Data Security Market worth $56.52 billion by 2031 - Exclusive Report by MarketsandMarkets™

DELRAY BEACH, Fla., Nov. 9, 2026 /PRNewswire/ -- According to MarketsandMarkets™, the Data Security Market is projected to grow from USD 32.89 billion in 2026 to USD 56.52 billion by 2031 at a CAGR of 11.4% during the forecast period.

Browse 350 market data Tables and 50 Figures spread through 400 Pages and in-depth TOC on "Data Security Market - Global Forecast to 2031"

Data Security Market Size & Forecast:

• Market Size Available for Years: 2020–2031
• 2025 Market Size: USD 29.61 billion
• 2026 Market Size: USD 32.89 billion
• 2031 Projected Market Size: USD 56.52 billion
• CAGR (2026–2031): 11.4%

Data Security Market Trends & Insights:

• The increase in data breaches and data exfiltration is fueling the growth of the Data Security Market.
• By offering, the services segment is expected to grow at a higher CAGR of 11.8% during the forecast period.
• By service, the managed security services segment is projected to grow at the highest CAGR of 12.6% during forecast period.
• By deployment mode, the hybrid segment is projected to grow rapidly with a CAGR of 14.3%.
• North America accounted for the highest share of 35.5% of the global Data Security Market in 2026.

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The evolving landscape of data privacy regulations is accelerating the demand for the Data Security Market. Governments are strengthening requirements concerning personal information processing, data handling, breach response, and organizational accountability, increasing pressure on enterprises to demonstrate effective protection of sensitive records. Regulatory developments, including India's Digital Personal Data Protection framework, are encouraging organizations to review data governance practices and implement appropriate technical safeguards. Businesses are increasingly adopting data discovery, encryption, access management, and audit capabilities to support compliance obligations and reduce exposure to regulatory penalties.

Based on solution, the data backup & recovery segment is expected to hold the largest market during the forecast period.

Based on solution, the data backup & recovery segment is expected to hold the largest share of the Data Security Market during the forecast period. Organizations are prioritizing backup and recovery capabilities to protect critical business information against ransomware, accidental deletion, system failures, and data corruption. Secure, immutable, and geographically distributed backups help preserve data availability and integrity while enabling timely restoration after incidents. Growing cloud adoption, expanding enterprise data volumes, and business continuity requirements further support demand. NIST guidance emphasizes effective recovery strategies to minimize data loss and operational disruption following destructive cyber incidents.

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By organization size, the SMEs segment is expected to register the highest CAGR during the forecast period.

By organization size, the SMEs segment is expected to register the highest CAGR in the Data Security Market during the forecast period, driven by growing data breach risks, cloud adoption, and increasing requirements to protect sensitive information without extensive in-house security resources. Data security solutions provide SMEs with scalable capabilities for data discovery, classification, encryption, access control, and exposure management. The UK Government's 2025-2026 Cyber Security Breaches Survey found that 64% of small businesses and 70% of medium-sized businesses used external cybersecurity providers, highlighting their reliance on outsourced expertise. Rising demand for affordable, cloud-delivered protection is expected to support further adoption.

By region, North America is estimated to account for the largest market share during the forecast period.

North America is expected to account for the largest share of the Data Security Market during the forecast period, supported by high enterprise spending on cybersecurity, extensive cloud adoption, stringent data protection requirements, and the presence of major technology providers such as Microsoft, IBM, Palo Alto Networks, and Cohesity. In the US, enterprises are strengthening sensitive data discovery, classification, access governance, and data loss prevention as information spreads across cloud platforms, SaaS applications, and AI-enabled workflows. Growing adoption of data security posture management (DSPM) is also increasing demand for visibility into sensitive data exposure across distributed environments.

In Canada, data protection priorities are gaining momentum through the federal government's cybersecurity and privacy initiatives. Canada's 2025 National Cyber Security Strategy emphasizes stronger public-private collaboration, improved cyber resilience, and protection of critical infrastructure, while proposed privacy legislation introduced in June 2026 seeks to strengthen safeguards for personal information and accountability in data handling. These developments, combined with enterprise cloud adoption and growing requirements to govern sensitive information used by AI systems, are supporting demand for data discovery, encryption, access controls, and data security posture management. Consequently, North America remains a key center for data security innovation, vendor activity, and enterprise adoption.

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Top Companies in Data Security Market:

The Top Companies in Data Security Market are Microsoft (US), Veeam (US), Cohesity (US), Rubrik (US), Commvault (US), AWS (US), IBM (US), Acronis (Switzerland), Thales (France), Palo Alto Networks (US), Varonis (US), Protegrity (US), Google Cloud (US), Broadcom (Symantec) (US), Proofpoint (US), Druva (US), Forcepoint (US), Accenture (Ireland), Skyhigh Security (US), Trellix (US), Zscaler (US), Netwrix (US), OpenText (Canada), Arcserve (US), Kaseya (US), Fortra (US), and BigID (US).

Data Security Market - Investment and Funding Scenario

Investment Funding Context

Investment in the Data Security Market is increasingly focused on scaling AI-driven data protection platforms, strengthening data security posture management (DSPM), and integrating sensitive data discovery, access governance, and automated risk remediation. In April 2025, Forcepoint completed its acquisition of Getvisibility, expanding its capabilities in AI-powered DSPM and data detection and response across hybrid cloud and generative AI environments. The transaction highlights the strategic importance of combining data visibility, classification, and real-time risk mitigation within unified data security platforms.

Investment activity has also accelerated through major funding rounds and platform consolidation. In June 2026, Cyera raised USD 600 million at a USD 12 billion valuation, with funding led by Evolution Equity Partners and participation from Temasek and existing investors. The investment is intended to support product innovation, global expansion, and the development of its AI and data security platform. In December 2025, Veeam completed its USD 1.725 billion acquisition of Securiti AI, combining data resilience with data security posture management, privacy, governance, and AI trust capabilities. These developments highlight growing investor interest in platforms that unify data protection, security, and governance to support secure enterprise AI adoption.

Revenue Shift Context

The Data Security Market is shifting from standalone protection tools toward integrated, AI-powered platforms that combine sensitive data discovery, classification, data loss prevention, and automated risk remediation. Revenue opportunities are expanding as enterprises seek continuous protection across cloud, SaaS, on-premises, and AI environments. In February 2026, Cyberhaven launched its unified AI and data security platform, integrating DSPM, DLP, insider risk management, and AI security. In September 2026, Palo Alto Networks made Cortex Data Security generally available, unifying data discovery, posture management, protection, and response. These developments highlight growing opportunities for vendors to expand platform subscriptions and monetize advanced AI-aware data protection capabilities.

Mergers and Acquisitions

Mergers and acquisitions in the Data Security Market are increasingly focused on integrating data protection, cyber resilience, privacy governance, and AI security within unified platforms. In December 2025, Veeam completed its USD 1.725 billion acquisition of Securiti AI, combining data resilience with data security posture management, privacy, and AI governance capabilities. In October 2026, Proofpoint agreed to acquire Varonis in a USD 6.3 billion transaction, aiming to unite data security with human- and AI-focused cybersecurity. Rubrik's acquisition of Strata.io further expands identity resilience across hybrid, multicloud, and on-premises environments, highlighting growing consolidation around integrated data protection and recovery.

DATA SECURITY MARKET: MERGERS AND ACQUISITIONS, JANUARY 2024–OCTOBER 2026

Company Revenue Share Details

The data protection market remains competitive, with leading technology providers differentiating themselves through backup and recovery, cyber resilience, ransomware protection, and unified data management capabilities. Microsoft, Veeam, Cohesity, Rubrik, and Commvault are among the key players, addressing data protection requirements across cloud, on-premises, hybrid, and SaaS environments. Microsoft integrates backup and recovery capabilities across its cloud ecosystem, while Veeam emphasizes workload availability and rapid recovery. Cohesity focuses on data security and AI-powered data management, whereas Rubrik emphasizes cyber resilience, data security, and ransomware recovery. Commvault provides unified data protection, cyber recovery, and cloud data management capabilities. Together, these companies address enterprise requirements for data availability, operational continuity, and recovery from cyberattacks and infrastructure disruptions.

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Related Market Reports:

Cybersecurity Market by Solution Type (IAM, Firewall & VPN, Log Management & SIEM, Antivirus/Antimalware), Service (Professional (Risk & Threat Assessment, Training & Education), Managed), Security Type (Cloud, Application) - Global Forecast to 2030

Data Protection as a Service Market by Service Type (Backup as a Service, Storage as a Service, Disaster Recovery as a Service, Data Archiving, Other Services), Deployment mode, Organization Size, Vertical and Region - Global Forecast to 2030

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