Data Loss Prevention Market Size, Share & Trends Analysis Report By Deployment (On-premise, Cloud-based), By Solution (Network DLP, Endpoint DLP, Datacenter/Storage-based DLP), By End-User Industry (IT and Telecommunication, BFSI, Government, Healthcare, Manufacturing, Retail and Logistics, Other End-user Industries ) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global data loss prevention market size was valued at USD 1,828.67 million in 2022. It is estimated to reach USD 11,021.89 million by 2031, growing at a CAGR of 22.09% during the forecast period (2023–2031). The surging incidences of data breaches and cyberattacks worldwide are a primary growth driver for the global DLP market. The rising amount of stored data across numerous critical and vulnerable verticals is also expected to boost market growth.

Data loss prevention solutions are employed to ensure the safeguarding of data. Data loss prevention (DLP) is a collection of tools and procedures designed to detect and prevent data breaches, exfiltration, and unauthorized pass to sensitive data. It classifies regulated, confidential, and business-critical data, monitors and controls endpoint activities, filters data streams on corporate networks and governs cloud data.

Data loss prevention solutions help meet compliance and auditing requirements and identify vulnerabilities and anomalies for forensics and incident response. Data loss refers to an event in which essential data is lost to the enterprise, such as in a ransomware attack. Prevention of data loss focuses on preventing the unauthorized transmission of data outside of organizational boundaries. Therefore, organizations rely on DLP to protect and secure their data and ensure compliance with applicable regulations.

Market Dynamics

Global Data Loss Prevention Market Drivers:

Rising Data Breaches and Cyber Attacks across the World

The rising instances of data breaches across numerous industries have resulted in millions of consumer data records leaking to hackers and the loss of millions of dollars for multiple impacted companies, increasing the focus on security solutions across emerging economies. As businesses worldwide grow, new threats, such as zero-day malware, trojans, and advanced persistent threats, have exposed critical data to risk. This has encouraged organizations to deploy DLP solutions to safeguard their data within endpoints and networks against attacks.

Moreover, there has been double-digit growth in the number of endpoints, primarily owing to the rapidly increasing adoption of automation, which is a result of Industry 4.0, machine-to-machine communication, and the emergence of smart cities. Consequently, the need to protect the vulnerability of data and devices and deploy tools to recognize attacks and minimize the damage is critically important. Therefore, the increasing adoption of automation technology will drive the studied market growth in the forecast period.

Increasing Data Criticality and Vulnerability

The data that industries worldwide store can be anything from public information and healthcare data to government contracts and military and defense data. Protecting data becomes more important with the large volume of data produced through industries and banking segments. In addition, the importance of data to an industry's missions and procedures is measured by data criticality. It is a mix of data integrity, accessibility, and protecting data against inappropriate maintenance, modification, or tampering.

Data that is critical to an organization's success or that must be kept for regulatory purposes is known as critical data. Any breach of such data can be devastating for a company. According to Synopsys' 2021 Software Vulnerability Report, 97% of 3,900 tests found some vulnerability in targets. High-risk vulnerabilities accounted for 33%, and critical-risk vulnerabilities accounted for 6%. High and critical-risk vulnerabilities must be fixed as soon as detected since automated exploitation tools are readily available. Therefore, the surging critical and vulnerable data is expected to drive market growth.

Global Data Loss Prevention Market Restraint:

Threat By Open-Source DLP Solutions 

Open-source DLP solutions from Baobab pose a significant threat to the on-premises and cloud DLP markets. They can be downloaded and utilized on all platforms and are gaining popularity in developing nations such as India and China. In these economies, most small businesses cannot afford to invest in costly on-premises and cloud-based DLP solutions.

Web hosting service GitHub, for instance, provides OpenDLP, a free and open-source DLP engine that is centrally managed, agent-based, widely distributed, and released under the General Public License (GPL). It can assist businesses in identifying sensitive data across thousands of systems simultaneously. As a result, businesses are adopting open-source solutions that require almost no capital expenditure. Thus, the increasing adoption of open-source DLP solutions is impeding the global DLP market's growth over the forecast period.

Global Data Loss Prevention Market Opportunities:

Regulations and Compliances (GDPR, CCPA, PCI DSS, etc.) 

Increasing government compliance and regulatory demands are expected to play a major role in driving the demand for DLP solutions across end users. The European Union implemented the General Data Protection Regulations (GDPR) that fixed guidelines and responsibilities of institutions (doing business with European citizens) to keep consumer data safe.

Similar to the year 2020, 2021 proved to be a significant period for cybersecurity occurrences, thus leading to the formulation of cybersecurity policy recommendations inside the United States. The issuance of Executive Order 14028, titled "Improving the Nation's Cybersecurity," was carried out by President Biden. The EO called for new recommendations on improving software supply chain security and other essential cybersecurity activities, which have since been issued. The EO directed federal government agencies to move to a more secure, Zero Trust IT infrastructure. Such government initiatives are expected to create opportunities for the market's growth.

Regional Analysis

Based on region, the global data loss prevention market is bifurcated into North America, Europe, Asia-Pacific, and the Rest of the World.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global data loss prevention market shareholder and is anticipated to exhibit a CAGR of 21.76% during the forecast period. China is the leading revenue contributor in the Asia-Pacific region. Data security is an evolving challenge, and to cope with the changing data protection regulations, companies are making strategic deals to ensure data protection and integrity. For instance, in May 2021, Deloitte Cyber and Forcepoint launched Data Loss Prevention-as-a-Service to provide businesses in Hong Kong with a fast, cost-effective capability for data loss prevention. In addition, the number of connected devices in China is rising due to ongoing technological advancements. It is the biggest Internet of Things (IoT) market worldwide. The interconnectivity of the devices will also increase exponentially with 5G and 5 G-enabled devices. As a result, it increases the number of connected devices, thereby directly augmenting the need for security products in the market.

North America is estimated to exhibit a CAGR of 22.83% over the forecast period. The North American region is witnessing an increased number of data breaches. According to the Identity Theft Resource Center (ITRC), the average number of breaches in the United States has increased marginally over the past few years. The number of data breaches faced by the United States increased from 1,506 breaches in 2017 to 1,826 breaches in 2021. Similarly, according to statistics in the Cost of Data Breach Report published by IBM in 2022, Canada stood at the third position regarding the highest average total data breach cost. The country's average cost of data breaches stood at USD 5.40 million in 2021, increasing from USD 4.50 million in 2020. These increasing activities of data breaches in various industries are expected to be the primary factor driving the demand for data loss prevention solutions during the forecast period.

Furthermore, the key participants in the region are launching new solutions, thereby driving the market growth. For instance, in April 2022, Google launched Automatic DLP, a tool for BigQuery users to discover and categorize sensitive data in their data warehouse. This also enables access policies based on those discoveries.

In the European region, cyber-attacks have increased due to the rapid move into working from home, giving companies little time to prepare for such a situation and upgrade their IT infrastructure. Moreover, unpredictable employee behavior and use of personal devices and home networks threatened transparency and created blind spots where attacks could go undetected. According to the VMware study for IT security in Germany 2021 report, the country witnessed a significant increase in security breaches. The report stated that 90% of the survey respondents (CISOs) witnessed at least one security breach in the last twelve months. This is expected to propel the regional market growth. In addition, various efforts are being made to enhance cyber security across the region, increasing the demand for DLP. For instance, in March 2021, the UK Cyber Security Council announced its launch as an independent entity, providing an inclusive and unbiased platform to skilled professionals in cybersecurity matters.

The Middle East has never been a major cyberattack target. In recent years, however, rapid digitalization in countries like the UAE and Saudi Arabia has increased the number of connected devices, thereby creating new cyberattack entry points. Moreover, countries in the region are implementing new data protection laws and regulations for enhanced data security. For instance, in September 2021, Saudi Arabia implemented a new Personal Data Protection Law enacted on March 23, 2022. Similarly, according to a survey by Acronis, a cyber protection firm, only 20% of organizations in South Africa claimed to spend over 25% of their IT budget on cybersecurity. Considering the pace of the region's development in data loss prevention, cybersecurity, and IT experience (Vision 2030), the market in the region is said to grow in the forecast period.

Segmental Analysis

The global data loss prevention market is segmented by deployment, solution, and end-user industry.

Based on deployment, the global data loss prevention market is divided into on-premise and cloud-based. 

The on-premise segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 19.85% throughout the forecast period. An on-premise security solution provides businesses with enhanced control over data. These solutions also offer significantly better data loss protection than cloud deployments. The availability of necessary expertise among staff and sufficient provision of resources are necessities for deploying on-premise solutions. On-premise web and email security solutions are expected to play a significant role in an enterprise's security infrastructure, owing to the benefits of managing and protecting on-premise assets and security.

Cloud DLP ensures that business-critical workloads are not leaked, misplaced, or misused as enterprises increasingly move their data and apps to the cloud. Cloud DLP solutions protect users' data in the cloud by encrypting critical information and ensuring that it is only transferred to cloud applications that the customer organization has authorized. Robust cloud DLP systems can detect, categorize, eliminate, or modify sensitive content prior to transferring it to a cloud environment, protecting client information from online threats, hostile insiders, and inadvertent disclosure.

Based on the solution, the global data loss prevention market is bifurcated into network DLP, endpoint DLP, and data center/storage-based DLP. 

The network DLP segment dominates the global market and is projected to exhibit a CAGR of 21.23% over the forecast period. Network DLP solutions give customers more visibility into their network, allowing them to monitor and regulate the flow of information over the network, email, and the web. In addition, DLP software assists users in analyzing network traffic and establishing security policies to reduce data loss risks while maintaining regulatory compliance. DLP software can enforce security standards by allowing, blocking, flagging, auditing, encrypting, or quarantining suspected activities that breach the company's information security regulations.

Endpoint Data Loss Prevention (Endpoint DLP) extends DLP's activity monitoring and security capabilities to sensitive data stored on laptops, tablets, smartphones, and even IoT devices. An activity explorer collects information about how users utilize and access sensitive visible data once the device is 'onboarded' into the solution. Monitors all network endpoints, including laptops, tablets, and mobile phones, for data leakage, misuse, or loss. Classifies data as regulatory, proprietary, confidential, or business-critical, making compliance standards easier to meet.

Based on the end-user industry, the global data loss prevention market is segmented into IT and telecom, BFSI, government, healthcare, manufacturing, retail, logistics, and other end-user industries. 

The IT and telecom segment owns the highest market share and is estimated to exhibit a CAGR of 20.97% during the forecast period. Telecom operators are transforming their operations from network companies to cloud service companies to enhance operations efficiencies, launch new services and applications, and store and distribute content. As telecoms are venturing into multiple businesses, threats for data breaches are increasing that can impact telecom companies, their third-party providers, or the subscribers of telecom services. The changing business environment is driving the need for data loss prevention software.

In addition, the IT sectors are increasingly facing challenges to protect endpoints and boost the existing defenses. Preventive technologies combined with cutting-edge defense capabilities are necessary to implement the full endpoint protection cycle, from automatic threat blocking to responding quickly and appropriately to complex incidents.

The number of mobile devices used by federal agencies has skyrocketed in recent years, leading to increased monitoring efforts by government bodies. According to a recent survey by FedScoop, a zero-trust policy is being adopted by over half of the US federal government's agencies, including the Marine Corps and the Agriculture Department. The implementation and monitoring of zero-trust are crucial for ensuring its effectiveness, notwithstanding the increasing popularity of this approach. This is driving vendors to invest in DLP solutions for the government sector.

Recent Developments

• March 2023- Zscaler, Inc., the pioneer in cloud security, announced enhancements to Zscaler Posture ControlTM, bolstering the capabilities of its cloud-native application protection platform (CNAPP) with data loss prevention (DLP) and threat intelligence powered by the world's largest security cloud, ThreatLabz.
• September 2023- CoSoSys, a leader in cross-platform Data Loss Prevention (DLP) solutions, confirmed that it would offer same-day support for the release of macOS Sonoma on September 26, 2023.