Data Protection Market - Strategic Insights and Forecasts (2026-2031)

Data Protection Market Size:

The data protection market is forecast to grow at a CAGR of 12.9%, reaching USD 148.0 billion in 2031 from USD 80.7 billion in 2026.

Data protection involves using solutions and services that establish a secure framework that prevents unauthorized access to general or confidential data of organizations and individuals. These solutions are an integral part of modern enterprise infrastructures as they improve data recovery capability, thereby maintaining an organization’s functionality.

The growing prevalence of data theft, ransomware, and other cyberattacks is driving the demand for data protection, which has given the market a major boost. Moreover, the ongoing investment in cloud technologies and AI digital frameworks, and favorable government policies to support data protection laws, have further paved the way for future market expansion.

However, the technical complexities faced while designing an appropriate platform that would cater to the diversified end-user requirements, followed by the high associated capital cost, are posing a challenge for market expansion.

Data Protection Market Drivers:

• Growing ransomware and cyberattacks are accelerating the market expansion.

Data protection platforms assist in exercising authorized data access, which prevents leaks, manipulations, and compromises. The global expansion of corporate culture and the establishment of new business units have led to a significant increase in data traffic. Without a properly secured framework, there is a high risk of data theft.

Over the years, the prevalence of data theft and ransomware has experienced significant growth. For instance, according to the Department of National Intelligence, in 2023, the global ransomware prevalence witnessed a 74% growth compared to 2022. The same source also stated that attacks against major sectors, including defense, healthcare, IT, government, and transport, experienced a 50% growth.

Likewise, the commercial sector in major economies is showcasing positive growth, with which the concern for cyber attacks is also increasing among top management. As per the World Economic Forum’s survey report, in which 151 global organizations were interviewed, nearly 43% stated that a cyber-attack would affect their business performance in the next two years, further increasing their investments in data protection.

• Favorable government initiatives to bolster data protection have stimulated overall market growth.

Rapid urbanization, high internet penetration, and growing corporate culture in economies have increased the overall data traffic volume. To safeguard such data, strategic investment and public-private collaborations are being implemented.

Additionally, governments worldwide are realizing the high ramifications of unauthorized data access and initiating schemes and policies to protect data. For instance, in March 2024, the Federal Trade Commission launched “Private and Data Security Update 2023,” highlighting consumer data protection and minimizing the indiscriminate monetization of the same.

Likewise, the European Data Protection Supervisor launched a transfer model that will establish a secure framework through which EU institutions, offices, and agencies can transfer personal data to international organizations. Hence, the establishment of updated policies and models has bolstered the requirement for data protection solutions, thereby augmenting the overall market expansion.

Data Protection Market Segment Analysis:

• Larger enterprises are expected to show significant growth.

Based on enterprise size, the data protection market is segmented into small and medium enterprises (SMEs) and large enterprises. The latter is anticipated to account for a considerable market share as international conglomerates account for a major portion of the labor workforce in an economy. With high employee strength followed by overseas branches, the data volume of large-scale businesses tends to be higher, and they also invest in data centers. With the growing scale of large businesses, the demand for data protection solutions is also anticipated to grow for them.

Data Protection Market Geographical Outlook:

• North America is expected to account for a significant market share.

The data protection market, region-wise, is analyzed into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America is poised for remarkable growth during the given timeframe and will constitute a considerable share, fueled by the growing prevalence of ransomware attacks in major regional economies.

According to the “Internet Crime Report 2023” issued by the Federal Bureau of Investigation, in 2023, the number of ransomware cases stood at over 2,825, signifying an 18% growth over complaints registered in 2022. Moreover, the reported losses via ransomware reached US$59.6 million from US$34.3 million.

Furthermore, large-scale organizations have established their base in major North American nations and account for a considerable portion of employment. For instance, according to the “Key Small Business Statistics” issued by Innovation, Science, and Economic Development Canada, as of 2022, there were 3,128 large-scale businesses, accounting for 36% of the business employment in the country.

Such a high prevalence of cyberattacks, followed by the well-established presence of large-scale businesses, has accelerated the need for appropriate data protection solutions in North America. Moreover, the ongoing investment by governing authorities to establish stringent regulations regarding data privacy has further paved the way for future market expansion.

Likewise, Europe is anticipated to grow steadily, fueled by the favorable efforts undertaken by the European Union to minimize confidential data theft. The Asia Pacific region is also expected to hold an appropriate market share and is poised for constant growth during the forecast period.

Data Protection Market Key Developments:

• In August 2024, Rubrik formed a joint venture with IT-managed service provider Assured Data Protection (Assured), which will expand the two companies' presence in Latin America. The companies will offer solutions to enterprises that will provide them with cyber resilience and protect them from ransomware attacks.

• In May 2024, Zscaler Inc. announced multiple innovations in its “AI Data Protection Platform,” which will further minimize the risk faced by organizations regarding accidental data loss and malicious insiders. The platform protects data in IaaS/PaaS, SaaS, on-premise network shares, and endpoints.

• In May 2024, Hitachi Vantara formed a strategic partnership with Veeam Software to develop an advanced data protection solution that will minimize the organization’s downtime by protecting it from ransomware attacks. The partnership further aims to strengthen the enterprise's cyber-resilience.

• In February 2024, Veeam Software announced the launch of its Backup-as-a-Service (BaaS) product, “Veeam Cloud,” whose cloud-native design is compatible with Microsoft Azure and Microsoft 365 and provides powerful data protection to users, thereby further improving their data recovery options.

Data Protection Market Scope:

Data Protection Market Segmentation:

• By Component

  • Solution

  • Service

• By Deployment

  • On-Premise

  • Cloud

• By Enterprise Size

  • Small and Medium Enterprise (SMEs)

  • Large Enterprise

• By End-User

  • BFSI

  • Healthcare

  • IT and Telecom

  • Consumer Goods and Retail

  • Media and Entertainment

  • Manufacturing

  • Education

  • Others

• By Geography

  • North America

    • USA

    • Canada

    • Mexico

  • South America

    • Brazil

    • Argentina

    • Others

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Others

  • Middle East and Africa

    • Saudi Arabia

    • Israel

    • Others

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Indonesia

    • Thailand

    • Others