Data Protection Market Trends

Growth Drivers 

• Increasing use of smart electronic devices: According to NLM, the global volume of smartphone users doubled in 2021 in comparison to 2015, surpassing 3.8 billion. The worldwide penetration of stable internet connectivity, particularly 5G, is becoming a primary source of regular data generation, transfer, storage, and sharing. On the other hand, wide enhancement in computing and communication potential is also increased in mobile phones due to technological advancements and frequent social, economic, and financial activity. Subsequently, the demand for personal information protection and breach prevention tools rises, enlarging the consumer base of the data protection market.
• Heightening prevalence of data breaches: The number of cyber-attacks is increasing all across the globe. For instance, in November 2023, over 300.0 million records with private user data, including 21,000 telephone numbers and 31,000 email addresses, leaked as the KidSecurity application failed to set a password. Later, researchers identified a failure in the configuration of authentication for Elasticsearch and Logstash collections. These unwanted events testify to the importance of accommodating security tools for businesses as these threats can lead to financial losses, reputational damage, and regulatory fines, fueling the market.

Challenges 

• High initial cost of installing security solutions: The data protection solutions are expensive to purchase, fostering an economic barrier for small business owners with less operational budget. Therefore, this might hamper the optimum penetration of the market as a streamlined business. On the other hand, developing cost-effective tools while maintaining quality performance is hard for pioneers, decreasing their scope in price competency.
• Hurdles in resistive legacy infrastructure: The integration of advanced commodities from the data protection industry may get hindered due to inadequate IT systems. Modern security tools require infrastructural support, where the outdated systems present in many organizations fail to offer sufficient compatibility. This may make it hard for available products to operate at their full potential, creating customer dissatisfaction and limiting wide adoption.