Data Governance Is Estimated To Witness High Growth Owing To Rising Adoption Of AI And IoT Technologies

Market Overview:
Data governance involves the administration of policies regarding availability, usability, integrity, and security of the data. It helps businesses to understand, control and optimize use of their data through policies, standards and processes. Data governance ensures data quality, consistency and access through data life cycle. Industries such as BFSI, healthcare and government rely heavily on data governance to analyze data generated through various data sources such as AI, IoT and other technologies to drive better business decisions.

The data governance market is estimated to be valued at US$ 2.5 Mn or Bn in 2023 and is expected to exhibit a CAGR of 21.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Rising adoption of advanced technologies such as artificial intelligence and internet of things across industries is a major factor driving the growth of the data governance market. Both AI and IoT generate huge volumes of structured and unstructured data on a daily basis. Effective data governance is critical to leverage this data for analytics and derive meaningful insights. Additionally, growing concerns regarding data privacy and security are also propelling businesses to adopt data governance solutions to safeguard customer data and meet data privacy regulations. Stringent data privacy regulations such as GDPR has further emphasized on the need for robust data governance. Growing volumes of data and need for compliance are some of the key factors expected to boost the demand for data governance over the forecast period.

SWOT Analysis
Strength: Data governance helps organizations ensure regulatory compliance, improve data quality, and enable better decision making. It allows organizations to centralize control over critical data assets. Establishing proper data governance processes ensures security, privacy and management of data.

Weakness: Implementing a comprehensive data governance program requires significant investment of time and resources. It may face resistance from employees if change management is not handled properly. Lack of executive buy-in and unclear roles and responsibilities can affect the success of data governance initiatives.

Opportunity: With growing concerns around data privacy and security, demand for data governance is increasing globally. It helps organizations leverage value from their data assets through improved analytics. Rising adoption of cloud and BI tools is creating new opportunities for data governance vendors.

Threats: Failure to clearly define and communicate the benefits of data governance can lead to lack of user adoption. Rapid changes in technologies may make some data governance policies outdated. Opening up to third party access increases compliance and security risks. Competition from open source and niche players is intensifying.

Key Takeaways
The Global Data Governance Market Size is expected to witness high growth, exhibiting CAGR of 21.2% over the forecast period, due to increasing regulatory pressures around data privacy and security.Stringent laws like GDPR have pushed organizations to strengthen control and oversight of critical data assets.

Regional analysis
North America dominated the global market in 2023, accounting for around 35% of the total share, due to stringent regulatory standards and early adoption of advanced data analytics technologies among organizations in the US and Canada. However, Asia Pacific is expected to grow at the fastest pace during the forecast period, driven by growing digitization and increasing investments in cloud computing solutions across industries in countries like China, India and Japan.

Key players
Key players operating in the data governance market are Collibra NV, SAP SE, SAS Institute Inc., Symantec Corporation (Norton Lifelock), TIBCO Software Inc., Informatica Inc., Alation Inc., IBM Corporation, Varonis Systems Inc., Alfresco Software Inc., Oracle Corporation, Talend SA and Microsoft Corporation. Major players are focusing on partnerships and mergers to expand their offerings and global footprint.