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 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.
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.
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 and Collaborations.
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.
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.
The Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the 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.
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.
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 and Collaborations.
Driving and Restraining Factors
Drivers
- Exponential growth of data volume driven by big data and IoT adoption
- Growing cloud adoption and the need for effective data management
- Escalating cybersecurity threats and the need for enhanced data protection
Restraints
- High implementation and operational costs of data classification solutions
- Rapid evolution of data types and sources
Opportunities
- Expansion of remote work and digital workspaces
- Increasing investments in data governance and management
Challenges
- Complexity and challenges in integrating with existing it infrastructure
- Concerns over data sovereignty and cross-border data transfers
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 and government, healthcare and life sciences, telecom, education, media and 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.
Application Outlook
Based on application, the market is categorized into GRC, access control, web, mobile and email protection, and centralized management. The web, mobile and 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.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.By Regional Analysis
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.Market Competition and Attributes
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.
Recent Strategies Deployed in the Market
- Sep-2024: Amazon partnered with the Australian Government to deliver cloud innovation focused on national security and defense. This collaboration aims to support the Australian Government in modernizing its cloud infrastructure and advancing security capabilities.
- Jul-2024: Microsoft revealed Microsoft Purview Data Governance. This new tool aims to enhance data governance by providing advanced capabilities for data classification, management, and protection.
- May-2024: IBM collaborated with Cohesity, a company specializing in data management and protection. This partnership aims to advance data management capabilities and improve backup solutions, enhancing overall data handling and security.
- Aug-2023: Google launched AI-powered data classification tools for Google Workspace. This new feature aims to enhance the management and protection of data within the Workspace environment by leveraging artificial intelligence for more effective classification.
- Aug-2023: Spirion unveiled Spirion Custom Reports, a new tool for its Sensitive Data Platform (SDP). This reporting tool helps organizations enhance visibility into sensitive data risks and take proactive measures. It provides customizable, exportable reports that allow privacy and security teams to track progress, gain insights, and improve sensitive data governance in real-time.
List of Key Companies Profiled
- 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
- Varonis Systems, Inc.
Market Report Segmentation
By Component
- Solution
- Services
By Application
- GRC
- Centralized Management
- Web, Mobile and Email Protection
- Access Control
By Classification
- User-Based Classification
- Content-Based Classification
- Context-Based Classification
By Vertical
- BFSI
- Defense and Government
- Healthcare and Life Sciences
- Telecom
- Education
- Media and Entertainment
- Other Vertical
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Data Classification Market by Component
Chapter 6. Global Data Classification Market by Application
Chapter 7. Global Data Classification Market by Classification
Chapter 8. Global Data Classification Market by Vertical
Chapter 9. Global Data Classification Market by Region
Chapter 10. Company Profiles
Companies Mentioned
Some of the key companies profiled in this Data Classification market report include:- 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
- Varonis Systems, Inc.
Methodology
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