The global market for privacy management software was valued at approximately US$ 521.3 million in 2018 and is projected to expand at a compound annual growth rate (CAGR) of 13.7% from 2019 to 2027, ultimately reaching around US$ 1,585.8 million by the end of the forecast period.
During this forecast period, the privacy management software sector is witnessing consistent growth, driven by ongoing research and development efforts aimed at introducing essential innovations. A significant portion of this market is represented by the cloud deployment model, where data is stored with third-party cloud providers. In this model, clients lack control over the physical location of their data infrastructure, which means that if a vendor's data center experiences a breach, the enterprise has no control over the duration of the outage or the potential exposure of their data. This cloud-based approach is particularly appealing to organizations looking to implement analytics solutions with minimal investment, as it allows them to access necessary data and services at a lower cost. Consequently, the rising demand for cloud-based deployment is anticipated to further propel the growth of the privacy management software market in the near future.
The privacy management software market is characterized by fragmentation, with numerous players operating within various industries. The competitive landscape is expected to evolve in the coming years. Additionally, various governmental initiatives are being implemented to further stimulate the growth of the privacy management software market. For example, in 2018, California amended the California Consumer Privacy Act (CCPA) in response to the European Union's General Data Protection Regulation (GDPR). This law, signed by Governor Jerry Brown, mirrors several aspects of the GDPR and is designed to grant the state's 40 million residents the right to access their personal data held by companies. Furthermore, these residents can update their information or request its deletion and prevent its sale to third parties. Such initiatives are beneficial for privacy management software providers and are expected to enhance market growth in the region.
A significant trend that is likely to influence the privacy management software market in the upcoming years is the inconsistent international coordination regarding data privacy regulations. With rapid technological advancements and the establishment of the GDPR, various regions have begun to implement their own privacy legislation, including California, South America, and parts of Asia Pacific. Although many of these new regulations are less stringent than the GDPR, the ideal scenario would involve a unified international standard for data privacy. However, the current landscape suggests that enforcement will shape how global companies approach data privacy in their operations. These dynamics are expected to gain momentum and have a considerable impact on the privacy management software market.
The segmentation of the privacy management software market by organization size includes small and medium enterprises (SMEs) as well as large enterprises. The large enterprise segment is projected to hold a substantial share of the market throughout the forecast period. Large organizations typically collect and store vast amounts of data, making it challenging for them to track, secure, or report on the history and flow of this data. Recent funding rounds have elevated the valuation of companies like BigID to $46.1 million, highlighting the demand for solutions that assist organizations in complying with GDPR regulations. The necessity for compliance with evolving legal frameworks, coupled with increasing consumer demand for privacy, is expected to drive the demand for privacy management software in the coming years. The European region is emerging as the fastest-growing market, as enhanced access to government data in machine-readable formats across borders will provide AI practitioners with diverse datasets for training AI systems. The adoption of international data interoperability standards is anticipated to accelerate the development and implementation of AI systems, improving data sharing efficiency. Government incentives aimed at fostering a culture of data sharing between public and private sectors will further shift perceptions of data as a product.
North America continues to dominate the privacy management software market, holding the largest share. The overall market size for privacy management software has been determined through a combination of primary and secondary research methods. The research process begins with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative insights related to the market. Additionally, numerous primary interviews are conducted with industry participants and experts to validate the data and analysis. Participants typically include industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in privacy management software. Key players in the privacy management software market include AvePoint, Inc., BigID, Inc., IBM Corporation, Nymity Inc., OneTrust, LLC, Protiviti Inc., RSA Security LLC, LogicGate, Inc., SureCloud, and TrustArc Inc., among others.