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Industry Insights, Market Size, CAGR, High-Level Analysis: Data Classification Market The global data classification market size accounted for USD 520.2 million in 2018 and is projected to exhibit robust CAGR of 25.7% over the forecast period. The mandate for adhering to regulatory compliances, growing volume of unstructured data, concerns over cybersecurity, and need for data management are some of the major factors supporting the rapid growth. The solution is vital in supporting data management to identify the risk and impact of mishandled data. Moreover, classified data is convenient to process, safeguard, and comply with data security policies. Data classification is majorly categorized as public, internal, confidential, and private classification. Private, internal, and confidential information such as personnel information, non-disclosure agreement, business plan, memos, plans, strategy documents, internal employee directory information, internal financial report, confidential customer information, merger and acquisition information, contracts and client information, insider information, and regulatory information is at high risk of cyberattack. This information is crucial for enterprises and is required to be categorized using tags. These tags differentiate each data type and help Data Loss Prevention (DLP), data management, and security management software to decide the course of action on each of the data sets. With a growing need to transform unstructured data into structured information and analyzing for the actionable outcome has become crucial. The outcome helps enterprises decide the course of action to be taken for safeguarding the company’s private information and to use it for sales and managerial decisions. Moreover, increasing globalization and digitalization has resulted in the formation of multiple rules and regulation pertaining to the distribution and consumption of the information. For instance, 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 Provident Funds and Miscellaneous Provision Act - 1952 (EPF), Payment Card Industry Data Security Standard (PCI-DSS), Sarbanes-Oxley, EU General Data Protection Regulation (GDPR), and various banking regulations are need to be followed strictly to avoid monetary and reputational loss. Thereby, data classification solution support identification and protection of sensitive data stored in the electronic document. The advent of big data and machine learning in the new era of fueling data will prove to be a game-changer for the industries. Big data require data classification to exist and perform its task of delivering quality information for management decision. The need for classifying data is characterized by its large volume, velocity, and different types of information contained in a structured or unstructured manner. Similarly, machine learning will boost the data classification market owing to its ability to learn the tags for each type of information set in the system. The process of data classification allows organization to segregate the stored information by sensitivity and impact on the business. The segregation further helps assign authentication and authorization to the user for data modification and control. This is important for handling the information gathered in the hyper-connected business model. However, lack of awareness about the benefits of data classification, the complexity associated with data pattern, and use of complicated schemes and terminologies are some of the factors hindering the adoption of these solutions. Component Insights of Data Classification Market The solution segment accounted for the highest market share of over 69% in 2018 and is projected to exhibit a similar trend over the forecast period. Need to comply with regulations and analyze past information for future decisions across major industries such as BFSI, healthcare, government and defense, and telecom and IT is further boosting the adoption. Also, the vendors are continuously developing competitive solutions to stay ahead in the market. For instance, in Dec 2018, MinerEye was awarded EU grant for developing a technology for its Data Tracker solution by leveraging computer vision and machine learning to automatically classify, categorize, and track a large volume of information in minimum time. This classification solution is offered as a standalone or as part of a comprehensive data security platform to store and handle or process sensitive information. The services segment comprises of consulting, integration, maintenance, and support for deployed solution. The consulting services help enterprise determine the need to classify the gathered information and implement the required controls for the company to improve their operational efficiency. Whereas, an integration service offered by the vendor during purchase phase allows implementation using a Service-oriented Architecture (SOA). Classification Type Insights of Data Classification Market The paradigm shifts in the usage of a large volume of information and human accuracy at identifying the data type during the initial creation phase has boosted the demand for data classification solution supporting user-based classification. The user-based classification segment accounted for the highest market share of over 46% in 2018, due to the availability of features such as user-friendly implementation and real-time security alert for potential risk. It can also initiate an instant rectification in the file at the user end. This factor is anticipated to further fuel the growth of the segment. The data classification approach in user-based type allows the user to use their knowledge to create, edit, review, or disseminate and flag sensitive documents. The manual approach and end-user selection of each document is mostly implemented across all industry verticals and are the most sought-after approaches. Vendors, such as Symantec Corporation and Boldon James offer user-based data classification in their Data Loss Prevention (DLP) and Classifier Foundation Suite respectively. Such advancements in user-based classification would contribute to the segmental growth over the forecast period. Application Insights of Data Classification Market The Governance, Risk, and Compliance (GRC) segment is the dominant revenue contributor and accounted for USD 219.6 million in 2018, due to existing need for managing the complexity of regulatory compliance. The large enterprises are at high potential risk of falling prey to non-compliance issue which can levy heavy fines. For instance, since the implementation of General Data Protection Regulation (GDPR) on 25th May 2018, many companies have been fined for their negligence. The market vendors generate a major chunk of revenue by providing the solution to tag private files and ensure the adherence to GRC policy. Increasing regulations are anticipated to drive the adoption of data classification solutions among enterprises. During the forecast period, GRC segment is expected to demonstrate the highest demand and moderate CAGR. Factors such as, reputational loss due to failing business or disciplinary action from regulators harms the future growth prospects of businesses. This is projected to drive the application segment in the forthcoming years. Vertical Insights The Banking, Financial Services and Insurance (BFSI) segment was valued at USD 139 million in 2018, as BFSI information is crucial for the security of the country’s economy. The vulnerability of BFSI industry to cyberattacks, data theft, and stringent regulation makes it the most lucrative vertical. The industry is highly scrutinized and guarded by regulations such as BASEL III, EMIR, Dodd Frank Act, MIFID II, and SEPA. To comply with these rules and to protect from leakage and misuse of information, the banking and financial intuitions need to appropriately tag the sensitive information. Therefore, discovering, classifying, and protecting the sensitive financial details during data sharing and other internal process will further drive the demand for the solution. Furthermore, telecom and IT vertical is another leading adopter owing to the generation of a large volume of unstructured data which is required to be analyzed based on their classification. Both the industries contain crucial client information which can be exploited by the hackers, thereby necessitating the need to implement data classification solution. BFSI industry is another major contributor to the increasing market share. The BFSI industry gathers and stores information related to financial account authorization of users. Such information is often attacked by hackers and its loss can collapse the country economy, which can be avoided by implementing the DLP and data classification solution. Regional Insights of Data Classification Market North America is expected to dominate the market owing to the presence of major and technologically advanced industries that need to adopt the classification solution to manage and store the information. The region is expected to continue demonstrating its dominance over other regions during the forecast period owing to digitally generated large volumes of information and a plethora of regulation to safeguard client and stakeholder interests. Europe is anticipated to register a significant CAGR of approximately 25% over the forecast period. This rise in the adoption of data classification solution in Europe is due to the recent implementation of the General Data Protection Regulation (GDPR) that focuses on protecting the right to data privacy. Asia Pacific is expected to expand at the highest CAGR over the forecast period, attributed to burgeoning data-driven industrialization and introduction of government rules for small and large enterprises operating in the region. China is a highly regulated market, especially for foreign companies operating in the country, thereby making data classification a highly preferred solution. Also, India is expected to witness a surge in the demand for due to growing telecom and IT industry which is generating large volume of sensitive information. Market Share Insights of Data Classification Market The prominent vendors operating in the market are Amazon Web Services, Inc.; Boldon James, Covata, Google, Inc.; IBM Corporation, Innovative Routines International (IRI), Inc.; Microsoft, Open Text Corporation, Symantec Corporation, Varonis, Handd Business Solution Ltd.; Veritas; and Netwrix Corporation among others. These companies have majorly opted for organic growth strategy to stay ahead of the market competition. For instance, in May 2019, AWS and McAfee collaborated to introduce McAfee Database Security for Amazon Relational Database Service (Amazon RDS) under the shared motive of offering cloud-based security solution. The McAfee Database Security Suite includes McAfee Vulnerability Manager for Database which can automate data classification and identification for auditing, authorization rights, and security gap identification. The market is moderately competitive due to the presence of many large enterprises and changing cyber security concern. Also, the vendors offer upgraded versions to help the users face the latest compliance and security challenges. The market is moderately fragmented in nature with low barrier for new entrants. The established data security players are major contributor to the growth and will remain dominant over the forecast period. Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Data Classification Market Research Report This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global data classification market report on the basis of component, classification type, application, vertical, and region: Component Outlook (Revenue, USD Million, 2019 - 2030) Solution Services Classification Type Outlook (Revenue, USD Million, 2019 - 2030) Content-Based Classification Context-Based Classification User-Based Classification Application Outlook (Revenue, USD Million, 2019 - 2030) GRC Access Control Web, Mobile & Email Protection Centralized Management Vertical Outlook (Revenue, USD Million, 2019 - 2030) BFSI Defense and Government Healthcare and Life Sciences Telecom & IT Education Media and Entertainment Others
Table of Contents Chapter 1. Methodology and Scope 1.1. Market segmentation & scope 1.2. Market definition 1.3. Information procurement 1.3.1. Purchased database 1.3.2. GVR’s internal database 1.3.3. Secondary sources & third-party perspectives 1.3.4. Primary research 1.4. Information analysis 1.5. Market formulation & data visualization 1.6. Data validation & publishingChapter 2. Executive | read more...