Data Protection Software Market

Data Protection Software Market Outlook (2024 to 2034)

The global data protection software market is estimated at a valuation of US$ 1.97 billion in 2024 and is forecast to increase at a CAGR of 28% to reach US$ 23.2 billion by 2034.

Data protection software companies provide a pool of programmed libraries with features such as data security, data analytics, data abstraction, and data management in a reformed manner. The digitalization of businesses and the continuous demand for data privacy backups are set to uplift global data protection software market growth over the coming years.

Leading companies are offering innovative software solutions to protect data from theft and piracy concerns. Data privacy technologies aid organizations in managing and operating data. Rising concerns regarding confidential and personal data breaches are driving enterprises' attention to employing reliable and advanced data protection software solutions. Integration of artificial intelligence, machine learning, and big data analytics are notable data protection software market trends.

North America is a key market for data protection software due to the presence of established companies such as Cisco, IBM, and Amazon Web Services.

• North America is estimated to capture 23.9% of the global data protection software market share in 2024.

East Asia is a fast-growing market for data protection software. The digitalization trend is boosting the use of data protection software solutions among both small and large enterprises in East Asia.

• The East Asia data protection software market size is projected to reach US$ 5.4 billion by 2034.

Report Attribute	Detail
Data Protection Software Market Size (2024E)	US$ 1.97 Billion
Forecasted Market Value (2034F)	US$ 23.2 Billion
Global Market Growth Rate (2024 to 2034)	28% CAGR
South Korea Market Value (2034F)	US$ 1.24 Billion
On-premise Data Protection Software Demand Growth (2024 to 2034)	27.4% CAGR
Key Companies Profiled	McAfee, LLC; TrustArc Inc.; OneTrust LLC; Commvault; Microsoft Corporation; Varonis Systems, Inc.; Micro Focus International Plc.; Forcepoint LLC; IBM Corporation; SAP SE; Cisco Systems, Inc.; Symantec Corporation; NetApp, Inc.; Veeam Software; RSA Security LLC; Informatica LLC; Proofpoint, Inc.; Veritas Technologies; Dell EMC; Cloudian, Inc.; Bitdefender; Spirion LLC; Integris Software Inc.; Hewlett Packard Enterprise (HPE); Check Point Software Technologies.

Historical Analysis vs. Future Market Projections

• The market for data protection software was valued at $447.9 million in 2019.

In the past five years, the demand for storage technologies for data protection through backup tapes and discs has been high. Whereas, with continuous technological advancements in this field, tap-based data backup, which was a slow process, eventually depreciated on a global level, and demand for virtual data protection software got a boost.

Developments and potency in data security risks are inducing a shift toward the convergence of universal solutions. The increasing realization among data protection software vendors and end users about the fact that traditional security apparatus involving silo solutions for specific threats is incompetent to address new-age cyber threats proves why continuous improvements are an indispensable part of this technology.

Considering technicalities related to this service market, features of data protection software offered in the historical period included only data security along with non-scalable cloud support. Whereas, with continuous upgrades accompanied by data protection software providers, they include secure & accurate encoded programs, scalable cloud support, data backup, data recovery, data security, and compliance with various businesses running across the globe.

Fact.MR, a market research and competitive intelligence provider, estimates that global demand for data protection software solutions is projected to reach a market valuation of US$ 23.2 billion by 2034.

Which Key Trends are Pushing Adoption of Reliable Data Protection Technologies?

“Artificial Intelligence and Machine Learning Algorithms Effective in Mitigating Privacy Risks”

• According to Cisco Data Privacy Benchmark Study 2023, 95% of businesses said that data privacy is an integral part of organizational culture.

Risks of data theft and privacy concerns are driving the adoption of data protection software tools among organizations. To prevent data breaches and reduce the risk of data thefts, key providers are offering advanced data protection systems integrated with digital technologies such as artificial intelligence (AI) and machine learning (ML).

• According to International Business Machines Corporation (IBM), an organization takes an average of 277 days to identify and contain an active breach.

AI-powered privacy technologies are anticipated to offer more protection against cyber threats. AI and ML help identify data privacy risks through prompts and recommendations using algorithms. AI and ML algorithms are more effective and reliable in analyzing big data sheets and mitigating privacy risks.

“Growing Adoption of IoT Devices Driving Need for Master Data Management Solutions”

• McKinsey & Company reveals that more than 43 billion IoT devices were connected to the internet in 2023.

Rising integration of IoT devices in manufacturing, healthcare, and BFSI industries is increasing the need for advanced data security software solutions. The growing adoption of the 5G network is generating profitable opportunities for data protection software solution providers. The flow of real-time information through IoT devices related to transactions is also likely to boost the sales of reliable consumer data storage and management devices.

Why are Data Management and Protection Technologies Deployed Less by Small- and Medium-sized Enterprises?

“High Installation Costs and Lack of Knowledge of Advanced IT Protection Solutions”

Many small enterprises across the globe are facing challenges related to data privacy and cyber threats. The lack of knowledge and high costs of data protection software are hampering their adoption rate. Small and medium-sized enterprises often run on tight budgets. Thus, the lack of funds for the adoption of IT services and solutions is anticipated to hinder data protection software sales growth to some extent.

Start-up Ecosystem

• CryptoNumerics is a Canadian start-up that offers a protected vertical data-as-a-service (DaaS) solution. The company’s solution helps B2B organizations securely store confidential or personal information of their customers.
• Apheris AI is a German start-up that offers data decentralization technologies that share data with high security. These technologies make use of federated machine learning and homomorphic encryption to ensure data privacy.

Country-wise Analysis

What’s Driving Data Protection Technology Sales in the United States?

“Stringent Data Privacy Laws and Presence of Huge End-user Companies”

Attribute	United States
Market Value (2024E)	US$ 209.1 Million
Growth Rate (2024 to 2034)	28.5% CAGR
Projected Value (2034F)	US$ 2.57 Billion

In the United States, several enterprises are increasingly using reliable and advanced privacy-enhancing technologies. The introduction or amendment of existing IT laws, such as the California Consumer Privacy Act (CCPA) is also increasing the adoption of data protection software tools in the United States. Continuous technological advancements and strong presence of end-use industries such as BFSI and healthcare are further boosting the sales of data protection software solutions in the United States.

What is the Sales Outlook for Data Protection Tools in Japan?

“High Use of IoT Devices Uplifting Need for Effective and Reliable Data Protection Software”

Attribute	Japan
Market Value (2024E)	US$ 127.3 Million
Growth Rate (2024 to 2034)	28.6% CAGR
Projected Value (2034F)	US$ 1.58 Billion

• Japan is expected to capture 28.9% of the East Asia market share in 2024.

People in Japan are at the forefront of the adoption of advanced technologies in every sector. The increasing use of IoT devices and annotation tools by prime end-use industries in the country is boosting the sales of data protection technologies. The IoT devices are widely used in home appliances and health monitoring machines.

Category-wise Analysis

Which Type of Deployment is Preferred for Data Protection Software Solutions?

“Cost-Effective and Reliable Nature of Cloud-based Data Protection Software Solutions”

Attribute	Cloud-based Data Protection Software Solutions
Segment Value (2024E)	US$ 1.14 Billion
Growth Rate (2024 to 2034)	28.4% CAGR
Projected Value (2034F)	US$ 13.9 Billio

Cloud-based data protection software solutions are widely adopted by end users due to their cost-effectiveness and easy accessibility. Cloud-based data privacy software solutions offer enhanced data security and are effective in streamlining data management and storage. Scalability and remote accessibility are also driving the sales of cloud data security solutions.

Will the Digitalization Trend Increase Adoption of Data Protection Software Solutions by SMEs?

“Small- and Medium-sized Enterprises Hold Leading Market Share”

Attribute	SMEs
Segment Value (2024E)	US$ 1.26 Billion
Growth Rate (2024 to 2034)	27.4% CAGR
Projected Value (2034F)	US$ 14.2 Billion

Digitalization trends across small and medium-sized enterprises are increasing the adoption of advanced IT technologies and solutions. The data protection technologies offer faster data uploading and editing, advanced cybersecurity, and a fast-track monitoring system along with a user-friendly interface. The rising cases of cyber theft are also driving the demand for cybersecurity solutions.

Competitive Landscape

Key players in the data protection software industry are resorting to growth-oriented strategies such as new product launches, collaborations, mergers, digital promotion, and continuous technological advancements. These tactics are helping the leading companies to expand their regional footprint and earn high profits.

• In May 2024, Zscaler revealed the upgrade of its AI data protection platform with new security innovations. The new features aid users in effectively protecting their data from malicious insiders and bad actors.
• In April 2024, Dell Technologies announced the launch of a multi-cloud data protection platform to counter increasing cyberattacks.

Fact.MR provides detailed information about the price points of key producers of data protection software positioned across the world, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Key Segments of Data Protection Software Market Research

• By Solution :

  • Data Backup & Recovery
  • Disaster Recovery
  • Data Security
  • Data Compliance

• By Deployment :

  • Cloud
  • On-premise

• By Enterprise Size :

  • SMBs
  • Large Enterprises

• By End-use Industry :

  • IT & Telecom
  • Healthcare
  • BFSI
  • Retail Business
  • Manufacturing Business
  • Education

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa