The data governance market is estimated to be valued at USD 3.96 Bn in 2024, growing at a CAGR of 19.7% over the forecast period (2024-2031). Furthermore, the increasing number of connected devices generating large volumes of data and emphasis on leveraging insights from the data to make effective business decisions are expected to propel the market growth.
Market Dynamics:
The growth of the data governance market is driven by the increasing demand for ensuring regulatory compliance and need to improve data quality. On one hand, stringent privacy laws, such as the General Data Protection Regulation (GDPR), have necessitated the implementation of robust data governance practices to ensure regulatory compliance. Non-compliance can lead to severe penalties. On the other hand, organizations are under pressure to leverage insights from data to gain a competitive edge. However, this can only be achieved by establishing strong data governance practices to enhance data quality and trust. Integration of data from multiple sources poses challenges related to quality, consistency, and uniformity that data governance helps overcome.
Market Drivers:
- The Growing Need for Data-Driven Decision Making is Driving the Demand for Data Governance: As organizations recognize the value of data in today's digital economy, there is a significant push to leverage data and analytics to optimize business processes and make more informed decisions. Effective data governance ensures organizations have clean, well-structured data that is accessible, understandable and trusted to support data-driven initiatives. By establishing controls and oversight around the collection, quality, storage and use of data, organizations are able to maximize the value of their data assets.
- Increased Regulatory Compliance Requirements are Forcing Organizations to Adopt Robust Data Governance: Data privacy regulations like General Data Protection Regulation and Central Consumer Protection Authority have raised the stakes of non-compliance significantly with steep fines for breaches. Organizations must demonstrate accountability and transparency in how personal data is handled throughout its lifecycle. Data governance helps organizations inventory all data, understand how it flows and is used, establish consent procedures, facilitate access and correction rights for individuals. It becomes a requirement for any organization handling personal data to avoid regulatory penalties for non-compliance.
Market Restraints:
- Lack of Executive Buy-in and Understanding of Data Governance Value Proposition Hinders Adoption: While data has become a key business asset, many executive leaders still do not view data governance as a strategic priority or see its direct impact on the bottom line. There is a lack of understanding on how proper data governance supports key business and technical initiatives. Without sponsorship from the C-suite and alignment of data governance with overall business objectives, it remains challenging to get buy-in across the organization and secure necessary funding.
- Immature Technical Infrastructure Poses Integration Challenges for Data Governance Tools: Data resides in multiple siloed systems with incomplete metadata and undocumented processes. Integrating new data governance tools to get a unified view and apply controls across this complex technical landscape requires significant effort. Legacy environments weren’t built with governance in mind, making it difficult to retrofit capabilities. This technical debt acts as a barrier for many organizations looking to implement data governance at scale.
Market Opportunities:
- Emerging Technologies are Opening New Avenues for Data Monetization and Innovation: Advancements in AI, machine learning, analytics, and other emerging technologies are creating unprecedented opportunities to derive insightful discoveries and business value from data. Data marketplaces are also emerging as a new revenue stream, allowing organizations to profit from sharing aggregated and anonymized datasets. Enterprises are recognizing data as a key differentiator and competitive asset if well-governed for these new use cases. Data governance ensures data is discoverable, portable and standardized to drive ongoing innovation.
- Growing Industry Focus on Data Privacy and Ethics is Increasing the Demand for Responsible Data Practices: As data practices face more public scrutiny, there is a push for organizations to establish responsible and ethical data governance programs. Data governance helps ensure privacy, minimize bias, and meet evolving social contracts around data use. By instilling controls and oversight over data from collection to end of use, organizations can build trust and reduce reputational risks associated with data handling. This represents a new driver for the data governance industry.
- In conclusion, while data governance adoption faces challenges from technical complexity and lack of executive support in some organizations, the market is positively influenced by growing data privacy regulations, emerging data monetization opportunities, and an increased focus on responsible data practices. As data's strategic importance rises, overcoming these restraints through education and demonstrating clear ROI will be critical for the continued growth of the data governance industry.
Link: https://www.coherentmarketinsights.com/market-insight/data-governance-market-5126
Key Developments:
- In February 2024, Digital Glyde and Decube joined forces to revolutionize the data landscape, ensuring the excellence of AI initiatives. This collaboration enhances observability and data governance, empowering businesses to maximize opportunities within their AI investments.
- In February 2024, Perforce acquired Delphix to integrate Enterprise Data Management Software into its DevOps offerings. This platform facilitates governance, scalable automation, and compliance of data across enterprises throughout the application lifecycle.
- In February 2024, Securiti introduced its AI Security and Governance solution, marking its debut in the AI governance arena. This tool combines AI risk ratings, AI model discovery, AI tool mapping, organizational data, and AI security & privacy controls to provide customers with comprehensive security measures.
- In January 2024, Satori became part of the Snowflake Horizon Partner Ecosystem, enhancing the capabilities of joint clients by leveraging both platforms to accelerate data governance. Snowflake users utilizing Satori can enhance their data governance function through continuous sensitive data discovery and unified security policies.
Key Market Players
Adobe Inc., Alation Inc., Amazon.com Inc., Ataccama Corporation, Collibra Inc., Data Advantage Group Inc., Datum LLC, Denodo Technologies, erwin Inc., Global Data Excellence SA, Global IDs Inc., Infogix Inc., Informatica LLC, Information Builders Inc., Infosys Limited, Innovative Routines International Inc., International Business Machines Corporation, Magnitude Software Inc., Micro Focus International plc, Microsoft Corporation, Oracle Corporation, Orchestra Networks Inc., Reltio Inc., SAP SE, SAS Institute Inc., Symantec Corporation, Syncsort Incorporated, Talend Inc., TIBCO Software Inc., TopQuadrant Inc., and Varonis Systems Inc. are the major players.
