Global Spending On Data Protection To Increase By $1 Bn Annually
Data security market to surge by 70 per cent and Reach USD 12 billion by 2029
As remote work becomes the norm, data security has emerged as a crucial concern for businesses around the world. With more employees working from home, companies are increasingly investing in cloud technologies and prioritising data protection.
This shift is driving growth in the data security market, with billions of dollars being spent each year on security measures and tools. According to a report by AltIndex.com, global data security revenues are expected to rise by 70 per cent, surpassing USD 12 billion by the end of the decade.
Several factors are contributing to this growth, including a rise in cyberattacks such as ransomware, phishing, and data breaches, which have compelled organisations to invest heavily in data security solutions.
Additionally, governments and industry bodies have implemented strict regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) to safeguard customer data and uphold privacy standards.
Businesses are required to comply with these regulations, leading to increased investments in data security technologies. The ongoing digital transformation across various industries, characterised by the adoption of the Internet of Things (IoT), artificial intelligence, and big data analytics, along with a global shift to cloud solutions, has significantly impacted the data security market.
This transformation has not only heightened the demand for strong data protection but has also contributed to an impressive 186 per cent revenue growth over the past eight years. In 2016, global spending on data security measures was approximately USD 2.46 billion.
By the end of 2020, this figure had risen to over USD 4 billion and continued to climb. As of 2024, global spending on data security is projected to reach USD 7.06 billion, marking a 76 per cent increase since 2020.
Looking ahead, spending is expected to grow by an average of USD 1 billion per year, ultimately exceeding USD 12 billion by 2029.
In the global context, the United States remains the largest player in the data security market, accounting for over 40 per cent of global revenues. In 2024, US data security revenue is anticipated to approach USD 2.9 billion, with projections indicating a 66 per cent increase to nearly USD 4.8 billion by 2029.
However, China and the UK are expected to see even more significant growth over the next five years. The Chinese data security market, currently the second largest worldwide, is projected to expand by 80 per cent, with revenue increasing from USD 1.8 billion in 2024 to USD 3.2 billion by 2029.
The UK market, while smaller, is set to experience the highest growth among the top five markets, with British companies expected to spend USD 350 million on data security measures by 2029, reflecting an 84 per cent increase compared to this year.
Germany and Japan are also expected to see notable growth, with an average increase of 65 per cent and approximately USD 400 million in data security revenues over the next five years.
