PUBLISHER: KBV Research | PRODUCT CODE: 1563238
PUBLISHER: KBV Research | PRODUCT CODE: 1563238
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.
Market Growth Factors
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.
Market Restraining Factors
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.
Component Outlook
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.
Application Outlook
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.
Classification Outlook
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.
Vertical Outlook
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.
Regional Outlook
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.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Data Classification Market Report Segmentation
By Component
By Application
By Classification
By Vertical
By Geography