DATA GOVERNANCE MARKET ANALYSIS

Data Governance Market Size and Trends

The data governance market is estimated to be valued at USD 3.96 billion in 2024 and is expected to reach USD 13.92 billion by 2031, growing at a compound annual growth rate (CAGR) of 19.7% from 2024 to 2031.

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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.

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In the age of digital transformation, data has become one of the most valuable assets for businesses. However, to fully leverage its potential, organizations need to manage it as a strategic corporate asset rather than as an IT infrastructure component. Proper data governance promotes a single version of truth by bringing together disparate data sources on a common platform. This allows for improved quality, consistency, and integrity of organizational data. It further helps break down silos within organizations to foster collaboration and insights across business units.

With good data governance practices in place, businesses can leverage analytics to gain deeper customer understanding, detect new revenue opportunities, optimize processes, and make strategic decisions backed by data-driven insights. It also facilitates centralized data management without compromising local business requirements through role-based access controls. This helps deliver consistent customer experience worldwide. Furthermore, establishing accurate metadata helps identify data monetization potential through sale or licensing of anonymized datasets.

For instance, May 2023 saw Informatica announcing substantial innovations to its AI-powered Intelligent Data Management Cloud (IDMC) at Informatica World 2023. These enhancements span data engineering, Mobile Device Management applications, and data governance, with the goal of helping enterprises reduce costs, maximize resources, and improve productivity while accelerating time to value.