Data Protection Market Size, Share & Industry Analysis, By Solution (Data Archiving and eDiscovery, Data Encryption, Tokenization and Masking, Data Backup and Recovery, Data Authorization and Access, Data Governance and Compliance, Disaster Recovery, Data Loss Prevention (DLP), and Others), By Deployment (On-premises and Cloud), By Enterprise Type (Small & Mid-sized Enterprises (SMEs) and Large Enterprises), By Industry (IT & Telecom, BFSI, Healthcare, Retail & E-commerce, Manufacturing, Government, Aerospace & Defense, and Others), and Regional Forecast, 2024-2032

The global data protection market size was valued at USD 131.82 billion in 2023. The market is projected to grow from USD 150.38 billion in 2024 to USD 505.98 billion by 2032, exhibiting a CAGR of 16.4% during the forecast period.

Protecting data involves keeping it safe from damage, theft, or loss and being able to recover it if needed. There are three main aspects to data protection: traditional methods such as backups, data security, and data privacy.

Cyberattacks and data breaches have become increasingly common, with severe consequences. In 2023, a IBM report found that the average cost of a data breach was USD 4.45 million globally. In the U.S., that average was USD 9.44 million in 2022, more than double the global average. Thus, ensuring the security and protection of data have become essential for many industries across the world.

During the COVID-19 pandemic, many employees had to work from home, which created a need for remote data protection. As a result, businesses quickly started to adopt solutions for protection of data to ensure that data is protected regardless of employees’ locations. This includes protecting data on laptops at home as well as in the central data center at the office. The adoption of these solutions has led to a significant growth in the market.

GENERATIVE AI IMPACT

Rising Demand for Data Protection using Generative AI Capabilities to Amplify Market Growth

Generative AI is a powerful tool in the field of cybersecurity, capable of analyzing large amounts of data from various sources and helping organizations detect advanced threats that traditional security tools might miss. By identifying patterns and anomalies, it can indicate potential cyber-attacks or malicious activities. However, the burgeoning potential of generative AI also raises significant privacy concerns.

Organizations that implement AI must prioritize responsible handling of personal data, protecting privacy, complying with relevant data privacy laws, and fostering employee proficiency in handling sensitive data. Implementing privacy-based practices enables organizations to harness the power of generative AI while upholding individuals’ privacy rights and ensuring data security.

• According to industry experts, new regulations concerning cybersecurity and data privacy, such as the Digital Personal Data Protection Act of 2023, have underscored the importance of investing in cybersecurity. In fact, cyber investments are expected to grow from 11% in 2023 to 14% in 2024, highlighting the increasing importance of cybersecurity in an organization's overall strategy.

Data Protection Market Trends

Rise of Zero Trust Architecture and Rising Security Concerns to Propel Market Growth

Zero Trust Architecture (ZTA) is a new security approach gaining popularity due to its ability to strengthen data defenses. This innovative security approach does not automatically grant the access to users or systems within an organization's network. Instead, ZTA requires constant verification and validation of every user, device, and application seeking access to resources, thus thwarting unauthorized entry and safeguarding sensitive data.

Organizations can enhance their security posture and minimize the attack surface by implementing Zero Trust Architecture (ZTA). This approach is designed to mitigate insider threats and external attacks effectively, ensuring robust protection of data amid heightened cyber risks. Industry experts indicate that by 2026, around 10% of large enterprises will have a measurable and mature zero trust model. Presently, less than 1% of businesses have a mature zero trust model.

• In January 2024, Cloud security provider Zscaler launched its Zero Trust SASE solution along with the general availability of its SD-WAN solution, both rooted in a zero-trust architecture.

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Data Protection Market Growth Factors

Global Regulatory Compliance Requirements to Fuel Market Expansion

Rapidly emerging and maturing technologies, geopolitical instability, increasing shareholder and regulatory expectations, and a lack of available talent signify major challenges for global business and cybersecurity leaders.  

• During the third quarter of 2022, the education/research industry faced the highest number of cyberattacks, while the healthcare sector was the most targeted in ransomware attacks. According to industry studies, global attacks increased by 28%.

As more social and economic activities take place online, privacy and protection of data are becoming increasingly important. The United Nations Conference on Trade and Development (UCTAD) reports that 137 out of 194 countries have implemented legislation to ensure data and privacy protection. Some of the notable laws for protection of data worldwide, include the General Data Protection Regulation (GDPR), Personal Information Protection Law (PIPL), Data Security Law (DSL), the Privacy Act of 1974, and the General Data Protection Law, underscores the growing need to comply with these laws. This burgeoning need is expected to drive market growth in the coming years.

RESTRAINING FACTORS

Lack of Experts and Budget Constraints for SMEs Likely to Hamper Market Growth

The need for advanced online security solutions is rapidly increasing due to the growing number of security threats. Outdated network security solutions are insufficient to secure enterprises from advanced cloud, endpoint, and network security threats. The lack of professionals and experts in developing and advancing security solutions is considered a key restraining factor. Additionally, the high cost of updating and implementing internet security solutions and services impedes the acceptance of solutions for protection of data among SMEs.

The COVID-19 pandemic exacerbated educational attainment gaps that may result in a shortage of cybersecurity professionals in the future. Security operations centers constantly hire experienced staff to defend against intelligence-driven attacks, cloud storage, and other emerging threats. Failing to secure skilled talent to address these evolving challenges could compromise organizations' overall security posture.

Data Protection Market Segmentation Analysis

By Solution Analysis

Data Loss Prevention (DLP) Segment Held the Largest Share owing to Increasing Data Sensitivity

Based on solution, the market is divided into data archiving and eDiscovery, data encryption, tokenization and masking, data backup and recovery, data authorization and access, data governance and compliance, disaster recovery, Data Loss Prevention (DLP), and others (data auditing and monitoring).

In 2023, the data loss prevention segment captured the largest market share. Nowadays, organizations are installing data classification for data loss prevention, which enables them to apply targeted protection measures to different data categories based on sensitivity. Large and mid-sized enterprises are deploying suitable security controls with a well-defined classification framework, such as encryption, data loss prevention, or access control policies, tailored to each data classification level.

• In June 2023, McAfee recently unveiled a new security solution, called McAfee Business Protection, in collaboration with Dell Technologies. This comprehensive security suite is specially designed for small business owners and aims to protect them against various cyber threats and vulnerabilities. The suite offers a range of features such as identity and dark web monitoring, VPN, web protection for safe browsing, and more. With McAfee Business Protection, Dell’s small business customers can now have a more secure workplace when it comes to cybersecurity.

The data encryption, tokenization, and masking offering is expected to experience the highest CAGR in the forecast period. These solutions enable businesses to secure vast amounts of critical information stored in the cloud or server and protect the confidentiality of digital data. Moreover, the increasing need to secure compliance with payment security guidelines and maintain fraud prevention levels is likely to create numerous growth opportunities in the market.

By Deployment Analysis

Cloud Segment Led the Market due to Increasing Adoption for Cloud-Based Solutions

By deployment, the market is classified into the cloud and on-premise. The cloud segment held the largest market share in 2023 and is expected to witness the highest growth rate during the forecast period. Security solutions for big data in the cloud deployment mode provide enterprises with cloud-based solutions that offer scalability, enhanced IT security, and speed. With the increasing number of applications being deployed on the cloud, the demand for solutions for protection of data is expected to surge across various industry verticals.            

On-premise software is installed and maintained on the company's own servers. It offers more control and customization options, with complete control over security solutions for big data such as next generation firewalls and next generation intrusion prevention systems. However, on-premise deployments require upfront investment, IT infrastructure, and regular updates and maintenance.

By Enterprise Type Analysis

Increasing Acceptance of Data Protection among Large Enterprises to Augment Market Growth

Based on enterprise type, the market is categorized into Small and Mid-Sized Enterprises (SMEs) and large enterprises. Large enterprises accounted for the largest market share in 2023. They are enhancing their security policies and architecture by incorporating big data to safeguard critical assets against cyber-attacks. The adoption of data protection by large enterprises primarily aims to protect data centers, endpoints, networks, users, applications, and devices, from unauthorized usage and malicious ransomware attacks.

SMEs is likely to experience the highest growth rate in the coming years. The adoption of Bring Your Own Device (BYOD), cloud-based services, and mobile technology has become a popular trend among Small and Mid-Sized Enterprises (SMEs), leading to an increase in their profitability and overall organizational structure. However, this trend has also resulted in a rise in security concerns. As a result, SMEs are now focusing on implementing security solutions for big data to ensure their data and personal information are secure and protected from hacking and breaches.

By Industry Analysis

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BFSI Sector Held the Major Market Share owing to Growing Cyber-Attacks

Based on industry, the market is segmented into IT & telecom, BFSI, healthcare, retail & e-commerce, manufacturing, government, aerospace & defense, and others. The BFSI sector held the major market share in 2023. The BFSI (Banking, Financial Services, and Insurance) sector is subject to stringent regulations that enforce strong rules and compliance standards for protection of data. Banks and insurance firms in this sector must comply with HIPAA, GDPR, and regional financial data privacy legislation. This necessity for compliance mandates the implementation of robust measures for protection of data. Consequently, the BFSI sector plays a crucial role in contributing toward the global data protection market growth. Almost every territory has financial laws governing their operations for protection of data, for instance,

• The Gramm-Leach-Bliley Act (GLBA) in the United States


• The General Data Protection Regulation (GDPR) in the European Union


• The Payment Card Industry Data Security Standard (PCI DSS)


• The Digital Personal Data Protection Act (DPDPA) in India

The manufacturing industry is likely to grow with the highest CAGR over the forecast period. Protection of data and security refer to the measures implemented to safeguard critical data from unauthorized access, modification, disclosure, and loss. It plays a crucial role in preventing cyberattacks and disruptions that could impact manufacturing operations and business continuity. According to industry experts, in the third quarter of 2023, manufacturing accounted for a staggering 68% of all ransomware attacks on businesses. Furthermore, manufacturers experienced seven times more ransomware attacks than the food and beverage industry. In the same year, 44% of firms had to temporarily halt their manufacturing operations due to cyberattacks.

REGIONAL INSIGHTS

The global market scope is classified across five regions, namely North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

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In 2023, North America held the highest market share. The prevalence of sophisticated cyber threats in North America has heightened the necessity for robust solutions for protection of data. As cybercriminals continue to refine their tactics, businesses in the region recognize the significance of implementing comprehensive security measures to safeguard their vital assets. This awareness drives a perpetual cycle of investment in data protection technology, positioning North America as a frontrunner in developing and executing innovative solutions.

• In April 2024, CrowdStrike, a global cybersecurity firm, and Rubrik formed a strategic partnership. The partnership aimed to prevent breaches of critical information and accelerate data security transformation. The two companies will be utilizing Rubrik Security Cloud and the AI-based CrowdStrike Falcon XDR platform. This collaboration would enable organizations to detect, investigate, and stop attacks targeting sensitive data at a rapid pace.

Asia Pacific is expected to experience the highest CAGR during the forecast period. The rapid adoption of digitalization, machine learning, AI, and the Internet of Things (IoT) in India, Australia, South Korea, and China has resulted in the creation of massive data assets that need to be protected from various security threats and risks. To tackle these cyber issues, governments are implementing laws and regulations such as the Information Technology Act, 2000 (ITA or IT Act) in India, the Cybersecurity Act in Singapore, and the Security of Critical Infrastructure Protection Act in Australia. This has led to increased demand for data-centric security solutions.

Europe is being affected by the growing digitalization in various sectors, such as finance, retail, and government. The increasing amount of data traffic is driving the demand for products for protection of data throughout the region. Additionally, the use of cloud storage and rising incidences of cyberattacks are also significant factors contributing to the expansion of the market.

The Middle East & Africa and South America are experiencing growth due to growing technology adoption, rising smartphone penetration, investment in data security, and a widespread acceptance of cloud technology.

List of Key Companies in Data Protection Market

Product Enhancements and Strategic Collaborations by Various Players to Establish Market Presence

Key players operating in the market such as IBM, Oracle, HPE, Thales, NetApp, among others, are expanding 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.

• In July 2023, LTIMindtree announced the expansion of their partnership with Rubrik to launch a new Data Protection Platform called V-Protect. This platform would offer recovery and data protection services, powered by Rubrik's technology and training. LTIMindtree would integrate Rubrik's technology with their own administration, implementation support, analytics, product penetration capabilities, and professional services. 

List of Key Companies Profiled:

• IBM Corporation (U.S.)


• Broadcom (U.S.)


• Hewlett Packard Enterprise Development LP (U.S.)


• Thales Group (France)


• Forcepoint  (U.S.)


• Oracle Corporation (U.S.)


• McAfee, LLC (U.K.)


• NetApp Inc. (U.S.)


• Quest Software Inc. (U.S.)


• Acronis International GmbH (U.S.)

KEY INDUSTRY DEVELOPMENTS

• February 2024 – Informatica launched a new solution called Informatica Cloud Data Access Management (CDAM). This solution resulted from Informatica's acquisition of Privitar, a leading provider of comprehensive data access management products. CDAM is now integrated with the Intelligent Data Management Cloud (IDMC), Informatica's main data management platform. This AI-powered solution is a crucial component of data access governance and leverages IDMC's common metadata foundation.


• March 2023 – IBM and Cohesity announced a collaboration to improve data resilience and security in hybrid cloud environments. This partnership aimed to combine cyber resilience, data management, and data protection capabilities from both companies and introduce a new solution called IBM Storage Defender. This solution would incorporate Cohesity's data protection as an integral part of the offering.


• September 2023 – CrowdStrike announced new innovations to simplify IT and security management by moving from point tools to a unified platform, powered by the CrowdStrike Falcon platform. The innovations include protection of data, exposure management, and IT automation.


• August 2023 – Fortinet, which is a global provider of cybersecurity solutions that drive the convergence of networking and security, has announced new enhancements to its SASE offering. The FortiSASE solution now includes expanded integrations within the Fortinet WLAN portfolio, which would help organizations to better secure their microbranches and related devices.


• December 2023 – Thales announced its acquisition of Imperva, an American company that offers cyber security software and services. This acquisition enabled Thales to expand its cybersecurity portfolio with a highly complementary range of solutions that can help customers secure their applications, data, and identities across their entire digital ecosystem.

REPORT COVERAGE

The research report includes prominent regions globally to get a better knowledge of the industry. Furthermore, it provides insights into the most recent industry trends and an analysis of technologies that are being adopted quickly on a global scale. It also emphasizes on the market’s drivers and restrictions, allowing the reader to obtain a thorough understanding of the industry.

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