Data Protection as a Service Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[215+ Pages Report] According to Facts & Factors, The global data protection as a service market size in terms of market volume was valued at USD 19.81 billion in 2023 and is predicted to surpass USD 106.89 billion by the end of 2032. The data protection as a service industry is expected to grow by a CAGR of 20.60% between 2024 and 2032.

Market Overview

Data protection as a service is a cloud-based service model that helps organizations with different kinds of data protection solutions. It helps businesses protect data without investing in expensive infrastructure. These cost-effective services are available on a subscription basis to both SMEs and large enterprises.

Additionally, this model is more scalable according to organizations' requirements, which makes it appealing to them. Additionally, it eliminates the complexity of installing and managing the services solely by the organization's staff.

Key Insights

• As per the analysis shared by our research analyst, the global data protection as a service market size is estimated to grow annually at a CAGR of around 20.60% over the forecast period (2024-2032).
• In terms of revenue, the global data protection as a service market size was valued at around USD 19.81 billion in 2023 and is projected to reach USD 106.89 billion by 2032.
• Increasing incidences of cyber-attacks are driving the growth of the global data protection as a service market.
• Based on the deployment types, the hybrid cloud segment is growing at a high rate and is projected to dominate the global market.
• Based on service types, the storage as a service segment is anticipated to grow with the highest CAGR in the global market.
• Based on the end-users, the BFSI segment is projected to swipe the largest market share.
• Based on organization sizes, the large enterprises segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Increasing incidences of cyber-attacks are driving the growth of the global market.

There are rising incidents of data breaches and cyber-attacks in the market, which are driving businesses to adopt a multi-layered and highly connected data protection solution to mitigate cyber risk. Additionally, hiring advanced in-house security teams is both difficult and expensive, which further drives the demand for DPaaS solutions in the market. Sectors like government, healthcare, and BFSI are soft targets for attackers because of the amount of data involved. Moreover, cloud-based services are more scalable in nature and can better align with the client's needs. DPaaS solutions offer high-performance computing with high data inflow or high influx of information.

Additionally, organizations are also looking forward to disaster recovery and business continuity options in case of any breach or natural disaster, which further makes DPaaS solutions more attractive. It helps organizations eliminate any downtime or financial loss in case of an emergency.

Therefore, all these factors are likely to fuel the growth of the global data protection as a service market. For instance, Hitachi Vanatara LLC came up with DPaaS solutions to improve overall operational efficiencies. It also includes on-demand storage to help organizations with a complete package of data protection solutions.

Restraints

• Lack of awareness is expected to hinder the growth of the global market.

Many organizations are still working on traditional tools and solutions because of the lack of proper knowledge and awareness regarding the benefits of DPaaS solutions. Also, many organizations and employees are reluctant to switch or invest in new solutions in the market, which is further expected to slow down the growth of data protection as a service industry.

Opportunities

• Rising trend of remote work and digital services is expected to foster growth opportunities in the global market.

There is a rise in the trend of remote work and other digital services, particularly after the outbreak of the COVID-19 pandemic. Such trends are driving organizations to adopt cloud-based infrastructure to offer a flexible and scalable working environment. Therefore, there is a growing demand for DPaaS solutions in the market to ensure data protection during such environments.

Additionally, the rising shift towards zero security models is further likely to revolutionize global data protection as a service market. Such a security model assumes zero trust in third parties or any other part of their infrastructure. Therefore, every request needs to be verified before processing, which further helps organizations ensure data protection. For instance, Veritas Technologies came up with NetBackup in 2022. The product is powered by Cloud Scale Technology and is known to be the foundation of autonomous data management at scale.

Challenges

• High cost is a big challenge in the global market.

Adopting the DPaaS model involves high costs and potential downtime, which is a big challenge in data protection as a service industry. Additionally, these solutions highly depend on high-speed internet connections, which further deters their complete installation in regions with inadequate connectivity or data access problems.

Segmentation Analysis

The global data protection as a service market can be segmented into deployment types, service types, end-users, organization sizes, and regions.                     

On the basis of deployment types, the market can be segmented into hybrid cloud, private cloud, and public cloud. Hybrid cloud deployment is the fastest-growing segment in data protection as a service industry during the forecast period. Hybrid clouds are more scalable and flexible in nature, thereby helping businesses adjust resources on the basis of their requirements. Also, the hybrid cloud model is a combination of the private and public cloud environments. Moreover, it helps organizations protect sensitive data by using the private cloud option.

However, you can opt for public clouds for less sensitive data, as there is an option for scalability according to the requirement. An increasing number of organizations are adopting cloud-based services for better performance, data security, and management, which is also a major factor fueling the growth of the segment.

On the basis of service types, the market can be segmented into storage as a service, backup as a service, disaster recovery as a service, and others. Storage as a service segment is likely to dominate the global data protection as a service market during the forecast period. It helps businesses lower their expenditure on infrastructure by adopting cloud storage options.

However, it also helps businesses easily access data from different locations, thereby helping improve operational efficiency. However, it is easy to integrate storage as a service solution for disaster recovery, backup, and other kinds of protection solutions, thereby proving to be a helpful tool in case of any breach or disruption.

On the basis of end-users, the market can be segmented into IT & telecom, government & defense, healthcare, BFSI, and others. The BFSI segment is likely to witness significant developments in data protection as a service industry in the coming years. The BFSI sector is under strict regulations and is governed by frameworks like SOX, PCI, DSS, GDPR, and many others, which drive the requirements for data protection solutions in the market.

Moreover, the sector is also a target for hackers because it has a lot of sensitive information regarding the financial status of consumers. Therefore, companies dealing in the BFSI sector need to invest in disaster recovery and cloud-based services and solutions in the market. The ongoing digital expansions like innovation, mobile payments, and many others are significantly leading to growth in data generation, which is another major factor strengthening demand for data protection as a service solution in the market.

On the basis of organization size, the market can be segmented into small, medium enterprises, and large enterprises. Large enterprises segment accounts for the largest share of the data protection as a service industry during the forecast period. Large enterprises usually deal with huge amounts of data like financial and operational data, which is a major factor for the high growth rate of the segment.

Also, large companies are governed by data protection regulations, and therefore, there is a requirement to comply with the given laws to avoid penalties and any legal consequences, which further drive the growth in the segment.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America will likely account for the largest share of the global data protection as a service market during the forecast period. The regional governments in countries like the United States and Canada have released strict regulations regarding data protection and privacy, such as the Health Insurance Portability And Accountability Act (HIPAA) and the California Consumer Privacy Act (CCPA), to protect consumers. Therefore, there is an increasing demand for DPaaS solutions in the North American market.

Also, the region is witnessing a growing number of data breaches, ransomware, and cyber-attack incidents, which is affecting the organization's reputation in the market. Therefore, companies in the region are investing heavily in the strong DPaaS solutions, which are likely to fuel the growth of the regional market. Additionally, North America is home to many leading DPaaS providers like Microsoft, IBM, Amazon Web services, and many others, which is further anticipated to scale up the growth of the regional market.

Asia Pacific is another major emerging region in data protection as a service industry that is likely to witness heavy growth in the coming years. China is the largest contributor to the market because it is known to be a hub of cloud computing and digital innovation.

Also, an increasing number of organizations in China are investing heavily in data protection services to comply with government regulations and avoid penalties. India is also an emerging country in the regional market because of the introduction of the data protection bill. Australia is also a growing market because of established data protection laws such as the Australian Privacy Act. It is a mature market for DPaaS solutions.

However, the growing BFSI and healthcare sector in APAC is likely to positively impact the growth of the industry. These sectors handle a large amount of sensitive data and are under strict regulations, which fosters demand for DPaaS solutions in the market. For instance, Commvault came up with NetApp Scale-out Data Protection in 2020. The company is a leading vendor of data protection and recovery solutions.

Competitive Analysis

The key players in the global data protection as a service market include:

• Veritas Technologies
• Quantum Corporation
• Oracle
• NetApp Inc.
• Microsoft
• IBM
• HP Development Company L.P.
• Dell Inc.
• Commvault Systems Inc.
• Cisco Systems Inc.
• Amazon Web Services Inc.
• Asigra Inc.
• Symantec Corporation
• Hewlett Packard Enterprise (HPE)

For instance, Cohesity said it would partner with "Who's who" at ReConnect in 2022. ReConnect was the data security and management summit held by Cohesity. This partnership aims to offer exceptional and best-in-class data management and security services.

The global data protection as a service market is segmented as follows:

By Deployment Types Segment Analysis

• Hybrid Cloud
• Private Cloud
• Public Cloud

By Service Types Segment Analysis

• Storage As A Service
• Backup As A Service
• Disaster Recovery As A Service
• Others

By End-Users Segment Analysis

• IT & Telecom
• Government & Defense
• Healthcare
• BFSI
• Others

By Organization Sizes Segment Analysis

• Small & Medium Enterprises
• Large Enterprises

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America