Global data classification market value was USD 520.2 million in 2018, and is expected to grow at a robust 25.7% CAGR over the forecast period. This rapid growth is due to the need for compliance with regulatory requirements, the growing volume of unstructured information, cybersecurity concerns, and the importance of data management. It is essential to support data management in order to recognize the risks and consequences of mishandled information. Additionally, classified data can be processed, protected, and complies with data security policies.
Data classification can be divided into three main categories: public, private, confidential, or internal. Cyberattacks are possible on private, internal and confidential information. This includes personnel information and non-disclosure agreements, business plans, memos and strategies, financial reports, customer information, confidential customer information and merger and acquisition information. These data are vital for businesses and must be classified using tags. These tags help Data Loss Prevention, Data Management, and Security Management Software to determine the best course of action for each of the data sets.
It is becoming increasingly important to analyze unstructured data for structured information. This helps companies decide what course of action should be taken to protect company information and make sales and managerial decisions. The rise of globalization and digitalization have led to multiple regulations and rules regarding the distribution and use of information. To avoid reputational and financial loss, it is important to adhere to the following regulations: Health Insurance Portability and Accountability Act (HIPAA), The Contract Labour (Regulation & Abolition), Act - 1970 (CLRA), Health Administration (OSHA), Foreign Account Tax Compliance Act (FATCA), The Employees Provision Funds and Miscellaneous Provision Act - 52 (EPF), Payment Card Industry Data Security Standard (PCI-DSS), Sarbanes-Oxley, EU General Data Protection Regulation (GDPR) and other banking regulations. Data classification solutions are used to identify and protect sensitive data in electronic documents.
The new era in fueling data will see the rise of machine learning and HTML3_. Data classification is essential for big data to be able to deliver quality information for management decisions. Data classification is required due to its high volume, velocity and variety of information. Machine learning, which can learn the tags for every type of information in the system, will also help to boost the data classification market.
Data classification allows organizations to separate stored information by their sensitivity and business impact. This allows users to be authenticated and authorized for data modification and control. This is essential for managing the information collected in the hyper-connected business environment. These factors include a lack of knowledge about data classification, data pattern complexity, and the use of complex schemes and terminologies.
In 2018, the solution segment held the largest market share at 69% and will continue to do so over the forecast period. Adoption is also boosted by the need to adhere to regulations and analyze past data for future decisions in major industries like BFSI and healthcare. Vendors are constantly developing new competitive solutions to remain ahead of the market. MinerEye received an EU grant in December 2018 for the development of a technology to track its data using machine learning and computer vision. This allows MinerEye to automatically categorize and classify large amounts of information in a short time.
This classification solution can be used as a standalone service or part of a complete data security platform that stores, processes and manages sensitive information. Services include consulting, integration, maintenance and support for deployed solutions. Consulting services are used to help enterprises classify and implement controls that will improve their operational efficiency. An integration service provided by the vendor during the purchase phase permits implementation of a Service-oriented Architecture.
Data classification solutions that support user-based classification have seen a significant increase in demand due to the paradigm shift in how we use large amounts of information and our human ability to identify the data type when creating data. In 2018, the user-based segment held the largest market share, with more than 46%. This is due to features like user-friendly implementation and real time security alerts for potential risks. It also allows for instant file rectification at the user's end. This will be a major factor in the segment's growth.
Data classification in user-based types allows users to use their knowledge to create and edit sensitive documents. These are the most popular approaches across all industries. Boldon James and Symantec Corporation offer user-based data classification through their Data Loss Prevention Suite (DLP), and Classifier Foundation Suite (CFT). Segmental growth will be aided by such advancements in user-based data classification.
Due to the need to manage the complexity of regulatory compliance, the Governance, Risk and Compliance (GRC), segment was the largest revenue contributor. It accounted for USD 219.6 millions in 2018. Large enterprises have a high risk of falling prey for non-compliance issues that can lead to heavy fines. Many companies have been fined since the implementation on 25 th May 2018 of General Data Protection Regulation (GDPR).
Market vendors are able to generate large amounts of revenue by offering the solution to tag files and to ensure compliance with GRC policies. Companies will adopt data classification solutions as a result of increasing regulations. GRC segment is expected have the highest demand and moderate CAGR during the forecast period. Businesses' future growth prospects are affected by factors such as reputational damage due to failing businesses or disciplinary actions from regulators. This will drive the application sector in the coming years.
In 2018, the segment of Banking, Financial Services and Insurance (BFSI), was worth USD 139 millions. This is because BFSI data is vital for the safety and security of the country’s economy. It is the most lucrative vertical due to its vulnerability to cyberattacks and data theft. Regulations such as BASEL III and EMIR, Dodd Frank Act and MIFID II are closely monitored and enforced. The banking and financial institutions must appropriately tag sensitive information to comply with these regulations and prevent leakage or misuse. The solution will be sought by anyone who needs to identify, classify, and protect sensitive financial information during data sharing or other internal processes.
The IT and telecom verticals are another major adopter due to the large amount of unstructured data that is generated which must be analyzed based upon their classification. Both industries have crucial client information that hackers can exploit, so it is necessary to implement data classification solutions. The BFSI industry contributes significantly to the market share. BFSI stores and collects information about financial account authorization. Hackers can often access such information and it can lead to economic collapse. This can be avoided by using the DLP or data classification solution.
North America is expected the dominate market due to its presence in technologically advanced and major industries that require the classification solution to store and manage the information. This region will continue to show its dominance over all other regions throughout the forecast period due to large amounts of digitally generated information and numerous regulations to protect client and stakeholder interests.
Europe is expected to experience a significant CAGR (about 25%) over the forecast period. The recent implementation of the General Data Protection Regulation, (GDPR), which focuses on data privacy, has led to a rise in data classification solutions in Europe.
Asia Pacific is projected to grow at the highest rate of CAGR during the forecast period. This is due to the region's growing data-driven industrialization as well as the introduction of government regulations for both small and large businesses. China is highly regulated, particularly for foreign companies that operate in the country. Data classification is therefore highly recommended. Due to the growing demand for data classification in India, which is also a result of the IT and telecom industry that is producing large volumes of sensitive information, there is likely to be a significant increase in this market.
Amazon Web Services, Inc., Boldon James, Covata, Google, Inc., Innovative Routines International, Inc., Inc., Inc., Microsoft, Symantec Corporation, Symantec Corporation, Varonis, Handd Business Solution Ltd., Veritas, and Netwrix Corporation are some of the prominent players in this market. To stay ahead of their market competitors, these companies have opted for an organic growth strategy. McAfee and AWS teamed up to offer cloud-based security solutions. McAfee Vulnerability Manager Database is part of McAfee Database Security Suite. This can automate data classification for auditing, authorization rights and security gap identification.
Due to large companies and increasing security concerns, the market is relatively competitive. The vendors also offer updated versions to assist users with the most recent compliance and security issues. This market is relatively fragmented and has low barriers to entry. Established data security companies are a major contributor to growth and will continue to be dominant during the forecast period.
This report predicts revenue growth at both the country and global levels. It also provides analysis of industry trends for each sub-segment from 2015 to 2025. Grand View Research has divided the global data classification market report by component, classification type and application.
Component Outlook (Revenue USD Million, 2015-2025)
Solution
Services
Outlook for Classification Type Outlook (Revenue USD Millions, 2015-2025)
Content-Based Classification
Context-Based Classification
User-Based Classification
Application Outlook (Revenue USD Million, 2015-2025)
GRC
Access Control
Web, Mobile & Email Protection
Centralized Management
Vertical Outlook (Revenues, USD Million, 2015-2025)
BFSI
Defense and Government
Healthcare and Life Sciences
Telecom & IT
Education
Entertainment and Media
Other
Regional Outlook (Revenue USD Million, 2015-2025)
North America
U.S.
Canada
Europe
U.K.
Germany
Asia Pacific
China
India
Japan
Latin America
Brazil
Mexico
Middle East & Africa
b. Global data classification market was valued at USD 0.6 million in 2019, and is forecast to grow to USD 0.7 billion by 2020.
What is the growth rate of data classification?b. Global data classification market will grow at a compound annual rate of 25.7% between 2019 and 2025, to reach USD 2.25 billion by 2025.
Which segment had the largest market share in data classification?b. With a 33.4% share in 2019, North America was the dominant market for data classification. This is due to the large number of technologically advanced businesses that require the classification solution to store and manage the data.
What are the major players in the data classification market?b. Amazon Web Services, Inc., Boldon James, Covata, Google, Inc., Innovative Routines International, Inc., Inc., Inc., Inc., Microsoft, Symantec Corporation, Symantec Corporation, Varonis, Veritas are some of the key players in the data classification market.
What are the driving factors in the data classification marketb. Market growth is driven by the requirement to adhere to regulatory compliances, growing volumes of unstructured information, cybersecurity concerns, and the need to manage data.
Up Market Research published a new report titled “Data Classification Market research report which is segmented by Classification Type (Context-based, Content-based), by Application (GRC, Web, Mobile & Email Protection), By Players/Companies Inc; IBM Corporation, Google, Varonis, Symantec Corporation, Veritas, Amazon Web Services, Open Text Corporation, Innovative Routines International (IRI), Covata, Inc; Boldon James, Inc; Microsoft”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Data Classification Market Research Report |
By Classification Type | Context-based, Content-based |
By Application | GRC, Web, Mobile & Email Protection |
By Companies | Inc; IBM Corporation, Google, Varonis, Symantec Corporation, Veritas, Amazon Web Services, Open Text Corporation, Innovative Routines International (IRI), Covata, Inc; Boldon James, Inc; Microsoft |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 220 |
Number of Tables & Figures | 154 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Classification Type (Context-based, Content-based), by Application (GRC, Web, Mobile & Email Protection).
Data Classification Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Data Classification Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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