Data Security as a Service Market

Data Security as a Service Market Size

The data security as a service (DSaaS) market size is projected to grow at a CAGR of 12.3% during the forecast period to reach USD 55.3 billion by 2027 from an estimated USD 31.0 billion in 2022.

Data Security as a Service Market Growth

Factors driving market growth include the growing adoption of data security as a service (DSaaS) due to the rising amount of generated data and its associated security issues; and the prime focus on the significant data loss caused by the increasing number of data breaches and thefts. However, integration with existing infrastructure, low-security budget, and spending is expected to hinder market growth.

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Data Security as a Service Market Dynamics

Driver:  Data evolution and growing security problems

Enterprises are becoming more concerned about enhanced data security and privacy protections because of the growing data evolution. At the same time, they do not want to expose the data to internal monitoring and breaches. In today's digitally transformed world, every endpoint gateway, sensor, and smartphone has become a potential target for hackers. Enterprises require data security services since the data needs to be safeguarded and backed up at every instance. Some businesses have constrained memory, computing power, and battery life. It indicates that traditional IT security systems sometimes cannot handle security situations due to cyberattacks. Addressing the issue would accelerate the adoption of data security services drastically.

Restraint: Low data security spending and expensive installation

High installation costs and complicated integration requirements hamper the initial adoption of data security solutions. Due to the integration of high-quality hardware, data security systems have a significant initial investment and ongoing maintenance costs. The budgets set aside to address cybersecurity issues are not keeping up with the growth of the necessary resources. Most small businesses lack the necessary resources and IT security skills to embrace improved cybersecurity solutions and services and protect their networks and IT infrastructure from various cyberattacks. For certain SMEs, a lack of capital resources can be a significant barrier to adopting a data security architecture.

Due to their limited financial resources, many businesses lack an adequate IT security infrastructure, which slows the adoption of new technologies and corporate security solutions and services. Appropriately administrating projected budget money for various operational issues and business continuity planning burdens small businesses. Organizations must recognize which program elements and information assets are more crucial to growing security threats since data security budgets will not be sufficient to meet data security needs. Due to the availability of cloud-based solutions and ongoing market advancements in data security as a service, this factor's impact will diminish during the projected period.

Opportunity: Increased adoption of cloud technology in enterprises

Multiple enterprises are willingly choosing the technologies that best correspond with their various platforms, making multi-cloud strategies the standard rather than the exception. Building robust architectures that can coexist and work with several cloud service providers is crucial.

Cloud-based data security solutions and service providers are anticipated to see increased growth prospects as SMEs focus on cloud solutions to protect their data from security breaches and vulnerabilities. Infrastructure as a service (laaS), platform as a service (PaaS), and software as service (SaaS) models are all offered by cloud service providers. These approaches are vulnerable to application vulnerabilities, malware, viruses, advanced persistent threats (APTs), distributed denial-of-service (DDoS) assaults, and access management and data security breaches. Data security measures like encryption, tokenization, DLP, and masking are effectively provided by cloud access security brokers (CASBS), who effectively protect data residing in cloud and on-premises environments.

With growing concerns about cloud data security, the demand for integrated, cloud-based data security solutions has increased, propelling the data security as a service market forward.

Challenge: Synchronizing management of unstructured to structured data

Enterprises struggle with managing unstructured information significantly, and solution suppliers work to ensure data security. The data retrieved through emails, social media posts, and client conversations is known as unstructured data. Although managing unstructured data can be challenging, it can also be a prosperous source of information for businesses. Unstructured data presents issues in quantity, quality, usability, and relevancy. Since unstructured data does not integrate well with conventional backup solutions, managing it becomes exceedingly challenging. As the data created is in terabytes, the file size is one of the most significant issues in the backup procedure. The issue is getting worse every day because of the massive growth in data. Another big problem for providers is the variety of data because it is challenging to optimize. These are some of the main obstacles preventing the market for data security as a service from expanding.

Data Security as a Service (DSaaS) Market Ecosystem

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By type, Data Governance & Compliance as a Service segment to grow at the highest CAGR during the forecast period

Data governance is a process that helps organizations manage and secure both structured and unstructured data in their enterprise workstations and cloud environments. As unstructured data accounts for a large portion of enterprise data and is expected to grow rapidly, managing it can be difficult. Data governance solutions provide an automated, scalable, and interoperable platform to address these challenges, making it easier to govern access to this large amount of data. With a data governance solution, organizations can identify where data resides and determine who is responsible for it and who has access to it, making it a critical tool for managing and securing data.

By vertical, the Healthcare segment is to grow at the highest CAGR during the forecast period

The healthcare segment includes various entities such as hospitals, clinics, pharmaceuticals, and life sciences. Data security is critical in this vertical as it deals with sensitive personal health information and critical patient data. There is a growing need to protect internal healthcare data within organizations, as many organizations prioritize protecting customer data but neglect internal data protection.

Data security as a service (DSaaS) solutions ensure that the organization's data is available in different silos and remain integrated, confidential, and available. Some of the significant data measures adopted by the healthcare vertical are encryption, tokenization, and masking. Encryption solutions help healthcare professionals secure personal health information on their mobile devices, such as laptops and smartphones. Further, the encryption of data, files, and folders helps healthcare professionals ensure the security and privacy of confidential data, financial transactions, and medical records related to the patient.

Implementing regulatory compliances, such as HIPAA, helps secure sensitive data, protect identities by providing a digital signature, and protect network gateways and databases. With the increasing instances of medical record thefts and awareness of regulatory compliances, the adoption rate of DSaaS solutions is expected to rise in the coming years.

By region, North America to hold largest highest market size during the forecast period

North America is the most affected region regarding data security breaches and, as a result, has the most significant number of DSaaS providers. Hence, the global data security as a service (DSaaS) market is expected to be dominated by North America. It is the most advanced region adopting data protection solutions with relevant infrastructure. Data security is recognized as the most serious economic and national security challenge by regional organizations and governments. The growing concern about the security of critical infrastructure and sensitive data has increased the government's intervention in data security in recent years. Specific budget allocations, support from the government, and mandated data protection policies are expected to make North America the most profitable region for the growth of data protection providers.

Key Market Players

Key players in the global data security as a service (DSaaS) market include Cisco (US), AWS (US), Thales (France), IBM (US), Cognizant (US), Micro Focus (UK), Microsoft (US), Varonis Systems (US), Imperva (US), Commvault (US), HPE (US), Acronis (Switzerland), Veritas Technologies (US), Asigra (Canada), NetApp (US), GuidePoint Security (US), Informatica (US), Carbonite (US), TrustArc(US), Cloudian(US), NetWrix (US), Alation (US), Infrascale (US), Securiti (US), DataGuard (Germany), Cobalt Iron (US), Storagepipe (Canada), Polar Security (Israel), Clarip (US) and SEQRITE (India).

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Scope of the Report

Market Segmentation

Recent Developments

• In October 2022, Imperva collaborated with Oracle. Oracle Cloud Infrastructure (OCI) is now supported by Imperva's award-winning hybrid data security technology, making migration easier for users and providing automated compliance monitoring of cloud data instances.
• In July 2022, Oracle and Commvault partnered to provide metallic data management. Critical data assets will be safeguarded in the cloud or on-premises by preserving flexibility between customer-controlled storage or a SaaS-delivered data protection service, including managed cloud storage, using Oracle cloud infrastructure storage for air-gapped ransomware protection.
• In November 2021, NetApp announced the acquisition of CloudCheckr. It is a cloud optimization platform that provides visibility and insights to lower costs, maintain security and Compliance, and optimize cloud resources.

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