Data Protection as a Service (DPaaS) Market By Service Type (Backup as a Service (BaaS), Disaster Recovery as a Service (DRaaS)), Deployment Model (Public Cloud, Private Cloud), Vertical (Healthcare, BFSI (Banking, Financial Services, and Insurance), IT & Telecom), & Region for 2024-2031

Data Protection as a Service (DPaaS) Market Valuation – 2024-2031

The exponential increase of data evolving regulatory frameworks, and the rising threat of cyber-attacks are all driving up the demand for Data Protection as a Service (DPaaS). As organizations generate and store massive volumes of data protecting this information has become critical. Traditional data protection methods frequently fall short of meeting the complexities and scale of modern data environments. DPaaS provides a scalable, cost-effective, and resilient data protection solution by leveraging cloud-based services by enabling the market to surpass a revenue of USD 34.8 Billion valued in 2024 and reach a valuation of around USD 87.85 Billion by 2031.

The growing stringency of data protection legislation such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States needs more compliance procedures. Noncompliance might result in significant fines and reputational damage. DPaaS companies provide services that are designed to comply with these standards including data encryption, access control, and audit trails by enabling the market to grow at a CAGR of 12.27% from 2024 to 2031. 

Data Protection as a Service (DPaaS) MarketDefinition/ Overview

Data Protection as a Service (DPaaS) is a cloud-based system that offers comprehensive data protection to enterprises including backup, recovery, and disaster recovery as part of a managed service. This method takes advantage of the scalability, flexibility, and cost-effectiveness of cloud computing to ensure that data is safely stored, freely accessible, and immediately recoverable in the event of data loss or corruption.

Data Protection as a Service (DPaaS) refers to a set of cloud-based services aimed to protect data through a variety of techniques including backup, recovery, and encryption. Data backup and recovery is one of DPaaS’s key applications. This service ensures that an organization’s data is periodically backed up to safe off-site locations reducing the risk of data loss caused by hardware failures, cyber-attacks, or natural catastrophes.

The future adoption of Data Protection as a Service (DPaaS) is predicted to transform how enterprises approach data security and compliance. As cyber threats become more sophisticated and data privacy rules tighten globally, DPaaS provides a scalable and cost-effective solution for safeguarding sensitive data. Unlike traditional data protection approaches which can necessitate significant on-premises equipment and resources, DPaaS uses cloud-based platforms to deliver powerful security measures including encryption, automated backups, and real-time threat detection.

Will the Cloud Adoption Drive the Data Protection as a Service (DPaaS) Market?

The rising adoption of cloud computing is a major driver of the Data Protection as a Service (DPaaS) market. As enterprises progressively move their data and activities to the cloud, the necessity for strong data protection solutions has grown. According to Gartner, global public cloud end-user spending is expected to reach $592.3 billion in 2023 up 20.7% from 2022. This significant increase in cloud use is directly related to the growing demand for DPaaS solutions. Furthermore, the United States National Institute of Standards and Technology (NIST) states that 92% of federal agencies have implemented cloud services demonstrating the widespread acceptability of cloud technologies across industries.

Another important aspect driving the DPaaS market ahead is the increasing legal framework governing data protection and privacy. Stringent rules such as the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), force firms to invest in comprehensive data protection solutions. According to the European Data Protection Board, GDPR fines hit a record €2.92 billion in 2022 representing a 168% rise over 2021. The increase in penalties highlights the crucial relevance of compliance and data protection procedures. Furthermore, the International Association of Privacy Professionals (IAPP) discovered that 60% of firms raised their privacy spending in 2022 with a large chunk going toward cloud-based data security solutions.

Will Security Concerns Hamper Data Protection as a Service (DPaaS) Market?

The Data Protection as a Service (DPaaS) market is expanding rapidly due to several important drivers. One key cause is the growing amount of data collected and retained by enterprises. According to the International Data Corporation (IDC), the global datasphere is expected to increase from 33 zettabytes in 2018 to 175 zettabytes by 2025. This exponential data increase needs comprehensive data protection solutions prompting many enterprises to adopt DPaaS. Another important driver is the increasing frequency and sophistication of cyberattacks. The FBI’s Internet Crime Complaint Center (IC3) received 791,790 cybercrime complaints in 2020, up 69% from 2019 with possible losses exceeding $4.2 billion.

While security issues are frequently mentioned as potential impediments to cloud adoption, they are unlikely to materially slow the growth of the DPaaS market. Security concerns are driving many firms to adopt DPaaS solutions which provide advanced security features and expertise that many enterprises lack in-house. According to a Cloud Security Alliance poll, 69% of enterprises are shifting to cloud-based security solutions demonstrating that cloud security is becoming more trusted. Furthermore, DPaaS providers often invest considerably in security measures and compliance certifications which frequently exceed the capacity of individual enterprises.

Category-Wise Acumens

Will the Safety and Recoverability Influence the Service Type Segment?

Backup as a Service (BaaS) is now the most popular service type. This dominance might be linked to the enterprise’s fundamental requirement to secure the security and recoverability of critical data. BaaS offers a simple and effective alternative for outsourcing backup activities to a third-party service. This arrangement eliminates dependency on on-premises hardware and streamlines backup administration making it an appealing alternative for enterprises wishing to improve their data security methods without incurring large capital costs. As enterprises appreciate the significance of protecting their data from loss and corruption, BaaS provides a dependable and scalable method to backup that is in line with the growing acceptance of cloud-based solutions.

Backup as a Service (BaaS) is now the most popular service type. This dominance might be linked to the enterprise’s fundamental requirement to secure the security and recoverability of critical data. BaaS offers a simple and effective alternative for outsourcing backup activities to a third-party service. This arrangement eliminates dependency on on-premises hardware and streamlines backup administration making it an appealing alternative for enterprises wishing to improve their data security methods without incurring large capital costs. As enterprises appreciate the significance of protecting their data from loss and corruption, BaaS provides a dependable and scalable method to backup that is in line with the growing acceptance of cloud-based solutions.

Will the Cost-Efficiency and Scalability Drive Growth in the Deployment Model Segment?

The public cloud deployment option is currently preferred due to its cost-effectiveness and scalability. Public cloud DPaaS solutions are hosted and managed by third-party cloud providers eliminating the need for businesses to spend considerably in their own data centers or IT infrastructure. Businesses benefit from rapid deployment under this paradigm since the service provider manages and maintains all components of the infrastructure. The public cloud’s scalability also allows enterprises to tailor their data protection resources to their specific demands without incurring additional capital costs. This flexibility is especially tempting to small and medium-sized businesses (SMEs) and startups which may lack the financial resources or experience to maintain large on-premises systems.

However, the hybrid cloud deployment paradigm is gaining popularity since it provides a balanced approach integrating the benefits of both public and private cloud environments. Hybrid DPaaS solutions enable businesses to use public cloud resources for non-sensitive data and apps while keeping private cloud environments for mission-critical workloads and sensitive information. This strategy allows you to increase resources as needed while ensuring that sensitive data is secure and in compliance with regulatory regulations. The hybrid approach answers the needs of companies that need more control and customization for their data protection strategies, particularly those working with highly sensitive or regulated data. Hybrid cloud DPaaS solutions that integrate with current IT infrastructure provide a customized solution that can adapt to diverse data protection demands.

Gain Access into Data Protection as a Service (DPaaS) Market Report Methodology

Country/Region-wise Acumens

How will Increase in Spending on Data Protection Solutions and Cloud-Based Services Impact the Market in the North America?

The Data Protection as a Service (DPaaS) market in North America is rapidly expanding owing mostly to increase in spending on data protection solutions and cloud-based services. One of the primary causes is the increasing volume of data generated by businesses and individuals combined with a growing awareness of data privacy and security concerns. According to the United States Bureau of Economic Analysis, the digital economy accounted for 9.6% of the total US GDP in 2019 showing the growing importance of digital data in the economy. The increase in digital data has prompted enterprises to invest more in comprehensive data protection solutions.

The North American area, notably the United States, dominates the worldwide DPaaS market due to a variety of factors. To begin, the region boasts a large concentration of technological enterprises and early adopters of cloud technologies. Stringent data protection rules such as the California Consumer Privacy Act (CCPA) and Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) have forced businesses to invest in comprehensive data security solutions. According to the International Association of Privacy Professionals (IAPP), 65% of US corporations want to raise their privacy spending in 2020 with an average budget of $2.2 million. Furthermore, the region’s advanced IT infrastructure and high internet penetration rate encourage broad use of cloud-based services.

Will the Growing Adoption of Managed Services and Security Solutions Boost the Market in the Asia Pacific Region?

The Asia Pacific Data Protection as a Service (DPaaS) industry is expected to grow significantly owing to many major factors. One key driver is the fast digital transformation of sectors which results in greater data collection and the need for strong security measures. According to an Asian Development Bank report, digital transformation has the potential to boost Asia’s GDP by $1.16 trillion in 2025. This digital transformation is driving enterprises to implement enhanced data protection solutions. Another important driver is the strict regulatory environment. For example, China’s Personal Information Protection Law (PIPL) which went into effect in 2021 established additional data protection rules encouraging firms to seek compliant DPaaS solutions.

The fastest-growing segment of the Asia Pacific DPaaS market is expected to be cloud-based disaster recovery services. This rapid expansion can be linked to the rising frequency and sophistication of cyber threats in the region. According to Cybersecurity Ventures, cybercrime will cost the globe USD 10.5 Trillion per year by 2025 with the Asia Pacific region bearing a disproportionate share of the cost. The increasing awareness of these hazards is causing firms to prioritize disaster recovery solutions. Furthermore, the low cost and scalability of cloud-based services appeal to the region’s vast number of small and medium-sized organizations (SMEs).

Competitive Landscape

The Data Protection as a Service (DPaaS) Market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations are focusing on innovating their product line to serve the vast population in diverse regions.

Some of the prominent players operating in the data protection as a service market include

• Asigra, Inc.
• Amazon Web Services, Inc.
• Cisco Systems, Inc.
• Commvault Systems, Inc.
• Dell, Inc.
• HP Development Company L.P.
• IBM
• Microsoft
• NetApp, Inc.
• Oracle
• Quantum Corporation
• Veritas Technologies

Latest Developments

• In June 2022, The United Nations Capital Development Fund (UNCDF) and the Personal Data Protection Office (PDPO) launched a data protection and privacy portal to facilitate the processing, reporting, and resolution of data privacy and protection complaints and breaches. It would also facilitate the registration of individuals and organizations that process and gather personal data. The site features SMS/USSD capability, ensuring that most citizens may use and access it.
• In September 2022, Asigra Inc., an ultra-secure backup and recovery provider, announced the general launch of Tigris Data Protection software with Content Disarm & Reconstruction (CDR). Asigra’s extensive suite of security features now includes CDR, making it the most secure backup and recovery software platform on the market.

Report Scope

Data Protection as a Service (DPaaS) Market, By Category

Service Type

• Backup as a Service (BaaS)
• Disaster Recovery as a Service (DRaaS)
• Storage as a Service (STaaS)
• Security as a Service (SECaaS)

Deployment Model

• Public Cloud
• Private Cloud
• Hybrid Cloud

Vertical

• Healthcare
• BFSI (Banking, Financial Services, and Insurance)
• IT & Telecom
• Government & Public Sector
• Retail & eCommerce
• Manufacturing
• Others

Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Conclusion

In conclusion, the Emergency Data Protection as a Service (DPaaS) Market is experiencing rapid growth driven by increasing awareness of the importance of data protection during emergencies and the rising frequency of cyber threats and natural disasters. Organizations across various sectors are adopting DPaaS solutions to enhance their data resilience strategies and mitigate the risks associated with data loss and downtime. As the demand for reliable and scalable data protection services continues to rise, the DPaaS market is expected to witness sustained expansion, with opportunities for innovation and market differentiation among solution providers.

Research Methodology of Market Research

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