Data Governance Market Share to Witness Significant Revenue Growth

Data Governance Industry

The global data governance market size is anticipated to reach USD 12.66 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to grow at a CAGR of 21.7% from 2024 to 2030. As companies collect large amounts of data from various sources, including transactions, customer interactions, and other operational activities, they encounter challenges like data consistency, accessibility, and quality. Therefore, the rapid increase in unstructured data volumes is fueling the demand for data governance solutions and services.

The COVID-19 had a positive impact on the data governance industry. The pandemic increased the awareness of implementing robust data governance practices among organizations. As many organizations adopted remote work, online operations increased rapidly, thus increasing reliance on digital technologies and data-driven insights. Moreover, the pandemic highlighted the need for effective data governance frameworks to ensure the quality, security, and compliance of data assets, which led to the importance of data governance, thus driving investments in data governance solutions.

The trends in the market for data governance include the growing adoption of cloud-based data governance solutions. Organizations are increasingly migrating their data infrastructure to the cloud to leverage scalability, flexibility, and cost-effectiveness. As a result, there is a rising demand for cloud-native data governance platforms that can seamlessly integrate with cloud environments, provide centralized data management capabilities, and ensure data security and compliance across hybrid and multi-cloud deployments.

Additionally, increasing focus on establishing data governance as a strategic business function is boosting market growth. Organizations recognize data governance's value in driving business outcomes, enabling data-driven decision-making, and fostering innovation and collaboration. As a result, there is a shift towards embedding data governance practices into broader business processes and initiatives, such as digital transformation programs, customer experience initiatives, and product development strategies.

Gather more insights about the market drivers, restrains and growth of the Global Data Governance market

Data Governance Market Segments Highlights:

Based on component, the solution segment accounted for the highest revenue share of 55.1% in 2023 and is expected to retain its position over the forecast period. The growing emphasis on data privacy, security, and ethical data practices drives the adoption of data governance solutions.
Based on deployment, the on-premises segment dominated the market in 2023 and is expected to grow at a significant CAGR over the forecast period. On-premise data governance solutions offer greater control over sensitive data by allowing organizations to maintain data within their infrastructure, mitigating concerns about data residency, compliance with regulatory requirements, and data security breaches.
Based on application, the risk management segment accounted for the largest revenue share in 2023. Risk management applications enable organizations to establish risk assessment frameworks, define risk tolerance levels, and implement controls and monitoring mechanisms to mitigate risks associated with data-sharing activities, allowing them to promote trust, transparency, and collaboration in data ecosystems.
Based on vertical, the BFSI segment accounted for the largest revenue share in 2023. Data governance solutions assist BFSI organizations in ensuring compliance with the regulations by establishing policies, procedures, and controls to govern the collection, processing, and sharing of sensitive financial and customer data, thereby mitigating the risk of regulatory penalties and reputational damage.
In September 2023, Buchanan & Edwards Inc. launched web-based public sector data governance training to transform how government professionals approach and manage data. The program is designed to provide public sector professionals with the fundamental knowledge and skills required for proficient data management and protection within their organizations.

Data Governance Market Report Segmentation

Grand View Research has segmented the global data governance market based on component, deployment, application, vertical, and region:

Data Governance Component Outlook (Revenue, USD Million, 2018 - 2030)