Data Centric Security Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Deployment Type (On-Premises, Cloud-Based) By Component (Software, Hardware, Services), By End-User Industry (Retail, IT and Telecom, Healthcare, Banking, Financial Services, and Insurance (BFSI), Manufacturing and Industrial, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.38 Billion
CAGR (2026-2031)	24.63%
Fastest Growing Segment	Hardware
Largest Market	North America
Market Size (2031)	USD 27.66 Billion

Market Overview

The Global Data Centric Security Market will grow from USD 7.38 Billion in 2025 to USD 27.66 Billion by 2031 at a 24.63% CAGR. Data centric security is a protective strategy that prioritizes the security of the data itself rather than the networks or applications that house it, utilizing methods such as encryption, tokenization, and masked access controls. The primary drivers fueling the growth of this market include the relentless surge in high profile data breaches and the stringent enforcement of global privacy regulations which mandate rigorous data protection standards. Additionally, the rapid migration of enterprise workloads to cloud environments necessitates security models that travel with the information, further solidifying the demand for these solutions.

However, the market faces a significant impediment regarding the complexity of implementation and a critical shortage of skilled professionals required to manage these advanced architectures. This talent scarcity poses a severe risk to organizational defense capabilities and slows the adoption of comprehensive security frameworks. According to ISC2, in 2024, the global cybersecurity workforce gap widened by 19 percent to reach an estimated 4.8 million unfilled positions. This deficit hinders the ability of enterprises to effectively deploy and maintain robust data centric security strategies.

Key Market Drivers

The escalating volume and sophistication of cyber threats and data breaches act as a primary catalyst for the adoption of data centric security solutions. As attackers increasingly bypass traditional perimeter defenses, organizations are compelled to shift their focus from protecting networks to securing the data itself through methods such as encryption and tokenization. The financial and reputational repercussions of these incidents have intensified, driving the urgency for protection strategies that limit the blast radius of a compromise. According to IBM Security, July 2024, in the 'Cost of a Data Breach Report 2024', the global average cost of a data breach reached a historical high of USD 4.88 million. This financial pressure is compounded by the sheer frequency of attacks targeting sensitive information. According to the Identity Theft Resource Center, January 2024, in the '2023 Annual Data Breach Report', the number of data compromises increased by 78 percent compared to the previous year, underscoring the critical necessity for security measures that focus directly on data assets.

The rapid proliferation of cloud-based and hybrid IT infrastructures further accelerates the demand for data centric security architectures. As enterprises migrate workloads outside on-premise environments, data becomes dispersed across diverse platforms, rendering legitimate access harder to distinguish from unauthorized intrusion. This architectural shift necessitates security models that remain attached to the information regardless of its location, ensuring continuous protection during storage, processing, and transmission. The risks associated with this digital transformation are substantial, as cloud environments increasingly become focal points for cyber operations. According to Check Point, June 2024, in the '2024 Cloud Security Report', 61 percent of surveyed organizations experienced a cloud security incident within the last twelve months. Consequently, businesses are prioritizing data centric strategies to maintain visibility and control over their distributed digital assets in these expanded environments.

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Key Market Challenges

The complexity of implementation and the persistent shortage of skilled professionals stand as significant barriers to the growth of the Global Data Centric Security Market. Data-centric security solutions, which involve intricate processes like encryption key management, tokenization, and dynamic policy enforcement, require specialized expertise to deploy and maintain effectively across hybrid cloud environments. When organizations lack personnel with these niche skills, they often delay the adoption of advanced security frameworks to avoid operational disruptions or potential misconfigurations. This hesitation directly reduces the procurement rate of new solutions, as companies cannot justify investing in tools they cannot adequately staff or manage.

This workforce deficit critically impacts the market by forcing existing security teams to prioritize basic threat detection over strategic architectural upgrades. The inability to recruit qualified talent creates a bottleneck where enterprises are willing to invest in technology but are constrained by human resource limitations. According to ISACA, in 2024, 57 percent of organizations globally reported that their cybersecurity teams were understaffed. This chronic lack of available talent ensures that many businesses remain unable to execute comprehensive data-centric security strategies, thereby stifling the overall revenue potential and expansion rate of the market.

Key Market Trends

The integration of Generative AI is rapidly transforming data classification and tagging processes, enabling organizations to automate the identification of sensitive information at an unprecedented scale. By embedding these intelligent algorithms into security workflows, enterprises can significantly reduce the time required to detect vulnerabilities and enforce policy controls across complex environments. This automation not only enhances compliance but also delivers substantial economic benefits by streamlining incident response mechanisms. According to IBM, July 2024, in the 'Cost of a Data Breach Report 2024', organizations that extensively applied artificial intelligence and automation to their security operations realized an average cost saving of USD 2.22 million compared to those that did not.

Concurrently, the market is witnessing a decisive rise in Data Security Posture Management (DSPM) solutions designed to address the visibility gaps inherent in multi-cloud architectures. Unlike traditional tools that focus on perimeter defense, DSPM technologies continuously discover and map shadow data, providing a real-time assessment of risk exposure based on the actual location and sensitivity of the information. This shift is critical for businesses seeking to maintain control over dispersed assets without impeding operational agility. According to Cybersecurity Insiders, September 2024, in the '2024 Data Security Posture Management Adoption Report', 75 percent of organizations indicated plans to adopt DSPM solutions by mid-2025, positioning it as one of the fastest-growing categories in the sector.

Segmental Insights

The Hardware segment is identified as the fastest-growing component of the Global Data Centric Security Market, driven by the essential requirement to store encryption keys in physically isolated environments. Organizations are increasingly adopting dedicated equipment to protect sensitive information from software vulnerabilities and external attacks. This expansion is supported by guidelines from the Payment Card Industry Security Standards Council, which recommend using secure physical devices for cryptographic operations. Consequently, companies are investing in these tangible security solutions to ensure compliance with strict regulatory standards and to provide a robust layer of protection for critical business data.

Regional Insights

North America holds the largest share of the Global Data Centric Security Market due to rigorous regulatory enforcement and a strong presence of established technology vendors. Adherence to guidelines from the National Institute of Standards and Technology encourages organizations to prioritize direct data protection over traditional perimeter defenses. Additionally, compliance with the California Consumer Privacy Act necessitates strict controls regarding personal information management. This regulatory environment, combined with frequent cyber threats, compels regional enterprises to invest in solutions that secure data throughout its lifecycle.

Recent Developments

• In December 2024, Rubrik announced the integration of Data Security Posture Management (DSPM) capabilities directly into its Security Cloud platform. This development was intended to provide organizations with increased visibility and control over sensitive data across cloud, SaaS, and on-premises environments without requiring disruptive new scans. The company highlighted that this new feature would help accelerate the adoption of generative AI by allowing users to quickly identify and mitigate data risks such as leakage. This enhancement reinforced the company's focus on cyber resilience by combining data recovery with proactive data security governance.
• In October 2024, IBM launched the Guardium Data Security Center, a new unified platform designed to protect data across hybrid cloud, artificial intelligence, and quantum computing environments. This solution integrated workflows for data monitoring, governance, detection, and response into a single dashboard. The platform featured specific capabilities to secure AI deployments from vulnerabilities and shadow AI risks, as well as quantum-safe software to protect encrypted data from future quantum-driven attacks. This launch addressed the need for a consolidated approach to data lifecycle security and compliance in a rapidly evolving technological landscape.
• In March 2024, CrowdStrike announced the acquisition of Flow Security to incorporate a cloud data runtime security solution into its portfolio. This strategic move aimed to expand the company's cloud security capabilities by integrating Data Security Posture Management (DSPM). The acquisition allowed the firm to offer comprehensive protection for data in motion and at rest across endpoint and cloud environments. By adding these DSPM features to its unified platform, the company enhanced its ability to discover, classify, and secure sensitive information, addressing the growing demand for modern data-centric security measures in the "Global Data Centric Security Market."
• In March 2024, Zscaler acquired Avalor, a startup specializing in a "Data Fabric for Security," for approximately $350 million. This acquisition was designed to integrate advanced analytics and decision-making capabilities into the company's Zero Trust Exchange platform. By leveraging the acquired technology, the company aimed to ingest, normalize, and unify data from various enterprise security and business systems to provide real-time, AI-driven insights. The collaboration focused on automating vulnerability prioritization and threat remediation, thereby strengthening the data-centric security posture of organizations against evolving cyber threats.

Key Market Players

• IBM Corporation
• Microsoft Corporation
• Informatica Corporation
• Forcepoint Corporation
• Broadcom Inc.
• Micro Focus International PLC
• NetApp, Inc.
• Varonis Systems
• Orange Cyberdefense Inc.
• Seclore Inc.

By Component	By End-User Industry	By Region
Software Hardware Services	Retail IT and Telecom Healthcare Banking Financial Services Insurance (BFSI) Manufacturing and Industrial Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Data Centric Security Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Data Centric Security Market, By Component:

• Software
• Hardware
• Services

• Data Centric Security Market, By End-User Industry:

• Retail
• IT and Telecom
• Healthcare
• Banking
• Financial Services
• Insurance (BFSI)
• Manufacturing and Industrial
• Others

• Data Centric Security Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE