Industrial Router VPN Technology Panorama: From Protocol Selection to Industrial IoT Security Deployment Guide

Virtual Private Networks (VPNs) have become an important tool for businesses and individuals to protect their online privacy and security in today's digital age. This article will delve into the definition of VPN, its importance, how it works, the differences between different types, VPN vs. private network technology, VPN technologies supported by Wavetel industrial routers, VPN technology trends, and specific applications in the industrial sector to help you understand how to utilize VPNs to enhance network security and freedom of access.

Table of contents（Click to go to where you want to see）

1. What is VPN?

2. Why do we need VPN?

3. How does VPN work?

4. Comparison of VPN Network and Private Network Technology

5. VPN Technology Supported by Wavetel Industrial Router

6. Trend of VPN Technology Development

1.What is VPN?

1.1 Definitions

A VPN (Virtual Private Network) is a network architecture that creates secure connections over a public network (e.g., the Internet) through encryption. It protects the privacy and security of data transmission by creating an encrypted tunnel between the user's device and the target network, enabling remote users to securely access private network resources, such as a company's intranet or geographically-restricted content.VPNs are widely used in scenarios such as personal privacy protection, telecommuting, and bypassing geographic restrictions.

1.2 Industry Background

• Birth: Microsoft introduced PPTP in 1996, first used for enterprise remote dial-up.

• Scale: The global VPN market will be about $45 billion in 2023 and is expected to reach $92 billion in 2030 (CAGR 11.2%).

• Compliance: GDPR, Issue 2.0, and CCPA all list VPNs as “optional segments for encryption of data transmission”.

2. Why do you need a VPN?

1. Individual user needs:

The widespread use of VPNs stems from their core benefits in terms of privacy, security and freedom of access:

• Enhanced privacy and security: VPNs prevent third parties (e.g., hackers, ISPs, or advertisers) from stealing or monitoring your online activities by encrypting data traffic. For example, 47% of personal VPN users use it for enhanced privacy, especially on public Wi-Fi.

• Bypass geo-restrictions: VPNs allow users to change their virtual location to access regionally restricted content, such as Netflix's international content library (23% of users use a VPN for this purpose).

• Supports telecommuting: Organizations use VPNs to provide remote employees with secure access to the corporate network, especially during the outbreak, when VPN use spiked 124% in the US.

• Preventing data tracking: 37% of users use VPNs to reduce search engine or social media tracking and protect personal data from misuse.

• Responding to Internet Censorship: In some countries, VPNs help users bypass Internet censorship and access blocked websites or services.

  
  

2.Enterprise Application Scenarios

3.VPN Applications in the Industrial Sector

VPN applications in the industrial sector are becoming increasingly important, especially in industries such as manufacturing, energy, logistics, and the Industrial Internet of Things (IIoT). Wavetel industrial routers provide security in these scenarios by supporting a variety of VPN protocols (e.g., IPSec, OpenVPN, WireGuard):

3.1 Manufacturing: Protecting Industrial Control Systems (ICS)

• Application: VPN protects industrial control systems (e.g. SCADA, PLC) from cyber-attacks and ensures secure remote monitoring and maintenance of production lines. Wavetel routers support engineers to remotely access production line equipment and diagnose faults in real time via IPSec and OpenVPN.

• Advantage: 256-bit AES encryption and zero-trust access control prevent unauthorized access and protect sensitive production data.

  
  

3.2 Energy Industry: Securing Critical Infrastructure

• Application: VPN protects smart grids and sensor networks for remote monitoring. For example, the WireGuard protocol for Wavetel routers supports wind farm operations teams to securely access turbine data and optimize energy output.

• Benefits: End-to-end encryption meets compliance requirements such as ISO 27001, and Wavetel's static IP feature is suitable for distributed energy networks.

  
  

3.3 Logistics and Supply Chain: Securely Connecting Global Networks

• Application: Wavetel routers connect global warehouses and supplier networks via site-to-site VPNs (e.g., GRE+IPSec), ensuring real-time inventory management and order tracking.

• Benefits: SD-WAN-integrated VPNs provide rapid scaling and high security, and Wavetel supports network segmentation to isolate sensitive supply chain data.

  
  

3.4 Industrial Internet of Things (IIoT): Protecting Device Interconnections

• Application: Wavetel routers connect IIoT devices (e.g., sensors, robots) to cloud platforms via WireGuard, supporting data collection and predictive maintenance.

• Benefits: WireGuard's low latency and high compatibility ensures efficient communication of IIoT devices, and Wavetel routers' 5G support further enhances real-time performance.

3. How does a VPN work?

1. How it works

A VPN creates a secure network connection through the following steps:

• Encrypting data: The VPN client software encrypts the data on the user's device, using industry-standard protocols (e.g., OpenVPN, WireGuard) to ensure that the data is unreadable in transit. 256-bit encryption is the standard for bank- and military-grade security.

• Tunneling: Encrypted data is “tunneled” to the VPN server, hiding the user's real IP address and making it appear as if they are accessing the network from the VPN server's IP address.

• Server relay: The VPN server decrypts the data and forwards it to the target website or service, and vice versa, ensuring secure and transparent communication between the user and the target.

• Protocol selection: Different protocols (e.g. OpenVPN, SSTP, WireGuard) offer different levels of speed and security. For example, WireGuard is the mainstream choice in 2025 for its efficiency and low latency.

  
  

2. Deployment Process

3.Comparison of mainstream technology protocols:

4.VPN vs. Private Network Technology

1.VPN vs. Private Network

VPNs and Private Networks (Private Networks) are both technologies used for secure communications, but they differ significantly in architecture, cost, and application scenarios. Here is a comparison of the two:

Strengths and Limitations:

• VPN: Suitable for small and medium-sized enterprises or scenarios that require rapid deployment, Wavetel industrial routers provide industrial customers with flexible connectivity solutions by supporting a variety of VPN protocols (e.g., OpenVPN, IPSec).

• Private Network: Suitable for scenarios with extremely high latency and bandwidth requirements, but the high cost limits its popularity in small and medium-sized industrial applications.

2. Mainstream Solution Comparison

5.VPN Technologies Supported by Wavetel Industrial Routers

Wavetel industrial routers (e.g., 5G Industrial Routers) are designed for IoT and industrial applications and support a variety of VPN protocols to meet the security and performance needs of different scenarios. The following are the major VPN technologies supported by Wavetel and their comparison:

Analyze:

• PPTP: Outdated due to security vulnerabilities (e.g. MSCHAP-v2 is vulnerable to dictionary attacks) and Wavetel only recommends it for non-sensitive data transfer.

• L2TP/IPSec: provides medium security but is not recommended for highly sensitive industrial scenarios due to possible NSA vulnerabilities.Wavetel supports its rapid deployment on mobile devices.

• IPSec: Wavetel routers widely support IPSec for site-to-site connections to ensure secure communications for industrial control systems such as SCADA.

• GRE: Wavetel supports GRE in combination with IPSec to provide high throughput tunnels suitable for big data transmission in Industrial IoT.

• OpenVPN: Wavetel routers support OpenVPN in TCP/UDP mode, providing high security and cross-platform compatibility, suitable for cloud connectivity.

• WireGuard: Wavetel routers support WireGuard, the protocol of choice for industrial IoT in 2025 due to its high speed, low latency, and clean code (ChaCha20 encryption).

  
  

6.Trends in VPN Technology Development

VPN technology continues to evolve in 2025, driven by Industrial IoT, 5G, and zero-trust architectures. The following are the key trends:

• Widespread adoption of WireGuard: WireGuard has become mainstream due to its efficiency (low code volume, ChaCha20 encryption) and low latency, and is expected to replace some OpenVPN applications in 2025-2027, especially in 5G industrial routers (e.g., Wavetel).

• Zero Trust Architecture Integration: 92% of organizations are concerned about traditional VPN vulnerabilities, and 65% plan to move to a zero-trust architecture by 2026. Wavetel routers are compatible with zero-trust platforms (e.g., Twingate) through support for IPSec and WireGuard.

• 5G and VPN Convergence: The high speed and low latency of 5G networks drive the use of VPNs in the Industrial IoT. Wavetel's 5G industrial routers optimize real-time data transmission with WireGuard and OpenVPN.

• Automation and Intelligence: VPN solutions are beginning to integrate AI-driven threat detection and automated configuration, and Wavetel's routers support dynamic VPN tunnel management through intelligent software to improve industrial network efficiency.

• Asia-Pacific Market Growth: The Asia-Pacific VPN market is expected to grow by 16% from 2020-2027, especially in the smart manufacturing and energy sectors, with Wavetel's VPN solutions performing strongly in India and China.

Conclusion

VPNs are an indispensable tool for businesses and individuals to protect privacy, ensure security, and break through geographic constraints in the digital age.Wavetel Industrial Routers provide flexible, secure manufacturing, energy, logistics, and industrial IoT by supporting a wide range of protocols such as PPTP, L2TP/IPSec, IPSec, GRE, OpenVPN, and WireGuard. Connectivity Solutions. Combined with the trend toward 5G and zero-trust architectures, Wavetel's VPN solutions help customers meet complex industrial challenges. Explore Wavetel's VPN products today to build a more secure digital ecosystem for your industrial future!