The global data classification market is expected to register a CAGR of about 24.0% during the forecast period 2020-2025. 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.
Scope of the Report
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.
Key Market Trends
A surge in Data Security Solutions for Increased Malware Infection Rates in Computers
- It’s been a critical concern for a business organization as well as personal computer users about the increase in cyber threats at an alarming rate. As everything is shifting to the world of internet and mobile-based apps, the threat of data vulnerability has also increased in these recent years. Specifically, business organizations are facing tough challenges with respect to their data security and vulnerability, as they many times have to deal with storing, shifting, migrating and outsourcing their user data on open source platforms.
- Organizations in developing economies like China, India, Russia, Brazil, and others are very much open to risks related to data protection and information management. According to the recent publication from Cybersecurity Insiders, China remains at the top in the list of the highest malware infection rates in computers with a 49% infection rate.
Government Mandate in Developed Nations is Driving the Demand for Data Classification Services
- In countries like the US, UK, Germany, Singapore and some others where the government has regulated the IT environment with data encryption and protection laws, tech firms are finding opportunity areas to promote their data classification services in these markets. Governments in the US and UK have established three-tiered classification schemes for public sector data. Even the government of Washington has gone beyond this range and has established a five-tiered classification scheme, which has well applauded by open data advocates in the region.
- Risk management also, one of the areas where government officials have raised their bar of data integrity and data handling roles. In these countries, it’s always been a concern for the user groups to handle public data depending upon their job roles and authorization, which eventually provide the right space for market development for data classification solutions and services.
As a niche software solution, the market for data classification is highly fragmented with the presence of many small vendors such as Boldon James Ltd (QinetiQ), Covata Limited, Digital Guardian, HANDD Business Solutions, SECLORE, and many others. However, big tech firms including Amazon Web Services, Inc., IBM Corporation, Microsoft Corporation, Symantec Corporation, and Open Text Corporation are trying to offer data classification service as a bundled offering with their legacy cloud and on-premise database solutions. The market is also experiencing many market development strategies in recent years.
- May 2019 - Seclore introduced advanced email encryption solution compatible with Microsoft Office and 365, to augment security, data classification and data loss protection features for users. This innovative product is expected to enhance Seclore market competitiveness in the data classification domain.
- October 2018 - PKWARE, Inc., launched the Smartcrypt Classification solution to enhance its product offering in data classification and security industry.
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