Spending on cybersecurity solutions has increased significantly against the backdrop of rising incidences of cybercrimes and malware attacks. As the sophistication of cyber-attacks continues to grow, adoption of cybersecurity solutions is set to increase, thereby driving the cybersecurity market growth in the future.
Private as well as government organizations are victims of cybercrimes that lead to economic and emotional distress. Organizations vulnerable to cyber-attacks range from SMEs to BFSI, healthcare, energy industry and government agencies. As businesses and organizations proactively seek cyber security solutions to mitigate the impacts of potential losses, demand for cybersecurity solutions is likely to increase in the coming years.
In the era of digitalization, growing reliance on data intensifies vulnerability of data breaching across industries. Industry 4.0 is another propellant of the cybersecurity market owing to the emergence of new business models with exponential technologies like IoT, cloud and Big Data. While automation and sensor technologies are becoming integral parts of daily lives, vulnerability to user data beaching has increased dramatically.
To address the growing complexity of cyber-attacks, data protection laws evolve consistently. Stringent data protection regulations and recent GDPR compliance implementation are expected to fuel adoption of different cybersecurity management solutions such as data protection software, identity and access management, risk and compliance management, unified threat management and others among proactive strategy planners.
Data Protection Software Market Surpassed US$ 750 Mn in 2018
Data protection software market growth is riding on coattails of industry trends such as digitalization, industry 4.0, AI adoption and Big Data. As industries heavily rely on automation and digitalization, data become the center stage of all business models. That, combined with increased frequency and sophistication of cyber-attacks will fuel the data protection software market growth in the future. In 2018, the study reveals that data protection software market crossed revenues worth US$ 750 million in 2018.
Demand for data security solutions is also driven by different data protection regulations implemented by national and international organizations. For instance, recent EU General Data Protection Regulation (GDPR) has led EU organizations as well as those dealing with EU clients to meet compliance requirements. As incompliance lead to data protection regulations can lead to a hefty amount of penalty, organizations are bound to incorporate a range of data protection and regulatory compliance tools.
Hegemony of Managed Services Continues, Professional Services Gaining Ground
Data protection software providers offer managed services as well as professional services. Managed services have dominated data protection software market owing to their comprehensive nature of data protection services as compared to specific service delivery in professional services.
The study finds that in terms of revenue share, managed services and professional services showed a close competition with managed services leading with the difference of merely 1% in 2018.
A significant number of SMEs outsource their IT requirements and rely on the cloud platform to scale up production. While adoption of managed services remains higher in large organizations, professional services are gaining ground among SMEs. Data protection software adoption in SMEs is growing at a rapid pace on the back of rising numbers of SME organization. Further, adoption of in-house cybersecurity professionals is a prominent trend in modern businesses who seek to address cyber threats in-time and avoid penalties.
While on-premise deployment of data protection software garners a bulk of market revenues, cloud-based deployment is gaining momentum and expected to hold equivalent share as that of on-premise deployments in the long run. As opportunities for data protection software vendors continue to rise, vendors are focusing on the expansion of global footprints, distribution network and introduction of new facilities.
Aforementioned insights are derived from Fact.MR’s report on data protection software market which tracks the market performance for the period of 2018-2028. According to the report, the data protection software market is projected to grow at 12.9% CAGR by 2028.
Santosh Kumar is a respected voice in the ICT domain. He has authored over 30 studies pertaining to cloud, cybersecurity, AI, and Big Data.