GDPR Services Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

GDPR Services Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The GDPR Services Market size is expected to grow from USD 2.61 billion in 2023 to USD 8.85 billion by 2028, at a CAGR of 27.66% during the forecast period (2023-2028).

As a result of increased connection and ongoing digitization, businesses are producing an exponential amount of data. People who visit places and websites or even make phone calls leave a digital footprint as data, a valuable resource businesses can utilize to engage with customers and provide a better user experience. Because of the increased demand for characteristics such as privacy, security, authenticity, legality, trust, universality, and scalability in organizational operations and quality monitoring, the GDPR services industry has a lot of room to develop.

Key Highlights

• Argentina's Access to Public Information Agency has begun the consultation process to update its Personal Data Protection Law. The reforms are heavily based on the rules of the EU General Data Protection Regulation. Similarly, in September, Australia's second-largest telecommunications firm, Optus, had a significant data breach, prompting MPs to pass the Privacy Legislation Amendment Bill of the last year, which boosts fines to AUD 50 million when companies suffer repeated data breaches.
• Socially engineered cyber attacks targeting enterprise users are growing significantly. Among some of the significantly widespread campaigns spotted on the internet to date have been fraudulent emails indicated to be coming from the World Health Organization (WHO) and the US Center for Disease Control (CDC). The building domain names that look similar to the CDC's official web address aim at stealing passwords and even request bitcoin "donations" to fund a fake vaccine. Such instances have been increasing the demand for market studies.
• Further, there has been a rise in connected devices over the last few years. According to Cisco Systems, M2M connections are expected to reach 2.1 billion units in the last year. Cloud services are becoming more familiar with technological advancements in data transfers. The public cloud has been emerging. This technological advancement has resulted in the faster transfer of phishing emails, bots, and ransomware, indicating the vulnerabilities that they bring in.
• There has been a rise in the cybersecurity budget changes in response to the pandemic, triggering GDPR services. According to a survey by Microsoft Corporation of 800 business leaders during a pandemic, 36% of the respondents suggested an increase in the cybersecurity budget by 1-25%, and about 22% said that the budget increased by over 25% to combat the pandemic. The pandemic has brought a sharp focus to the balance that GDPR strikes between the rights of individuals and society. The global authorities are changing their guidelines to deal with data protection and privacy.
• On the flip side, the European Union General Data Protection Regulation (GDPR) confronts cloud service providers and customers with new requirements, such as the right to erasure, rectification, and portability, which is challenging to implement and implement not only from a technical perspective. Another new aspect appears with the model for shared responsibility regarding protecting personal data along the whole cloud supply chain. In a nutshell, the cloud customer remains accountable towards the data subject to an extent as they must fulfill the GDPR requirements.

GDPR Services Market Trends

Need for data security and privacy in the wake of a data breach

• According to SurfShark, Approximately 15 million data records were exposed globally due to data breaches in the third quarter of last year. Compared to the previous quarter, this amount had climbed by 37%. The rise in the need for data governance, data mapping, and data management services to mitigate the number of breaches and protect sensitive information has also been due to the significant fines levied for non-compliance with the regulation. Such a rise in data breaches would drive the GDPR service market.
• Data breaches lead to an exponential cost increase and loss of valuable customer information. According to Identity Theft Resource Center, the number of data breaches in the banking and financial sector of the United States the number of data compromise victims increased to 160 million in Q3 2021, which increased from Q1 and Q2 2021 combined (121 million). Cyber attackers pursue the most straightforward path possible to engineer a financial gain attack targeting several financial services organizations.
• Over the past few years, the healthcare sector has become a target of significant interest among cybercriminals. Due to its generation of valuable data, healthcare has recently become vulnerable to cyber-attacks. Per a HIPAA Journal report, healthcare institutions had 56 data breaches of 500 or more records in 2021. Moreover, the report also stated that the number of records exposed or impermissibly disclosed increased by approximately 24.5%, and data breaches left 2.95 million records exposed or impermissibly disclosed as of December 2021.
• According to a report from a law firm, DLA Piper, the GDPR fines rose by nearly 40%, and penalties under GDPR totaled USD 191.5 million. Also, allied data protection authorities recorded 121,165 breach notifications (19% more than the previous 12-month period). The spending on digital transformation increased during the pandemic, which has propelled a need for privacy. According to a survey conducted by Industrial and Financial Systems (IFS), a developer of enterprise software for companies worldwide, 70% of businesses have increased or maintained digital transformation spending during the pandemic.
• Costs of data breaches in heavily regulated industries, including energy and oil, have higher costs. The energy sector’s USD 237 per record is significantly above the USD 201 average, according to Leidos data. The Operational Technology (OT) systems that oversee the volume, velocity, location, and other vital activities in the distribution and production of oil and gas not only produce a wealth of sensitive and proprietary information but are also essential to the economic health and physical safety of the company, its facilities, and its people.

Europe is Expected to Hold Major Share of the Market

• Europe is anticipated to witness a significant share of GDPR services due to the region's high acceptance of the GDPR. The region strives to develop as a data-driven region and exhibit significant adoption of GDPR services across organizations, owing to high acceptance of the GDPR. The regulation mandates the companies in these countries to comply with the GDPR.
• European privacy authorities have received nearly 65,000 data breach notifications since the EU's new privacy law was implemented. Also, regulators in 11 European countries imposed USD 63 million in GDPR fines. According to Linklaters, there has been a significant increase in data breach notifications to data protection authorities, with an average increase of 66% compared to the first year of the EU GDPR.
• In accelerating data collection and sharing to harness artificial intelligence and other emerging technologies, governments, businesses, and other organizations face the increasing need to explore and deploy sound data management tools to protect data owners' rights while addressing common goals. Therefore, governments are exploring new instruments to facilitate ethical and fair data sharing between different data ecosystem actors.
• The region is witnessing an increased demand for IoT-connected cars. This consists of individual data using which a person can be tracked. Then there is smart metering, whereby personal data on household energy consumption patterns is leveraged. With the GDPR being effect in the region, it has become necessary to secure the user's data for the companies with various end-users which deploy connected solutions. This is anticipated to drive the demand for GDPR services.
• In February last year, Google Analytics was found to violate European Union privacy legislation in France, following a similar ruling in Austria. The French data protection watchdog, the CNIL, stated that an unnamed local website's use of Google Analytics violates the EU's General Data Protection Regulation (GDPR) — specifically, Article 44, which covers personal data transfers outside the EU to so-called third countries that do not have essentially equivalent privacy protections.

GDPR Services Industry Overview

The GDPR Services Market is moderately consolidated, with some major players such as IBM, Microsoft, AWS, and others. The level of market penetration is high for such players. The players in the market are innovating in providing strategic solutions to increase their market presence and customer base. This enables them to secure new contracts and tap new markets. Some of the key developments in the market are:

• September 2022: Anritsu A/S has announced its latest collaboration with SecuPi to provide customers with global data protection and GDPR compliance. The first to benefit from this new alliance is a Tier-1 telecoms provider with some of the most demanding data protection requirements of any operator globally. Anritsu has teamed with SecuPi to fulfill security and compliance requirements with market-leading efficiency and flexibility. The collaboration will also provide operators with cost savings, ease of installation, and integration with Anritsu's Service Assurance technologies.
• April 2022: Transcend, the one-stop privacy platform that makes it simple to encode privacy across a company's IT stack has unveiled Data Mapping as an actionable addition to a privacy program. Transcend Data Mapping enables unified data management for modern businesses through automated scanning, data silo discovery, and advanced content classification—all in an easy-to-use and collaborative platform where users can easily assign system owners, delegate tasks, and generate compliance records.

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• The market estimate (ME) sheet in Excel format
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