Data Loss Prevention Market Size, Share & COVID-19 Impact Analysis, By Component (Solution and Services), By Type (Network, Cloud, and End Point), By Industry (Healthcare, Manufacturing, Finance, Government, and Others), and Regional Forecast, 2023-2030

The global data loss prevention market size was valued at USD 1.84 billion in 2022 and is projected to grow from USD 2.21 billion in 2023 to USD 10.05 billion by 2030, exhibiting a CAGR of 24.1% during the forecast period. North America dominated the global market with a share of 39.67% in 2022.

Data Loss Prevention (DLP) offers a security-based solution that classifies and helps prevent inappropriate or unsafe transfer, sharing, or use of sensitive data. It can help businesses monitor and protect sensitive information across cloud-based locations, on-premises systems, and endpoint devices. The solutions also help to achieve compliance with regulations such as the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA).

The study focuses on solutions offered by companies such as Microsoft Corporation, Broadcom, Cisco Systems, Inc., Fortra, LLC, Cloudflare, Inc., IBM Corporation, McAfee, Inc., Endpoint Protector by CoSoSys Ltd., Imperva, Ekran Systems, and others.

COVID-19 IMPACT

Increased Adoption of Remote Work Arrangements and Cloud Data Protection Fueled Market Growth

The pandemic positively impacted the data loss prevention market growth. It forced organizations to adopt remote work arrangements and employees to access sensitive data from home or other non-traditional locations. This increased the risk of data exposure and potential breaches as it was difficult for IT teams to monitor and secure data outside the corporate network.

In addition, the pandemic accelerated the adoption of cloud-based services and applications. While cloud technologies offer many benefits, they also pose new challenges in data security and privacy. As businesses adapted to new working models, the DLP market observed an uptick in demand for solutions during COVID-19, addressing endpoint security, cloud data protection, and insider threat detection. The evolving threat landscape further helped drive innovation in the DLP sector, focusing on enhancing detection capabilities and providing robust data protection measures.

LATEST TRENDS

Growing Adoption of Bring Your Own Device (BYOD) Model in Major Companies is a Significant Trend

Increasing cases of data breaches in large enterprises have resulted in huge amounts of consumer data being leaked to hackers, increasing the focus on security solutions in emerging economies. BYOD policies in data prevention involve implementing measures to secure company data on employees' devices. This typically includes encryption, secure access control, and mobile device management solutions to mitigate the risk of data breaches. The growing adoption of the BYOD trend in organizations has increased the influx of different laptops, desktops, and smartphones, creating more vulnerable endpoints. Security measures alone are not enough to prevent these threats. Thus, the increasing adoption of BYOD in organizations is a major data loss prevention market trend.

DRIVING FACTORS

Increased Adoption of Cloud for Data Storage by Major Companies to Boost Market Growth

Companies store their data in the cloud as it helps them work efficiently. Cloud data storage is expected to increase due to the growth of Internet of Things (IoT) and the need to reduce operating expenses (OPEX). Clouds enable businesses to make affordable investments to support and maintain their infrastructure requirements to provide accessible data storage. This is driving companies to adopt data loss prevention solutions to protect sensitive data in the cloud. Employees and businesses benefit from the scalability and efficiency of clouds. Therefore, the increasing adoption of cloud-based data storage solutions is expected to drive the growth of the global DLP market.

RESTRAINING FACTORS

Complex Rules of DLP Deployment Can Hamper the Growth of the Market

The popularity of BYOD and cloud services has made organizations more vulnerable and porous. Data sharing and collaboration have become essential in today's mobile and globalized world. The mandate is that some files must be limited or shared within the organization's boundaries. The biggest threat comes from within, and it is difficult for any IT proficient to explain a policy that precisely describes business requirements without generating a ridiculous number of ‘false positives’. Most companies cannot afford to hire a large team to maintain and configure the complex rules of a typical data loss prevention implementation. Instead, companies rely on intrusive ground rules: ‘Block all USB devices’ and ‘Do not use Facebook’. As a result, many DLP implementations fail or do not succeed, which may hinder the industry's expansion.

SEGMENTATION

By Component Analysis

Solutions Segmental Growth Driven by Rising Remote Work and Digital Ecosystem’s Data Security

Based on component, the market is bifurcated into solutions and services.

The solutions segment captured the highest market share in 2022 owing to the evolving landscape for remote work and the continuous expansion of the digital ecosystem. This contributed to the demand for DLP solutions to safeguard sensitive information and maintain stakeholder trust. In addition, rising cyber threats, increasing data breaches, stringent regulatory requirements, the proliferation of sensitive data, and the need for organizations to protect their intellectual property are driving segmental growth.

The services segment is expected to grow at a considerable CAGR over the study period. The increasing adoption of cloud services, the need for comprehensive solutions to protect sensitive information, and the recognition of data as a critical asset contribute to the growth of DLP services.

By Type Analysis

Cloud Segment Dominates by Safeguarding High Volume of Data Breaches

Based on type, the market is classified as network, cloud, and end point.

The cloud segment holds a major market share in 2022. Cloud DLP helps businesses extend their policies to the cloud to safeguard data loss from malicious insiders or hackers. Cloud-based data loss prevention implements DLP policies in real-time and enables businesses to perform on-demand analytics on all data stored in the cloud, enabling them to identify data that does not match their policies. As the number of cloud data breaches increases, the average cost of a data breach also increases, thereby increasing demand for cloud-based DLP.

The end point segment is predicted to grow at the highest CAGR during the forecast period. Increased reliance on remote work, rising cyber security threats, and regulatory requirements are driving product adoption. In addition, technological advancements and the need to safeguard sensitive information contribute to the continued growth of the end point DLP segment.

By Industry Analysis

Financial Segment’s Prominent Position is attributed to DLP Solutions’ Real-Time Analysis and Monitoring

By industry, the market is categorized into healthcare, manufacturing, finance, government, and others (retail).

The finance segment held the maximum market share in 2022 and is expected to grow at the highest CAGR over the study period. Finance companies deal with large amounts of data, such as credit card information, client account details, and financial information. DLP solutions help data governance by categorizing, identifying, and managing important data.

Cyber-attacks, data breaches, and network intrusions pose challenges for the finance sector. DLP simplifies real-time analysis, monitoring, and alerting, allowing for the initial discovery of policy violations or security incidents. Finance companies rely on intellectual property, such as financial information, patents, or patented technologies. DLP protects intellectual property from theft or unauthorized disclosure, contributing to the growth of the finance sector.

The manufacturing segment is anticipated to grow at a considerable CAGR over the forecast period. As manufacturers digitize processes and adopt industry 4.0 technologies, the risk of data breaches increases.

REGIONAL INSIGHTS

By region, the market has been analyzed across North America, Europe, South America, the Middle East & Africa, and Asia Pacific.

North America holds a major share of the market. Rising awareness of data security risks has encouraged companies in North America to highlight the protection of sensitive data. Security incidents, cybersecurity disasters, and increased data value have all pushed security measures throughout organizations. DLP solutions are important to data security strategy, helping organizations maintain customer trust, inhibiting data loss, and saving the brand image. North American companies increasingly leverage cloud services and adopt cloud computing for data collaboration, storage, and business operations. This shift has urged the use of DLP solutions in North America.

Europe’s market for data loss prevention is influenced by increased digital transformation across sectors, including finance, retail, and government. The volume of data traffic contributes to the product demand across the regional market. Further, the increasing use of the cloud for data storage and cyberattacks are also considered significant factors contributing to industry expansion.

Asia Pacific market for data loss prevention is anticipated to grow at the highest CAGR during the forecast period. The region has perceived increased cybersecurity risks such as ransomware attacks, data breaches, and insider threats. Companies have become progressively aware of the possible threats and proactively save sensitive data. Various Asia Pacific countries are experiencing significant digital transformation, with organizations embracing cloud computing, mobile technologies, and remote work approaches. These advancements have resulted in a growth in data transfer, storage, and partnership, prompting the implementation of DLP in the region.

The South America and the Middle East & Africa markets are influenced by increased technology adoption, rising smartphone penetration, investment data security, and a large-scale acceptance of cloud technology.

KEY INDUSTRY PLAYERS

Prominent Companies focus on Acquisitions and Partnerships to Increase Global Reach

Major data loss prevention companies are working to expand their geographic boundaries globally by introducing industry-specific solutions. These companies strategically engage local partners to gain strong regional influence. In addition, major companies in the market are launching new products to attract and maintain their customers. Therefore, by adopting such strategies, players will sustain their competitiveness in the market.

List of Key Companies Profiled:

• Microsoft Corporation (U.S.)


• Broadcom (U.S.)


• Cisco Systems, Inc. (U.S.)


• Fortra, LLC (U.S.)


• Cloudflare, Inc. (U.S.)


• IBM Corporation (U.S.)


• McAfee, Inc. (U.S.)


• Ekran Systems (U.S.)


• Imperva (U.S.)


• Palo Alto Networks (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 – Hornetsecurity launched the Backup Bible, a comprehensive guide to help businesses prepare for and recover from a catastrophic data loss event. The Hornetsecurity Backup Bible would provide business owners with helpful content and customizable templates to create a personalized backup strategy.


• July 2023 – LTIMindtree expanded its partnership with Rubrik to launch a ‘Data Protection Platform’ named V-Protect, a recovery platform and data protection powered by Rubrik. V-Protect would integrate Rubrik's technology and training with LTIMindtree's implementation support, administration, professional services, analytics, and product penetration.


• March 2023 – Asana announced the latest addition, ‘Audit Suite’. It would facilitate archiving and eDiscovery integrations and Data Loss Prevention (DLP) – to help organizations prevent data leakage and meet compliance needs.


• January 2023 – Sophos DLP Engine would be accessible from the OEM sales team as an SDK. It would provide cross-platform data security solutions and easy-to-integrate data for those who want to execute DLP features in their products.


• October 2022 – Nightfall unveiled data loss prevention solutions tailored for Asana, solidifying its position as an official technology partner within the Asana Partner program. The integration would seamlessly embed extensive data protection features directly into the Asana applications.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation