Global Data Classification Market Size, Share, and COVID-19 Impact Analysis, By Component (Solution and Services), By Classification (Content-Based Classification, Context-Based Classification, and User-Based Classification), By Application (GRC, Access Control, Web, Mobile & Email Protection, and Centralized Management), By Vertical (BFSI, Defense and Government, Healthcare and Life Sciences, Telecom, Education, Media and Entertainment, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 - 2033.

Global Data Classification Market Insights Forecasts to 2033

• The Global Data Classification Market Size Was Estimated at USD 1.54 Billion in 2023
• The Market Size is Expected to Grow at a CAGR of around 29.18% from 2023 to 2033
• The Worldwide Data Classification Market Size is Expected to Reach USD 19.93 Billion by 2033
• Asia Pacific is expected to Grow the fastest during the forecast period.

The Global Data Classification Market Size is anticipated to exceed USD 19.93 Billion by 2033, growing at a CAGR of 29.18% from 2023 to 2033. The market growth is due to effective data classification is essential for protecting sensitive information, ensuring regulatory compliance, and enhancing operational efficiency. It allows organizations to manage data securely and make informed decisions as they scale.

Market Overview

The data classification market refers to the market for tools, services, and technologies intended to classify, arrange, and manage data according to its significance, degree of sensitivity, and compliance needs. By giving data labels or tags according to their content and value, data classification assists organizations in identifying and safeguarding sensitive or important information. Because it helps firms manage access and safeguard sensitive or valuable data, this procedure is essential for guaranteeing data security, privacy, and regulatory compliance.

The data classification models and schemes, differentiate between government classification schemes, commercial classification schemes, and industry-specific approaches. Government classification schemes are usually based on laws, regulations, and executive orders. These schemes are highly standardized and intended to safeguard national security, public safety, and sensitive government operations. The rising use of government data classification the market boost during the forecast period.

Data classification offers a comprehensive framework for protecting sensitive information, ensuring compliance, increasing operational efficiency, and controlling risks. As companies, particularly government agencies, face increasing data quantities and cyber risks, deploying efficient data classification schemes becomes critical to maintaining data integrity and fulfilling crucial missions.

Report Coverage

This research report categorizes the data classification market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the data classification market. Recent market developments and competitive strategies such as expansion, Type of Software launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the data classification market.

Driving Factors

The exponential growth of data underscores the importance of appropriate data classification in protecting sensitive information, complying with privacy requirements, and safeguarding against cyber threats. Proper classification enables firms to implement targeted security measures and handle data more effectively. It enables compliance with worldwide data privacy regulations such as GDPR and CCPA.  Data classification improves operational efficiency, decision-making, and data governance.  Ultimately, enterprises must ensure the security, integrity, and correct management of their data assets, due to the expansion of the market growth.

Restraining Factors

Market expansion is hampered by the shortage of experienced data categorization specialists since companies find it difficult to hire qualified staff to develop and oversee systems. Another major obstacle is the expensive implementation and maintenance expenses of data classification solutions, particularly for small and medium-sized businesses. Adopting thorough data classification procedures is delayed and inefficient as a result of these difficulties. Consequently, market expansion is hindered.

Market Segmentation

The data classification market share is classified into component, classification, application, and vertical.

• The solutions segment accounted for the majority of the share in 2023 and is estimated to grow at a remarkable CAGR during the forecast period.

Based on the component, the data classification market is categorized into solutions and services. Among these, the solution segment accounted for the majority of the share in 2023 and is estimated to grow at a remarkable CAGR during the forecast period. The segmental growth can be attributed to the stricter data protection laws and an increase in cyber threats, organizations are realizing the value of effectively managing and safeguarding their data. Because they improve operational efficiency and guarantee regulatory compliance, solutions with automated classification capabilities are crucial. Furthermore, to efficiently handle massive amounts of data, sophisticated data classification solutions are required due to the spread of big data and the increasing use of cloud computing.

• The user-based classification segment held the largest share in 2023 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the classification, the data classification market is segmented into content-based classification, context-based classification, and user-based classification. Among these, the user-based classification segment held the largest share in 2023 and is anticipated to grow at a significant CAGR during the forecast period. The segmental growth can be attributed to the rising need for personalized data security main driver the segmental growth. User-based data classification aligns access and roles, hence improving data security and management efficiency. It ensures that sensitive information is only accessible to authorized users, hence facilitating secure operations.

• The GRC segment held the greatest share in 2023 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the application, the data classification market is divided into GRC (governance, risk, and compliance), access control, web, mobile & email protection, and centralized management. Among these, the GRC segment held the greatest share in 2023 and is anticipated to grow at a significant CAGR during the forecast period. The segmental growth can be propagated to the growing requirement for regulatory compliance and data protection is driving the demand for GRC solutions.  Stringent legislation, such as GDPR and CCPA, compels firms to safeguard data properly to avoid fines and reputational damage. Furthermore, emerging cyber risks underline the need for strong data classification techniques to protect sensitive information.

• The BFSI segment held the largest share in 2023 and is anticipated to grow at a significant CAGR during the predicted timeframe.

Based on the vertical, the data classification market is segmented into BFSI, defense and government, healthcare and life sciences, telecom, education, media and entertainment, and others. Among these, the BFSI segment held the largest share in 2023 and is anticipated to grow at a significant CAGR during the predicted timeframe. The segmental growth can be expanded to the BFSI industry to handle large volumes of privacy and sensitive data. The volume of data generated by the growing use of digital banking and financial services has increased exponentially, necessitating the development of effective data classification systems to properly manage, safeguard, and utilize this data.

Regional Segment Analysis of the Data Classification Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the data classification market over the predicted timeframe.

North America is anticipated to hold the largest share of the data classification market over the predicted timeframe. The region's growth can be attributed to the rise in data cyber threats and breaches. Companies are realizing more and more how crucial it is to manage and classify their data to safeguard confidential information and maintain compliance. Additionally, the region's increasing use of cloud services and big data analytics calls for effective data classification to maximize storage, strengthen data governance, and facilitate better decision-making.

Asia Pacific is expected to grow at the fastest CAGR of the data classification market during the forecast period. The region in which crucial growth in digital creativity and organization digitalization leads to the growth of data generation. Additionally, because of high-profile data breaches and cyberattacks, consumers and companies are more aware of and concerned about data privacy. Strong data classification solutions are in high demand in the Asia-Pacific market as a result of the growing usage of AI and machine learning in company operations, which necessitates accurate data categorization to improve efficiency and decision-making.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the data classification market along with a comparative evaluation primarily based on their Type of Software offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes Type of Software development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• IBM
• Amazon Web Services, Inc
• Microsoft
• AWS
• Softworks AI
• Digital Guardian
• Informatica
• Forcepoint
• GTB Technologies, Inc.
• Sienna Group, LLC.
• Alphabet Inc.
• Broadcom (Symantec Corporation)
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In November 2024, Wiz partnered with NVIDIA to enhance machine learning-based data classification, utilizing NVIDIA's NIM microservices and Meta Llama 3 models for efficient and accurate sensitive data identification. By leveraging NVIDIA's AI platform, Wiz's research team significantly improved data classification speed and precision, reducing processing times and enhancing scalability.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the data classification market based on the below-mentioned segments: 

Global Data Classification Market, By Component

• Solution
• Services

Global Data Classification Market, By Classification

• Content-Based Classification
• Context-Based Classification
• User-Based Classification

Global Data Classification Market, By Application

• GRC
• Access Control
• Web
• Mobile & Email Protection
• Centralized Management

Global Data Classification Market, By Vertical

• BFSI
• Defense and Government
• Healthcare and Life Sciences
• Telecom, Education
• Media and Entertainment
• Others

Global Data Classification Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa