Data Protection as a Service (DPaaS) Market size was valued at USD 27.92 billion in 2023 and is expected to reach USD 742.06 billion by 2036, registering around 28.7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of data protection as a service is assessed at USD 34.33 billion.
Businesses today face a critical challenge, which is to encrypt, store and process the data that is infinitely pouring in from every electronic device with an internet connection. The need for DPaaS solutions and products has grown over the years to deliver effective network security, recovery and storage solutions with optimum resource utilization, disaster management plans and thus improve the overall performance of the organizations.
Growth Drivers
Increase in Internet Users Globally
The World Bank has published the report of International Telecommunication Union which states that in 2017, 49% out of every 100 people on the planet used internet on daily basis. According to another report by Ericsson, it is predicted that by the end of 2024, there will be 1.9 Billion 5G cellular subscriptions globally.
DPaaS are deployed to safely encrypt and store the data generated so as to prevent data theft and privacy concerns by the ISPs. This factor is expected to drive the market growth during the forecasted period.
IoT devices on the Rise
The “Internet of Things” device sales are increasing enormously and it is estimated that around 41 Billion IoT devices will be sold by 2027, as per the data suggested by the World Bank. These devices are for multipurpose use and are being utilized in household, healthcare, and manufacturing among other industies. The need to encrypt and store the vast amount of data being generated by people across the world by companies is crucial for the business model and strategic decisions.
Rising Security Risks and Cyber Threats
In this contemporary globalized and digital world, protecting the company’s IP (Intellectual Property) not just from competitors but from potential hackers is of the highest concerns and DPaaS offer effective solutions. This is anticipated to boost the market growth over the forecast period.
Aftermath of COVID’19
Cyber-attacks and data fraud cases across the world have increased dramatically in the past few months while the globe is fighting the COVID-19 pandemic. Thus data protection as a service (DPaaS) market is expected to witness a significantly growth in future.
Challenges
High costs
A potential factor that might affect the growth of the market is the high costs associated with the DPaaS. Designing and deploying data protection solutions involves development of complex algorithms and infrastructure to support them, i.e., capital investment is high. The SMEs and other small scale businesses do not have the financial capability to neither develop nor purchase these services.
Lack of Skilled Professionals
Lack of skilled professionals to effectively deploy these resources along with constraints on time that should be invested in training the individuals to understand these solutions are seen as important factors that are predicted to negatively affect the growth of the market.
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Base Year |
2023 |
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Forecast Year |
2024–2036 |
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CAGR |
28.7% |
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Base Year Market Size (2023) |
USD 27.92 billion |
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Forecast Year Market Size (2036) |
USD 742.06 billion |
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Regional Scope |
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Based on service type, the data protection as a service (DPaaS) market is bifurcated into disaster recovery as a service (DRaaS), Backend-as-a-service (BaaS) and Storage as a Service (STaaS), out of which, the highest share is estimated to be held by DRaaS segment. This can be attributed to higher demand for this service in the market. The market is segmented on the basis of deployment into public cloud, private cloud and hybrid cloud. Among these segments, the private cloud segment was the largest revenue generating segment in 2019 owing to the sophistication, security and preference of consumers. Additionally, the applications of DPaaS for different functionalities further contributed to the growth of the segment.
Our in-depth analysis of the global market includes the following segments:
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By Service Type |
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By Application |
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By Type of Deployment |
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By End-user Industry |
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On the basis of regional analysis, the data protection as a service (DPaaS) market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America industry is set to hold largest revenue share by 2036, propelled by growing requirement to tackle data thefts of the intellectual property of the industries in the region. which develop and market DPaaS solutions. The growing requirement to tackle data thefts of the intellectual property of the industries in this region further increases the product demand. The market in Asia Pacific region is predicted to grow at the highest rate over the forecast period as a result of growth in digitalization, rising number of internet users and IoT devices in the region, particularly in countries such as China, India and Japan.
Author Credits: Abhishek Verma
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