Data Security as a Service Market Size & Share 2023 to 2032
Market Size by Service Type (Data Backup & Recovery, Data Encryption & Masking, Data Discovery & Classification, Data Access Control, Data Governance & Compliance, Data Auditing and Monitoring), by Deployment Mode.
Report ID: GMI5489
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Published Date: March 2023
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Data Security as a Service Market Size
Data Security as a Service Market size surpassed USD 20 billion in 2022 and is projected to register more than 12% CAGR between 2023 and 2032, on account of the mounting cases of cyber-attacks.
Data Security as a Service Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Data security as a service becomes the fastest way to achieve consistent and next-generation data protection through the improvement of business flexibility and agility. With the growing cases of data breaches, the requirement for reliable data security services will increase. Based on statistics from the Identity Theft Resource Center, in the first quarter of 2022, data breaches rose by 14% as compared to a year earlier. Since the cost associated with cyber-attacks is high, businesses are opting for efficient DSaaS software to identify threats and reduce exposure to hackers.
The high cost of cyber breaches and other such incidents may threaten business continuation, thereby encouraging governments to enforce strict cybersecurity norms and mitigate data security issues. For instance, the Cyber Security Agency of Singapore introduced a certification program to identify large businesses and SME that have implemented good cyber hygiene measures. Such initiatives will boost the adoption of holistic approaches to ensure data access monitoring, governance, and at-rest protection and create lucrative growth opportunities for DSaaS providers.
Data Security as a Service Market Analysis
The public cloud deployment mode segment accounted for over 45% of the data security as a service (DSaaS) market share in 2022, owing to the introduction of key initiatives to augment the launch of public cloud security services. Citing an instance, in November 2022, HCLTech unveiled CloudSMART for AWS, a cloud service portfolio, designed to help enterprises speed up their journey to the cloud. Furthermore, the acceleration of cloud adoption as part of the digitalization trend that emerged during the COVID-19 pandemic is anticipated to fuel DSaaS adoption.
The DSaaS market size from the IT & telecom end-use segment is set to cross USD 22 billion by 2032, attributed to rising automation of the telecom sector with the emergence of IoT, cloud, and other technologies. The increasing penetration of 5G technology has also boosted smartphone consumption, especially in developing nations. Factors such as these will result in telecom network expansion and improvements and consequently hasten DSaaS software development over the forecast period.
The North American data security as a service market is slated to exceed USD 24 billion by 2032, due to the growing adoption of visualization tools and data analytics to evaluate a large volume of customer data. In recent years, the number of cyber breaches per registered healthcare facilities have risen substantially in U.S. states, including Florida. Since a complete database recovery after system disruptions and data loss can lead to operational delays, organizations across the region are likely to increase DSaaS integration.
Data Security as a Service Market Share
Some of the leading companies operating in the data security as a service market include :
These firms are entering partnerships and incorporating other strategies to influence their presence in the global market.
For instance, in March 2023, IBM partnered with Cohesity to improve data resiliency and security in hybrid cloud environments. This deal was intended to combine data protection, data management capabilities, and cyber resilience from both companies to launch the IBM Storage Defender solution. This introduction of data protection offerings will allow the company to establish a strong presence and gain a competitive edge over rivals in the DSaaS industry.
Impact of COVID-19 Pandemic
The number of cyber-attacks across industry verticals including healthcare has risen in wake of the coronavirus pandemic. For example, in December 2022, the Ontario government encountered over 360,000 cases of COVID-19 vaccine-related database breach over a year ago. Such incidents have highlighted the imminent need for organizations to strengthen and prioritize cybersecurity architecture, thereby asserting a positive influence on the DSaaS market outlook.
The data security as a service market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:
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Market, By Type
Market, By Deployment Mode
Market, By Organization Size
Market, By End-use
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →