Data Protection as a Service Market is expected to reach US$ 161.50 Billion by 2031

Stringent Government Regulations to Fuel Data Protection as a Service Market Growth During Forecast Period 

According to our latest study, "Data Protection as a Service Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – By Service Type, Deployment, Enterprise Size, End-Use Industry, and Geography," the market was valued at US$ 25.35 billion in 2024 and is expected to reach US$ 161.50 billion by 2031; it is estimated to register a CAGR of 30.3% during 2024–2031. The report includes growth prospects owing to the current data protection as a service market trends and their foreseeable impact during the forecast period.    

Organizations of all sizes worldwide must comply with complex regulations related to data security. According to the Privacy Laws and International Business Report, as of 2023, 83% of countries had passed data protection and privacy legislation, in contrast to 66% in 2020. The General Data Protection Regulation (GDPR), a comprehensive data privacy framework, was enacted by the European Union (EU) in 2018 to safeguard personal information of individuals. Similarly, in the US, the Health Insurance Portability and Accountability Act (HIPAA), passed in 1996, establishes guidelines for healthcare entities and businesses to handle patients' personal health information (PHI) to guarantee confidentiality and security. The California Consumer Privacy Act (CCPA) is a landmark data privacy law in the US that compels transparency in businesses about their data practices and empowers individuals to have more control over their personal information. In addition, the Payment Card Industry Data Security Standard (PCI-DSS) is a set of regulatory guidelines designed to safeguard credit card data. Noncompliance with regulatory measures can lead to significant fines, legal consequences, and reputational damage. For instance, in May 2023, the data protection authority of Ireland imposed a fine of US$ 1.3 billion on Meta (California) for GDPR violations. Moreover, the EU imposed massive fines of over US$ 3.1 billion in 2023 on the 5 most popular social media platforms for GDPR noncompliance: Facebook (US$ 1.8 billion), Instagram (US$ 624 million), TikTok (US$ 384 million), WhatsApp (US$ 246 million), and X (previously Twitter, US$ 480,000). In addition, retail giant Amazon was charged a US$ 877 million (€746 million) fine by Luxembourg's data privacy regulation authorities for GDPR breaches. Thus, organizations need to capitalize on updating their data protection measures to ensure compliance with various regulations and protect sensitive data. Outsourcing data protection to a DPaaS provider reduces the risk of noncompliance. Adopting DPaaS allows businesses to avoid penalties and gain greater trust among customers and partners by prioritizing privacy and data security. Thus, stringent government regulations such as GDPR, CCPA, and HIPAA fuel the data protection as a service market growth.  

Data Protection as a Service Market Analysis – by Geography

Source: The Insight Partners Analysis

Amazon Web Services Inc, Hewlett Packard Enterprise Co, International Business Machines Corp, Oracle Corp, Kyndryl Holdings Inc, Broadcom Inc, Cisco Systems Inc, Dell Technologies Inc, Microsoft Corp, and Hitachi Vantara Corp are among the key players profiled in the data protection as a service market report. Several other major players were also studied and analyzed in the market study to get a holistic view of the market and its ecosystem.

The report includes the data protection as a service market forecast by service type, deployment, enterprise size, end-use industry, and geography. Based on service type, the market is subsegmented into backup as a service (BaaS), disaster recovery as a service (DRaaS), and storage as a service (STaaS). In terms of revenue, the backup as a service (BaaS) segment held the largest data protection as a service market share and is expected to register the highest CAGR during the forecast period.

The scope of the data protection as a service market report focuses on North America (US, Canada, and Mexico), Europe (Spain, UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). North America dominated the market in 2023, followed by Europe and APAC.

The market in Asia Pacific is further segmented into Australia, China, Japan, India, South Korea, and the Rest of APAC. In terms of revenue, Among these countries, China held the largest data protection as a service market share. The prevalence of data attacks originating from Mainland China underscores the necessity for robust cybersecurity measures. As data theft and cyberattacks continue to evolve and become more sophisticated, organizations and individuals in China focus on implementing effective data protection strategies. Staying well-informed of the evolving tactics employed by cybercriminals and leveraging advanced cybersecurity solutions allows organizations and government authorities in China to bolster their defense against these attacks, in turn allowing them to contribute to a more secure global cyberspace. In September 2024, China announced the new Network Data Security Management Regulations, with a plan to bring them into effect from January 2025. With the new regulations, the country aims to enhance data security and privacy while establishing compliance requirements for both domestic and international entities. These regulations will significantly impact data-handling practices adopted by businesses, with stricter guidelines for personal information protection and cross-border transfers, ultimately providing individuals with greater control over their data rights.

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