Consent Management Market

Market Overview

The global consent management market size was valued at USD 552 million in 2023 and is projected to reach USD 3590 million by 2032, registering a CAGR of 20.6% during the forecast period (2024-2032). The rising awareness among organizations regarding data regulatory compliance and the global digitalization trend is fueling the expansion of the consent management market. 

Consent management is a process or framework that educates users on regulations about gathering and utilizing data to promote adherence. It is a mechanism that ensures firms comply with data privacy regulations by collecting, storing, and transferring user consent. Users exercise control over data collection and utilization by implementing consent management systems, which provide information regarding a business's data gathering and usage practices. Consent management platforms (CMPs) aid in collecting and organizing consents and personal data, assisting enterprises in complying with data protection rules. Organizations gain knowledge about every stage of the personal data lifecycle, including opt-in, data subject's request, and consent options, by utilizing CMPs. Consent management is essential as it empowers customers to have authority over their data and ensures that firms are transparent and truthful about their methods of collecting and utilizing such data.

The market is predominantly influenced by various factors, such as increasing awareness of data privacy, escalating cyber-attacks, data breaches, consumer desire for consent and preference control, and adopting Privacy by Design (PbD) to improve data privacy and government regulations. 

Highlights

• The software generates the highest revenue share based on components. 
• Web app accounts for the largest market share by touchpoint.
• Cloud accounts for the largest market share by deployment mode. 
• IT and telecom account for the largest market share among end users.

Market Dynamics

Global Consent Management Market Drivers:

Growing Awareness of Data Compliance Regulations

The increasing focus on data compliance requirements is set to impact the consent management market substantially. With the implementation of strict data protection rules like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States, governments are pushing enterprises to give more importance to the handling of user permission. It is essential because failure to comply can lead to significant monetary fines and harm one's image.

As a result, organizations are using consent management tools to guarantee compliance with these rules. These platforms streamline the gathering, storing, and recording of user consent at several points of interaction, allowing enterprises to prove their adherence to legal obligations. Furthermore, they enhance users' autonomy by offering clarity and authority over personal information, cultivating confidence between customers and enterprises.

In addition, the increasing use of digital technologies and the general acceptance of cloud-based services have heightened worries about data privacy, leading to a greater need for consent management solutions. Healthcare, finance, and e-commerce businesses are especially vulnerable to regulatory compliance because of the type of data they manage.

Moreover, the growing recognition of data compliance rules is anticipated to drive the expansion of the consent management market as firms look for solid solutions to navigate the intricate realm of privacy laws and protect user data.

Rising Cyberattacks and Data Breaches

The increasing frequency and severity of cyberattacks and data breaches are expected to be important factors driving the growth of the consent management industry. Organizations are increasingly confronted with protecting sensitive information from hostile actors due to the widespread use of digital transactions and the rapid increase in data output.

Additionally, businesses in all industries face significant risks from various cyberattacks, including ransomware and phishing tactics. Data breaches, whether caused by external hacking attempts or internal weaknesses, can result in substantial financial losses, regulatory penalties, and irreversible harm to brand reputation. An example of this is the analysis of critical infrastructure attacks conducted in a recent report by Forescout Research. The research identified a total of over 420 million attacks that occurred in the United States between January and December 2023. The rate of attacks is 13 per second, which is a 30% rise compared to 2022. The United States experienced a total of 3,205 instances of data compromises in the year 2023. The same year, data compromises, such as data breaches, leakage, and disclosure, affected over 353 million persons. Consequently, firms face growing demands to strengthen their cybersecurity measures and guarantee adherence to strict data protection rules.

Moreover, consent management solutions are essential for improving data security and ensuring compliance with regulations in this particular situation. Organizations may efficiently handle user permissions, monitor consent preferences, and reduce the risk of unwanted data access or misuse by using robust consent management platforms. These platforms facilitate firms in showcasing openness and accountability in their data processing procedures, hence promoting trust and confidence among consumers.

Global Consent Management Market Restraint:

Rapid Technological Advancements and Data Proliferation

The swift rate of technical advancement and exponential data expansion provide a significant challenge for the Global Consent Management Market. The rise of advanced technologies like artificial intelligence, machine learning, and the Internet of Things (IoT) has led to a substantial increase in the amount and intricacy of data processing. Data generation and usage increase amplifies the difficulty of gaining well-informed and detailed consumer consent in various data-driven applications.

Similarly, organizations need help effectively monitoring and controlling user permission due to the abundance of data sources and the interconnectedness of digital ecosystems. Consent management systems must adapt to the changing technological environment, including incorporating new data types and processing methods. Consent management platforms must continuously innovate to maintain their effectiveness and adaptability in response to technological advancements.

In addition, the interconnectivity of digital platforms presents difficulties in maintaining a consolidated and cohesive perspective on user permission. Organizations have the challenge of establishing a comprehensive consent management strategy that covers the whole data lifecycle as data moves effortlessly between different applications and devices. To tackle this difficulty, it is necessary to have a proactive stance toward adopting technology and to be committed to staying ahead in the always-changing data environment.

Global Consent Management Market Opportunity: 

Global Digital Disruption

Digital disruption is the term used to describe a significant shift in people's expectations and behaviors that is brought about by, or expressed through, digital capabilities, channels, or assets. This change profoundly impacts the culture, market, industry, or process it affects. The rapid increase in digital disruption is critical in propelling the consent management industry ahead. 

As businesses increasingly adopt digital channels for client connection, there is a growing need for consent management solutions. Businesses are compelled to meet the demands of modern consumers by proactively adapting to technological advancements and swiftly integrating the latest improvements. Furthermore, digital disruption encompasses using big data and analytics, enabling organizations to optimize sales performance by acquiring valuable knowledge about client purchasing patterns. The advent of digital disruption simplifies marketing processes, leading to enhanced overall organizational well-being. 

Furthermore, the advent of digital disruption enables firms to access new client segments, streamline expenses, and improve consumer engagements, thereby requiring practical consent management tools. This course of action will enhance openness in the worldwide digital advertising industry, promoting confidence among users and, as a result, aiding in the growth of the consent management business.

Regional Analysis

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global consent management market shareholder and is estimated to grow at a CAGR of 20.1% over the forecast period. The Asia Pacific area is experiencing the most rapid growth. The region comprises multiple developing nations seeing swift expansion in their information technology and telecommunications industries. The significance of corporate governance and compliance is increasing in the area, particularly in China, India, Singapore, and Hong Kong, due to concerns among customers and employees regarding the security of their personal information.

Moreover, the anticipated market expansion in the following years will be propelled by the rising customer expectations to effectively handle their preferences and consent and the expanding awareness of data agreement rules. For example, Optus experienced a substantial issue with data breaches. Australia has proposed amending consumer privacy rules to streamline data transmission between telecommunications firms and banks.

In addition, the adoption of consent management solutions is driven by the region's ongoing digitalization efforts and government policies to safeguard personal and sensitive information throughout various enterprises. The consent management market is propelled by digital innovation, facilitated by improved internet connectivity and increased smartphone usage, particularly in Southeast India. For instance, the Indian Personal Data Protection Bill 2019 simplified withdrawing or granting consent for personal data processing through a consent manager. The Data Protection Bill grants the Data Protection Authority the authority to develop rules for consent management in areas such as finance, operations, technology, and other related aspects. The Reserve Bank of India (RBI) is now working on standardizing the management of massive volumes of financial data with consent. 

North America is anticipated to exhibit a CAGR of 20.9% over the forecast period. The consent management industry in North America is mainly influenced by strict data protection rules, such as the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR). These requirements require enterprises to seek explicit approval from individuals before collecting and processing their data, hence raising the need for consent management systems. In addition, increasing worries about data privacy and security breaches have compelled enterprises to allocate resources toward effective consent management solutions to guarantee compliance and establish consumer confidence. In addition, the widespread use of digital technology and the growing popularity of cloud-based services contribute significantly to the expansion of the industry.

Europe holds a significant market share. Consumers in Europe are becoming more aware of their rights regarding data privacy and are increasingly concerned about the rising number of data breaches. As a result, there is a greater demand for robust and reliable consent management platforms. In addition, the increasing digital environment and the growing popularity of online services also contribute to the market's growth in Europe.

Segmental Analysis

The global consent management market is segmented based on component, touchpoint, deployment mode, and end user. 

Based on component, the market is segmented into Solution and Service

The solution segment dominated in 2023. The solution encompasses the discoveries regarding consent management platforms (CMPs) that provide website users with clear information about data tracking, enabling them to make informed decisions about their online activities. 

The service segment is the fastest growing.  It offers several forms of support that help organizations simplify and automate the process of managing consent. These services encompass assistance with implementation, evaluating potential hazards, and providing instructional aid.

Based on touchpoint, the market is segmented into Web and Mobile apps. 

The web app segment dominated in 2023. The Web App primarily emphasizes obtaining user consent through website-based interactions, such as pop-up alerts or banners informing consumers about their data tracking and processing. 

The mobile app segment is the fastest growing. Due to the growing dependence on smartphones for accessing digital services, mobile apps provide simple platforms for consumers to control their consent preferences. These applications offer user-friendly interfaces that allow individuals to give or withdraw permission to gather and process data. This improves transparency and control over personal data, which aligns with changing privacy legislation.

Based on deployment mode, the market is segmented into Cloud and On-Premises. 

The cloud-based deployment mode dominated in 2023. The significance of cloud-based deployment in driving the expansion of the consent management industry is crucial. Businesses looking for effective consent management systems are drawn to cloud-based solutions because they provide scalability, flexibility, and accessibility. In addition, deploying applications in the cloud decreases expenses related to infrastructure and allows for effortless software updates, guaranteeing adherence to changing regulations. The market expansion will likely be fueled by adopting cloud-based consent management systems as enterprises prioritize data protection and privacy compliance.

The on-premise segment is the fastest growing. On-premises, this part focuses on implementing consent management programs within the company's physical infrastructure, giving consumers direct control and the ability to customize their selections. The on-premises deployment strategy is crucial for expanding the consent management industry as it specifically addresses the needs of enterprises with strict data privacy requirements or security concerns. Furthermore, on-premises solutions are particularly appealing to sectors like healthcare and finance because of their added security and reliability. This has increased market growth for organizations with strict data handling needs.

Based on end-users, the market is segmented into IT and Telecom, Government, Healthcare, Retail, and E-commerce. 

The IT and telecom segment dominated in 2023. The IT infrastructure supports the creation and execution of consent management systems, allowing organizations to effectively gather, handle, and analyze user consent. Telecommunication services facilitate the essential connection for smooth data transmission between consumers and enterprises, improving consent management platforms' effectiveness. IT and telecom work together to enable organizations to meet regulatory obligations and establish confidence with their consumers.

The healthcare segment is the fastest growing. The healthcare sector significantly influences the consent management market, essential for its growth. Due to the growing importance of patient privacy and the implementation of data protection requirements like HIPAA, healthcare businesses need robust consent management solutions to receive and handle patient consent efficiently. These solutions guarantee adherence to legislation, safeguard patient confidentiality, and cultivate trust between healthcare providers and patients. Therefore, the healthcare sector plays a crucial role in driving the growth of the consent management market.

Recent Developments

• May 2024– TrustArc, a prominent provider of solutions for managing and governing data privacy, announced the release of its newest advancement, Trust Center. Trust Center, developed by TrustArc, is a centralized web platform that provides an organization with a comprehensive and customizable repository for managing trust and safety information without coding. Trust Center enables firms to streamline compliance processes, expedite sales efforts, and mitigate legal and regulatory risks by prioritizing trust.
• March 2024– TrustArc, a prominent provider of solutions for managing and governing data privacy, introduced two groundbreaking product breakthroughs that will revolutionize the privacy field – Responsible AI Certification and NymityAI.