Summary of our market study

The virtual private network (VPN) market is estimated at over 1.2 billion euros.

The French market has tripled its number of VPN downloads in two years

This growth is fueled by heightened cybersecurity concerns, increased Internet usage and the versatility of VPN applications.

VPNs are mainly used on smartphones and computers, with 60% and 65% of the user base respectively for each type of device. Only 20% of tablet users use VPNs on these devices.

The main benefits of the service are improved video streaming services, work-related privacy and enhanced online security.

A significant number of businesses are equipping themselves, including micro, small and medium-sized enterprises, faced with cyber threats accentuated by the widespread use of remote working. More than half the population spends more than 22 hours online each week

VPN industry players

  • Kape Technologies - The conglomerate of VPN brands. Acquired VPN services Zenmate, CyberGhost, and lExpressVPN.
  • Nord Security has acquired Surfshark and Atlas VPN.
  • ExpressVPN
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Summary and extracts

1 Market overview

1.1 Definition and presentation

The VPN was created in 1996 by a Microsoft employee, enabling a more secure connection to the Internet. Initially used by businesses to access private networks remotely, it gained popularity with the general public as encryption standards evolved and privacy issues emerged. Scandals such as WikiLeaks and the Edward Snowden leaks have raised public awareness of online threats. In 2017, following the revelation of ISPs selling browsing history and the loss of net neutrality, VPNs became essential for individual users.

Today, the VPN market has become a significant one, with a market size of $44.6 billion worldwide by 2022 and 30% of Internet users using VPN services.
Russia and the USA are the countries that download the most VPNs by volume, but the United Arab Emirates, Singapore and Qatar have a higher proportion of users than other countries.

In France, the VPN market is expanding, with sustained growth in downloads. The number of VPN downloads in 2022 was 8,908,000, and sales for the same year exceeded one billion dollars.

VPN use is being driven by increased demand from both users and businesses for online security and privacy, particularly with the growth of telecommuting in recent years. It's also worth noting that demand for VPNs is fairly segmented according to user age or gender.

Video streaming remains the main reason for VPN use today, but work, security and gaming are also major factors.

It's also worth noting that VPNs are emerging as a means of emancipation and online freedom in political regimes that oppress the population and restrict freedoms. Statistics show that VPN use is rising sharply in countries experiencing political crises.

The VPN market in France is dominated by companies with several major VPNs: Kape Technologies and Nord Security.

1.2 Global market

Evolution of the global VPN market size World, **** - ***** PR Newswire *Projection

The global VPN market is growing rapidly, with an increase in size of almost ** billion between **** and ****. The market is expected to grow until ****, when it is projected to reach $** billion.

Number of VPN users worldwide World, ****, in billions SurfShark by ****, VPN users will account for **% of all Internet users. VPN downloads worldwide World (***), ****, in thousands and as a percentage AtlasVPN russia and the USA dominate, with **,*** and **,*** VPN downloads respectively. However, in terms of adoption, it's the United Arab Emirates that leads with an index of **.*%, followed by Qatar and Singapore. European countries such as the UK, the Netherlands and Germany show relatively lower adoption rates, despite a high number of downloads. France, on the other hand, has an adoption index of **.*%, with *,*** downloads, which is below the global average.

1.3 The French market

Evolution of VPN downloads in France France, ****-****, AtlasVPN

the VPN market is expanding in France, with sustained growth in downloads. The number of VPN downloads in **** is almost * times higher than in ****.

Since VPN prices are similar around the world, we can estimate the sales of the VPN market in France in **** using a simple calculation: Number of downloads in France x Worldwide sales / Number of downloads worldwide

**** World France Number of downloads ********* ******* Sales **.* billion *.*** billion dollars We can therefore estimate the size of the VPN market in France at $*.*** billion in ****.

Number of VPN downloads in France France, ****-****, in percent Businesscoot processing based on AtlasVPN and VPNWelt

These evolution rates are very high, with a peak of **% in ****, probably a consequence of containment.

2 Demand analysis

2.1 Typology of demand

demand for VPN services in France is particularly segmented by gender and age .

Share of French people using a VPN by age group France, ****, in percent IFOP

Almost half of VPN users in France are aged between ** and **. The most represented age category among French VPN users are **-**, which coincides with video streaming consumption or internet browsing statistics.

Share of French VPN users by gender France, ****-****, in percent NordVPN men seem more inclined than women to use VPN services.

VPN use by device France (among SurfShark VPN users, ****, percentage SurfShark vPNs are overwhelmingly used on smartphones and computers (***), due to their low numbers compared with smartphones or computers.

Why use a VPN? France (***), ****, as % of users SurfShark

vPNs are most often used to enjoy video services (***) are less common, although VPNs are particularly well-suited to these uses.

2.2 Companies are investing more and more in cybersecurity

In ****, a record number of data leakage sites were created on the dark web, mainly linked to ransomware attacks. In these attacks, cybercriminals steal and encrypt sensitive data, then demand a ransom in exchange for the decryption key. Unfortunately, hackers tend to publish the stolen data even after receiving the ransom, a practice known as "double extortion". This year also saw a record number of companies affected by data breaches, with an increase of **% on the previous year. A total of **** organizations were affected in ****. Ransomware attacks are usually the work of organized criminal groups, such as Conti, Lockbit, Avaddon, REvil and Pysa, who have hacked numerous companies and sold the stolen information on the darknet. [***]

According to anotherAtlas VPN survey, **% of companies lose more than $***,*** as a result of a successful cyber attack (***). Financial losses are not the only harm, as companies also see their reputation tarnished, lose information and suffer disruptions to their operations with partners. The survey shows that cybercriminals often steal large sums of money, ranging from $***,*** to over $* million, with serious repercussions for businesses. In addition, companies suffer other damage, such as disruption to partner and customer operations, loss of reputation and supply chain disruption. Despite ...

2.3 Demand drivers

A VPN is an essential tool for :

Secure your browsing by encrypting your connection and protecting yourself from cyber-attacks. Access geo-restricted content by masking your location. save money when booking online by avoiding price adjustments. Preserve online privacy by hiding your activity from ISPs. Improve connection speed by avoiding ISP throttling.

[***]

In ****, **% of Internet users limited or gave up an online activity because of security fears.[***]

Actions taken to limit access to personal data France, ****, in % [INSEE INSEE

We can see here that French Internet users are very willing to take action to limit access to their personal data. These actions could be multiplied in their effectiveness with the help of a VPN (***). These data therefore show a very high potential demand for VPNs in France. We can assume that this demand only needs to be converted by a better knowledge of the world of VPNs by private individuals.

It's also interesting to focus on the figures for Internet browsing in France, to see if they point to a trend in demand for VPNs.

In total, whether for personal or professional use, and regardless of location, how many hours a week do you spend in front of a screen? France, ...

3 Market structure

3.1 Value chain

[***]

A personal device, such as a computer or smartphone, can be equipped with a VPN client that is used to establish a secure connection with a remote VPN server via the Internet. When the user activates the VPN client, the data he or she sends and receives is encrypted before being transmitted to the VPN server. The VPN server, located at a remote location, decrypts this data and transfers it over the Internet, acting as an intermediary between the personal device and the Internet. Thanks to this encryption, the user's data remains confidential and secure, ensuring confidentiality and security of communication when the personal device accesses the Internet, even on potentially unsecured public networks.

3.2 A seemingly open but highly concentrated market

A notable trend in the VPN industry is increasing consolidation, resulting from several high-profile acquisitions of well-established brands by larger companies. Two major players stand out in this market: Kape Technologies, which owns brands such as Zenmate, CyberGhost and ExpressVPN, and Nord Security, which owns NordVPN, Surfshark and Atlas VPN. In addition to these giants, there are also a number of specialist players, such as Sectra and Atos, who focus in particular on services tailored to government departments and the defense sector, which require a customized approach to security. [***]

For example, in ****, Nord VPN and Surfshark, two leaders in the VPN sector, merged to form Nord Security, while retaining their operational independence. The aim of this merger is to strengthen online security for their customers, although no major changes have yet taken place for existing users, either in terms of applications or pricing. Both companies continue to operate autonomously, without sharing user information, while pursuing a common goal[***]

[***]

Ownership and consolidation of VPN products have been the scene of complex developments. Until November **, ****, Tefincom S.A. was the owner of NordVPN, NordLayer, and other cybersecurity products. Subsequently, all these assets were transferred to the NordVPN S.A. entity, registered in ...

3.3 Free VPNs

Some free VPNs exist, but they offer fewer capabilities than paid services (***)

Atlas VPN, for example, offers a free package with * GB bandwidth per month, ideal for occasional secure browsing needs. It also supports P*P file sharing, an advantage for torrent downloaders. However, Atlas VPN has no servers in France.

Proton VPN stands out for its strict no-logging policy and military-grade encryption. It offers unlimited bandwidth, but there are no servers in France, which may limit its usefulness for French users.

Hide.me, another free VPN, offers bandwidth limited to ** GB per month. However, it does support P*P traffic, making it a decent choice for torrent downloads. Unfortunately, it also has no servers in France.

TunnelBear is the only free VPN in our selection to offer servers in France, which can be an advantage for those who need a virtual presence in France. However, it severely limits bandwidth to just *** MB per month, which may be insufficient for many uses.

It's important to note that free VPNs have significant drawbacks, such as slower connection speeds, limited server choices and bandwidth restrictions. What's more, some of these services can compromise users' security and privacy by reselling their data.

ExpressVPN offers ...

4 Offer analysis

4.1 Offer typology

Here is a list of the different VPNs available in France and their main features:here's a list of the different VPNs available in France and their main features: vPN name main features NordVPN Antivirus protection, ad blocker Surfshark Powerful VPN, ad blocker CyberGhost Privacy on all devices Private Internet Access Privacy and data security PureVPN Fast VPN, no content restrictions ExpressVPN All-purpose, high-speed, secure VPN HideMyAss Ideal for streaming and P*P UltraVPN Secure access to the entire web ZenMate Free version available Hotspot Shield Full VPN with simplified free version Avira Phantom VPN End-to-end encryption, no-log policy VyprVPN Security expertise, unlimited access Ivacy VPN Low-cost VPN, extensive security SaferVPN (***) Online security, name change TunnelBear Fast, secure, access to all content Hide.me Fast, up to ** connected devices VPNBook Free VPN, few servers Windscribe Ad blocking, online anonymity ProtonVPN Focused on privacy protection DroidVPN Free VPN with limited services AstrillVPN Fast VPN, servers in many countries Free VPN Planet ***% free, secure VPN Mullvad VPN Easy to use, complete anonymity Trust.Zone Preserves anonymity, avoids tracking, protects data VeePN Simple and fast, many servers Hola VPN Free VPN for unblocking content IPVanish Fast, secure surfing StrongVPN No speed limit, simultaneous connections PrivateVPN Reliability, ...

4.2 VPNs for smartphones are becoming increasingly popular

Installing a VPN on a smartphone is of particular interest when compared with a computer. Indeed, smartphones are devices that are constantly connected to the Internet, whether via a Wi-Fi connection at home, a *G connection on the move, or even on unsecured public networks in places like hotels and restaurants.

The major benefit of using a VPN on a smartphone lies in protecting your Internet connection, especially when connecting to public networks, including those abroad, which may present risks of data collection or attacks. Some of these networks may even be designed to intercept online traffic. What's more, the ability to relocate one's connection is also very useful for bypassing geo-blocking.These VPNs for smartphones are enjoying a surge in popularity

Indeed, **% of VPN users are on smartphones, compared with **% on PCs (***). This is largely due to the fact that smartphone use is far higher than that of computers, as the following graph shows:

Share of users by type of device used to go online France, ****, in INSEE

This suggests that cell phones represent an important market for VPNs.

Here are a few statistics on mobile devices that can lead to VPN use:

Around **% of online transactions are carried out ...

5 Regulations

5.1 For the moment, VPNs are not banned in France

In France, using a VPN is legal. VPNs are not prohibited in most parts of the world. Countries that prohibit or restrict VPN :

Countries VPN legality status Belarus Illegal Iraq Illegal Korea, North Illegal Oman Illegal Turkmenistan Unequal China Restricted Iran Restricted Russia Severely restricted Turkey Restricted UAE Severely restricted Uganda Severely restricted Bahrain Limited Cuba Restricted egypt Restricted Qatar Restricted Thailand Restricted [***]

There are currently no laws prohibiting the use of VPNs (***). Many large companies based in France use them on a daily basis to secure their networks and minimize the risk of hacking.

Internet users can therefore surf legally with a VPN connection in France. However, illegal activities carried out under cover of a VPN are prohibited by the government. If their use is not malicious, they will have no problem with French legislation.

In France, it is illegal to use a VPN to distribute explicit or restricted content, or to carry out malicious activities such as spamming or piracy. It is also forbidden to download and distribute copyright-protected content via a VPN. Users are encouraged to choose a reliable VPN provider to ensure their security and protect their information.[***]

France's Hadopi law governs the use of a VPN ...

6 Positioning the players

6.1 Segmentation

  • Google
  • Orange Groupe
  • Microsoft
  • Apple
  • AVM
  • Ikoula
  • Nord security

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