Data-Centric Security Market Set for Explosive Growth to US$ 72.79 Billion by 2035, Led by North America's 41.6% Market Share | Key Players - IBM Corporation, Informatica, Varonis Systems

The Data-centric Security Market reached USD 6.55 billion in 2024 and is expected to reach USD 72.79 billion by 2035, growing at a robust CAGR of 24.4% during the forecast period 2025-2035.

Market growth is driven by the surge in sophisticated cyberattacks, increasing adoption of cloud, IoT, and big data platforms, and stricter data protection and privacy regulations across major economies. Organizations are rapidly shifting from perimeter-based models to data-centric security architectures, focusing on encryption, tokenization, data masking, and access control to protect sensitive information at rest, in use, and in transit. Rising compliance demands in BFSI, healthcare, and government sectors, along with growing investments in zero-trust frameworks and secure data sharing, are further accelerating market expansion.

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Key Industry Developments

United States:
✅ February 2026: IBM launched an advanced data-centric security platform with AI-driven persistent data protection, enabling real-time classification and encryption of sensitive information across hybrid cloud environments to combat evolving insider threats.

✅ January 2026: Microsoft integrated next-generation encryption protocols into Azure for data-centric security, featuring homomorphic encryption that allows computations on encrypted data without decryption.

✅ December 2025: Symantec (Broadcom) released an upgraded data loss prevention (DLP) suite with quantum-resistant encryption algorithms tailored for U.S. defense contractors.

Japan:
✅ January 2026: NTT Security introduced an AI-powered data-centric security platform designed for financial institutions, utilizing federated learning to protect cross-border transaction data without centralizing sensitive information.

✅ December 2025: Fujitsu announced a strategic R&D partnership with major telecom providers to implement zero-trust data architectures in 5G networks.

✅ November 2025: NEC Corporation unveiled a government-backed initiative for data-centric security in public sector agencies, featuring biometric-enhanced data classification engines.

Key Merges and Acquisitions:
✅ Veeam acquired Securiti AI for $1.725 billion in October 2025, integrating Data Security Posture Management (DSPM), privacy, governance, and AI trust capabilities to create a unified data command center across hybrid multicloud environments.

✅ ServiceNow acquired Armis for $7.75 billion in December 2025, enhancing asset intelligence and cybersecurity platform to manage cyber risk exposure across the entire attack surface, aligning with data protection priorities.

✅ Palo Alto Networks acquired Chronosphere for $3.35 billion in November 2025, bolstering cloud-native monitoring and infrastructure observability to strengthen data security and compliance in AI-driven environments.

Key Players:
IBM Corporation | AvePoint | Bluetalon | Dataguise | Informatica | Imperva | Micro Focus | Varonis Systems | Oracle Corporation | Syntizen Technologies Pvt. Ltd.

Key Highlights: Top 5 Players in Data-Centric Security Market 2026
-IBM Corporation: Launched Guardium Data Protection with AI-driven data discovery and real-time encryption key management, enabling automated compliance monitoring and zero-trust access controls to secure sensitive data across hybrid cloud environments.

-Informatica: Introduced Informatica Data Governance and Catalog powered by CLAIRE AI, featuring advanced data lineage tracking and automated classification for dynamic data masking, strengthening privacy protection in multi-cloud data pipelines.

-Varonis Systems: Deployed Data Security Platform 12.0 with enhanced behavioral analytics and threat hunting capabilities, providing continuous data exposure assessment and automated remediation to prevent insider threats and ransomware in enterprise data lakes.

-Imperva: Released Data Security Fabric with integrated data activity monitoring and precision masking, offering machine learning-based anomaly detection and workload-level encryption to safeguard structured and unstructured data in real-time analytics platforms.

-Oracle Corporation: Advanced Oracle Data Safe with autonomous database security features, including AI-powered risk scoring and data-centric encryption management, delivering unified visibility and compliance automation for mission-critical data assets in Oracle Cloud Infrastructure.

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Market Drivers and Key Trends:
-Rising Cyber Threats: Escalating ransomware attacks and data breaches, with over 2,000 incidents reported daily in 2025, drive demand for advanced encryption and zero-trust architectures to safeguard sensitive data.

-Regulatory Compliance: Stringent mandates like GDPR, CCPA, and emerging AI data laws compel organizations to adopt data-centric tools for granular access controls and audit trails.

-Cloud and Edge Migration: Proliferation of multi-cloud environments and IoT edge devices necessitates dynamic data protection that follows data across hybrid infrastructures.

-AI-Driven Insights: Integration of machine learning for real-time anomaly detection and behavioral analytics enhances proactive threat hunting in vast data lakes.

-Market Hurdles: Skill shortages in data security expertise, interoperability challenges among diverse tools, and high implementation costs for legacy system migrations constrain rapid scaling.

Regional Insights:
-North America holds the dominant position in the Data-Centric Security Market with a 41.6% share in 2025.​

-Asia Pacific follows as the fastest-growing region, driven by rapid digitalization and stricter cybersecurity laws in countries like China and India.​

-Europe secures the next largest portion, bolstered by GDPR compliance and rising cyber threats.​

Market Opportunities & Challenges: Data-Centric Security Market 2026
-Opportunities: A "Zero-Trust Evolution" accelerates cloud-native adoption; persistent data residency mandates and AI governance frameworks enable seamless entry for compliance-first innovators. DSPM (Data Security Posture Management) integrations with DevSecOps pipelines, alongside blockchain-anchored persistent protection, unlock scalable safeguards for hybrid environments.

-Challenges: The "Quantum Threat Horizon" looms over legacy encryption stacks, while talent shortages in data lineage expertise strain operational scaling. Enterprises must pierce siloed tool sprawl and harmonize dynamic access policies amid surging insider risk vectors.

-Strategic Verdict: AI-orchestrated DSPM platforms and persistent encryption fabrics propel 2026's breakout trajectories.

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Market Segmentation Analysis:
-By Component: Software & Solutions Lead with Robust Capabilities
Software & solutions dominate at 72% market share in 2024, providing core tools like data encryption, access controls, and anomaly detection for real-time threat mitigation.
Professional services follow at 28%, offering consulting, implementation, and training to customize deployments amid rising compliance needs.

-By Deployment Type: Cloud Surges on Scalability
Cloud deployment captures 58% share, favored for flexibility, cost savings, and seamless integration in dynamic data environments.
On-premises holds 42%, preferred by regulated sectors for enhanced control and data sovereignty despite higher upfront costs.

-By End-User: BFSI Tops Due to Regulatory Pressures
BFSI leads at 25% share, driven by stringent data protection laws like GDPR and PCI-DSS amid frequent cyber threats to financial assets.
Healthcare takes 18%, focusing on HIPAA compliance for patient records; Retail & E-Commerce 15% for transaction security; IT & IT Services 12%; Government & Defense 10%; Education 8%; Others 12% for diverse needs.

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