Austin, Texas, USA, November 7, 2024
Futurum Intelligence Expects Data Security to Increase Share-of-Wallet, Driven by Cyber Attacks and Compliance Requirements
The Futurum Group projects Data Security revenue to grow at a 13.9% CAGR from 2024 to 2028, reaching $41.5 billion. This growth outpaces the market, reflecting the precedence of mitigating data loss and protecting data privacy in the era of sophisticated cyberattacks and stringent compliance requirements.
Data Security Is Elevated to a C-Suite Priority
The onslaught of cyberattacks has elevated cybersecurity to a board-level priority. In particular, the surge in data breaches and ransomware attacks has highlighted the critical need for comprehensive data security. At the same time, the rise of remote work and complex multi-hybrid cloud environments has expanded the attack surface, further necessitating a robust approach to protecting organizations’ most valuable data assets. Beyond security concerns, legislation such as GDPR, CCPA, and HIPAA also mandates investment in data security. Organizations must adhere to strict regulations for data privacy and security.
As a result, Data Security will increase its share of cybersecurity spending over the next four years, outpacing the market by growing at a 13.9% CAGR from 2024 to 2028 reaching $41.5 billion, according to Futurum’s Cybersecurity Market Intelligence data. Specifically, we are seeing an emphasis on resilience. This translates into an investment in features and technologies that can help mitigate any data loss and downtime in the wake of an attack and, of course, to prevent attacks from occurring to begin with.
From Backup and Recovery to Cyber-Resilience
Futurump complements its market data with survey-based Cybersecurity Decision Maker IQ research. This research found that data protection customers considering replacing their organization’s primary vendor with new or better technology are most focused on improving recovery point and recovery time objective (RPO/RTO) and adding or improving cyber-resilience capabilities such as ransomware detection.
In response, data storage and protection vendors ranging from NetApp through Commvault and Veeam invest in capabilities such as detecting anomalous, potentially malicious activity to uncover attacks and mitigate their potential damage. We are also seeing investments such as Commvault’s acquisition of Appranix for full-cloud application stack recovery and Veeam’s acquisition of incident response provider Coveware to accelerate recovery.
AI to the Rescue
Following this theme, The Futurum Group’s Cybersecurity Decision Maker IQ data found that the top reasons that data protection customers will invest with their existing vendors in 2024 are automation and AI capabilities to streamline and enhance operations and the ability to assess risk and prioritize actions.
AI is notable on both fronts. First, it can help in areas such as identifying the best recovery point and automatically executing recovery operations. Additionally, we are seeing growing importance of data classification capabilities, and correlation with Data Security Posture Management (DSPM). Especially when used in conjunction with AI, this can help to identify the spread of a data breach, uncover if critical or sensitive data was impacted, and reveal potential vulnerabilities in the data environment that need to be addressed to avoid a breach.
What’s Ahead
Increasingly sophisticated cyberattacks, expanding attack surfaces, and stringent compliance requirements have made data security a top priority for organizations worldwide. In particular, there is a need for data-driven cyber-resilience. As a result, The Futurum Group anticipates robust growth in the data security market over the coming years. We also see spending on solutions and capabilities geared toward protecting and minimizing the loss of sensitive and critical data, as well as maintaining business continuity. Capabilities such as AI-driven detection of anomalous activity, DSPM, and automated recovery operations can help here.
Figure 1: Data Security Growth, 2024-2028
About Futurum Intelligence for Market Leaders
Futurum Intelligence’s Cybersecurity IQ service provides actionable insight from analysts, reports, and interactive visualization datasets, helping leaders drive their organizations through transformation and business growth. Additional information is available at https://futurumgroup.com/futurum-intelligence/.
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Other insights from The Futurum Group:
Security Investments Rise as Threat Landscape Darkens
Commvault Continues to Beat Guidance, Driven by Multi-Hybrid Cloud Cyber Resilience
