Data Masking Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Data Masking Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The data masking market is expected to register a CAGR of 13.69% over the forecast period. In this information age, cyber security is essential. With the growth of breaches and malware attacks, data masking is making its way into the data-driven industry.

• Data masking is an intelligent technology that provides real-time data masking of production data. Data masking technology allows for analyzing large amounts of data without disrupting routine company processes. In other words, data masking technology produces a fake but realistic version of organizational data to safeguard sensitive organizational information.
• The increasing need for decreasing the risk of data breaching is fueling the dynamic data masking market growth, which is expected to execute the fastest growth rate over the forecast period. Besides, active data masking helps to protect sensitive and personal data while supporting outsourcing, offshoring, and cloud-based initiatives.
• Furthermore, considering the significant demand among enterprises for securing their financial data, the requirement for data masking and better security solutions is projected to play a vital role in the market's growth. Data-driven finance has mandated that every organization have an accounting department to store and maintain financial data that includes large monetary transactions that, if leaked, could result in issues with the company's reputation and monetary losses in the market, as well as issues with regulatory directives such as PCI DSS, HIPAA, and other enforced laws. This is the most crucial reason driving the growth of the data masking market in this business function.
• However, a lack of skilled workers and technological competence in poor and developing nations and a lack of standardization may limit market expansion. Increasing complexity in data integration and synchronization may also slow industry development. A solid IT infrastructure in developing nations would also hinder market expansion.
• Due to the COVID-19 outbreak, countries have implemented preventive measures. With schools being closed and communities being asked to stay at home, multiple organizations found a way to enable employees to work from their homes. This resulted in a rise in data breaches and fuels the growth of the data masking market. Due to rapid digitization, the market is also growing after the pandemic.

• The BFSI industry is one of the critical infrastructure segments that face multiple data breaches and privacy issues, owing to the massive customer base that the sector serves and the financial information at stake. Cybercriminals are optimizing various diabolical cyberattacks to immobilize the financial sector as a highly lucrative operation model with phenomenal returns and the added upside of relatively low risk and detectability. These attacks' threat landscape ranges from Trojans, ATMs, ransomware, mobile banking malware, data breaches, institutional invasion, data thefts, fiscal breaches, etc.
• Banks, insurance firms, credit bureaus, and lenders rely on data to understand and build deeper relationships with their consumers and determine whether the market fluctuates and maintains stable growth. However, this valuable data is being sought by both cybercriminals and insiders, and data privacy regulators are growing more demanding in their compliance requirements. Data masking tools help to safely design innovative, personalized experiences for their customers.
• In April 2021, the Reserve Bank of India (RBI) proposed cybersecurity norms for payment service providers (PSPs) following a series of data breaches faced by operators, including Mobikwik and payment aggregator JusPay. While the standards for fintech-driven payment services providers would be like cyber hygiene norms issued for banks and non-banking finance companies, the RBI is quite clear that firms will have to do more than observe the minimum standards to ensure digital safety transactions gain further traction.
• In 2022, financial firms worldwide were impacted by innovative new ransomware tactics that maximized ROI for the threat actors. While financial firms represent a small percentage of victims directly targeted by ransomware attacks, they can and have been impacted by attacks on third parties, who are prime targets. Such threats are poised to increase the usage of cybersecurity solutions in the BFSI sector.

• The Asia Pacific is expected to witness a higher growth rate than other regions because developing countries, such as India and China, are the world's two biggest economies. Automotive industries in the region increased over the past few years. The growth in these industries was propelled by a vast population shift and an increase in disposable incomes, which resulted in higher demand.
• Currently, these two countries are growing faster, and many developmental activities are being done here to set up new manufacturing industries and product launches. All these activities contribute to big data. Lots of data are being stored daily, which is very crucial. The rapid digitization among developing countries, such as India, China, and Singapore, has produced the bulk of unstructured data.
• Furthermore, owing to technological advancements, there is an increase in the number of connected devices in China. It is the largest global Internet of Things (IoT) market. Furthermore, 5G and 5 G-enabled devices will exponentially increase the devices' interconnectivity. As a result, it increases connected devices, directly augmenting the market's need for security products. The websites are thereby prone to be manipulated and impersonated by third parties, and sensitive user data communicated with the website can be intercepted more easily by foreign intelligence agencies.
• On the other hand, the increasing adoption of public cloud computing is leading to more enterprises re-allocating their business systems to cloud platforms. Issues concerning data security, tenant isolation, access control, etc., have gradually become a focal point of these enterprises.
• Data privacy has become a hot topic in China since the Chinese government has actively publicized data privacy rules and regulations in recent years. The Cybersecurity Law (CSL) (2017), the Data Security Law (DSL) (2021), and the Personal Information Protection Law (PIPL) have all been published and are currently in effect. For instance, in June 2022, China published the final version of the Certification Specification for Cross-Border Processing of Personal Information, which could provide companies with guidance on how to have their cross-border data transfer certified as one of the legal routes for business operators to transfer personal information outside China.

The data masking market is highly fragmented due to many global players in this industry. This market is highly competitive. Some key competitive players in the data masking market are IBM Corporation, Oracle Corporation, Informatica LLC, Delphix Corp., and Mentis, Inc. (Mage). The major players in the data masking market follow the strategy of strategic partnership, mergers or acquisitions of various local players, and product innovation to gain a competitive edge in the market.

• June 2022 - IBM Corporation announced its plans to acquire Randori, a prominent attack surface management (ASM) and offensive cybersecurity provider. Randori helps clients continuously identify assets visible to attackers, both on-premise and in the cloud, and prioritize exposures that pose the most significant risk. The acquisition aims to advance IBM’s Hybrid Cloud strategy further and strengthen its AI-powered cybersecurity products and services portfolio.

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