Europe Data Protection-as-a-Service Market

Europe Data Protection-as-a-Service Market Analysis

The Europe Data Protection-as-a-Service Market size is estimated at USD 6.85 billion in 2025, and is expected to reach USD 13.55 billion by 2030, at a CAGR of 14.6% during the forecast period (2025-2030).

The factors driving the European market for data protection-as-a-service are increased focus on third party risk management coupled with stringent regulations, such as GDPR, prompting the adoption of data protection solutions. Many Europe-based market vendors are also innovating their product offerings by penetrating various industries to gain a competitive advantage, further contributing to the market's growth.

• In Europe, the General Data Protection Regulation (GDPR) is the primary legal framework that structures guidelines for collecting personal data and information. Compliance with the core tenets of GDPR, relating to personal information collected, accessed, and stored, is a hard take for companies. Therefore, data protection services can enable business self-service analytics while ensuring enterprise governance and compliance.
• Cloud migration is also very high among the end-user industries in the region. With more mobile data generated, more data sources are likely to be added. Hence, the region requires more advanced data preparation solutions.
• Even though the number of data breaches and cyberattacks is increasing in several European countries, customers and organizations in this region have been reluctant to share their data with third-party companies. Moreover, in October 2023, the head of Eon, one of the largest power providers in Germany, stated that the country failed to do strong enough to secure critical assets from cyberattacks and, as a result, called on authorities throughout Europe to take more action. With these increasing numbers of threats in European countries are driving the adoption of data protection services.
• With the increasing incidence of the COVID-19 pandemic, the necessity for safe, simple avenues for data exchange between public bodies and healthcare professionals made its way much more transparent than previously in to fight against the virus. However, the market is facing uncertainties owing to the Brexit effect in the European Union. Google plans to move its British customer's accounts out of EU privacy regulators' control and place them under the United States jurisdiction. The shift, prompted by Britain's exit from the European Union, will leave the sensitive information of millions of customers with less protection and within more comfortable reach of British law.

Europe Data Protection-as-a-Service Market Trends

BFSI Industry is Expected to Grow at a Significant Rate Throughout the Forecast Period

• The banking and financial services industry participants are becoming more digitally sophisticated, so safeguarding corporate data from security breaches is essential. Modernized bank data centers with hybrid cloud infrastructure backed by a digital foundation technology and powered by self-driving operations ensure significantly improved customer experiences. On the other hand, modernization created different security loopholes, resulting in data breaches and other information losses.
• Technology service providers, such as Eurobits, help banks work together so that their customers can quickly pay and manage their bank accounts at multiple banking providers. The company migrated to VMware vSphere on IBM's cloud technology in two data centers to containerize its secure banking applications.
• Many European banks are looking for cloud computing providers with higher security standards than they can find in the United States. The European banks are opting for three major United States cloud providers, Microsoft, Amazon, and Google.
• French and German government officials are in talks with major technology, telecommunications, and finance players to create a competitive continental cloud service run by regional technology provider companies. However, banks, like Germany's Commerzbank AG, have teamed up to present joint cloud requirements to the United States providers to increase the flexibility of data-related regulations.
• Players operating in the market continually invest in innovative solutions to tackle problems efficiently. For instance, Fortinet, a significant cybersecurity solutions provider, announced the launch of FortiGate-VM, extending its native support of VMware NSX-T to provide advanced security for East-West traffic.

United Kingdom Country Segment is Expected to Hold a Significant Share

• The increasing preferences for big data, blockchain, and other initiatives across the UK market landscape have contributed to market growth.
• According to the SAS Institute, retail banking organizations in the United Kingdom are expected to lead in Big Data adoption by a staggering 80%, likely contributing to the market's growth positively.
• The fashion retailer H&M recently started using Big Data to tailor its merchandising mix in its brick-and-mortar stores. To enhance its bottom line, the fashion retailer uses algorithms and different customer data sources to gain insights from receipts, returns, and data from loyalty cards.
• In the United Kingdom, blockchain users can refer to the guidance developed in France to help them comply with data protection laws. The United Kingdom's data protection authority has ignored the significant legislation related to cryptocurrency mining and related technologies. The guidance developed by CNIL, the French data protection authority, has been considered efficient for people working in the blockchain field.
• Furthermore, the increasing number of cyber-threat incidents is also driving the growth of the United Kingdom country segment in the coming years. For instance, according to IBM's X-Force Threat Intelligence Index report, published in February 2023, 43% of threats observed throughout Europe during the previous 12 months were in the UK. In 2022, the energy and financial sectors experienced the highest number of breaches, accounting for 16% of all cyberattacks in the UK. Moreover, according to SurfShark, approximately 420 thousand data records in the United Kingdom (UK) were compromised in the second quarter of 2023. The number dropped significantly compared to about 15 million in the first quarter of 2021. Such a significant drop in data compromises might indicate the considerable adoption of data protection services nationwide.

Europe Data Protection-as-a-Service Industry Overview

The European data protection-as-a-service market is moderately competitive and has several significant players. These players account for a substantial market share and are focusing on expanding their customer base across the European region. These vendors focus on research and development investment to introduce new solutions, strategic alliances, and other organic and inorganic growth strategies to capture a significant share during the forecast period.

In October 2023, Amazon announced the availability of standalone cloud services for Europe, aiming to minimize concerns regarding EU data sovereignty. The European Sovereign Cloud from Amazon Web Services (AWS), particularly for public sector clients and business enterprises in highly regulated sectors, will be made available by the company. The cloud will be installed on European servers, with Germany serving as the launchpad, and its operation will be governed solely by AWS personnel operating in the EU.

In June 2023, Thales, a global player in technology and security, announced a new partnership with Google Cloud to create new generative AI-powered data security capabilities to help businesses identify, categorize, and safeguard their most critical data. The association is a component of Thales' generative AI strategy, which aims to provide customers of the company's CipherTrust data security platform with new AI-powered capabilities and experiences.

In March 2023, Axis Security, a company that offers cloud protection, will soon be acquired by Hewlett-Packard Enterprise HPE. Additionally, it expanded its edge-to-cloud security capabilities by providing a unified Secure Access Services Edge (SASE) solution. It will now be able to satisfy the increasing demand for integrated networking and security solutions that are provided as a service.

Europe Data Protection-as-a-Service Market Leaders

Europe Data Protection-as-a-Service Market News

• July 2023 - Thales, a France-based IT company, introduced the CipherTrust Data Security Platform to the market, and the company currently offers it through a cloud-based subscription-as-a-service model. According to Thales, the platform simplifies data security operations for organizations by utilizing data security and lifecycle management tools to help them defend against external cyber threats and other security risks. Additionally, the platform gives users access to a partner ecosystem for integrations with security vendors, enterprise storage, servers, databases, applications, and clouds.
• June 2023 - Oracle's EU Sovereign Cloud was announced to be accessible, providing more control over data privacy and sovereignty needs to public and commercial sector entities throughout the European Union. Oracle EU Sovereign Cloud, one of the first cloud offerings created to address the EU's developing regulatory landscape, provides users with all the services and capabilities of Oracle Cloud Infrastructure's (OCI) public cloud regions at the identical cost, with the same level of support and service level agreements (SLAs) to run any workload. In addition to dedicated and hybrid cloud solutions, EU Sovereign Cloud, a component of OCI's distributed cloud approach, offers a new way to assist in meeting regulatory requirements.