Data Governance Market Size Share Growth Trends and Forecast Analysis 2024-2032

Data Governance Market Valuation – 2024-2031

The demand for data governance solutions is increasing. The ever-increasing volume and complexity of data that enterprises acquire are primary factors. Data is collected from a variety of sources, including consumer contacts, purchases, social media, and even internet-connected devices (IoT). Businesses are drowning in data and require a method to manage it properly. Data governance provides structure by ensuring that information is available, correct, secure, and in compliance with regulations. The market size surpass USD 3676.25 Million valued in 2023 to reach a valuation of around USD 17912.24 Million by 2031.

The data flood, combined with stronger rules such as GDPR and CCPA, is compelling businesses to prioritize data privacy and security. Data governance assists firms in putting in place comprehensive structures to ensure compliance with these regulations and the protection of user information. This not only avoids large fines but also increases customer trust. As a result, the Data Governance Market is projected to expand rapidly in the future years. The rising demand for cost-effective and efficient Data Governance is enabling the market grow at a CAGR of 21.89% from 2024 to 2031.

Data Governance Market: Definition/ Overview

Data governance is the comprehensive control of data availability, usefulness, integrity, and security in an organization. It consists of a system of processes, responsibilities, regulations, standards, and metrics designed to ensure the effective and efficient use of information. Data governance refers to the processes that businesses use to manage data over its entire lifecycle, from creation and storage to sharing and archiving.

The fundamental purpose is to ensuring that data is accurate, consistent, and available to authorized users while adhering to legal regulations. Data governance is used in a variety of industries, including healthcare, banking, retail, and manufacturing, to improve decision-making, operational efficiency, and risk management by offering a standardized approach to data processing and quality control.

The volume, diversity, and velocity of data generated in the digital age have driven the expansion and evolution of data governance. As enterprises implement new technologies like artificial intelligence, machine learning, and big data analytics, the demand for strong data governance frameworks will grow. Emerging trends, such as data democratization, which makes data available to a wider audience within an organization, and the integration of data governance with data privacy and security measures, will affect the future.

The growing emphasis on data ethics, as well as the requirement for openness and accountability in data utilization, will drive the creation of increasingly complex data governance practices. The future will most certainly see growing automated and intelligent data governance systems that use AI to handle data policies and compliance, ensuring that enterprises can negotiate the intricacies of the data-driven world effectively and ethically.

How Do the Increasing Data Volumes and Complexity Drive the Growth of the Data Governance Market?

The Data Governance Market will increase in response to increasing data volumes and complexity. With the global data sphere expected to grow from 33 zettabytes in 2018 to 175 zettabytes by 2025, enterprises must have comprehensive data governance plans to manage and extract value from their data assets. This exponential data increase needs strong data governance solutions to assure data integrity, usability, and security, which drives demand for advanced data governance frameworks and technologies. As businesses try to handle the challenges of huge data volumes, the Data Governance Market is primed for tremendous growth.

Regulatory compliance needs will drive the Data Governance Market forward. Stringent data privacy legislation, such as the GDPR, has resulted in significant fines, with the European Union Agency for Cybersecurity (ENISA) claiming more than €1.6 billion in penalties between May 2018 and January 2022. This huge financial risk forces businesses to invest in data governance technologies and policies to assure compliance and avoid penalties. As regulatory demands increase, so will the demand for effective data governance solutions, fueling the market’s growth.

How Does the Data Quality Issues Impact the Growth of the Data Governance Market?

Data quality challenges will affect the growth of the Data Governance Market. Poor data quality, defined as inaccuracies, inconsistencies, and insufficient information, hinders decision-making and operational efficiency. Organizations dealing with these difficulties are increasingly recognizing the importance of strong data governance solutions to assure data accuracy, consistency, and reliability. Businesses that employ effective data governance processes can address data quality issues, improve their data management capabilities, and generate more value from their data assets. As a result, the rising emphasis on enhancing data quality would increase demand for data governance solutions, hence contributing to market growth.

The constant maintenance and updates will have an impact on the growth of the Data Governance Market. Continuous repairs and improvements are essential to ensure that data governance solutions remain effective and in compliance with changing rules and organizational requirements. While these continuous obligations may be resource-intensive, they also underscore the importance of strong data governance systems. As enterprises attempt to ensure data integrity and compliance, the demand for comprehensive and up-to-date data governance solutions will increase, favorably impacting market growth.

Category-Wise Acumens

Will the Security and Compliance Fuel the Cloud-Based Category of the Data Governance Market?

Cloud-based solutions currently dominate the Data Governance Market. The cloud-based segment of the Data Governance Market will rise owing to security and compliance. Organizations are rapidly migrating their data to the cloud, which presents new security and regulatory challenges. Cloud-based data governance solutions provide enhanced security features and compliance capabilities to help businesses protect their data and meet regulatory requirements. The requirement for improved data protection and adherence to compliance standards will drive demand for cloud-based data governance solutions, propelling the market segment forward.

The cloud-based segment of the Data Governance Market will rise due to its scalability and cost-effectiveness. Cloud-based data governance solutions can scale resources up or down based on organizational requirements, making them suitable for dealing with variable data quantities. Furthermore, they offer cost-effective alternatives to traditional on-premises systems by eliminating the need for large upfront hardware investments and continuous maintenance. The combination of scalability and cost-effectiveness makes cloud-based data governance solutions very appealing, which is driving the growth of this market segment.

Will the High Volume and Sensitivity of Data Raise the BFSI Segment for the Data Governance Market?

The BFSI sector currently holds the dominant position in the Data Governance Market. The large volume and sensitivity of data will fuel the expansion of the BFSI (Banking, Financial Services, and Insurance) segment in the Data Governance Market. The BFSI industry handles massive amounts of sensitive financial and personal data, necessitating strict data governance policies to assure security, compliance, and accurate decision-making. The necessity to manage and safeguard this essential data drives the demand for strong data governance solutions that are suited to the BFSI industry’s specific requirements, supporting the expansion of this market segment.

Increase in scrutiny and data breaches will fuel the expansion of the BFSI segment in the Data Governance Market. The BFSI sector is under increased regulatory scrutiny and faces considerable risks from data breaches, emphasizing the importance of strong data governance solutions to ensure compliance, preserve sensitive information, and reduce security risks. This increased emphasis on data security and regulatory compliance is boosting demand for sophisticated data governance frameworks in the BFSI industry, accelerating the growth of this market segment.

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Country/Region-wise Acumens

Will the Government Initiatives Propel the Asia Pacific Region for the Data Governance Market?

The Asia-Pacific region is expected to be the fastest-growing market for data governance. Government initiatives will propel the Data Governance Market in Asia-Pacific. Governments across the area are strongly fostering data-driven economies by investing in data infrastructure and implementing supportive regulations. Singapore’s Infocomm Media Development Authority (IMDA) published its Artificial Intelligence Governance Framework in 2020, and it has been adopted by more than 15 businesses, highlighting the region’s rising emphasis on data governance. In Japan, the Act on the Protection of Personal Information (APPI) and its recent modifications have underlined the importance of strong data governance processes, as indicated by the rise in data breach reports. These government-led activities are considerably increasing the usage of data governance solutions in the region, hence driving market growth.

Rapid digitization will fuel the Asia-Pacific Data Governance Market. The digital transformation of numerous industries is generating massive amounts of data, necessitating the urgent need for strong data governance solutions. The Asian Development Bank (ADB) predicts Southeast Asia’s digital economy will rise to USD 1 Trillion by 2030, up from USD 170 Billion in 2021, highlighting the growing need for sufficient data governance frameworks.

According to NASSCOM, India’s digital economy is estimated to reach USD1 Trillion by 2025, while its data analytics market will expand to USD 118.7 Billion by 2026. The region’s digital data explosion is driving the demand for sophisticated data governance solutions as enterprises seek to efficiently manage and utilize their growing digital assets.

Will the Mature Data Management Practices Raise the North American Region for the Data Governance Market?

North America currently holds the dominant position in the Data Governance Market. Mature data management methods will fuel the Data Governance Market in North America. The region’s significant expertise with massive datasets and sophisticated IT infrastructures provides a solid foundation for implementing data governance solutions. The US digital economy, which accounted for 9.6% (USD 1.85 Trillion) of GDP in 2019, emphasizes the importance of data-driven processes. A 2021 survey revealed that 96% of Fortune 1000 organizations are engaging in data projects, with 81% perceiving data as an essential asset.

Furthermore, the increasing usage of cloud-based solutions, which is employed by 90% of firms with 100 or more employees, emphasizes the importance of strong data governance for effective data management and security. This mature data management landscape is generating significant growth in the data governance industry, as enterprises seek complete solutions to improve their data practices.

The presence of large technological companies will drive the Data Governance Market in North America. North America has an advantageous climate that fosters advanced data governance solutions, thanks to the presence of top computer giants like IBM, Oracle, and Microsoft. The United States Bureau of Labor Statistics predicts a 15% increase in computer and information technology jobs between 2021 and 2031, indicating the growing impact of major digital corporations. In 2019, US exports of ICT-enabled services exceeded USD 517.9 Billion, demonstrating the global reach of North American IT companies. Furthermore, USD 507.4 Billion was invested in R&D in 2019, with a significant amount going toward software and IT services. This substantial investment stimulates innovation in data governance, reinforcing North America’s leadership in the market and setting industry standards.

Competitive Landscape

The Data Governance Market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support.

The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the Data Governance Market include:

Alation, ASG Technologies, Ataccama, Claravine, Egnyte, IBM Corporation, Infogix, Information Builders, Oracle Corporation, SAP, SAS, Synscort, TIBCO, Varonis, Microsoft.

Latest Developments

• In May 2024, Alation, a major data intelligence company, introduced Workflow Automation to assist organizations in proactively identifying and addressing data governance problems. This solution uses Alation automation bots to automate tedious data management chores, allowing data stewards to focus on important initiatives that have a business impact.
• In March 2024, SAP and Collibra expanded their collaboration to assist customers in meeting the growing demand for AI governance. The alliance intends to prioritize and expand AI efforts securely by delivering automated governance workflows, processes, and rules to deliver trusted AI across the company, addressing concerns about AI’s unpredictable nature, legal challenges, data security, and more.
• In September 2023, Fasoo and Egnyte announced cooperation to simplify enterprise data governance by combining Fasoo’s data security and privacy solution with Egnyte’s enterprise file sharing platform. This allows enterprises to locate, classify, and protect sensitive data throughout their content repositories, resulting in a holistic solution for managing and securing unstructured data throughout its life cycle. Fasoo’s AI-powered data discovery and classification capabilities detect and classify sensitive data in Egnyte’s content repositories.
• In June 2023, Privacera, the cloud data governance and security leader, introduced the private preview of Privacera AI Governance (PAIG), the industry’s first and most comprehensive AI data security governance solution for high-performance AI-driven data control and security for AI use cases, which builds on Privacera’s existing data privacy, security, and access management capabilities.

Report Scope

Data Governance Market, By Category

Organization Size:

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

Component:

• Solutions
• Services

Deployment Model:

• On-premises
• Cloud-based

Business Function:

• Operation and IT
• Legal
• Finance
• Human Resources
• Sales and Marketing

End-User:

• IT and Telecom
• Healthcare
• Retail
• Defense
• Banking, Financial Services and Insurance (BFSI)

Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Research Methodology of Market Research

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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