Proxy Server Market Size, Share, Trends, Growth 2032

Proxy Server Industry Prospective:

The global proxy server market size was worth around USD 4.29 billion in 2023 and is predicted to grow to around USD 7.59 billion by 2032, with a compound annual growth rate (CAGR) of roughly 7.50% between 2024 and 2032.

Request Free Sample

Proxy Server Market: Overview

A proxy server is a router or a system that acts as an intermediary between the internet and the users. Proxy servers are widely popular since they prevent cyber attackers from accessing private networks. Proxy servers have their own Internet Protocol (IP) address and when used, they hide the IP addresses of the users, thus ensuring user privacy is maintained.

According to market research, proxy servers perform the role of an additional layer of security when browsing information online. They can assist in filtering web pages or acting as a firewall against computer viruses. The added security is more beneficial when added with email security products and a secure web gateway. Proxy servers are available in software and hardware versions in which the former can be obtained using paid services.

Some of the major benefits of proxy servers include access to location-specific content, enhanced security, preventing users from browsing inappropriate content, and private browsing, shopping, listening, & watching.

During the forecast period, the demand for proxy servers is expected to reach new heights mainly driven by the increasing applications across end-user verticals.

In addition to this, increasing the rate of technological innovations with more secure proxy servers may further create growth opportunities. One of the major drawbacks of the proxy server industry is the use of proxy servers in illegal activities requiring more stringent regulations to curb unwanted and antisocial incidents.

Key Insights:

• As per the analysis shared by our research analyst, the global proxy server market is estimated to grow annually at a CAGR of around 7.50% over the forecast period (2024-2032)
• In terms of revenue, the global proxy server market size was valued at around USD 4.29 billion in 2023 and is projected to reach USD 7.59 billion by 2032.
• The proxy server market is projected to grow at a significant rate due to the rising trend of remote work culture.
• Based on the deployment type, the cloud-based segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the end-user industry, the IT & telecommunications segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Proxy Server Market: Growth Drivers

Rising trend of remote work culture to promote market expansion rate during the forecast period

The global proxy server market is expected to grow due to the rising trend of remote work culture across the globe. It allows employees to work from areas outside of office premises. Remote work culture gained momentum during COVID-19 and since then several companies worldwide have adopted the new method of delivering job responsibilities.

According to recent statistics, the majority of the companies initially allowing 100% remote work have now shifted to a hybrid work environment, especially influenced by growing demand for improved work-life balance. In such instances, digital systems used by employees to perform job-related tasks must be equipped with several protection layers to prevent cyber-attacks or leaking confidential information. Proxy servers can provide the necessary layer of additional protection against digital crimes.

According to a recent survey, more than 70% of companies worldwide have shown extreme concerns about the online safety of remote employees.

Increasing demand for geographically restricted online websites and streaming channels to generate market demand

Market study indicates increased applications of proxy servers for accessing geographically restricted streaming platforms and websites. For instance, popular streaming platforms from the US, such as American Netflix and HBO Max, cannot be viewed in India.

In addition, depending on regional guidelines, certain television shows of Over-The-Top (OTT) content are not available globally. However, the media industry has witnessed intense popularity across markets transcending geographical boundaries. In such instances, the solutions available in the global proxy server market can prove helpful.

Proxy Server Market: Restraints

Ethical concerns related to the use of proxy servers for illegal activities are a major growth inhibitor

The global proxy server industry is expected to be restricted due to the growing ethical concerns over the use of technology for carrying out or accessing illegal content on the internet. For instance, accessing restricted web pages using different IP addresses is considered against the law and can put the users at legal risk.

In addition, proxy servers are being increasingly used to conduct anti-social activities by hiding the original IP address of the user. The servers, when used irresponsibly, can put users at several risks. 1Furthermore, companies and other agencies employing proxy servers must ensure 100% compliance with regional regulations. The lack of compliance can cause several penalties and affect overall business operations.

Proxy Server Market: Opportunities

Increasing launch of new proxy servers and connections to generate growth opportunities during the forecast period

The global proxy server market is expected to generate growth opportunities due to the rising launch of new technological solutions in the market.

For instance, in January 2023, WhatsApp, one of the world’s leading instant messaging applications, announced the addition of proxy support to help bypass internet blocks. The users can use the proxy servers in case a certain website is blocked in the country from accessing. The servers can be accessed from Android and iOS-based applications.

In October 2024, PQ. Hosting, a leading provider of innovative server hosting solutions, announced the launch of a new IPv4 Proxy Service. The solution is designed to improve online privacy while also ensuring secure data transfer. Furthermore, the service is designed to provide hassle-free access to geo-restricted content at only 1.5 euros per month. Some of the key areas of critical focus and research include improved privacy features and integrations with Virtual Private Networks (VPNs).

Furthermore, investments in Artificial Intelligence (AI)--river proxy servers for better management of internet traffic are expected to shape the industry’s future revenue. In October 2024, F5, an edge platform and cloud security vendor, announced the launch of a highly intelligent proxy server that secures workflows accelerated by AI in large-scale infrastructural setups.

Proxy Server Market: Challenges

Latency associated with the use of proxy servers and other challenges hinder market expansion

The global proxy server industry is projected to be restricted due to the growing reports of latency in internet connections induced by proxy servers. This can severely affect industries that rely on real-time information for further processing.

Furthermore, proxy servers are complicated to set up & maintain and require expert advice. Ensuring 100% compatibility of proxy servers with other technological devices can also be complicated, discouraging new users from investing in the solutions.

Proxy Server Market: Report Scope

Proxy Server Market: Segmentation

The global proxy server market is segmented based on deployment type, end-user industry, and region.

Based on the deployment type, the global market segments are cloud-based and on-premises. In 2023, the highest demand was listed in the cloud-based segment. This is mainly due to the several advantages offered by cloud-based proxy servers compared to on-premises systems.

For instance, the former can be accessed using a pay-per-service model while the latter requires full-scale investments to set up a supporting infrastructure. Furthermore, innovations in cloud technologies will generate more segmental growth momentum in the coming years. The cloud computing market is projected to grow at a CAGR of more than 20% during the forecast period.

Based on end-user industry, the global market divisions are government & defense, IT & telecommunications, healthcare, retail, commercial offices, educational institutes, and others. In 2023, the highest growth was listed in the IT & telecommunications segment. It dominated nearly 20% of the final market revenue. IT companies generally have high-security requirements due to the confidential nature of the products and services offered by the companies. Telecom companies manage a huge number of consumer databases and must ensure optimal levels of security when the network is in use.

Proxy Server Market: Regional Analysis

North America will be the leading revenue generator during the forecast period

The global proxy server market will be led by North America during the forecast period. The US is expected to emerge as the highest revenue generator in the region mainly due to the presence of a large number of IT companies catering to regional and global customers.

Furthermore, the US has one of the fastest-growing IT industries. It also leads in terms of AI-based innovations requiring extensive use of proxy servers to secure intellectual property (IP) and prevent any form of cyberattack.

Asia-Pacific is one of the fastest-growing markets. Countries such as India, China, Singapore, and South Korea among others will aid future growth in the region. The growing demand for telecom services across Asian countries is expected to promote the use of advanced proxy servers in the region.

Furthermore, Asia-Pacific has also registered increased consumption of geographically restricted content. China, for instance, is known to heavily censor the online content available in the country. In such cases, end-users resort to the use of proxy servers for accessing banned content in the region. Increasing demand for proxy servers for education institutes in Asia-Pacific will further prove critical for the region’s final growth rate.

Proxy Server Market: Competitive Analysis

The global proxy server market is led by players like:

• Storm Proxies
• Bright Data (formerly Luminati)
• SSLPrivateProxy
• Smartproxy
• Blazing SEO
• IProyal
• Oxylabs
• FineProxy
• Shifter (formerly Microleaves)
• ScraperAPI
• ProxyMesh
• NetNut
• ProxyRack
• Residential Proxy
• GeoSurf

The global proxy server market is segmented as follows:

By Deployment Type

• Cloud-Based
• On-Premises

By End-User Industry

• Government & Defense
• IT & Telecommunications
• Healthcare
• Retail
• Commercial Offices
• Educational Institutes
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa