Estimates are that the market will continue to grow with investments driven by investments and the post-Covid world
Since discussions about privacy and security in the digital environment have become a trend around the world, several countries have implemented their laws on online data protection. The laws are intended to ensure that sensitive information is not stolen or used dishonestly.
This type of law mainly affects public and private sector companies, large and small, and has raised questions about how companies deal with storing the data of millions of users and how to protect a large amount of information efficiently.
In this way, entrepreneurs started to invest in products/services that increase their data management and processing capacity, generating a demand for new professionals who, in turn, invest in courses and certifications to reach positions such as DPO (Data Protection Officer).
Data protection market grows in Brazil and worldwide
Concerns about data protection and user privacy have spurred a new type of market, where spending on tools that promise such protection is expected to exceed $8 million in 2022, according to research by the Gartner Group.
The subject of data protection has already made headlines and caused countless controversies when, accidentally or through some oversight, this information ends up leaking and exposing the intimacy of millions of Internet users.
The fear that this data will end up in the wrong hands makes governments increase their vigilance against cyberattacks and the priority is to invest in the modernization of IT structures and shows the need to seek solutions combining public policies and technology.
Thus, the objective is to make the digital environment safer, improving the experience of customers and public employees alike. An estimated $151 billion will be invested in digital security software.
LGPD boosts startup investment in personal data protection
The pandemic also intensified home-office work, and e-commerce sales figures soared.
With people using personal devices for much longer, including private and unsecured Wi-Fi networks, the number of companies expected to increase their investment in cyber protection capacity has reached 57% worldwide, according to a PwC survey.
There are more and more reports of startups developing security solutions. The market is expected to grow annually at a rate of at least 10% through 2027, according to Grand View Research.
Brazilian companies stand out in the sector
Brazil is also following this pace, with the new law that entered into force in September 2020, having increased its position in the global cybersecurity ranking, measured by the International Telecommunications Union (ITU), a specialized UN agency, reaching the 18th position.
PrivacyTools has been a reference in the country by supporting several companies with specialized assistance to adapt to the LGPD. More than 400 customers are using the platform developed by the Brazilian startup, which has privacy management solutions, such as incident control and Data Mapping.
In addition, it has marketing and privacy services aimed at the user experience, such as data collection and storage tools and online policy management, which enable the administration of information through the consent of customers.
The company grew mainly during the pandemic and thinking about the post-Covid reality, where daily life means spending more time on the networks, the goal is to expand the business to other countries.
The startup has already established sales channels in Uruguay, Portugal, Italy, and the USA. “The North American market being very promising for marketing and e-commerce products, which help to strengthen businesses while respecting consumer privacy”, declared Aline Deparis, CEO of PrivacyTools.