| Transit Gateway | VPC Peering | |
|---|---|---|
| Allowed connection | 1-to-many VPC connection | 1-to-1 VPC connection |
| Topology | Hub-&-Spot network | Full mesh network |
| 💰 Pricing | VPC connection and data transmission charges | Only data transmission charges |
| Add or Remove VPC | Easy - New VPC only needs to connect to transit gateway |
Complex - All other VPCs would need a change to connect to new VPC. |
| Best Case | Large organization with more than 10 VPCs | Less than 10 VPCs |
| Additional hoping | Yes, hence might increase connection latency | No |
| Bandwidth Restriction | Restricted | No Restriction |