more mature in Europe, making the market more competitive and the services cheaper," said executive director and lead author Jeff Wilson. "Many US-based VPN product manufacturers have shifted their focus to Europe as a way to buoy revenues during the downturn at home. As broadband becomes more available in Europe - which is happening rapidly - VPN adoption will accelerate."

Trends in the VPN market in Europe include:

-- Adoption of VPN gateways or clients within the LAN will more than double over the next two years, from 22% now to 49% in 2004, when it will be higher than the adoption rate in the US/Canada;

-- Worldwide end-user VPN expenditures between 2002 and 2006 will grow 49% for IPSec-based services, almost 800% for MPLS-based services, and over 1,000% for SSL-based services.

www.infonetics.com

More in Market Research