GDPR SERVICES MARKET ANALYSIS

The global GDPR services market size was valued at USD 1,186.5 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 22.45% from 2023 to 2030. The GDPR Service market is driven by the need for data processing transparency, rising workloads relating to big data and demand for advanced solutions. Moreover, the rise in cyber-attacks and increasing adoption of GDPR compliance for enhanced security are also expected to fuel the market growth.  The stringent laws that have been introduced in the Europe region to protect the personal information of users is also driving growth of the market.

Global GDPR Services Market: Regional Insights

The global GDPR services market is geographically divided into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

Among regions, North America is anticipated to dominate the global GDPR services market during the forecast period, owing to stringent regulations for data privacy and management in the U.S. for instance, the California Consumer Privacy Act, a consumer privacy legislation was passed into California law in June 2018. Moreover, rising trend of cutting down budgets among organizations due to ineffective data management tools. For instance, as per the survey of Cohesity, the U.S. is witnessing a significant cut down in IT budgets. These factors are in turn driving the demand for GDPR services in the region, which is likely to support the market growth in coming years.

Furthermore, Asia Pacific is also projected to show significant growth in the global GDPR services market over the forecast period. This can be attributed to rapid adoption of digital innovations in the end-user industries in countries such China, India, Singapore, and Japan showing maximum transformation. Moreover, rise in digital developments such as the Internet of Things, (IoT), cloud computing, and Big Data analytics is also expected to boost growth of the global GDPR services market in the Asia Pacific.

Figure 1: Global GDPR Services Market Share (%), By Region, 2022

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Global GDPR Services Market Drivers:

Growing need for data privacy and security to drive the market growth

The number of data breach incidences is growing all over the world, due to which the demand for data privacy and security is growing rapidly. For instance, as per the recent 2020 survey by the government of U.K., 46% of the businesses and more than 26% of charities surveyed faced cybersecurity incidences in the previous year. Only under 19% of businesses that faced a breach had material losses such as theft of data or money. 39% reported other adverse impacts, such as cost reduction due to implementation of better security, business disruption, and staff costs. Thus, the demand for GDPR services is increasing all over the world, which in turn is expected to augment growth of the global GDPR services market over the forecast period.

Increasing transparency needs in data processing to fuel the market growth

The demand for data processing transparency among consumers around the world is increasing with time. GDPR services are vital to cater such requirements and help provide a level of trust. As per the Cisco Consumer Privacy Study 2020, nearly 42% of consumers have turned to providers or companies over data sharing practices or data policies. Moreover, in 2020, Transcend conducted Data Privacy Feedback Loop, according to which, 91% of the respondents find that businesses profiting from personal data are responsible for making the data easily available. Thus, these factors are in turn expected to fuel growth of the global GDPR services market during the forecast period.

Global GDPR Services Market Opportunities:

Growing demand for GDPR services is likely to offer significant business opportunities in the global GDPR services market during the forecast period. The interaction between users and the websites they brows has transformed dramatically due to GDPR. Companies are incorporating new regulations, specific tools, and professionals into their pre-existing business and governance processes. In future, the number of businesses committed to offer a profitable, trusted data-driven system with clean transparency benefits is expected to increase all over the world. This will thus, drive the demand for GDPR, which is anticipated to support growth of the market in the coming future.

Increasing need for advancements in cyber security practices is also expected to create lucrative environment for growth opportunities in the global GDPR services market over the forecast period. GDPR is likely to drive the improvements in cyber security practices of different organizations. With the prospect of major fines for data breaches, companies are focusing on strengthening the security for their systems. Several organizations are making use of their obligations under the GDPR, for ensuring that their systems are updated to newest operating systems and proper capital is allotted to cybersecurity control. Thus, these factors are expected to offer create growth opportunities in the market.

Global GDPR Services Market Trends:

Increasing adoption of cloud services is a major trend

During the COVID-19 pandemic, several businesses adopted work from home module. Thus, several companies adopted cloud services to continue business operations. This however, led to increased cybersecurity concerns and created challenges for organizations in terms of data protection. Several organizations did not have the architecture to enable easy access to the systems, which suggested that the having localized copies of data required to be accessed by employees is the only way to apply work from home module. Thus, several companies adopted cloud services. And for protecting the data on cloud servers, the demand for GDPR increased. As several companies are still offering work from home module post pandemic, the trend is likely to continue in the market in the coming future.

Rise in investment for R&D for innovations is a growing trend

Market players are increasingly adopting strategic collaboration to raise funds for research and development activities of automated and advanced technologies intended for managing high volume of unstructured and structured data. The increased in level of funds for R&D proficiencies are likely to create way for innovations in IT. Growing integration of technologies such as machine learning and artificial intelligence, with increasing digital transformation among industries is expected to drive growth of the GDPR services market during the forecast period.

Global GDPR Services Market Restraints:

Complexity of implementation of GDPR services, and level of market compliance to impede market growth

Several companies around the world are facing challenges in areas such as, ensuring reporting of data breaches, protecting the rights of people, and management of different audit processes. Such issues directly impact GDPR compliance services. As per the survey by Hayes Connor Solicitors on the U.K. office workers, in 2020, only 20% of the respondents were given no training to handle company data, cybersecurity, and GDPR. The lack of training to employees for the scope of data protection and GDPR indicates the complexity of implementing GDPR services and low compliance level of market. These factors are thus, expected to hamper growth of the global GDPR services market over the forecast period.

High cost of GDPR services implementation and maintenance to obstruct the market growth

The cost required for maintenance of GDPR compliances is found to be high, owing to continuous risk assessment, monitoring, and other factors. As the implementation cost of GDPR is high, it adversely impacts smaller businesses having low budget for data protection. The high cost of implementing GDPR could reduce profit margins of SMEs. Thus, this factor impacts of adoption of GDPR services among small and medium enterprises, which is expected to obstruct growth of the global GDPR services market during the forecast period. However, market players are focusing on creating solutions to help such businesses, which is likely to aid in growth of the market.

Figure 2: Global GDPR Services Market Share (%), By Type of Deployment, 2022

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Global GDPR Services Market Segmentation:

The global GDPR services market report is segmented into Type of Deployment, Offering, Organization Size, and End-User Industry.

Based on Type of Deployment, the market is segmented into On-premise, Cloud. Out of which, On-Premise is expected to dominate the global market over the forecast period and this is attributed to the flexibility offered by on-premise deployment for customizing the services according to the specific requirements, privacy needs, and data security of the company. These services are mainly deployed locally on the servers and computers of customer’s company premise. Various benefits offered by this deployment method is driving its demand, which in turn is expected to support growth of the segment.

Cloud segment is also expected to witness significant growth in the near future and this is owing to the growing expenditure on cloud services by several enterprises. The growing use of cloud-based services has positively impacted the way businesses are running. It has changed operating models, as it reduced cost related to infrastructure. Thus, growing expenditure for cloud services is likely to fuel growth of the market in the coming future.

Based on Offering, the market is segmented into Data Management, Data Discovery and Mapping, Data Governance, and API Management. Out of which, Data Discovering and Mapping is expected to dominate the global market over the forecast period and this is attributed to the rise in adoption of automated data discovery complying with GDPR, owing to growing misplacement of sensitive data. For instance, in banking, payment data related information such as number of credit card is normally found outside of Cardholder Data Environment, which is mostly found in post-data breach investigation. Thus, this in turn is creating the demand for automated tool that comply with GDPR for minimizing data breaches.

Data Governance segment is also expected to witness significant growth in the near future and this is owing to the increasing focus of vendors on providing new solutions to cater growing customer requirements. For instance, in 2020, Microsoft launched a novel data governance solution, the public preview on its Azure Purview. This new services offers automation and discovering data cataloging, as it minimizes the risk of compliance. This helps the companies in mapping their data, without having them to worry about where it resides in the cloud. Thus, such solutions are expected to drive growth of the market in the near future.

Based on Organization Size, the market is segmented into Large Enterprises, and Small and Medium-sized Enterprises. Out of which, Large Enterprises is expected to dominate the global market over the forecast period and this is attributed to the early adoption of digital transformation of business processes among large organizations around the world. This is enabling them to achieve growth as well as maintain scalability, as they generate huge amount of data. Thus, growing adoption of GDPR services in large enterprises is driving growth of the segment.

Small- and Medium-sized Enterprises segment is also expected to witness significant growth in the near future and this is owing to the rise in implementation of GDPR through partnerships with services providers for complying with the legislation. Moreover, vendors are introducing novel services targeted towards SMEs, which is also expected to boost the market growth during the forecast period. For instance, DataGuard, offers GDPR-as-a-service, a cloud-based platform for helping companies with online business.

Based on End User Vetical, the market is segmented into Banking, Financial Services, and Insurance (BFSI), Telecom and IT, Retail and Consumer Goods, Healthcare and Life Sciences, Manufacturing, and Other End-user Industries. Out of which, Banking, Financial Service, and Insurance (BFSI) is expected to dominate the global market over the forecast period and this is attributed to the rising popularity of Digital Banking and other new technologies. Banks are required to adopt data masking techniques such as encryption, pseudonymization, and anonymization before they share customer data with third parties in order to ensure GDPR compliance. Banks are also required to ensure the data security mechanisms used in their systems for data transfer meet GDPR provisions. Thus, the need for GDPR services is high in this sector, which is likely to support growth of this segment in the coming future.

Telecom and IT segment is also expected to witness significant growth in the near future and this is owing to the  increasing growth IT and Telecommunication industry around the world. These companies are highly susceptible to cyber attacks, and several industries depend on these IT and Telecom companies. Thus, even a false claim or alarms of attack can cost these companies critical services and businesses of their consumers. Thus, the need for GDPR services is substantial in this segment, which is expected to boost the market growth in the forecast period.

Global GDPR Services Market: Key Developments

In November 2022, Informatica, a provider of enterprise cloud data management solutions announced the availability of its Intelligent Data Management Cloud (IDMC) platform for local and state governments in the Informatica World Tour in Washington, DC.

In October 2022, Gravitee. io, formed an alliance with Solace, a leading provider of event-driven architecture to bring a unified API management experience to the market for synchronous RESTful and asynchronous event-driven APIs.

In September 2022, Anritsu A/S collaborated with Secupi for providing global data protection and GDPR compliance to customers. The Tier-1 telecom providers with higher needs of data protection will be the first ones to benefit from this alliance.

In January 2020, Microsoft Corporation launched various novel assessments available in the public exercise of the Microsoft Compliance Score. The company created unique perceptivity into Microsoft Compliance with the use of a team of experts in data protection, and using a common control frame of more than controls.

Global GDPR Services Market: Key Companies Insights

The global GDPR services market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global GDPR services market are Infosys Limited, IBM Corporation, Larsen & Toubro Infotech Limited, Veritas Technologies LLC, Tata Consultancy Services Limited, Amazon Web Services Inc., Atos SE, Microsoft Corporation, Accenture PLC, Micro Focus International PLC, DXC Technology Company, Oracle Corporation, Wipro Limited,  SAP SE, SecureWorks Inc., and Capgemini SE.

*Definition: GDPR is a new EU law that will change the way people collect, store, and use data about their customers. The regulation is designed to protect people’s privacy and give them more control over their personal information. It applies to all organizations that offer goods or services to European Union (EU) residents, regardless of their location