Data Protection as a Service Market Size, Share & Trends Analysis Report By Service (DRaaS, BaaS, STaaS), By Deployment, By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2024 - 2030

Report Overview

The global data protection as a service market size was valued at USD 22.05 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 25.9% from 2024 to 2030. Increasing demand for cloud-based services and growing threats of data breaches and cyberattacks drive demand for the DPaaS market. The widespread adoption of cloud computing and evolving threats posed by critical infrastructures have increased demand for DPaaS. The inclusion of technologically advanced software tools, network-based infrastructures, and remote monitoring and control of multiple businesses operating globally has increased the vulnerability of companies and agencies to catastrophic cyberattacks. This is expected to drive growth for the DPaaS market in the approaching years.

In recent years, the information technology industry has experienced a major shift from solution or product-based offerings to service-based deliveries. The emergence of progressive technologies such as cloud computing and the continuous adoption of innovations related to artificial intelligence and machine learning has resulted in the growing use of data and increasing requirements for reliable data storage and protection services. The entry of multiple small- and medium-scale enterprises in different industries associated with using computing technology has also contributed to the growth in demand for enhanced data protection solutions.

Despite developing robust security solutions and adopting necessary preventive measures to address potential data breaches and theft, multiple businesses and government agencies have experienced many cyberattacks in recent years. Many unfulfilled cyber-security jobs due to a lack of skilled personnel have also contributed to the growing demand for data protection as a service. The increasing misuse of commercial spyware, disputes regarding regimes, and involvement of multiple countries in the trade, which are highly monitored through data analytics and related technologies, have developed an alarming need for improved data protection arrangements.

Moreover, increasing stringency of data protection regulations such as the General Data Protection Regulation (GDPR) policy and the Data Protection Act are driving the growth of this industry. These regulations require organizations to implement robust data protection protocols to ensure the security and privacy of sensitive data. For instance, GDPR mandates that organizations protect personal data from breaches and unauthorized access, with severe fines for non-compliance.

Service Insights

The disaster recovery as a service (DRaaS) segment dominated the global industry and accounted for a revenue of 38.3% in 2023. Growth of this segment is driven by the rising adoption of cloud-based services, the increasing need for business continuity, and concerns about data loss. The growing threat of cyberattacks, natural disasters leading to damages to data storage facilities and hardware failures has highlighted the need for effective disaster recovery solutions. As organizations rely heavily on data to operate their business, the need for effective disaster recovery solutions has become critical. DRaaS assists organizations with a cloud-based solution for disaster recovery, ensuring that data is always available and accessible, even in the event of a disaster. Unpreparedness of multiple businesses before disastrous events and benefits such as availability of experts, reduced liabilities related to hardware protection are expected to drive demand for this segment during forecast period.

Storage as a service (STaaS) segment is anticipated to experience the fastest CAGR during the forecast period. The projected growth is attributed to the increasing inclusion of data in multiple businesses, growing adoption of cloud computing in numerous industries, cost efficiency offered by the service providers, innovations in storage technologies, and strict. The emergence of the e-commerce industry and online shopping platforms developed by various businesses, dependability on data, a growing collection of data through smartphone technologies and other means and increasing volume of data available with organizations are expected to generate greater demand for storage as a service segment in the next few years.

Deployment Insights  

The private cloud deployment segment dominated the global industry in 2023. Private cloud solutions offer dedicated and isolated environments that provide greater protection against cyber threats and data breaches than public clouds. With increasing regulatory requirements and stringent compliance standards, businesses are adopting private cloud deployments to meet data privacy obligations. In addition, the need for customized and scalable data protection solutions aligns well with private cloud infrastructure, which is often tailored according to specific organizational needs and workloads. Furthermore, the rise of digital transformation initiatives and the growing volume of data generated by businesses also contribute to the increased adoption of private cloud platforms, as they offer robust backup, recovery, and data management capabilities.

The public cloud segment is expected to experience significant growth over the forecast period. The segment growth is primarily by the cost-effectiveness feature offered by the category. The key driver for the development of the segment is the increasing adoption of public cloud platforms by small and medium-scale enterprises owing to their low-costs compared to other cloud platforms. Furthermore, companies are not required to cover the substantial upkeep expenses linked to public platforms. These factors result in a large number of organizations choosing public cloud services for efficiently storing unclassified data.

Enterprise Insights

The large enterprise segment dominated the data protection as a service (DPaaS) market in 2023. Large enterprises generate vast amounts of data and require dedicated cloud service platforms. This requirement is driven by their complex operational requirements and substantial IT budgets. With their extensive resources and established IT departments, large enterprises have been able to integrate cloud-based service platforms effectively into their existing infrastructure. Moreover, their robust security, compliance, and governance requirements have led to increased demand for advanced cloud brokerage services, further solidifying their dominant position in the market.

The small and medium-sized enterprises (SMEs) segment is anticipated to witness the fastest CAGR during the forecast period. The increasing complexity of data regulations and the rising frequency of cyber threats drive demand for reliable and cost-effective data protection solutions. For Instance, according to a cybersecurity company, Guardz survey, more than 57% of SMEs have experienced a cybersecurity and data breach. As a result, SMEs are increasingly turning to DPaaS providers that offer scalable, subscription-based services that align with their budgets and needs. In addition, increasing advancements in cloud computing and strategic investments by organizations have made it easier and more affordable for SMEs to implement robust data protection strategies without the need for extensive on-premises infrastructure. For example, In April 2024, Commvault announced the acquisition of Appranix, boosting and enhancing Cyber Resilience for enterprises.

End Use Insights

The banking, financial services, and insurance (BFSI) segment dominated the DPaaS market in 2023. The segment growth is primarily driven by its stringent regulatory requirements and the need for the critical need to safeguard sensitive customer data. For example, In June 2024, Patelco Credit Union announced the company had suffered a ransomware attack, highlighting vulnerabilities in financial institutions. These incidents underscore the importance of robust data protection and led to an increased demand for DPaaS solutions in the BFSI sector to prevent such data breaches. Moreover, the BFSI industry handles massive volumes of data daily, including personal information, financial transactions, and other sensitive records, making comprehensive and scalable data protection services crucial and driving demand for security solutions.

The manufacturing segment is anticipated to witness the fastest CAGR during the forecast period. The increasing adoption of Industry 4.0 and growing digitalization in operations, driving the segment’s growth. The growing use of cloud-based applications and services in the manufacturing sector has increased the demand for cloud-based data protection solutions to prevent cyberattacks and data breaches, driving the adoption of DPaaS solutions.

Regional Insights

North America dominated the data protection as a service market and accounted for the largest revenue of 39.0% in 2023. The region’s growth is driven by early adoption and widespread acceptance of cloud-based technologies coupled with a robust ecosystem of cloud services providers and brokerage platforms in countries such as the U.S. and Canada. In addition, the region’s stringent regulatory requirements have necessitated robust data protection measures, further fueling the region’s growth. For instance, the Health Insurance Portability and Accountability Act (HIPAA) and California Consumer Privacy Act (CCPA) focus on safeguarding personal information and providing data privacy to consumers.

U.S. Data Protection as a Service Market Trends

The U.S. dominated the regional industry for Data Protection as a Service (DPaaS) and accounted for the revenue share of 80.4% in 2023. The region's growth driver is the robust IT ecosystem and global leader in cloud adoption. The presence of key players such as Amazon Web Services, Microsoft, IBM, and Oracle in the U.S. has contributed to the region's growth, as these companies offer a range of DPaaS solutions to meet organizations' needs. Furthermore, the U.S. is also home to many large enterprises, which require robust data protection solutions to protect their sensitive data, driving the demand for DPaaS solutions.

Europe Data Protection as a Service Market Trends

Europe data protection as a service market held a significant revenue share of global industry in 2023. Increasing adoption of cloud-based services, a rising number of small and medium enterprises, and stringent data protection regulations are major factors driving growth in the region. The region's growing concern about data breaches and cyberattacks has also contributed to the development as organizations seek to protect their sensitive data. Furthermore, stringent regulations such as the General Data Protection Regulation (GDPR), a European Union Law, regulate companies' ability to protect consumer data and implement robust data protection measures. In addition, the increasing demand for digital transformation has also fueled the region's growth.

UK data protection as a service market dominated the regional industry in 2023. The evolving technological environment, stringent national data protection, and robust presence of financial institutions are driving the growth of the DPaaS market in the region. The presence of key players like Barclays, HSBC, and Lloyds Banking Group in the UK has driven innovation and competition in the DPaaS market. Furthermore, the increasing adoption of next-generation technologies such as IoT, AI, and 5G drives the demand for DPaaS solutions, further fueling the region's growth.

Asia Pacific Data Protection as a Service Market Trends

Asia Pacific data protection as a service market is expected to experience the fastest CAGR over the forecast period. Increasing economic growth of multiple countries, growing number of technology startups in the region, and rapid adoption of cloud-based services are the major factors driving growth for this regional industry. Increasing adoption of cloud computing technology by businesses and agencies, growing number of smartphone users in the region, increasing demand for the technology based efficient business solution, growing dependability on availability of data, and inclusion of data analytics driven decision making in numerous businesses is expected to generate growing demand for this market in during forecast period. Increasing digitalization of economies and businesses, unprecedented reliance of critical infrastructure on technology driven solutions and government initiatives that promote use of technology have contributed to the growth of this industry in Asia Pacific.

India data protection as a service market held a noteworthy revenue share of regional industry in 2023. The emergence of multiple cloud-based technology solutions, the growing dependability of various industries and businesses on data, increased availability of data protection services, and enhanced accessibility to data storage services are expected to develop an upsurge in demand for this market. Continuously growing cyber-attacks and potential threats related to data breaches and data thefts are expected to drive the growth of this market in the approaching years.

Key Companies & Market Share Insights

Some of the key companies involved in data protection as a service market include Commvault, Veritas Technologies LLC, Asigra Inc., Broadcom, Amazon Web Services, Inc. and others. To address the growing competition in the industry, the key market participants have adopted strategies such as enhanced research and development, innovation-based new product launches, improved customer assistance, post-sale services, and partnerships & collaborations.

• Cisco Systems, Inc., a multinational information technology company, offers multiple technology-driven solutions and products related to different industries. This includes a range of products and networking solutions designed for enterprises across various sectors, such as education, financial services, healthcare, and manufacturing. The company provides businesses with robust cloud computing and data services to transform with less risk. Some of Cisco's security and cloud-based services include Cisco lifecycle services, Security risk management advisory, Multicloud foundation service, and other DPaaS solutions.

• Commvault is an American company specializing in data protection and information management solutions. Its key business areas are data protection, data management, disaster recovery, and cloud services. The company offers comprehensive services to help organizations manage and protect their data, including remote-managed services, cyber resilience services, and software technology consulting.

Recent Developments

•  In August 2024, Commvault expanded its cybersecurity ecosystem by integrating with leading partners: Acante, Dasera, Google Cloud, Splunk, and Wiz. The strategic integration aims to deliver a more resilient and versatile data protection strategy, addressing the evolving challenges in cybersecurity.

• In June 2024, Oracle and Google Cloud entered a strategic Multicloud partnership aimed at accelerating their respective cloud services and assist customers with enhanced flexibility, integration, and improved solutions. The newly developed offering is made available in 11 different regions enabling users to manage their workloads without extra changes for cross-cloud transfers.

Data Protection as a Service Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global data protection as a service market report based on type, deployment, enterprise, end use, and region. 

• Serrvice Outlook (Revenue, USD Million, 2018 - 2030)

  • Disaster Recovery as a Service (DRaaS)

  • Backup as a Service (BaaS)

  • Storage as a Service (STaaS)

• Deployment Outlook (Revenue, USD Million, 2018 - 2030)

  • Public Cloud

  • Private Cloud

  • Hybrid Cloud

• Enterprise Size Outlook (Revenue, USD Million, 2018 - 2030)

  • Small and Medium-sized Enterprises (SMEs)

  • Large Enterprises

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Banking, Financial Services, and Insurance

  • Healthcare

  • IT and Telecom

  • Retail

  • Education

  • Manufacturing

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE