“Global Data Classification Market to reach a market value of 12.0 Billion by 2031 growing at a CAGR of 34.3%”
The Global Data Classification Market size is expected to reach $12 billion by 2031, rising at a market growth of 34.3% CAGR during the forecast period.
European consumers are highly concerned about privacy and data security. This classification helps organizations address these concerns by categorizing data based on sensitivity and implementing necessary protection measures. European countries emphasize data sovereignty, which involves managing and storing data within the region’s borders. Consequently, the European region would acquire 31% of the total market share by 2031.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, in January, 2022, IBM acquired Polar Security, an Israeli cybersecurity startup that specializes in automating cloud data protection. The acquisition aims to bolster IBM's ability to enhance cloud data security and streamline management processes through advanced automation. Moreover, in October, 2021, Forcepoint completed its acquisition of Bitglass, a leading Security Service Edge (SSE) provider. This acquisition integrates Bitglass’s advanced Cloud Access Security Broker (CASB), Secure Web Gateway (SWG), and Zero Trust Network Access (ZTNA) technologies into Forcepoint’s SSE platform, aiming to simplify security management across various environments.
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google LLC are the forerunners in the Market. Companies such as Amazon Web Services, Inc., IBM Corporation and Fortra, LLC are some of the key innovators in Market. In October, 2021, Fortra acquired Digital Guardian, a pioneer in data loss prevention, to enhance its data security portfolio. This acquisition aims to bolster Fortra’s capabilities in endpoint, network, and cloud data loss prevention, while expanding managed service offerings.
The widespread adoption of IoT devices, such as smart sensors, wearable technology, connected appliances, and industrial equipment, generates an immense amount of data daily. These devices continuously collect and transmit data, leading to a massive influx of information. Organizations leverage big data analytics to extract valuable insights from large datasets, driving business intelligence, operational efficiencies, and strategic decision-making. Therefore, the exponential growth of data volume is driven by big data, and IoT adoption is driving the market's growth.
Organizations of all sizes rapidly adopt cloud services to leverage scalability, flexibility, cost-efficiency, and enhanced collaboration. This shift to the cloud generates vast amounts of data that must be managed effectively. In addition, the use of multiple cloud platforms can lead to data silos, where data is isolated and difficult to integrate. In conclusion, growing cloud adoption and the need for effective data management propel the market's growth.
Complicated integration with existing IT infrastructure is frequently necessary for classification solutions, which can be costly and time-consuming. This classification solutions require regular maintenance to ensure they function correctly and remain current with the latest security protocols and compliance requirements. Hence, these classification solutions' high implementation and operational costs are hindering the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
On the basis of classification, the market is segmented into content-based classification, context-based classification, and user-based classification. In 2023, the content-based classification segment attained 32% revenue share in the market. Content-based classification provides a deeper understanding of the data by analyzing its content rather than relying solely on metadata or user-defined tags.
By vertical, the market is divided into BFSI, defense & government, healthcare & life sciences, telecom, education, media & entertainment, and others. The defense and government segment attained 19% revenue share in the market in 2023. Defense and government agencies handle highly sensitive and classified information, including national security data, defense strategies, intelligence reports, and personal information of government employees.
Based on application, the market is categorized into GRC, access control, web, mobile & email protection, and centralized management. The web, mobile & email protection segment witnessed 21% revenue share in the market in 2023. The sheer volume of threat data generated by web, mobile, and email systems can be overwhelming. TA classification helps manage and prioritize this data by categorizing threats based on their nature, severity, and potential impact.
Based on component, the market is divided into solutions and services. The services segment attained 33% revenue share in the market in 2023. Implementing these classification solutions often requires customization to fit specific organizational needs and existing IT infrastructure. Services such as consulting and integration help tailor solutions to align with unique requirements.
Free Valuable Insights: Global Data Classification Marketsize to reach USD 12.0 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 34% revenue share in the market in 2023. North America has many data-intensive industries, including technology, finance, healthcare, and media. These sectors generate and handle massive amounts of data, necessitating effective classification to manage, secure, and utilize this information efficiently.
The Market is highly competitive, driven by increasing data privacy regulations and the growing need for efficient data management. Key players focus on innovation, offering advanced AI-driven solutions. Competition is intensified by the presence of both established tech giants and emerging startups, enhancing the market dynamics.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 1.19 Billion |
| Market size forecast in 2031 | USD 12.0 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 34.3% from 2024 to 2031 |
| Number of Pages | 288 |
| Tables | 483 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Application, Classification, Vertical, Region |
| Country scope |
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| Companies Included | IBM Corporation, Amazon Web Services, Inc. (Amazon.com, Inc.), Google LLC (Alphabet Inc.), Microsoft Corporation, Fortra, LLC (HGGC), Open Text Corporation, Forcepoint LLC (Francisco Partners), Netwrix Corporation, Spirion, LLC and Varonis Systems, Inc. |
By Component
By Application
By Classification
By Vertical
By Geography
This Market size is expected to reach $12 billion by 2031.
Exponential growth of data volume driven by big data and IoT adoption are driving the Market in coming years, however, Rapid evolution of data types and sources restraints the growth of the Market.
IBM Corporation, Amazon Web Services, Inc. (Amazon.com, Inc.), Google LLC (Alphabet Inc.), Microsoft Corporation, Fortra, LLC (HGGC), Open Text Corporation, Forcepoint LLC (Francisco Partners), Netwrix Corporation, Spirion, LLC and Varonis Systems, Inc.
The expected CAGR of this Market is 34.3% from 2024 to 2031.
The Solution segment is generating the Market by Component in 2023; thereby, achieving a market value of $7.7 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $3.9 billion by 2031.
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