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The global data privacy software market size was valued at USD 1.99 billion in 2022. The market is projected to grow from USD 2.76 billion in 2023 to USD 30.31 billion by 2030, exhibiting a CAGR of 40.9% during the forecast period.
In the scope of the study, we have considered companies such as OneTrust, LLC, AvePoint, Inc., TrustArc, Inc., IBM Corporation, RSA Security LLC, and others. These companies are offering software solutions across various applications, including compliance management, reporting & analytics, risk management, and others.Data privacy software assists organizations in managing and operating customers’ personal data. The software classifies the content of the customer as per the country’s compliance rules and laws. The increasing concerns regarding personal and confidential data breaches are driving organizations to adopt data privacy software. For instance, in October 2020, AvePoint, Inc., announced its new Policies and Insights (PI) Software-as-a-Service solution to prevent exposure to sensitive data. This data access governance solution helps end-users in oversharing of the data.
Remote Work Culture Boosted Privacy Software Market Growth Amid Pandemic
During the pandemic period, various businesses and organizations witnessed temporary and permanent shutdowns. Also, major data breaches and cyber incidents occurred globally. As per Moneylife’s article, organizations such as BigBasket faced a data breach in March 2021, where the data of 20 million customers was hacked. Similarly, Twitter data breaches occurred in January 2020. The growing concern of losing personal data to hackers surges the demand for data privacy software across developing nations. Thus, organizations are implementing software, owing to growing cyber breaches as various countries opted for data privacy laws to reduce the misuse of customers’ personal data.
For instance, to manage the personally identifiable information (PII) of COVID-19-positive employees, various countries introduced healthcare guidelines. The companies could disclose the data of COVID-19-positive employees as per these guidelines. With the implementation of the software, the organizations enabled the verification of shared content. Thus, during 2020, the software witnessed slow growth, owing to sudden changes in the work environment. However, post-2020, the software is expected to gain remarkable growth.
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Rising Government Regulations on Data Privacy to Surge the Demand for Data Privacy Solutions
The growing concerns about data privacy have forced the governments of various countries to implement data privacy enforcement laws and regulations. For instance, the European Union launched a regulation as “General Data Protection Regulation (GDPR)” in response to the growing misuse of individuals’ personal data. The law was introduced to provide safety, protection, and rights to the individual to restrict its data usage by businesses and other organizations. Similarly, in December 2020, the U.S. introduced the “California Consumer Privacy Act” to empower California citizens with more control over their shared data. Likewise, in September 2020, to protect 140 million internet users’ private data, the Brazilian General Data Protection Law LGPD (Lei Geral de Proteção de Dados Pessoais) was introduced by the government of Brazil. Along with this, the government has 40 more industry or segment-specific data protection laws.
With such stringent regulations, organizations face challenges such as processing individual collected data securely and without violating any law. Organizations are facing difficulties in managing different country-specific regulations. These conditions have surged the demand for data privacy software. The software assists the organization in compliance with the policies and rules for data protection. Thus, the growth in data protection act worldwide is likely to drive the data privacy software market growth.
Rising Adoption of IoT Devices to Aid Global Data Privacy Software Market Growth
The data security management software demand is growing owing to rising IoT devices across industries such as manufacturing, BFSI, healthcare, and others. As per McKinsey & Company, by 2023, IoT-connected devices are expected to increase to 43 billion. Similarly, the vast implementation of 5G technology is expected to drive opportunities for key players in the market to expand their offerings.
The Internet of Things (IoT) technology shares and operates real-time data of customers and organizations. Real-time information and the information associated with transactions are shared through the wireless network. The adoption of IoT has seen a vast surge in several areas, such as smart retail, smart home appliances, smart city projects, and health monitoring, which has increased the need for IoT security. Thus, growing IoT devices and applications are likely to drive the demand for software.
Low Awareness and Insufficient Knowledge About Software Impede Industry Growth
Enterprises are facing challenges with the processing of customers’ personal data and insights. Lack of awareness about software among small and medium enterprises (SMEs), local organizations, and start-ups can hinder the growth of the market. Also, SMEs have a limited budget for IT services and solutions. This restricts the adoption of the software. These factors are expected to hinder the demand for the software and hamper market expansion.
Growing Demand for Cloud-based Software to Fuel the Market Growth
Increasing Stringent Government Regulations to Fuel Compliance Management Demand
Based on application, the market is categorized into compliance management, risk management, reporting & analytics, and others. Compliance management is expected to lead the segment during the forecast period. The software helps organizations perform activities in line with the regulation to protect confidential data. The growing laws in support of data protection are surging the demand for software across compliance management applications. Risk management is expected to gain rapid growth as the software identifies & evaluates threats and negative impacts of the operation on the individual’s data. Thus, to lower the risk of exposing the client's personal information, data privacy software is gaining traction in risk management.
Global Presence of Large Enterprises to Drive Demand for Software
Based on enterprise type, the market is divided into small & medium enterprises and large enterprises. Large enterprises are poised to dominate the segment share during the forecast period. The majority of large enterprises have a robust global presence, which drives the adoption of software for the management of country-wise data protection laws. Further, large enterprises collect, store, and operate on huge sets of client data.
During the forecast period, SMEs are expected to gain traction. The growing data breach incidents across developing nations surge the demand for software among government enterprises, start-ups, and small and medium enterprises. As per the 2020 Carbon Black report, the year 2019 recorded around 65,000 data breach attempts on SMEs in the U.K.
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Growing Digital Banking Applications to Drive Demand for Software in BFSI Sector
Based on industry, the market is categorized into BFSI, healthcare, IT and telecommunication, government, retail, manufacturing, and others (education).
The BFSI industry is expected to dominate the market share during the forecast period. The growing adoption of digital banking applications and rising online customer interactions are expected to surge the demand for software. Also, enterprises across BFSI store and process highly confidential data of users. The healthcare industry is expected to gain traction during the forecast period. The increasing threats to the health data of patients with rising cyberattacks on the industry are likely to boost growth. Also, the introduction of the Health Insurance Portability and Accountability Act (HIPPA) in the healthcare industry is increasing the demand for privacy management software.
North America Data Privacy Software Market Size, 2022 (USD Billion)
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Geographically, the market is fragmented into five major regions such as North America, South America, Asia Pacific, Europe, and the Middle East & Africa. They are further categorized into countries
North America is expected to capture the largest data privacy software market share throughout the forecast period. The strong presence of key players and rise in investments by key players are expected to drive market growth opportunity in the region. The United States is expected to lead the segment owing to the growing awareness regarding data protection acts among customers. With the California Consumer Privacy Act as an initial step, the government of the U.S. is expected to drive more stringent laws on data protection.
Asia Pacific is expected to witness remarkable growth during the forecast period. China and India have introduced national data protection rules to manage the increasing number of data breaches. In October 2020, the Cyber Security Agency of Singapore introduced “Singapore's Safer Cyberspace Masterplan 2020” to enforce strict regulations toward data protection. With growing data breaching incidents, Japan is likely to introduce Europe’s GDPR-like regulation for data safety. This is expected to boost the software market in APAC.
Europe is anticipated to grow with a substantial CAGR during the forecast period. The initial step toward consumer rights and data protection and the launch of GDPR are likely to provide opportunities for the key players. The U.K. leads the segment during the forecast period. As per the 2020 Carbon Black reports, 88% of the U.K. companies witnessed data breaches in the last 12 months.
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Likewise, with growing technological advancement in the Middle East & Africa, the key players in GCC, Israel, South Africa, and others are likely to have vast opportunities. South America will witness significant growth during the forecast period. With the growing data protection concern and Brazilian LGPD law, the market is expected to gain traction.
Key Companies Are Focused on Offering Solutions In-line with New Regulations
The key players are investing in developing and launching advanced privacy software to fulfill the growing demand for data protection and management. These players are offering software to manage customer data as per the guidelines and regulations of every country. Some of the leading players are providing interactive sessions for organizations to interact with software and security professionals for managing the clients’ information.
An Infographic Representation of Data Privacy Software Market
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The research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
CAGR of 40.9% from 2023 to 2030
Value (USD Billion)
By Deployment, Application, Enterprise Type, Industry, and Region
By Enterprise Type
The market is projected to reach USD 30.31 billion by 2030.
In 2022, the market size stood at USD 1.99 billion.
The market is projected to grow at a CAGR of 40.9% over the forecast period.
Compliance management is expected to lead the market.
The rising adoption of IoT devices is driving market growth.
OneTrust, TrustArc, Inc., BigID, Inc., Securiti.AI., AvePoint, Inc., IBM Corporation, RSA Security LLC, and SureCloud are the top players in the market.
North America is expected to hold the largest market share.
The healthcare industry is expected to grow with the highest CAGR.
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