Data Protection as a Service Market Growth and Analysis by 2031

The data protection as a service market size 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. Incorporation of artificial intelligence and machine learning in data protection solutions is likely to continue to be a key market trend.

Data Protection as a Service Market Analysis

Digital security is important in modern businesses as crucial and sensitive information is stored online. A breach or misuse of this stored information could lead to serious financial theft, operational interruptions, and loss of confidentiality. In such a scenario, data protection as a service solution can aid backup, disaster recovery, and data security functionalities for enterprises of all sizes. The adoption of DPaaS is largely driven by the rising incidence of data breaches, the need for cost-effective data protection solutions, government regulations for enhanced cybersecurity to protect consumer data, and the rising BYOD trends. Moreover, the adoption of data protection services becomes compelling for businesses due to the expensive nature of cyberattacks and the growing remote work culture.

Data Protection as a Service Market Overview

Data protection as a service is a cloud-based service model that provides comprehensive data security, backup, and recovery solutions to organizations. Critical components of these services include automated data backup systems, encryption services for data in transit and at rest, sophisticated access control mechanisms, and provisions for ensuring regulatory compliance. Implementing DPaaS assists organizations in professional security management, regular system updates, and potential threat monitoring. Common use cases for DPaaS include email protection, database backup, secure document storage and sharing, disaster recovery planning, and regulatory compliance management.

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Data Protection as a Service Market: Strategic Insights

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Data Protection as a Service Market Drivers and Opportunities

Increasing Number of Cyberattacks Fuels Market Growth

Cyberattacks are considered a predominant risk among businesses with a continued rise in incidences amid technological progress. Computer malware, data breaches, and denial of service (DoS) are a few examples of cyber risks. According to ShardSecure, nearly 300,000 individuals in the US fell victim to phishing attacks in 2022, incurring a total loss of US$ 52 million. According to IBM's Cost of a Data Breach report, the global average data breach cost was US$ 4.45 million in 2023, recording a 15% increase over the past 3 years. According to AAG, the UK recorded the highest figure of cybercrime victims per million internet users (4,783 users) in 2022, an increase of 40% over the figures recorded in 2020. The average cost of a cyber breach was US$ 4.35 million in 2022, and this value is expected to reach US$ 10.5 trillion by 2025 and nearly US$ 24 trillion by 2027. According to the Global Financial Stability Report of April 2024, the risk of extreme losses associated with cyber incidents is on the rise. The cost associated with these extreme losses has more than quadrupled since 2017 to reach US$ 2.5 billion in 2023. Thus, an upsurge in the number of cyberattacks has bolstered the importance of cybersecurity to safeguard critical infrastructures and ensure data safety, thereby fueling data protection as a service market growth.

Rising Investments in Cloud-Based Solutions to Present Growth Opportunities

Organizations across the world increasingly invest in cloud solutions, significantly moving away from traditional IT infrastructure spending. In October 2024, Oracle announced plans to invest more than US$ 6.5 billion to open a public cloud region in Malaysia. The upcoming cloud region will enable Oracle’s Malaysian customers and partners to leverage AI infrastructure and services, and migrate mission-critical workloads to Oracle Cloud Infrastructure (OCI). Further, in January 2025, Amazon Web Services (AWS) announced its plans to invest US$ 8.3 billion in cloud infrastructure in the AWS Asia Pacific (Mumbai) Region in Maharashtra, India. This initiative aims to enhance the country's cloud computing capabilities and is expected to contribute US$ 15.3 billion to India's GDP by 2030. In the same month, Microsoft also announced an investment of US$ 3 billion for the expansion of its cloud computing and artificial intelligence capabilities across India. Such growing investment in cloud solutions is expected to create a substantial opportunity for data protection as a service market growth in the coming years. With the migration of operations to cloud environments, organizations will likely generate unprecedented volumes of sensitive data across multiple platforms and locations, necessitating robust data protection solutions. This digital transformation has introduced complex security challenges for organizations managing hybrid and multi-cloud environments that traditional security approaches struggle to protect effectively. Thus, organizations seek solutions offering unified security controls, automated threat detection, and standardized protection measures across their entire cloud ecosystem.

Data Protection as a Service Market Report Segmentation Analysis

Key segments that contributed to the derivation of the data protection as a service market analysis are service type, deployment, enterprise size, and end-use industry.

• 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). The backup as a service (BaaS) segment dominated the market in 2024.
• Based on deployment, the market is divided into public cloud, hybrid cloud, and private cloud. The public cloud held the largest market share in 2024.
• The data protection as a service market, by enterprise size, is bifurcated into large enterprises and SMEs. The large enterprises segment dominated the market in 2024.
• Based on end-use industry, the data protection as a service market is segmented into IT and telecom, BFSI, healthcare, manufacturing, retail and e-commerce, and others. The IT and telecom segment dominated the market in 2024.

Data Protection as a Service Market Share Analysis by Geography

The data protection as a service market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2024. Europe stands as the second-largest contributor to the global data protection as a service market, followed by Asia Pacific.

The data protection as a service market in North America is segmented into the US, Canada, and Mexico. North America is one of the frontrunners in terms of technological innovations and adoption. The region has a well-established IT and cloud infrastructure. A robust cybersecurity infrastructure and elevated cybercrime awareness drive the demand for data protection solutions in the region. In the past few years, all major industry verticals in North America have exhibited a vast-scale adoption of emerging technologies such as artificial intelligence, machine learning, and blockchain. With the burgeoning penetration of digitization, data protection has become a crucial aspect of business transactions in various North American industries.

Data Protection as a Service Market Regional Insights

The regional trends and factors influencing the Data Protection as a Service Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Data Protection as a Service Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Data Protection as a Service Market Report Scope

Data Protection as a Service Market Players Density: Understanding Its Impact on Business Dynamics

The Data Protection as a Service Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Data Protection as a Service Market are:

1. Amazon Web Services Inc
2. Hewlett Packard Enterprise Co
3. International Business Machines Corp
4. Oracle Corp
5. Kyndryl Holdings Inc
6. Broadcom Inc

Disclaimer: The companies listed above are not ranked in any particular order.

Data Protection as a Service Market News and Recent Developments

The data protection as a service market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the data protection as a service market are listed below:

• Amazon Web Services announced the availability of AWS Backup in Asia Pacific (Thailand). AWS Backup is a fully managed, policy-driven service that allows the centralized automation of data protection across multiple AWS services spanning compute, storage, and databases. Using AWS Backup, one can centrally create and manage backups of application data, protect data from inadvertent or malicious actions with immutable recovery points and vaults, and restore data in the events posing the risk of data loss.

(Source: Amazon Web Services, Press Release, January 2025)

• IBM Guardium Data Security Center provides a common view of organizations’ data assets, empowering security teams to integrate workflows and address data monitoring as well as governance, data detection and response, data and AI security posture management, and cryptography management, all in a single dashboard. IBM Guardium Data Security Center includes generative AI capabilities to help generate risk summaries and boost the productivity of security professionals.

(Source: IBM, Press Release, October 2024)

Data Protection as a Service Market Report Coverage and Deliverables

The "Data Protection as a Service Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• Data protection as a service market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Data protection as a service market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Data protection as a service market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the data protection as a service market
• Detailed company profiles