Global Data Classification Market Size, Share & Trends Analysis Report By Component, By Application (GRC, Centralized Management, Web, Mobile & Email Protection, and Access Control), By Classification, By Vertical, By Regional Outlook and Forecast, 2024 -

Global Data Classification Market Size, Share & Trends Analysis Report By Component, By Application (GRC, Centralized Management, Web, Mobile & Email Protection, and Access Control), By Classification, By Vertical, By Regional Outlook and Forecast, 2024 - 2031

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

• 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.

Global Data Classification Market Report Segmentation

By Component

• Solution
• Services

By Application

• GRC
• Centralized Management
• Web, Mobile & Email Protection
• Access Control

By Classification

• User-Based Classification
• Content-Based Classification
• Context-Based Classification

By Vertical

• BFSI
• Defense & Government
• Healthcare & Life Sciences
• Telecom
• Education
• Media & 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