GDPR services' market trends have gained significant momentum as global businesses grapple with the complexities of data protection and privacy regulations. The General Data Protection Regulation (GDPR) put in place by the European Union in 2018 caused a surge in services that assist organizations in navigating and conforming to these strict rules. One notable development is how businesses of all kinds are now adopting GDPR compliance tools and consulting services. Another crucial trend in the GDPR service industry is broadening suppliers' offerings to meet an evolving landscape of data security. As technology advances, new challenges emerge, and GDPR providers are diversifying their solutions to cater to a wider range of compliance needs.
Additionally, artificial intelligence (AI) and AI-based technologies have significantly impacted the GDPR services market. Firms are using these cutting-edge tools to strengthen their data protection capabilities, automate compliance processes, and identify possible breaches faster. Moreover, businesses becoming globalized along with the cross-border flow of information has generated demand for GDPR services that offer international compliance solutions. Services that can address various intricacies associated with multiple simultaneous regulation frameworks concerning data security are needed by multinational corporations.GDPR providers are adjusting their offerings accordingly to this increasingly globalized backdrop so as to help organizations maneuver different regulatory frameworks.
Furthermore, companies across sectors are beginning to embed privacy measures into products or business offerings, leading to growing attention to security by design and privacy by default principles within the field. The GDPR service providers will, therefore, support firms in implementing these principles by ensuring that security aspects are integrated in every aspect of their operations. In addition, collaborations and partnerships between GDPR service providers and other stakeholders are increasingly becoming common. This shift is prompted by the realization that addressing data protection challenges requires a multidisciplinary approach. In search for comprehensive approaches merging legal expertise, technology and industry-specific knowledge.
Report Attribute/Metric | Details |
---|---|
Market Opportunities | Key Market Drivers This, in turn, is driving the overall market for GDPR services. |
The Global GDPR Services Market is expected to reach from USD 1.021 billion in 2022 to USD 8.754 billion by 2032, at a CAGR of 27.0% during the forecast period, 2022–2032.
GDPR compliance creates transparency between the customer and the enterprise. With the rollout of GDPR in the year 2018, companies across different industry verticals had to restructure their entire business processing systems in line with various compliances. Some of the key countries that lead all the other countries in GDPR compliance include the US, the UK, Spain, Germany, and the Netherlands. More than 50% of the enterprises operating in these countries have largely or completely become compliant with GDPR. In terms of industry verticals, manufacturing, retail, utilities, and telecommunications were leading in GDPR compliance.
Figure 1: GDPR Services Market Size, 2022-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Companies operating in these industries have been investing a significant share of their global revenue on restructuring their business processes as per GDPR compliance. US-based companies are expected to spend in the range of USD 2-10 Million to meet GDPR requirements. This share is expected to be more for Europe-based companies. The entire intention behind GDPR was to rebuild the customers’ trust among various enterprises and to create a more transparent environment for customers where they can freely share their personal data without it being breached, lost, or misused.
With the growing need to become compliant with GDPR, the demand for various GDPR solutions and services is increasing. This, in turn, is acting as a major growth factor for the market. Over the last 3 years, companies that were not compliant with the GDPR have had to pay heavy fines. For instance, In July 2019, British Airways was imposed with a fine of USD 223.5 Million (proposed penalty by ICO) by the UK’s Information Commissioner’s Office (ICO) for a data breach under GDPR. The fine was equivalent to 1.5% of British Airways’ annual global turnover in the year 2017.
The fine was imposed after an ICO investigation found out that the company did not take strict security measures to protect the personal data of approximately 500,000 customers. Poor security arrangements to protect customer information led to the loss of personal data of the airline’s half a million customers. Therefore, to avoid such hefty fines, enterprises are restructuring their business operations. This, in turn, is driving the overall market for GDPR services.
The Global GDPR Services Market has been segmented based on Type, Organization Size, Vertical, and Region.
By Type, the market has been segmented into solution and service. The solutions are further segmented into data management and API management. Services have been further segmented into GDPR readiness assessment and DPIA, DPO-as-a-Service, and others. The solution segment accounted for the larger market share of 64.2% in 2018; it is expected to register a CAGR of 22.8% during the forecast period. The services segment is projected to register the higher CAGR of 24.3%.
By Organization Size, the market is segmented into small and medium enterprises and large enterprises. The large enterprise segment accounted for the larger market share in 2018, it is expected to register a CAGR of 22.9% during the forecast period. The SME segment is projected to register the higher CAGR of 24.5%.
By Vertical, the GDPR services market has been classified into manufacturing, retail, utilities, IT & telecommunications, BFSI, government services, automotive, travel & hospitality, media & entertainment, education, and others. The manufacturing segment accounted for the largest market share; it is expected to register a CAGR of 24.8% during the forecast period. The retail segment was the second-largest market in 2018, However, the education segment is expected to register the highest CAGR of 26.2%.
Geographically, the global GDPR services market has been segmented into the Asia-Pacific, North America, Europe, and the rest of the world (the Middle East & Africa and South America).
North America is the second-largest market in terms of market share in the global GDPR services market. The US is the biggest market for GDPR services. Enterprises operating in North America, with a client base in Europe, need to comply with GDPR. A large number of North America-based enterprises deal with customers who reside in Europe. Some of the big brands with a strong customer base in Europe include McDonald’s, General Electric, DuPont, and Goldman Sachs, among others.
The rest of the world includes South America and the Middle East & Africa regions. In both South America and the Middle East & Africa, a large number of enterprises are expanding to various regions including Europe. These organizations are required to follow GDPR to effectively operate in Europe, due to which, the enterprises need GDPR services and solutions so that they can comprehensively comply with all the regulations listed in the GDPR act.
On July 19, 2022, ZoomInfo, a leading global player in go-to-market software, data, and intelligence, announced joining the AWS Partner Network (APN), one of the most comprehensive and widely adopted cloud offerings worldwide to improve data delivery through its Data-as-a-Service (DaaS) platform, OperationsOS. This unlocks a new, efficient method for leveraging ZoomInfo's data and intelligence.
Under the program, ZoomInfo and AWS customers can access ZoomInfo's enriched data within Amazon S3. OperationsOS will help eliminate data decay by pushing recurring data updates through AWS. ZoomInfo ensures the accuracy of its data with frequent enrichment services directly within AWS. It also prioritizes GDPR & CCPA compliance and maintains rigorous data privacy & security practices across all data provided through partners.
On Feb. 03, 2022, European cloud providers, including Amazon Web Services, Aruba, Elogic, Leaseweb, OVHCloud, and Outscale, announced their plans to implement the new GDPR compliance code. These cloud providers hope the new code of practice will provide customers with greater assurance of their data security in the cloud. The new code is developed by CISPE, validated by the European Data Protection Board (EDPB), and approved by the CNIL, French Data Protection Authority.
On Nov. 16, 2021, Colt Technology Services announced that it has become one among ten communications providers across the globe to have GDPR-compliant Binding Corporate Rules. Recently, the company received an official approval of its Binding Corporate Rules (BCRs) from the European Data Protection Board (EFPB). Colt aims to help customers keep their data safe, offering offer the safest network and best data protection assurance globally.
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)