Data loss prevention market to reach $12 billion by 2027
According to Market Statsville Group (MSG), the global data loss prevention market was estimated to be US$3.5 billion in 2021 and reach US$12.17 billion by 2027, registering a CAGR of 23.10% during a forecast period.
The rising focus of organisations towards meeting regulatory and compliance requirements and data saved on the public and private cloud has been driving the demand for data loss prevention across the globe.
As the need for digital assets increases, so should the volume of structured and unstructured data generated, demanding the need for data security services with a strategic focus on data-centric companies.
Several Fortune Global 500 companies have invested in the DLP market for more than a decade. Currently, the industry under investigation is establishing itself as a crucial security strategy within reach of mid-sized businesses.
Moreover, the market players’ continuous rise in R&D spending to diversify their applications in untapped businesses is further expected to improve consumption across the globe.
Data loss prevention solves three main objectives that are common pain points for many organisations: personal information, protection/compliance, intellectual property (IP) protection, and data visibility.
Rising compliance and regulatory requirements across the globe are the key factors driving the growth of the Data Loss Prevention market.
Regulatory requirements such as Sarbanes-Oxley Act (SOX), Health Insurance Portability and Accountability Act (HIPAA), and Gramm-Leach-Bliley Act (GLBA) help to drive the demand for DLP solutions and services among Small and Medium Businesses (SMBs) and large enterprises.
However, the increasing demand for the internet, cloud storage of data, and online availability of customers’ crucial information are driving the attention of hackers and criminals.
The increasing number of data theft across the globe has allowed market players to develop innovative products for establishing their companies in the global market.
Furthermore, the rising demand for automation, combined with the increasing use of IoT devices across several end-user verticals such as healthcare, consumer electronics, industrial, automotive, BFSI, and retail, is expected to boost DLP adoption. As these devices generate a more significant number of endpoints, data protection from these endpoints has become highly relevant.
The COVID-19 pandemic has positively impacted the revenue of data loss prevention companies due to the imposed lockdown and shutdown facilities regulations.
During the pandemic, as offices switched from offline work to online mode, threats towards sensitive data increased, leading to data piracy and theft. However, the companies are developing new product launches, partnerships, and collaborations as key strategies to develop their position in the global data centre security market.
Moreover, significant market players adopted strategies such as agreements, joint ventures, and acquisitions to strengthen their solutions portfolios and expand their geographic presence.