Data Governance Market, By Application (Incident management, Process management, Compliance management, Risk management, Audit management, and Others), By Deployment (Cloud and On-premise), By Organization Size (Large-scale Business and Small- and Medium-scale Business),By Industry Vertical (Banking, Financial Services, and Insurance, Government and defense, Retail and consumer goods , Telecommunications and IT, Construction and engineering, and Others), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

Published In : Feb 2025

Code : CMI5126

Pages :168

Formats :

Excel and PDF

Industry : Information and Communication Technology

Data Governance Market Size and Trends

The data governance market is estimated to be valued at USD 4.75 billion in 2025 and is expected to reach USD 16.93 billion by 2032, growing at a compound annual growth rate (CAGR) of 19.9% from 2025 to 2032.

Data Governance Market Key Factors

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Organizations across industries are recognizing the importance of data governance to derive meaningful insights from their growing volumes of data, while also ensuring regulatory compliance and strengthening customer trust.

With data becoming a crucial corporate asset and competitive differentiator, the need to institutionalize processes to manage and oversee data more effectively is driving increased investments in data governance solutions. Additionally, developments, such as cloud computing, big data analytics and rising consumer digitalization, are further propelling the market growth. With many large enterprises still in the early stages of formalizing their data governance practices, the demand looks set to continue its upward trajectory over the coming years.

Compliance with Regulations

With increasing data regulations, many organizations are now compelled to establish stronger data governance practices. Regulations such as General Data Protection Regulation in EU and Central Consumer Protection Authority in California have tightened the rules around how personal data of customers should be collected, used, and shared. Non-compliance to these regulations can attract hefty fines. For example, GDPR allows fines of up to US$ 22 million or 4% of the annual global turnover for breaching entities. Similarly, CCPA allows fines of up to US$ 7,500 for each violation.

As data privacy regulations around the world are getting stricter, businesses need to ensure legitimate data processing activities and secure customer consent for appropriate data usage. This requires mapping all data flows, assessing data protection impact rigorously and appointing data protection officers. Organizations have to be transparent about personal data collection and usage. Manual processes are ineffective for these tasks and leave room for human errors. A strong data governance framework with the right tools is required to systematically manage the requirements of various regulations and avoid fines or breach of customer trust. Many firms are turning to data governance solutions to automate compliance-related workflows and audit trails for demonstrably lawful data processing activities. Vendors are also positioning their products as being designed specifically for supporting compliance needs of GDPR, CCPA, and other such regulations.

For instance, in April 2022, Microsoft launched a new platform that seamlessly integrated its data governance and risk management services to enhance data security and privacy. Known as Microsoft Purview, this platform combined the Azure Purview and Microsoft 365 Compliance solutions.