Data Security Market by Deployment, Type and Geography - Forecast and Analysis 2023-2027

Data Security Market Forecast 2023-2027

The data security size is forecast to increase by USD 3.86 billion, at a CAGR of 14.8% between 2022 and 2027. Market expansion hinges on several crucial factors, foremost being the implementation of stringent regulations concerning data protection. This includes measures to safeguard sensitive information, driving organizations to prioritize cybersecurity measures. The escalating frequency of cyberattacks further underscores the importance of robust IT security protocols. Consequently, companies are allocating a growing portion of their budgets to bolster their IT security infrastructure. This trend reflects a proactive approach to mitigate potential risks and safeguard data integrity. As regulatory frameworks evolve and cyber threats continue to evolve, the market's growth trajectory is intricately tied to the ongoing investments and efforts made towards ensuring information protection and resilience against cyber threats.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by deployment (on-premises and cloud-based), type (large enterprise and SME), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Dynamics and Customer Landscape

The market is propelled by escalating data volumes and the proliferation of information applications demanding enhanced authenticity and integrity protection. Attacks by hackers underscore the critical data vulnerability and evolving security threats, pushing businesses and customers towards stringent measures to safeguard sensitive data. Data breach events necessitate a shift towards data-centric security over traditional security models, leveraging cloud data, big data analytics, AI, and ML technologies. Challenges include securing remote working practices, implementing robust user authentication, access controls, and encryption across diverse operating systems, databases, and platforms like Cloudera. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The stringent regulations regarding data protection are the key factor driving the global market growth. Stringent regulations have been imposed in several countries and regions to improve data security. The GDPR framework introduced a new set of rules for organizations involved in any kind of business in the EU. Organizations have to ensure that the personal data of their users are collected legally and under stringent conditions. In addition, they have to maintain complete transparency over who collects, manages, and uses the data and are under obligation as per the GDPR to protect the data from exploitation and misuse.

Moreover, failure to do so can lead to hefty penalties. Several governments have included the privacy of consumers in national laws. The California Consumer Privacy Act in California, US, and the Brazilian General Data Protection Law in Brazil are some examples of privacy bills implemented by governments. Both these bills are expected to come into effect in 2020. Countries such as India are also working on drafting their versions. The presence of such stringent regulations is increasing the demand for information protection services and solutions and driving the growth of the global market during the forecast period

Significant Market Trend

Increasing focus on data security automation is the main trend driving the growth of the global market. Automation has impacted all the tech sectors and has contributed significantly to improving the efficiency and profitability of end-users. Automation is emerging as an important trend in information protection  and cybersecurity and is gaining a foothold in the IT industry. information protection automation refers to automating the performance of certain mundane processes of information protection. The growing focus on the use of automation in information protection is aimed toward increasing efficiency and reducing the burden on the understaffed information protection teams of organizations.

Moreover, the increasing complexity of cyberattacks further emphasizes the need for improved information protection solutions. Automation of information protection solutions makes the surveillance of security loopholes more effective. Moreover, the transition from conventional information protection infrastructure to an automation-centric information protection infrastructure allows end-users to focus on the business impact of information protection solutions by conducting in-depth analysis. Therefore, the growing adoption of information protection  automation will drive the growth of the global market during the forecast period.

Major Market Challenge

Security concerns with open-source data security solutions are a major challenge to the global market growth. Most SMEs and individual users worldwide have low capital. They cannot invest in expensive on-premises and cloud-based information protection solutions. Therefore, they adopt open-source information protection  solutions to manage their business operations without any capital investments, as these solutions are extremely economical for organizations with minimal resources and expertise. The use of open-source information protection solutions poses a serious threat to the security and integrity of data for end-users.

Moreover, the source code of open-source information protection solutions is transparent and can be accessed by everyone, unlike proprietary software. Open-source information protection  solutions are used by hackers to read and study the source code. This becomes a threat as the identification of any bugs or other vulnerabilities by a non-ethical hacker can compromise the platform for end-users and lead to hacking and data theft. Security-related concerns with open-source information protection solutions affect the adoption of information protection solutions and, in turn, hamper the growth of the market during the forecast period.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Fortinet Inc.- The company offers data security solutions such as FortiGate. They offer network security, cloud security, security operation, zero trust access networking, and communications security-as-a-service.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Amazon.com Inc.
• Broadcom Inc.
• Centrify Corp.
• Cisco Systems Inc.
• Cloudera Inc.
• Hewlett Packard Enterprise Co.
• Imperva Inc.
• International Business Machines Corp.
• McAfee LLC
• Microsoft Corp.
• NetApp Inc.
• Oracle Corp.
• Palo Alto Networks Inc.
• Proofpoint Inc.
• Sirius Computer Solutions Inc.

Qualitative and quantitative market growth  analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Market?

The market segmentation is a multifaceted landscape driven by various key components. Data volumes and information applications are critical considerations, as they determine the scale and scope of security measures required. Ensuring authenticity and integrity of data is paramount to combatting attacks and thwarting hackers who exploit data vulnerability. Security threats continue to evolve, necessitating robust solutions to protect businesses and customers alike. Sensitive data protection is a focal point, especially given the rise in data breach events and the need for data-centric security models over traditional ones. Cloud data and big data analytics play a significant role, with AI and ML technologies bolstering defenses against data breaches. Remote working practices further emphasize the importance of ML and tools like Informatica for enhanced security. Failover data centers ensure continuity, while user authentication, access controls, encryption, and operating system security bolster overall data protection. Databases and platforms like Cloudera contribute to a comprehensive security framework, addressing threats across the data lifecycle

The market share growth by the on-premises segment will be significant during the forecast period. On-premises servers are the traditional enterprise computing model. In this implementation, all hardware and software are available on the premises of the company. The businesses purchase, own, and maintain their information protection-related infrastructures, such as servers and storage units. These infrastructure components are located at single or multiple secure and climate-controlled sites. The company needs specialized IT support to manage the equipment, as well as appropriate working systems to keep the equipment working.

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The on-premises segment was valued at USD 2.10 billion in 2017 and continue to grow by 2021. The on-premises security segment is anticipated to grow at a gradual rate during the forecast period. On-premises segment costs higher and requires a dedicated and skilled IT team for maintenance. However, on-premises are highly secure when compared to cloud solutions, and the segment is dominated by large organizations as end-users, which are more concerned about functionalities than cost-effectiveness. The secure management of data is of paramount importance in the present environment of security threats and adoption of technologies, as a data leak can be detrimental to stakeholders' interests and the reputation of an organization. Hence, on-premisessegment solutions are preferred for the complex IT security needs of large organizations and are expected to promote the growth of the market during the forecast period.

Which are the Key Regions for the Market?

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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is experiencing a continued expansion of data security because of the prevalence of insider fraud, data breaches, and hacking since 2019. The growth of the cloud environment has become an increasing concern for enterprises because the same infrastructure can be used by other companies and competitors, which may lead to breaches of data privacy. Factors such as the availability of advanced IT infrastructure, high frequency of malware attacks, presence of numerous leading vendors, stringent regulatory landscape, and increasing adoption of advanced technologies by organizations are driving the growth of the market in North America during the forecast period.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest market trends and growth opportunities from 2017 to 2027. 

• Deployment Outlook 
  • On-premises
  • Cloud-based

• Type Outlook 
  • Large enterprise
  • SME

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is experiencing rapid growth driven by a myriad of factors, including the increasing sophistication of cybercrimes and the growing emphasis on cybersecurity budgets across industries. Organizations are investing heavily in data security technologies such as encryption, access controls, and firewalls to protect against data breach events and intellectual property theft.With the proliferation of digital data generation and the adoption of cloud infrastructure, cloud data security software and cloud access control solutions are in high demand. This is especially critical for hybrid work environments and remote working practices, where network protection and authentication are paramount.

Moreover, Artificial intelligence (AI) and machine learning (ML) are playing a crucial role in identifying phishing attempts and spear-phishing email attacks. Companies are also focusing on data risk assessment and data vulnerability analyses to proactively address data damage and internal data breaches.Strict regulatory requirements and data privacy laws are driving the adoption of data-centric security measures, including data masking, data minimization, and purging of stale data. Additionally, big data analytics tools are being utilized to gain insights into data volumes and data centers security policies. Overall, the Market is evolving rapidly to address the ever-changing landscape of cyber threats, emphasizing the importance of data backup and resilience, user authentication, and storage policies to safeguard sensitive data across private businesses, public businesses, and small businesses alike.

Market Scope
Report Coverage	Details
Page number	164
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 14.8%
Market growth 2023-2027	USD 3.86 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	14.56
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 33%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Amazon.com Inc., Broadcom Inc., Centrify Corp., Cisco Systems Inc., Cloudera Inc., Fortinet Inc., Hewlett Packard Enterprise Co., Imperva Inc., International Business Machines Corp., McAfee LLC, Microsoft Corp., NetApp Inc., Oracle Corp., Palo Alto Networks Inc., Proofpoint Inc., Sirius Computer Solutions Inc., Sophos Ltd., Thales Group, Varonis Systems Inc., and Zscaler Inc.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market research report analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market players

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