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Data Classification Market Size (2024 - 2029)

The data classification market is poised for significant growth, driven by technological advancements that support regulatory compliance in developed regions. This expansion is particularly evident in sectors such as banking, insurance, and financial services, where the management of large volumes of Personally Identifiable Information is critical. Additionally, industries like retail, government, and healthcare are increasingly adopting data classification solutions to safeguard confidential user data. The rising concerns over data theft and the growing use of analytics applications are further propelling the market's expansion.

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Market Size of Data Classification Industry

Data Classification Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 24.00 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Data Classification Market Key Players

*Disclaimer: Major Players sorted in no particular order

Data Classification Market Analysis

The global data classification market is expected to register a CAGR of about 24.0% during the forecast period 2021-2026. Owing to the technological advancements that support government regulations and compliances in the developed regions is expected to fuel the growth for data classification solutions in the global market.

  • Three and five-tiered classification scheme for public data management in the countries like the US and UK are creating potential space for industry vendors in the domain. Banks, insurance companies, and other financial services firms are the primary users of data classification solutions as they have to deal with large volumes of Personally Identifiable Information (PII) and government regulations for data protection.
  • Other industries such as retail, government, and healthcare where user's data are considered highly confidential, implement data classifications solution to maintain integrity and confidentiality of the data. The surge in analytics applications with stored data and concern for data theft due to mismanagement are some of the driving factors expected to enhance the market for data classification solutions in the forecast period.

Data Classification Industry Segmentation

Data classification is the process of identifying data type with respect to their sources, function, and accessibility by various users inside and outside of the organization. The scope covers the data classification market as both the software and services part and estimates include these segments. The core objective of data classification is to maintain integrity, confidentiality, and availability of data stored in any storage of the respective organization.

By Solution
Software
Services
By Deployment
On-Premise
Cloud
By Application
Access Management
Governanace & Compliance Management
Email & Mobile Protection
Auditing & Reporting
Other Applications
By Industry Verticals
BFSI
Healthcare
Government & Defence
IT & Telecom
Energy & Utilities
Other Industry Verticals
Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Rest of the World
Latin America
Middle-East & Africa
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Data Classification Market Size Summary

The data classification market is poised for significant growth, driven by technological advancements that align with government regulations and compliance requirements, particularly in developed regions. This growth is further supported by the implementation of multi-tiered classification schemes in countries like the US and UK, which create opportunities for industry vendors. Key sectors such as banking, insurance, and financial services are primary adopters of data classification solutions due to their need to manage large volumes of Personally Identifiable Information (PII) and adhere to stringent data protection regulations. Additionally, industries like retail, government, and healthcare are increasingly adopting these solutions to safeguard highly confidential user data, addressing concerns over data integrity and theft. The rising demand for analytics applications and the growing threat of data mismanagement are also contributing to the market's expansion.

In contrast, developing economies face heightened risks related to data protection and information management, with countries like China experiencing high malware infection rates. However, in regions with robust data encryption and protection laws, such as the US, UK, Germany, and Singapore, there are ample opportunities for tech firms to promote their data classification services. The market is characterized by a high degree of fragmentation, with numerous small vendors alongside major players like Amazon Web Services, IBM, and Microsoft, who are integrating data classification services into their existing cloud and on-premise solutions. Recent developments, such as Seclore's advanced email encryption solution and PKWARE's Smartcrypt Classification, highlight ongoing innovations aimed at enhancing market competitiveness.

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Data Classification Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Government Regulations and Compliance for Privacy & Data Security

      2. 1.2.2 Concern for Data Theft due to Mismanagement

      3. 1.2.3 Surge in Analytics Applications with Stored Data

    3. 1.3 Market Challenges

      1. 1.3.1 Data Standardisation Issues and Classification

    4. 1.4 Industry Value Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Solution

      1. 2.1.1 Software

      2. 2.1.2 Services

    2. 2.2 By Deployment

      1. 2.2.1 On-Premise

      2. 2.2.2 Cloud

    3. 2.3 By Application

      1. 2.3.1 Access Management

      2. 2.3.2 Governanace & Compliance Management

      3. 2.3.3 Email & Mobile Protection

      4. 2.3.4 Auditing & Reporting

      5. 2.3.5 Other Applications

    4. 2.4 By Industry Verticals

      1. 2.4.1 BFSI

      2. 2.4.2 Healthcare

      3. 2.4.3 Government & Defence

      4. 2.4.4 IT & Telecom

      5. 2.4.5 Energy & Utilities

      6. 2.4.6 Other Industry Verticals

    5. 2.5 Geography

      1. 2.5.1 North America

        1. 2.5.1.1 United States

        2. 2.5.1.2 Canada

      2. 2.5.2 Europe

        1. 2.5.2.1 United Kingdom

        2. 2.5.2.2 Germany

        3. 2.5.2.3 France

        4. 2.5.2.4 Rest of Europe

      3. 2.5.3 Asia-Pacific

        1. 2.5.3.1 China

        2. 2.5.3.2 Japan

        3. 2.5.3.3 India

        4. 2.5.3.4 Rest of Asia-Pacific

      4. 2.5.4 Rest of the World

        1. 2.5.4.1 Latin America

        2. 2.5.4.2 Middle-East & Africa

Data Classification Market Size FAQs

The Data Classification Market is projected to register a CAGR of 24% during the forecast period (2024-2029)

Amazon Web Services, Inc., Boldon James Ltd (QinetiQ), IBM Corporation, Microsoft Corporation and Broadcom Inc. (Symantec Corporation) are the major companies operating in the Data Classification Market.

Data Classification Report Snapshots

Data Classification Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)