Data Loss Prevention Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Data Loss Prevention Market Size

Data Loss Prevention Market Analysis

Growing Need to Prevent Significant Business Losses

A data breach occurs when private information, including customer names, credit card numbers, and social security numbers, is accessed without authorization. A company's reputation and finances may suffer greatly following a data breach, and it may also lose customers or face fines and other legal repercussions. Because of this, businesses must make sure that only individuals with the proper authorization can access sensitive data, in order to protect themselves and their customers.

In recent years, the rate of such incidents has been alarmingly high. For example, Spanish airline Air Europa suffered a data breach in October 11, 2023, when hackers were able to access its financial information. The company's systems were used to extract card numbers, expiration dates, and the three-digit CVV numbers located on the back of credit and debit cards. As a result, customers of the airline were told to deactivate their credit cards

SMEs Are Faster-Growing Market

Small and medium-sized enterprises (SMEs) will witness the higher CAGR, of 21.5%, in the forecast period. This can be ascribed to the fact that they are becoming increasingly dependent on data in the current digital era. These assets, whether they be customer data, financial records, intellectual property, or operational data, are crucial for SMEs to maintain their competitiveness, expand, and prosper. SMEs must implement DLP procedures since with tremendous amounts of enterprise and customer data comes great responsibility.

Moreover, compared to large companies, SMEs lack money and resources. Thus, cloud-based data loss prevention solutions for SMEs offer affordable data protection strategies that are adaptable and tailored to their unique needs. This helps in reducing financial losses, builds employee awareness and mitigates unintended harmful actions, and regulates security policy. All this further helps in building customer trust and increasing overall business productivity, by preventing downtime.

BFSI Has Been Biggest Category within Industry Segment

Under the industry segment, the BFSI category leads the market, because as per reports, in 2022, 27.7% of the cyber-attacks had been on financial institutions.

Attacks via email and the web continue to rank among the most-prevalent threat channels. Usually, phishing tactics and links to fake websites are disseminated via email by hackers in order to obtain users' login credentials. When hackers obtain illegal access to financial and banking firms' networks, many different forms of cyber-attacks can take place. They often take advantage of a weakness, such an unused account, and then build backdoors into infected systems. The attacker is, therefore, unrestricted in their ability to enter the network, steal information, and even elevate their privileges, in order to access more-sensitive data.

To avoid these situations as best possible, financial institutions adopt stringent security procedures and protocols, including the use of firewalls and antivirus software, implementation of need-to-know access to information, and the safeguarding of sensitive data via passwords and other forms of encryption.

Solutions that concentrate solely on sensitive data instead of business networks or work devices have become crucial weapons in the data protection toolbox in this last category. For example, email DLP technologies keep an eye on a company's email communications to see if data is at a risk of theft or loss. However, they all try to follow up on email-related data sent as well as received and recognize questionable email behavior, so that data-loss-causing email behavior can be reported or blocked.

Healthcare Sector Is Second-Largest Market

The healthcare category has the second-largest share in the DLP market, as it is another major target for data breaching. This is because employees in the healthcare industry, both B2B and B2C, process and hold enormous volumes of research and development (R&D), intellectual property (IP), and personal and medical data. For example, in 2022, ICMR’s website was attacked 6,000 times in a day by hackers from Hong Kong, but financial and data loss was successfully prevented due to the updated software.

Government Category also Makes Significant Revenue Contribution

The government industry also contributes significant revenue to the market, as government bodies are at a perpetual risk of data loss due to unauthorized access. Hackers purposefully deceive government employees into giving them unwitting access to top-secret information. Other times, accidental errors may cause private information to become public.

Local governments are frequently left helpless and exposed by data breaches because they lose access to vital information. Thus, they are unable to carry out essential municipal functions for a considerable time following the incident. Additionally, attackers demand hefty sums to give back the data they have stolen, which, ultimately, puts a dent in the public’s finances.

For example, after a ransomware hit Miller County, Arkansas, in 2022, the regional administration was forced to establish safeguards for its vulnerable, outdated computer networks. Hackers took local government data hostage and demanded a sizable payment in return for its release. The hacked mainframe transmitted malware to endpoints in 55 distinct Arkansas counties, because the local government was unable to implement a cybersecurity strategy with sufficient urgency.

Cloud-Based Category Has Larger Share in Deployment Segment

The cloud-based category currently has a share of 60% in the DLP market, due to the fast shift of industries toward cloud computing. The trend of work from home across industries started due to the COVID-19 pandemic, which forced the lockdown. That period was highly unpredictable, and many businesses worked on transformation and shifted toward the cloud. Cloud-based software enhances efficiency and teamwork while working remotely, which has made it a growing trend in recent years. For example, consumer goods company Unilever’s business processes were successfully migrated to the cloud in April 2023 by Accenture, Microsoft, and Avanade, their joint venture. This transfer made it easier for Unilever to manage resources more wisely, sell products and services quickly, and respond to the changing consumer needs.

A cloud-based solution is necessary due to the increasing requirement for data to be stored on public or private clouds, as well as the increasing focus on adhering to legal and compliance norms. Moreover, the need for data protection services is growing along with the number of cyberattacks and data breaches. According to some reports, in 2022, approximately 70% of the businesses experienced a public cloud data leak. Thus, DLP has become an essential requirement of modern businesses to prevent data breaches, cyberattacks, and corporate espionage and comply with data privacy laws. Cloud-based software helps in protecting data from any location, manages network storage, and ensures regular updates.

Geographical Analysis

North America Is Largest Market

North America generates the highest revenue, and it will grow at a CAGR of 21.0% in the forecast period, ascribed to the widespread adoption of big data and cloud technologies. The need for these solutions has also increased due to the rising concerns about data security and privacy, as the frequency of cyber-attacks has surged. The regional countries have also adopted strict laws for the protection of sensitive data by corporations.

Further, this region has a dynamic business environment, which includes sectors such as healthcare, BFSI, and information technology. This necessitates customized solutions to meet industry-specified challenges, thus spurring the market’s expansion. The cost of data breaches is declining year on year in the U.S. as more investments are being put in to enhance the IT security architecture.

Further, APAC is witnessing fast growth due to the rising usage of smartphones, laptops, and tablets for businesses. Mobile workers, such as sales executives and traveling executives, must have 24/7, remote access to corporate information; however, this makes them an easy target for cybercriminals. Thus, in 2020, cyber-attack cases in India rose by 300%, and by the end of 2022, India was the most-attacked country in APAC. Moreover, the most-recent server attack in Japan affected the most-widely used dating app in the nation, named Omiai, and exposed the data of over 1.7 million users, including pictures of driver’s licenses and passports, given by the users to prove their age.

Market Breakdown

This fully customizable report gives a detailed analysis of the data loss prevention industry, based on all the relevant segments and geographies.

Based on Product

• Solutions
• Services

Based on Type

• Endpoint DLP
• Network DLP
• Data Center/Storage-Based DLP

Based on Application

• Encryption
• Centralized Management
• Policy, Standards, and Procedures
• Web and Email Protection
• Cloud Storage
• Incident Response
• Workflow Management

Based on Deployment

• On-Premises
• Cloud-Based

Based on Industry

• BFSI
• IT and Telecommunication
• Retail and Logistics
• Healthcare
• Manufacturing
• Government

Based on Organization Size

• Small and Medium Enterprise
• Large Enterprise

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
• Asia-Pacific
  • China
  • Japan
  • Australia
  • India
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Data Loss Prevention Companies