The Data Governance Market is projected to grow from USD 3.1 billion in 2024 to USD 10.3 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.0% during the forecast period (2024 - 2032). Additionally, the market size for data governance was valued at USD 2.8 billion in 2023.
The rising volume of data generated is a significant market drivers in the growth of the data governance market.
Figure 1: Data Governance market, 2023 & 2032 (USD billion)
Source: Secondary Research, Primary Research, and Analyst Review
Growing use of analytics in business operations to boost the market growth
Recent times have seen an exponential increase in data generation. The constant simultaneous stream of data from different sources has increased the need for data governance. High volumes of data have led to a higher demand for segregating the data to obtain helpful information that analysts and scientists can use to make better organizational decisions and increase performance. Thus, this factor is driving the market CAGR.
The rising production of data has also led to an increase in the accountability of data and the reliability of the security aspects of data handling, which has led to a rise in focus on data governance. According to UNCTAD, out of 194 countries, 137 have legislation pertaining to data protection and privacy. For instance, Stringent laws such as the General Data Protection Regulation in the US could fine Google for about 2% of its revenue.
Figure 2: No. of IoT devices vs. Spending on IoT
Source: Secondary Research, Primary Research, and Analyst Review
The improvement in analytical software can now help companies take action at any given time in response to any event that could help improve efficiency and reduce further negative impacts. For instance, data governance solutions help players in the BFSI sector safeguard consumer data and transactions without losing confidential information.
The growing adoption of IoT in different industries has also positively impacted the market for data governance. The continuously increasing number of interconnected smart devices can help the consumer goods industry understand purchase patterns. IoT also enables the healthcare industry in terms of system integration and understanding data from sensors, wearables, and other devices.
The pandemic had a substantial positive impact on data generation as the usage of smart devices increased. The increase in the number of people working from home or indulging in online recreational and education activities significantly increased during the pandemic. The use of devices for financial activities also increased during the pandemic. These factors have helped in boosting the market for data governance. Thus, it is anticipated that this aspect will accelerate data governance market revenue globally.
The data governance market segmentation, based on component type, includes solutions and services. The solutions segment held the majority share in 2022 and is also expected to grow with a CAGR of about 20%. This is due to the extensive number of functions that a data governance solution can perform, such as organization, monitoring, and safeguarding data. These solutions can also help in connecting various devices as well as maintain a seamless connection for data transfer between them.
January 2022:Attacama has partnered with UST to transform its UST data governance with the help of the Attacama ONE data management platform.
Based on function, the data governance market segmentation includes IT & operation, legal, and finance. The finance segment dominated the market in 2022 and is expected to grow at a CAGR of about 23.5%. This is due to the high volume of data that goes through the department and the degree of sensitivity of the information handled by the department. Data from the financial department has a significant impact on the working of the firm in terms of operations and profitability. The stringent regulations on data privacy are expected to increase the segment's value in the forecast period.
Based on deployment type, the data governance market data segmentation includes on-premise and cloud. The on-premise segment dominated the market growth in 2022. The on-premise segment gives a higher degree of control over security, privacy, and the ability to manage risks, processes, and policies, which has led it to gain a larger market share. However, technological advancements in cloud storage and services will help the cloud-based segment exhibit a higher CAGR in the forecast period.
September 2022: Oracle and Telefonos de Mexico, aka Telmex, signed an agreement to provide Oracle Cloud Infrastructure (OCI) services in Mexico, making way for the second Oracle Cloud Region in the country.
Source: Secondary Research, Primary Research, and Analyst Review
The report provides insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North America data governance market accounted for USD 1.14 billion in 2022. This is attributed to the government regulations that ensure data privacy and handling. For instance, the California Consumer Privacy Act was implemented for business functioning in the state. Along with this, the increasing number of remote employees has also increased the market for data governance in the region.
Further, countries studied in the market report are The U.S., Canada, Germany, the UK, France, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.
Figure 4: Data Governance Market Share By Region 2022 (%)
Source: Secondary Research, Primary Research, and Analyst Review
The Asia-Pacific data governance market is expected to grow with the fastest CAGR from 2022 to 2030. Rapid industrialization and digitization in the region are major factors for market growth. Moreover, the high degree of innovation in the region will lead to an increasing flow of data which will account for the high CAGR in the region during the forecast period. Regulatory requirements in the banking industry, such as the data governance guidelines by the China Banking and Insurance Regulatory Commission, help improve personal data's authenticity, integrity, and safety. Initiatives such as Digital India will help in boosting the demand for data governance in the country in the forecast period. Further, the China data governance market held the largest market share, and the India data governance market was the fastest growing market in the region.
Europe data governance market accounts for the second-fastest market share. The European government is focusing on reiterating existing data governance regulations to support the increasing flow of data in the region. The rising use of personal devices due to work-from-home roles has led to a rise in the development of data governance applications by companies. For instance, in February 2021, a British tech firm, dramds.com ltd., announced a comprehensive enterprise mobile application for phones and tablets. Moreover, UK data governance market held the largest market share, and the Germany data governance market was the fastest growing market in the region.
Major market players have high investments in R&D to improve their products, which will help the data governance market grow. Market participants are taking various strategic initiatives to expand their presence, with market developments such as new product launches, contracts, mergers and acquisitions, and collaboration with other organizations. Competitors in the data governance industry must offer cost-efficient and high-performance products to survive in an increasingly competitive environment.
One of the primary business strategies adopted in the data governance industry to benefit clients and expand the market sector is to invest in mergers and technological developments. In the data governance market, major players such as SAP (Germany), IBM (US), Data Excellence (Switzerland), and others are working on expanding the market demand by investing in partnerships and product enhancements.
SAP SE (Germany) is a multinational software company that develops enterprise software. They also provide database software and technology, cloud systems, HCM, CRM, and other ERP software. In 2020, Sap announced a joint project with Wipro to create solutions for the apparel industry. In April 2021, SAP and Dediq GmbH formed a joint venture SAP Fioneer, which is a financial services unit.
Also, IBM (US) is a multinational technology corporation that develops software, hardware, hosting, and consulting services for various systems such as nanotechnology. IBM is a pioneer in the technology industry, which is responsible for innovations such as ATM, HDD, magnetic stripe card, SQL language, and DRAM. In February 2022, IBM and SAP announced a partnership to create a hybrid cloud system for a more efficient work process.
Symantec Corporation (U.S.)
Data3Sixty Inc.(U.S.)
Alation Inc.(U.S.)
Reltio Inc. (U.S.)
Magnitude Software Inc.(U.S.)
Data Excellence (Switzerland)
Informatica (U.S.)
Alfresco Software Inc.(U.S.)
SAP SE (Germany)
International Business Machines (IBM)(U.S.)
In July 2024, Microsoft announced that Purview Data Governance, an AI-powered tool designed to enhance governance and security Micheal Azure Port, will be available for commercial use from September 1. Rebranded as the 'new Microsoft Purview experience', the tool is designed to be a one-stop center for organizations to streamline their governance, policies, compliance, and security. Microsoft accentuates the importance of the tool considering the fact that its purpose is to manage and track all kinds of data across multiple platforms such as Azure, Microsoft 365, on-premises resources, multi-cloud solutions and future SaaS products.
In May 2024, CG Infinity and BigID entered into an agreement aimed at reselling Artificial Intelligence governance focusing on data security and proactively privacy compliance, which together is expected to increase the demand for the two companies' solutions. Their emphasis also includes deployable data protection measures, which actually serve to increase the worth of the data. This partnership promotes a mutual goal of ensuring that organizations are able to have a 360 view of their data.
In July 2024, Orion Governance, a company engaged in information intelligence, announced a strategic alliance with Lobster, an established no-code software group based in Germany. It is expected that the partnership will improve customers' data governance and integration offerings by utilizing EIIG, a self-defined data fabric developed by Orion.
In June 2024, Maynooth University's Innovation Value Institute launched the new Data Governance Roadmap for Ireland. Seán Fleming TD, the Minister of State at the Department of Foreign Affairs as well as Collibra's AI Governance suite, unveiled the initiative during the 2024 IVI Summit held at Maynooth University. The summit, popularly known for hosting some of the best digital and data conversations, brought together experts, policymakers, industry personnel as well as scholars for three days with the aim of influencing innovation and research in the digital arena worldwide.
In April 2024, Collibra unveiled its AI Governance suite, introducing its GenAI capabilities. The purpose of this suite is to provide users with the means to prevent the degradation of their AI models and to protect them from exposure. The new GenAI features also further the automation of data.
Solution
Services
IT & Operation
Legal
Finance
On-Premise
Cloud
IT & Telecom
Healthcare
Retail
Financial Services
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 2.8 billion |
| Market Size 2024 | USD 3.1 billion |
| Market Size 2032 | USD 10.3 billion |
| Compound Annual Growth Rate (CAGR) | 15.0% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Function, Deployment, Users, and Region |
| Geographies Covered | North America, Asia Pacific, Europe, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Symantec Corporation(U.S.), Data3Sixty Inc.(U.S.), Alation Inc.(U.S.), Reltio Inc. (U.S.), Magnitude Software, Inc.(U.S.), Data Excellence (Switzerland), Informatica (U.S.), Alfresco Software Inc.(U.S.), SAP SE(Germany), International Business Machines(IBM)(U.S.) |
| Key Market Opportunities | Rising usage in the healthcare segment to reduce errors and data leak |
| Key Market Dynamics | Increased data flow due to increased use of elements such as mobile devices and IoT. Stringent regulations governing data handling and privacy |
Data Governance Market Highlights:
Frequently Asked Questions (FAQ) :
The Data Governance market was valued at USD 2.8 Billion in 2023.
The market is projected to grow at a CAGR of 15.0% during the forecast period, 2024-2032.
North America has the largest share of the market
The key players in the market are IBM (US), SAP SE (Germany), Alation Inc (US), and Reltio Inc. (US).
The solutions category dominated the market in 2024.
The finance function had the largest share of the market.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
