Enterprise data loss prevention market to reach $6.265 billion by 2026
The global enterprise data loss prevention market is projected to grow at a CAGR of 21.03% to reach $6.265 billion by 2026, from $1.647 billion in 2019, according to ResearchAndMarkets.
The enterprise data loss prevention market is highly driven by the escalating demand for an optimized solution with a spike in cybersecurity threats to enterprises. The increasing rate of data breaches along with other factors such as DLP as a service, DLP functionality extending into the cloud, and advanced threat protection against these data breaches are the major factors driving the enterprise data loss prevention market.
Also, the rising demand for a growing amount of both structured and unstructured data, digital assets, and the increasing need for data security services with a major focus on data-centric organizations or enterprises have led to the growth of the enterprise data loss prevention market. Many Fortune 500 companies have invested in the data loss prevention market for quite a few years.
Data loss prevention is mainly used in industry sectors such as healthcare, manufacturing communication and technology, and government. Furthermore, with the increasing rate of cyber threats, data loss prevention solution providers are targeting the service and adversary companies dealing with a wide range of end-user industries.
According to Cisco Systems, in 2016 the global IP data traffic has increased from 96,054 petabytes to 150,910 petabytes per month in 2018 and is anticipated to reach 278,108 petabytes per month by 2021. Also, the growing volume of Big Data across all the enterprises is gaining maturity
All these factors have been leading to the growth of the enterprise data loss prevention market in the forecast period.
High cost of implementation and performance issues
One of the major downsides of data loss prevention is the cost of implementation as the traditional DLP mainly hardware-based solutions are comparatively expensive. It may need professional service support from the vendor which may run into thousands of dollars for bigger enterprises. Also, there may be additional utilities or integration needed either from a third-party or the vendor itself which are sometimes sold as separate modules or appliances adding to the overall cost.
Another disadvantage of DLP is that if used inappropriately could hamper the productivity for security. Meaning, the DPL installation can be heavy on the user or network and can slow things down, generate weird application behavior, or could even crash down systems. Also, by keeping important data ‘hostage’, DLP disrupts the free flow of information inside your organization, creating barriers and additional hops that might affect productivity and efficiency.
Impact of COVID-19
The COVID-19 pandemic has had a great impact on the world as a whole and has led to economic breakdown and loss of life. The impact of COVID-19 on the enterprise data loss prevention market has been positive as many of the industries and enterprises have gone digital with their data due to the ongoing pandemic where industries and enterprises were shut due to the restrictions imposed by the governments.
This has also given a rise to the number of cyber-attacks and breaches during this period due to which the adoption of data loss prevention software has become a necessity for all enterprises. This has led to the growth of the enterprise data loss prevention market. Also, the healthcare industry has shown prominent growth in this pandemic, which has been one of the prime factors for the growth of the data loss prevention sector. This growth has accounted for the increasing use of data loss prevention software in the healthcare industry which has led to the growth of this industry in the COVID-19 pandemic.
Market segmentation and insights
By solutions, the enterprise data loss prevention is segmented into the network, storage/data center, endpoint, services, consulting, system integration, training, and others.
By deployment model, the enterprise data loss prevention is segmented into on-premise and cloud. The cloud segment is anticipated to grow because cloud data loss prevention provides a solution for email, USB drivers, laptops, and mobile phones.
By organization size, enterprise data loss prevention is segmented into small, medium, and large enterprises. Data loss prevention is expected to uphold in large enterprises owing to the increased risk of data loss than small or medium industries which hold less data as compared to larger enterprises and hence less risk.
By industry vertical, the aerospace and defense, BFSI, communication and technology, government, healthcare, manufacturing, and other industries are anticipated to grow at a high CAGR owing to the increasing use of enterprise data loss prevention in the flourishing industries.
The enterprise data loss prevention is anticipated to grow owing to its high demand in the healthcare industry as it uses the cloud for backup and data recovery and the rapidly increasing electronic health/medical record are demanding larger security against cyberattacks therefore the increase in the demand for data loss prevention. Protection of confidential data like patient’s name, address, medical conditions requires advanced data loss prevention tools which leads to its growth.
By geography, the North American region is anticipated to grow at a fast rate owing to the increasing data breaches in many industry systems which will account for the growth of data loss prevention in the region. According to a study conducted by Identity Theft Resource Center (ITRC), this region witnessed more than 1,244 data breaches in 2018, which led to the exposure of more than 445 million exposed records. This has led to the growth of enterprise data loss prevention in the region.