Data Protection as a Service Market Size

Data Protection as-a-Service (DPaaS) Market Analysis

The Data Protection as a Service Market size is estimated at USD 24.51 billion in 2024, and is expected to reach USD 100.65 billion by 2029, growing at a CAGR of 32.64% during the forecast period (2024-2029).

With the increased growth and popularity of cloud services, many businesses are looking to enhance their hosted services to give them better benefits, such as higher scalability, management, and recovery options. Various cloud storage and data security companies are developing data protection as a service model to meet better their client's needs, which propels the market forward.

Over time, the frequency and scale of cyberattacks have grown significantly. Organizations need a multi-layered, highly connected security system to mitigate risks and prevent attacks. With this growing threat and the increasing security skills gap, in-house security teams are no longer sufficient to protect businesses. Therefore, it has become inevitable for such organizations to look towards Data Protection as a Service (DPaaS) solution.

Even though the number of data breaches and cyberattacks has increased, customers are not afraid of sharing their data with third-party companies. As per SurfShark, during the third quarter of 2022, around 15 million data records were exposed worldwide through data breaches. It had increased by about 37% compared to the previous quarter. This rise in data breaches necessitates Data Protection-as-a-Service, driving the market's growth significantly.

Moreover, the surge in the adoption of next-generation technologies and rising data migration to a cloud model to gain flexibility and agility and optimize cost savings are vital factors contributing to market growth. Thus, safeguarding and storing critical data from data theft, data loss, and operational disasters influences enterprises to consider data protection services and solutions over the cloud, drastically enhancing the market's growth.

However, the rise in concerns regarding privacy and security might be a factor that could amplify the overall growth rate of the market throughout the forecast period.

Several governments and public and private organizations have introduced measures to tackle this crisis and help limit the spread of COVID-19. From social distancing to (where possible) mandatory teleworking, discontinuing nonessential physical meetings, and promoting hand hygiene protocol, the way people live, and work has changed. The enforcement of these measures can entail private-invasive actions that require efficient means of data protection by public institutions and private companies, which could positively impact the Data Protection as a Service market.