Multi-protocol Labelled Switching, Internet Protocol, Virtual Private Network Services Market Size, Share & Trends Analysis grow at a CAGR of 6.6% from 2024 to 2030
The global multi-protocol labelled switching, internet protocol, virtual private network services market size was estimated at USD 64.12 billion in 2023 and is expected to grow at a CAGR of 6.6% from 2024 to 2030.The multi-protocol labelled switching, internet protocol, virtual private network (MPLS IP VPN) services market is set for significant growth as numerous enterprises intend to integrate these networks to leverage the various benefits they offer, such as optimizing performance and reducing costs. MPLS IP VPN services offer a substantial upgrade over legacy systems by providing enhanced reliability, security, and scalability. MPLS networks, for instance, ensure high performance and low latency, which are critical for applications that require real-time data transmission, such as Voice over Internet Protocol (VoIP) and video conferencing. Additionally, MPLS can prioritize traffic based on the type of service, ensuring that mission-critical applications receive the necessary bandwidth and performance. This level of service quality needs to be more attainable with outdated legacy systems, prompting organizations to transition to MPLS networks to meet their operational needs effectively.
Request a free sample copy or view report summary: https://www.grandviewresearch.com/industry-analysis/multi-protocol-labelled-switching-internet-protocol-virtual-private-network-market/request/rs1
As cyber threats become increasingly sophisticated and prevalent, organizations are prioritizing the security of their data and network infrastructure. Modern cybersecurity technologies integrated into MPLS IP VPN services offer robust protection against a wide range of threats, including data breaches, malware, and ransomware attacks. These advancements ensure that sensitive information is encrypted and secure, providing peace of mind for businesses that rely on remote access and data transmission over public networks.
One significant cybersecurity advancement driving the market is the implementation of advanced encryption protocols and secure tunneling methods in VPN services. These features protect data in transit from interception and tampering, which is especially critical for remote workers and businesses with geographically dispersed operations. Additionally, MPLS networks enhance security by using dedicated, private pathways for data transmission, reducing the risk of unauthorized access and cyber-attacks. This high level of security is essential for industries such as finance, healthcare, and government, where data integrity and confidentiality are paramount.
Service Insights
The layer 3 segment led the market in 2023, accounting for over 60.0% share of the global revenue, owing to its advanced routing capabilities and superior network performance. Layer 3 services, which operate at the network layer of the Open Systems Intercommunication (OSI) model, provide enhanced traffic management and routing efficiency, which is crucial for handling large volumes of data across diverse networks. These services enable the implementation of quality-of-service policies, ensuring that critical applications receive the necessary bandwidth and minimal latency. This capability is particularly important for enterprises that rely on real-time communication and data-intensive applications.
The layer 2 segment is predicted to foresee significant growth in the coming years, primarily due to its ability to provide seamless and efficient connectivity for a wide range of applications. Layer 2 VPNs operate at the data link layer of the OSI model, allowing them to extend a Local Area Network (LAN) across a Wide Area Network (WAN). This is crucial for enterprises operating across multiple locations that require a unified network connectivity, enabling them to share resources and applications. The simplicity and effectiveness of layer 2 VPNs in creating this virtual LAN connectivity have made them a preferred choice for many businesses, especially those with a need for straightforward, cost-effective network solutions.
