The global data classification Market size is anticipated to reach USD 3,628.5 million by 2028. The mandate to adhere to regulatory enforcement, the increasing amount of unstructured data, cyber security issues and data storage software requirements are some of the key factors that drive rapid growth. The way to recognize the risk and effect of malicious data is critical in helping data protection. Besides, it is easy to store, protect, and stick to data protection standards in sensitive data.
Data Classification market is expected to grow at a CAGR of 24.3% from its 2020 valuation of $ 786.64 million to $ 4.54 billion by 2028.
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Big technology and machine learning can prove to be a game-changer for business in the modern age of data fueling. Big data require data classification to carry out the mission of making management decisions with quality information. The need to define data depends on its broad volume, speed, and various components of information, which are organized or unstructured.
With the support of data classification tools, data security, and the location is enabled, which is one of the core elements driving growth in the demand for tools for data classification. The use of data classification tools will easily deal with internal menaces, thus fueling the demands of the data classification tools during the forecast era.
With data classification tools, cloud-based data can be easily handled such that an enhanced cloud-based data management system is a key factor improving the consumer demand for data classification tools over the forecast era. Through the use of data classification instruments, the data can be obtained quickly and data classification can be streamlined. This is hence another driving force behind the development of the demand for data classification software.
The risk of data vulnerability has risen exponentially, as much of the digital data is accessible on mobile applications. In particular, multinational companies, as they struggle with preserving, migrating, moving, and outsourcing their customer data to open source systems, face difficult challenges about their data privacy and insecurity.
With rising instances of cyber threats, the request for data classification is increasing, as the method of classification makes it easier to identify and find data. Data classification is of special significance in the fields of risk control, enforcement, and data protection. The increasing emphasis on efficiency enhancement and cost savings thus encourages the development of the data classification industry.
Data Classification Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2028 |
| Study Period | 2018-2028 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2028 | $ 786.64 million |
| Growth Rate | CAGR of 24.3% during 2018-2028 |
| Segment Covered | By Component, Regions |
| Regions Covered | North America, Europe, Asia Pacific, Middle East and Africa, South America |
| Key Players Profiled | Boldon James Ltd (QinetiQ), Covata Limited, IBM Corporation, Microsoft Corporation, Opentext Corporation, Google, Symantec, AWS, Innovative Routines International (IRI), Inc., and Varonis. |
Key Segment Of The Data Classification Market
by Component (USD Million)
• Solutions
• Services
By Methodology (USD Million)
• Content-based Classification
• Context-based Classification
• User-based Classification
By Application (USD Million)
• Access Control
• Web, Mobile, and Email Protection
• Governance and Regulatory Compliance
• Centralized Management
By Verticals (USD Million)
• BFSI
• Healthcare
• Government & Defence
• IT & Telecom
• Energy & Utilities
• Others
Regional Overview (USD Million)
North America
• US
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America
Middle East and South Africa
Frequently Asked Questions (FAQ) :
the data classification market is growing at a CAGR of 24.3% during the forecast period.
The market value of data classification market in 2028 was USD $ 4.54 billion.
The major contenders in the global data classification market Boldon James Ltd (QinetiQ), Covata Limited, IBM Corporation, Microsoft Corporation, Opentext Corporation, Google, Symantec, AWS, Innovative Routines International (IRI), Inc., and Varonis.
The data classification tools allow businesses to categorize data according to customary or predefined policies to guarantee the protection of personal data of a business. In terms of privacy compliance and data regulation, data classification tools adopt this protocol. Advanced functionality such as the visibility of content in databases, the marking of file classifications, file-path parsing, policy-based control, and monitoring, and the classification of background categories are included in the data classification tools. To provide real data mining, sophisticated data classification tools for information classification and management go beyond the search.
The tools for classification of data also help us finish data that is identical to a name, name of the organization, number of the account, or even a data point in a cell. Many of the techniques used to detect topics or paper summaries use meaning or pattern recognition. Some data classification methods display the contents of the confidential files that can use and access those files where the files are stored. Data classification tools organize and find information according to specified guidelines.
Data classification tools for classifying data define search, transfer, and index data according to the policy of the company. The data classification tools distinguish data according to various methods, whether or not the data file is organized or not. Via these data classification tools, the data can be transferred or relocated to a suitable storage subsystem.
Component Segment
The Solutions Segment was the biggest market share in 2018 with more than 69 percent and will display a similar pattern over the projected period. Adoption is further strengthened by the need to conform with and evaluate historical knowledge in potential decisions in key sectors such as the BFSI, hospitals, government and defense, and telecom and IT. Furthermore, manufacturers are actively designing competitive options to continue on the market.
Classification Type Segment
The paradigeon improvements in the use of a vast quantity of knowledge and human precision in deciding the type of data during the initial implementation process also raised the need for a user-based classification solution. Dues to the availability of features like user-friendly deployment and real-time danger warning, the user-based classification category accounted for the largest market share of more than 46 percent in 2018. The file at the end of the user may also launch an instant correction. This element is expected to drive the segment's rise. The user-based approach to data classification enables users to use their information to create, modify, review, or sensitive share documents. Each document's manual approach and the end-user option is mostly applied in all industries and are the most common approaches. Vendors such as Symantec Corporation and Boldon James provide their Data Loss Prevention (DLP) and Classifier Foundation Suites to be categorized using user-based data. Such improvement in user-based classification will continue to increase the segment over the forecast period.
Industry Vertical Analysis
The BFSI segment was estimated at USD 139 million in 2018, as BFSI data are critical for the protection of the country's economy. The BFSI business is most profitable vertically, because of its susceptibility to cyber threats, data robbery, and strict regulation. Also, telecommunications and IT verticals are another big adopters, owing to the production, based on their classification, of a large volume of non-structures. Both industries contain valuable consumer information that hackers may use, requiring data classification solutions. Another significant contributor to the rising market share is the BFSI industry. The BFSI industry receives and maintains user permission information for its financial account. This type of knowledge is also targeted by hackers so that the national economy will crash and the DLP and data classification solution can be prevented.
The global market is segmeneted into North America, Europe, Asia Pacific, South America, and the Middle East and Africa. North America region has a significant share in the global market owing to the presence of several data classification providers such as IBM and Microsoft.
The global market for Data Classification is made up of a large number of influential players. Market players such as Amazon Web Services, Inc.; Covata; Symantec Corporation; Varonis; Google, Inc.; IBM Corporation; Boldon James; Microsoft; Open Text Corporation; Innovative Routines International (IRI), Inc.; Veritas dominate the worldwide data classification market.