Market Overview:
Data governance refers to the overall management of the availability, usability, integrity, and security of the data employed in an enterprise. It aims to establish control over critical data assets through well-defined processes and policies. Data governance helps organizations address risk management, regulatory compliance, information quality, and data standards. The rapid growth in data volumes and types generated across multiple sources has propelled the need for data governance to ensure data is managed as a valued asset. With data governance, organizations can address data privacy and security, streamline operations, improve decision making, and gain insights from big data analytics. This helps increase operational efficiency, reduce compliance costs, and enhance data-driven business strategies.
The data governance market is estimated to be valued at US$ 2.5 Mn or Bn in 2023 and is expected to exhibit a CAGR of 21.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the data governance market is the increasing adoption of AI-enabled data discovery and governance tools. These tools leverage machine learning and natural language processing to automatically analyze large volumes of structured and unstructured data. They help index and catalog metadata to provide transparency into data assets. This eases governance tasks like mapping data flows, assessing data quality issues, and identifying redundant or obsolete data. Additionally, the rising demand for centralized intelligence across hybrid cloud environments is also fueling the data governance market growth. Centralized governance ensures consistent controls, policies, and access across distributed locations. It enhances visibility and drives compliance. The growing productivity of data professionals using self-service models is another trend positively impacting the market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as significant capital investment is required for providing data governance solutions. Also, established players enjoy economies of scale and have strong brand recognition.
Bargaining power of buyers: The bargaining power of buyers is moderate as buyers can choose from various data governance solutions available in the market. However, switching costs are moderately high.
Bargaining power of suppliers: The bargaining power of suppliers is low as the data governance market comprises numerous software and service providers.
Threat of new substitutes: The threat of substitutes is low as there are limited substitutes available for data governance.
Competitive rivalry: High as the data governance market is dominated by global players and there is intense competition among them.
Key Takeaways
The Global Data Governance Market Size is expected to reach US$ 12.5 Bn by 2030, exhibiting a CAGR of 21.% over the forecast period. Growing concerns regarding data privacy and security compliance are driving the adoption of data governance solutions.
Regionally, North America dominated the global data governance market in 2023 with a share of over 35%, owing to stringent data regulations in the region. Asia Pacific is anticipated to exhibit the fastest growth during the forecast period owing to increasing digitalization in countries such as China and India.
Key players operating in the data governance market are Collibra NV, SAP SE, SAS Institute Inc., Symantec Corporation (Norton Lifelock), TIBCO Software Inc., Informatica Inc., Alation Inc., IBM Corporation, Varonis Systems Inc., Alfresco Software Inc., Oracle Corporation, Talend SA and Microsoft Corporation. Collibra NV, Informatica Inc., and IBM Corporation collectively accounted for over 30% revenue share in 2023.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it