Global data security revenues are expected to jump by 70% and hit over $12-billion by the end of a decade.
This is according to data presented by AltIndex.com, as cyber threat continue to rise.
Data security revenues have skyrocketed over the years, with the market more than doubling since 2016. There are several key factors that have fueled such impressive growth, with the surging number of cyberattacks, including ransomware, phishing, and data breaches pushing organisations to start investing heavily in data security solutions.
At the same time, governments and industry bodies have introduced stringent regulations like the General Data Protection Regulation and the California Consumer Privacy Act to protect customer data and maintain privacy standards. To comply with these regulations, businesses had to invest in data security technologies.
The ongoing digital transformation across industries, marked by the adoption of IoT, artificial intelligence, and big data analytics, as well as a global shift to cloud solutions, has had a huge impact on the data security market. This transformation has not only increased the need for robust data security but also contributed to a staggering 186% revenue growth in the past eight years.
According to Statista Market Forecast, back in 2016, companies and organizations worldwide spent $2,46-billion on data security measures and tools. By the end of 2020, this figure jumped over $4-billion and continued rising. Since then, the global spending on data security increased by a further 76%, reaching $7,06-billion in 2024. However, the following years will bring even more impressive growth.
Statista expects global data security spending to continue growing by an average of one billion dollars per year, climbing to over $12-billion by the end of a decade. This 70% growth reflects the critical need for businesses to protect their data assets against a backdrop of surging cyber risks and regulatory requirements.
In a global comparison, the US is and will remain the biggest player in the data security landscape, generating over 40% of global revenues. In 2024, the US data security revenue will hit close to $2,9-billion. Statista expects this figure to grow by 66% and hit $4,8-billion by 2029.
However, the two other markets will see even bigger five-year growth. The Chinese data security market, the second largest globally, will increase by 80% in this period, with revenue rising from $1,8-billion in 2024 to $3,2-billion in 2029.
Although far below these figures, the UK market will see even bigger growth. According to Statista, British companies and organizations will spend $350-million on data security measures and tools by 2009, or 84% more than this year, showing the biggest increase among the top five markets. Germany and Japan follow with an average 65% growth and roughly $400-million in data security revenues in the next five years.