The data governance market size is estimated to be USD 1.31 billion in 2018 and is expected to reach USD 3.53 billion by 2023, growing at a Compound Annual Growth Rate (CAGR) of 22.0% during the forecast period. The rapidly increasing growth in data volumes, rising regulatory and compliance mandates, and enhancing strategic risk management and decision-making with the increasing business collaborations are expected to propel the growth of the data governance market.
Among various applications, the compliance management application segment is expected to grow at the fastest rate, due to the fact that compliance management applications enable organizations to test, remediate, attest, and manage their corporate structure. Compliance management applications enable organizations to implement, manage, monitor, and measure the effectiveness of their governance and compliance strategies. In addition to this, cloud-based compliance management applications provide organizations with all the necessary tools for creating an effective internal management system. The collaborative workspace helps process managers in determining organizations’ compliance level.
The retail and eCommerce industry vertical is expected to grow at the highest CAGR during the forecast period, as it is creating large volumes of data which is ultimately driving the need for efficient data governance solutions in this industry vertical. The increasing demand for cross-border eCommerce and a high internet penetration in different regions are driving the retail and eCommerce industry vertical to adopt data governance technologies.
The Small and Medium-sized Enterprises (SMEs) segment is expected to achieve the fastest growth rate, primarily due to the surge in the adoption of customer data and product data applications across all regions. SMEs are focusing on deploying data governance solutions to secure their data and govern its usage as per the regulatory aspects. Companies launch cost-effective data governance solutions to cater to SMEs and meet their requirements.
Data governance solutions and services have become essential for the IT department of organizations, as it plays a vital role in improving the reliability, security, sustainability, and performance of organizations. The finance business function segment is expected to be the highest revenue generator during the forecast period. The finance department engages in measuring and improving the financial performance of organizations. Companies have to continuously monitor different regulatory requirements set by regional government authorities. Such vigilance enables companies to avoid non-compliance penalties imposed by regulatory authorities.
North America is expected to dominate the data governance market throughout the forecast period, owing to the early adoption of technologies and the presence of a large number of data governance solution providers. Asia Pacific (APAC) is expected to grow at the highest CAGR during the forecast period. The increasing digitalization and investment in infrastructure upgrades have resulted in the higher adoption of data governance and data management solutions. APAC is witnessing the increasing demand for cloud-based solutions, owing to the growing size of SMEs. Companies operating in this region provide different solutions based on organization size and their requirements.