Forbes reveals that 2.5 quintillion bytes of data are being created with each passing day.
And, the data governance market is expected to grow at more than 21.44% CAGR during 2020-2025.
Also, the rate of growth will only increase with the thriving Internet of Things (IoT).
Along with the technologies, data is also growing, and so is the data governance market.
As brands are stabilizing their roots in this data-driven age, the rate at which they create, analyze and store data are increasing exponentially. It means more data brings more value.
But, more data brings in more challenges to effective data governance too.
So, In this article, we gonna talk about the below:
- What is Data Governance
- Components of Data Governance
- Why You Need Data Governance
- Market Dynamics of Data Governance Market
- Segmentation of Data Governance Market
- Future of Data Governance Market
First let’s explore What is Data Governance and its Importance?
Data Governance is a set of processes which is utilize by the stakeholders who make use of technologies to ensure their critical data is managed securely. It comprises mainly four variables which are applicability, availability, integrity and security.
It also acts as a bridge between the IT and businesses for several initiatives and decisions. Other benefits of data governance include improved quality of data, reduction in risk, increased efficiency and more.
And a few components of data governance are…
1. Quality of data
While governing your data, you must look out for its quality too. Hence, to ensure its quality, you must take care of the parameters like relevance, timeliness and accessibility to determine the appropriateness of the data in certain situations.
2. Master Data Management (MDM)
It is often confused with data governance but, trust me, and it is not the same. master data management deals with the processes, tools, policies and standard tools. It also helps with strategic elements and organizational elements of data governance and other aspects.
3. Data Stewardship
This refers to a person who is responsible for maintaining data governance in a brand. It is one of the crucial roles assigned to a person for assuring a successful data governance initiative.
4. Privacy, Security & Compliance
These are the must-haves of a business entity. Not only you have to make sure that your data is safe but also comply with privacy laws over the use of personal data.
5. Data Architecture
To optimize governance, the correct data architecture need to set.
Every day the world of technologies is growing, and businesses are adopting data governance solutions. To make sure that their data is authorized and organized in a database securely with least possible errors. Data governance renders trust and compliance, letting the organizations derive the real value of data.
And there lies the importance of why you need Data Governance today…
As data is becoming the core of every corporate asset, it also determines the success of the businesses in the long run. Transforming your business into all-digital is necessary to govern your data. This also indicates that it is crucial to deploy a data governance framework which fits your business goals seamlessly.
Thus, the framework will allow you to control the data standards needed for the journey and entrusts other responsibilities within your business entity. And well-managed data governance will also let you undergo the digital transformation of your business at several levels like sales, finance, management, procurement, production, legal and more.
As you realize the real significance of Data Governance, let’s move towards the Data Governance Market…
Due to the real quick growth of data volumes, the data governance market is also growing at a faster pace. And along with data sets, there’s also a steep rise in regulatory & compliance mandates, enhancing strategic risk management with the raising business collaborations.
And the global data governance market will to grow from 2.1 billion USD to 5.7 billion USD by 2025 (source: marketsandmarkets).
Now, let’s understand the Market Dynamics of Data Governance Market
IT and businesses aligned with data governance, enabling data integration aligned with data quality businesses and cloud in data governance are the key drivers of the data governance market. And due to the sharp rise in demand for data governance in IT, there is notable growth in the healthcare sector for cost control & data quality.
Difficulties in data ownerships, data inconsistencies across various departments, competition in crowded markets for unstructured data management, extensive use of big data in businesses are the main challenges of the data governance market.
Data governance renders the right set of circumstances for the integration of IT and brands, who need to work together for providing accurate, timely and reliable data which are accessible to the end-users.
It also caters the opportunity to narrow down the obsolete divisions between the aspects of the enterprises and brand’s tendency to install user-autonomous technologies. These technologies include cloud applications, mobile, social media, etc. in a way that it becomes more reliable with the best data governance practices.
Moreover, with the rapid adoption of cloud computing and applications, its impact on data governance is increasing as well.
Moving a step forward let’s get into the market segmentation of the Data Governance Market
The segmentation of the data governance market is done on the basis of application. Such as IT & telecom, healthcare, manufacturers, energy & utilities, retail and others like tourism, hospitality and education.
Apart from that, solutions like software and services segment the data governance market too. Even on deployments like on-premises and cloud-based.
Now let’s dig deep into the Future of Data Governance Market
The data governance market is likely to rise over 21.4% CAGR by 2025 (source :mordorintelligence). And according to the Cisco Global Cloud Index’s forecast, the volume of data creation will be around 100 times more than the amount of data stored.
Another report by Aureus Analytics reveals that the world’s data set will grow by 40% every year and 50 times by 2020. It also predicts that both human & machine-generated data will experience a steep growth which will be larger than traditional business data.
As the technologies are evolving daily, there is massive growth in artificial intelligence companies and the Internet of Things. And brand Mughals like Walmart are adopting data governance solutions to ensure their enterprise data is safe and error-free.
Moreover, data governance market opportunities are likely to increase in the coming years. And a developing economy like India might perform well. There is also a vast scope of growth for the upcoming smart cities and the proliferation of IoT devices. Initiatives like “Digital India Scheme” & “Digital India” campaigns will aid in boosting the growth of the market.
You might want to know about the Top Players in Data Governance Market
Right now, the top vendors of the data governance market are IRI, Collibra, IBM, Ataccama, Talend and Informatica. And they have adopted multiple kinds of organic and inorganic growth strategies like product enhancements, new product launches, partnerships and acquisitions.
To Wrap on Data Governance Market
With the rapid increase in data volumes, regulatory, compliance mandates, strategic risk management and better decision-making, the data governance market will only look to expand.
Among several other applications, the compliance management segment will also grow at a rapid pace. As it helps in enabling organizations to manage their corporate structure. It also aids business entities to implement, measure and monitor the effectiveness of their governance strategies.
Even the retail and consumer goods industry is also about to grow at the highest CAGR during 2020-2025. Due to the high volumes of data created by the retail and consumer industry every year, an effective data governance solution is a dire need.
With the increase in digitization, North America is likely to dominate the entire data governance market. It is because of their early adoption of the data governance solutions. Apart from that, Asia-Pacific (APAC) is also about to grow at the peak CAGR at 2020-2025.
Therefore if a world of data has to sustain, effective data governance must support it.
And there a thriving need for the data governance market comes in.