Data Governance Market Report 2025

The data governance market size has grown rapidly in recent years. It will grow from $4.35 billion in 2024 to $5.11 billion in 2025 at a compound annual growth rate (CAGR) of 17.7%. The growth in the historic period can be attributed to regulatory compliance requirements, data quality and accuracy concerns, risk mitigation and security measures, business process optimization, increased awareness of data value.

The data governance market size is expected to see exponential growth in the next few years. It will grow to $12.38 billion in 2029 at a compound annual growth rate (CAGR) of 24.7%. The growth in the forecast period can be attributed to focus on data privacy and ethics, digital transformation initiatives, data democratization and access control, globalization and data sharing. Major trends in the forecast period include blockchain for data trust and transparency, data cataloging and metadata management, rise of chief data officers (CDOs), data governance for unstructured data, adoption of data governance frameworks and standards.

The rapid increase in data volumes is driving the growth of the data governance market. Factors such as the rising number of data-generating devices - including smartphones, wearable electronics, and various sensor-equipped gadgets - the growing popularity of the Internet of Things, cloud computing, and the forthcoming adoption of 5G are all contributing to this exponential data growth. Data governance enhances data quality, reduces management costs, and improves access to necessary data for data scientists, analysts, and business users. For example, a December 2022 report from The Linux Foundation revealed a significant surge in data growth for average end-user organizations, reaching 2,208 TB - an increase of 215.43% from the 700 TB recorded in 2021. Consequently, the rapid growth in data volumes is expected to propel the data governance market in the future.

The increasing embrace of cloud-based solutions is poised to propel the growth of the data governance market. Cloud-based solutions, delivering applications and resources over the internet, have seen significant uptake across small and medium-sized enterprises. According to Cloudzero in December 2023, these enterprises allocated 47% of their IT expenditure to cloud services in 2022, marking a 67% surge from the previous year. This accelerated adoption of cloud-based solutions drives the expansion of the data governance market.

Major players in the data governance market are increasingly adopting a strategic partnership approach to improve technology integration and broaden their market reach. A strategic partnership typically involves a collaborative relationship between two or more organizations, where they pool their resources, expertise, and efforts to achieve shared goals. For example, in May 2024, CG Infinity, a US-based technology firm, formed a partnership with BigID for an undisclosed sum. This collaboration aims to revolutionize data discovery and intelligence by providing advanced AI governance, data security, privacy compliance, and actionable data protection, ultimately enhancing data value. The partnership leverages CG Infinity's nearly 30 years of experience alongside BigID's leading industry solutions, enabling clients to optimize data value and adapt to evolving conditions. As a newly appointed service partner, CG Infinity will offer advisory, implementation, technical, and procurement services, focusing on a 'people first + driven to transform' approach to tailored solutions.

Major companies in the data governance market are prioritizing the development of innovative products, such as AI-based applications, to better address the needs of their existing customers. AI-based applications, often referred to as AI-powered applications, are software programs and systems that utilize AI technology to perform tasks typically requiring human intelligence. For example, in June 2023, Privacera, a US-based data privacy and governance firm, introduced Privacera AI Governance (PAIG), a comprehensive solution aimed at managing the AI data security lifecycle. PAIG enables continuous scanning and classification of training data, ensuring that sensitive information remains protected throughout the AI model's lifecycle. It incorporates fine-grained access controls, real-time monitoring, and auditing features to mitigate privacy and compliance risks related to generative AI and large language models (LLMs). By implementing security and privacy measures across various data environments, PAIG allows organizations to utilize AI responsibly while complying with regulatory standards such as CCPA and GDPR.

In September 2024, HCL Technologies Limited, an India-based software firm, acquired Zeenea SAS for an undisclosed amount. This acquisition is intended to bolster HCL's data and analytics business by leveraging its expertise in metadata management, data cataloging, and governance. Zeenea SAS, based in France, specializes in data catalog and governance solutions.

Major companies operating in the data governance market include Amazon.com Inc., Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, Infosys Limited, SAS Institute Inc., Micro Focus International plc, Informatica LLC, TIBCO Software Inc., Varonis Systems Inc., Talend Inc., Collibra Inc., Denodo Technologies, Ataccama Corporation, Magnitude Software Inc., Infogix Inc., Infogix Inc., Reltio Inc., erwin Inc., Alation Inc., Syncsort Incorporated, Orchestra Networks Inc., Orchestra Networks Inc., Global IDs Inc., TopQuadrant Inc., Information Builders Inc., Innovative Routines International Inc., Global Data Excellence SA, Datum LLC, Data Advantage Group Inc.

North America was the largest region in the data governance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data governance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data governance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Data governance encompasses managing the availability, usability, integrity, and security of information in enterprise systems based on internal data standards and policies.

Data governance encompasses two primary components such as solutions and services. Data governance solutions represent a strategic and collaborative practice enabling organizations to discover, track, comprehend, and optimize data within a business context, enhancing its security, quality, and value. These solutions and associated tools aid organizations in comprehending, securing, and establishing trust in their data. They are deployable in both on-premises and cloud-based modes, catering to small and medium-sized enterprises (SMEs) as well as large enterprises. Applications of data governance solutions span across incident management, process management, compliance, risk and audit management, data quality and security management, among others. These applications serve diverse industry verticals such as BFSI, retail, telecom and IT, government, healthcare, manufacturing, energy and utilities, transportation and logistics, and various other sectors aiming to enhance data management and governance practices.

The data governance market research report is one of a series of new reports that provides data governance market statistics, including data governance industry global market size, regional shares, competitors with a data governance market share, detailed data governance market segments, market trends and opportunities, and any further data you may need to thrive in the data governance industry. This data governance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The data governance market includes revenues earned by entities by providing solutions and services to provide systematic, ongoing, and collaborative practice that enables organizations to find and track their data, understand what it means in a business context, and maximize the security, quality, and value of that data.The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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