Data presented by Altindex has revealed that global data security revenues are expected to jump by 70% and hit over $12 billion by the end of a decade.
This is because cyber threats are on the rise, remote work is becoming the norm, and companies are increasingly adopting cloud solutions. Thus, the protection of sensitive data has become a critical issue. Each year, companies and organizations worldwide are investing billions of dollars in data security, with budgets increasing annually. This trend is not just a choice, but a necessity, and it will continue in the future, fueling impressive data security market growth.
Data security revenues have skyrocketed over the years. The entire market has more than doubled since 2016, and there are several key factors that have fueled such impressive growth. The surging number of cyberattacks, including ransomware, phishing, and data breaches, has pushed organizations 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.
