DIGITAL RIGHTS MANAGEMENT MARKET ANALYSIS

Digital rights management (DRM) is the technology that is used to protect data and limit the usage of copyright content. DRM has become an important tool for securing large amounts of digital content. The use of access control technologies and technological control measures (TCM) have become highly inevitable due to rising cyber threats and growing security concerns. Moreover, the governments in many countries are mandating to ensure increased security for digital data. In order to manage and control the spread of digital files over the internet, most of the organizations are implementing an effective DRM solution so that only certified licensee can access the data. These factors are expected to drive the market growth during the forecast period.

The global digital rights management market is expected to witness significant growth during the forecast period (2020–2027), owing to increased adoption of digital rights management solutions due to rising security concerns in organizations. The extensive usage of computers and laptops lead to an increase in the number of hackers who intrude into government and corporate network to access critical information for monetary and business gain. Organization databases are the primary targets of cybercriminals, which increases the loss of personal and business information. Due to the increasing incidence of data breach and high profile data theft, organizations are deploying digital risk management (DRM) solutions. For instance, in July 2020, Microsoft, a U.S.-based technology company, launched a new security technology to prevent data corruption techniques that are adopted by cybercriminals on window 10 devices. Moreover, advancement in data security technologies such as end-to-end encryption has helped vendors to enhance data security solutions against threats and cyber-attacks. Third-party service providers and cloud service providers are offering digital right management solutions in order to meet the needs of government and business organizations. This, in turn, increases demand for digital rights management solutions to protect organizations from cyber threats.

The high cost of digital right management solutions is expected to hinder the market growth. The cost includes software license fee, deployment fee, maintenance fee, development fee, and others. The cost of DRM software is between U$$ 16,000 and US$ 25,000. For instance, Adobe Inc. provides digital right management solution with a license fee of US$ 10,000, maintenance cost of US$ 1,500, a deployment fee of US$ 15,000, and a development fee of US$ 10,000. These factors are expected to hamper the market growth during the forecast period.

Digital Rights Management Market - Impact of Coronavirus (Covid-19) Pandemic

COVID-19 pandemic is expected to drive growth of the market during the forecast period. Due to the Covid-19 pandemic, many industries have witnessed a significant positive shift in in their businesses. There has been a significant impact on growth of the digital rights management market. Moreover, several cases of cybercrimes have been observed. Cyber threat has been increasing, as every part of the demographic has searched information related to COVID-19 by using a malicious domain name registered with names such as COVID-19 or coronavirus. For instance, according to Palo Alto Networks Inc., around 40,261 suspicious registered domain names were identified at the end of March 2020. Moreover, in the recent times, the use of identical business email addresses are also used to carry out cyber-attacks. Due to the rise in cyber threats, several organizations are adopting digital rights management solutions to mitigate threats and risks. This, in turn, drives growth of the digital rights management market.

North America is expected to hold dominant position in the global digital rights management market during the forecast period

Statistics:

North America held dominant position in the global digital rights management market in 2019, accounting for 45.2% share in terms of value, followed by Asia Pacific and Europe.

Figure 1: Global Digital Rights Management Market Share (%), By Region, 2019

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North America is expected to account for the largest market share during the forecast period, owing to the presence of key players in the region such as Microsoft, Oracle, Apple Inc., RealNetworks, Inc., VOBILE, INC, Dell Inc., Seclore, and DivX, LLC. For instance, in January 2020, Seclore, a U.S.-based data centric security platform, launched Seclore for O365. Organizations are utilizing digital right management technologies to protect sensitive data information.

Asia Pacific region is expected to exhibit highest growth during the forecast period, owing to increasing cyber threats. According to a report by the Data Security Council of India (DSCI), India was the second most affected country between 2016 and 2018 by cyber-attacks. Furthermore, the average cost for a data breach in India has increased by 7.9% and the average cost per breach rose to US$ 64. The rising adoption of internet of things (IoT) has increased cyber-attacks in the IT industries. For instance, unauthorized access and malicious software updates have increased the risk related to cyber-attacks. These factors are expected to drive demand for digital rights management solutions to reduce or mitigate these losses.

Media & entertainment segment is expected to drive the market growth during the forecast period

Among end-use industry, the media & entertainment segment is expected to hold dominant position in the global digital rights management market during the forecast period. This is attributed to high speed internet connectivity and rising adoption of subscription-based entertainment tools. For instance, in 2018, music streaming revenue in the U.S. was approximately US$ 7.8 billion and video on demand services revenue was US$ 8.3 billion. The video and music streaming services generate large volume of data and increases demand for digital right management solutions to provide copyright protection for digital content.

Figure 2: Global Digital Rights Management Market Value (US$ Mn) Analysis and Forecast, 2017 - 2027

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The global digital rights management market was valued at US$ 2,940.7 Mn in 2019 and is expected to reach US$ 9,033.7 Mn by 2027.

Major players operating in the global digital rights management market include Microsoft, Facebook, Inc., Apple, Inc., Oracle, Seclore, Fasoo, VERA, Adobe Inc., Open Text Corporation, DivX, LLC, HP Labs, Dell Inc., VOBILE INC., RealNetworks, Inc., IBM Corporation, General Electric, Axtia Technologies, Union FinTech, and Conax Technologies.