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The global data governance market size was valued at USD 3.02 billion in 2022 and the market is projected to grow from USD 3.66 billion in 2023 to USD 14.53 billion by 2030, exhibiting a CAGR of 21.8% during the forecast period.
Managing data has become an essential aspect for businesses and individuals in the digital world. Organizations have started various programs to extract value from the data they collect so that the data is used for better decision making. Improving data quality is the leading benefit that organizations receive from data governance program. Organizations that invest in governance solution are realizing the significance of the added value from their programs, starting with progress towards increasing data quality and trust.
The volume of data is expected to reach 180 zettabytes by 2025, which is 3x more than in 2020. As the volume of data increases, the demand for data governance also increases.
According to a survey by Komprise, around 68% of enterprises spend nearly 30% of their IT budget on data storage, management, and protection. Businesses are applying governance framework to define the management of data right from collection to deletion and help to maximize the value and minimize the risk of data.
Increased Data Volume among Industries During Pandemic Aided Data Governance Market Growth
During the COVID-19 pandemic, data was an essential component for enterprises as it helped enterprises with better decision-making. The pandemic played a significant role in the increased data usage. Enterprises in various industries, especially telecommunication companies across various countries, have witnessed a surge in data usage as the governments imposed lockdowns. During the pandemic, enterprises with an established governance program have managed data efficiently.
Increasing data generation drives the demand for governance solution to ensure that an enterprise's information assets are formally, proactively, properly, and efficiently managed throughout the enterprise to secure accountability and trust. Also, due to the pandemic, a huge number of employees have started working from home by connecting remotely. Thereby increasing demand for data-related governance solutions for managing the data efficiently.
Emergence of Data Democratization is Driving Market Growth
Data democratization is gaining popularity as data consumption has surged among nontechnical users. According to industry experts, the demand for data will grow in the next three years among nontechnical users. As data democratization is gaining popularity, the demand for governance is increasing for data security, privacy, and compliance requirements. Data democratization is important to businesses as it ensures an effective and efficient method of providing data to all users, regardless of technical expertise. This eliminates the frustration of requesting access, sorting information, or contacting IT help.
Data governance has a built-in nature to control access to data. Data democratization aims to offer more access to many data users across the organization, and organizations need to review their governance framework so that it is associated with democratization but does not overprovision. It is crucial throughout the entire process of democratizing data, from collecting, accessing, storing, and interpreting data. The solution acts as an enabler and guide for data democratization. Thereby, the emergence of data democratization is driving the market growth.
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Increase in Amount of Big Data to Fuel the Demand for Data Governance Solutions
The market is experiencing a surge in demand primarily due to the remarkable increase in the volume of big data due to the rapid digitization of businesses and the global economy. With the shift toward digital operations, organizations are generating and collecting vast amounts of data, including customer information, financial transactions, operational metrics, and others. In particular, industries, such as e-commerce, entertainment, finance, healthcare, and manufacturing are seeking an explosion in data production. For instance,
Moreover, the ever-increasing online presence of individuals, the extensive use of social media platforms, and the expansion of mobile devices have contributed to the surge in data. Individuals' digital footprint and interactions in the virtual world result in massive data streams, including text, images, videos, and other user-generated data, highlighting the importance of adopting advanced governance solutions. In response to this big data surge, businesses seek advanced governance solutions to securely and efficiently manage and analyze this information.
As companies strive to derive insights and create value from big data, the demand for governance solutions is expected to remain robust.
Changing Format of Regulatory Policies and Data Address Validation & Lack of Awareness to Hamper the Market Growth
The regulatory policies are continuously evolving and organizations are navigating through a maze of regulations, including HIPAA, GDPR, and more. The challenge lies in understanding and adhering to these regulations while data privacy, quality, and complexity of regulatory policies leads to confusion, potential breaches, and legal liabilities, further hindering the market growth.
Furthermore, a fundamental challenge is a lack of awareness about the governance solution that restricts market growth. Organizations resist data governance initiatives as organizations often fight with well-established data silos, making it difficult to create a unified governance framework. Identifying data owners is essential for governance, but organizations struggle to outline the data owner's responsibility. This leads to misunderstanding and impedes effective governance, which is expected to restrict market growth.
Cloud-based Solution to Prioritize Compliance & Regulation Fueling Cloud Segment Growth
By deployment, the market is bifurcated into on-premise and cloud. The cloud segment is expected to witness the highest CAGR during the forecast period. Cloud-based solution highlights the significance of data privacy and ethical practices. Also, the cloud-based solution ensures organizations to comply with several regulations, including HIPPA, GDPR, and others, and cloud solutions offer robust security measures, establishing a strong base for data protection.
The on-premise segment dominated the market in 2022 as on-premise solutions helps organizations in deploying software, infrastructure, and data management systems within an organization’s physical premises, and this traditional approach helps organizations with direct control over their hardware and software.
Adoption of Governance Solutions for Compliance Management to Drive Compliance Management Segment Growth
By application, the market is classified into audit management, incident management, compliance management, and risk management. The compliance management segment is estimated to witness the highest CAGR during the forecast period. Compliance management is essential for adhering to industry-specific regulations and data privacy laws, and compliance management mitigates legal risk and fosters trust among partners and customers.
The risk management segment generated the maximum revenue share in 2022 as risk management identifies potential risks associated with the data and aims to mitigate these risks and prevent data-related issues.
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Increasing Data Breaches in Healthcare Industry to Propel Healthcare Segment Growth
Based on industry, the market is segmented into BFSI, healthcare, government, retail & consumer goods, IT and telecom, and others. The healthcare segment is expected to grow at a highest CAGR owing to increasing data breaches in the healthcare industry. Data breaches in healthcare continue to significantly impact the sector's growth, even as more firms implement updated security solutions to keep up with the flood of new cyber threats. Thereby creating the need for governance solutions.
The BFSI segment holds a maximum share as governance solution helps to optimize its effectiveness and innovation. The solution helps banks to enable lineage mapping that traces the origin, transformation and movement of data throughout its lifecycle and ensures that banks maintain a clear audit trail of data assets.
Our report studies the market across five regions, including North America, South America, Europe, the Middle East & Africa, and Asia Pacific. These regions are further categorized into leading countries.
North America Data Governance Market Size, 2022 (USD Billion)
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North America generated maximum revenue in 2022, owing to the increasing amount of user-generated data among various regional industries. North America data governance market accounted for a market value of USD 1.37 billion in 2022. Adoption of governance solutions is increasing in highly regulated industries, including retail and healthcare, as these industries are bound by strict regulations to disclose the substance as they use, record, and report raw materials and finished goods data to avoid legal consequences.
Asia Pacific region is experiencing growth in the volume of unstructured data across enterprises, and this data is being stored on-premise devices or in the cloud environment. The adoption of IoT devices is also increasing in the region, creating massive amounts of data. Also, the adoption of digital payments is surging, resulting in the generation of huge amounts of data daily that enterprises need to process, thereby propelling the demand for governance solutions.
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Europe region is witnessing substantial growth as the European Union introduced the Data Act, specific regulations for connected devices. As a huge volume of data is being generated through connected devices, the European Union plans to utilize this data for productive use to benefit companies and society. As the European government regulates technology, enterprises in the region are investing in digitalization. According to European Bank Investment, around 46% of enterprises claimed that they are taking steps towards digitalization, which is surging the demand for data governance in the region.
South America and the Middle East & Africa markets are experiencing significant growth, as the governments in various countries aim to build digital infrastructure, which is expected to generate massive amounts of data, therefore surging market growth.
Key Players Launch New Products to Strengthen Market Position To Drive the Market Growth
Major Players including Collibra, SAP SE, IBM Corporation, and others are operating in the data governance market share are actively developing advanced solutions to cater to customer demands. They also focus on enhancing their existing product portfolio to deliver flexible solutions with unique attributes. Furthermore, these organizations proactively pursue collaboration, mergers and acquisitions, and partnerships to bolster their product offerings.
An Infographic Representation of Data Governance Market
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The market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the data governance market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.
CAGR of 21.8% from 2023 to 2030
Value (USD Billion)
The market is projected to reach USD 14.53 billion by 2030.
In 2022, the market was valued at USD 3.02 billion.
The market is projected to grow at a CAGR of 21.8% during the forecast period.
The compliance management was the highest growing in the market.
Increase in amount of big data to fuel the demand for data governance solutions.
Collibra, SAP, Alation, Syniti, and OneTrust are the top players in the market.
North America is expected to hold the highest market share.
By industry, the healthcare industry is expected to grow with the highest CAGR during the forecast period.
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