The global GDPR services market size was valued at USD 1.72 billion in 2021. It is expected to reach USD 13.00 billion by 2030, growing at a CAGR of 25.2% during the forecast period (2022–2030). Services relating to the General Data Protection Regulation (GDPR) are a broad category of innovative tools that help businesses adhere to the GDPR of the European Union (EU). They entail assessing various aspects, including document lifecycle, encryption, data backup, GDPR readiness, risk, and data protection impact assessments (DPIA), before planning and implementing specific IT solutions in business operations. For transactions occurring within EU member states, they support businesses protecting all EU citizens' privacy and personal information. The need for GDPR services has increased significantly in recent years due to their ability to assist companies in successfully meeting the regulations to avoid costly fines and other legal complications.
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Growing Number of Data Breach Worldwide
The significant fines assessed for non-compliance with the regulation have also contributed to the demand for data governance, data mapping, and data management services to reduce the number of breaches and protect sensitive information. Additionally, about 52% of businesses said they would increase their digital transformation investments. Thus, the pandemic's macroeconomic disruption has not prevented spending on digital transformation from increasing. The demand for data security and privacy grows along with the pace of digital transformation, spurring the use of GDPR services.
Rising Need for Transparency in Data Processing
Consumers all over the world have been increasing their demands for transparency in the data processing. In order to meet these requirements and foster a sense of trust, GDPR services are crucial. The General Data Protection Regulation (GDPR) gives individuals greater access to their data and the ability to correct or remove it when necessary. Similarly, many nations started debating and enacting their privacy laws. The personal data used by the company can be more effectively controlled with the aid of GDPR services.
GDPR Services' Complex Implementation, Level of Market Compliance, and High Cost
Managing various audit processes, ensuring that data breaches are reported, and protecting individual rights are just a few challenges organizations worldwide face. These problems directly affect GDPR compliance services. The shared responsibility model for safeguarding personal data across the entire cloud supply chain introduces a new element. In essence, because they must show that they have complied with GDPR requirements, cloud customers are liable to the data subject in some ways. Continuous monitoring, risk assessment, and other factors have made the perception that maintaining GDPR compliance is expensive. The higher implementation costs have hurt smaller businesses with a limited budget set aside for data protection.
Growth of Modern Technology
Urbanization, modernization, and globalization are factors that are driving market value growth. Opportunities for growth in the market will arise from factors such as the strengthening of the IT sector in developing nations like China and India, as well as the rising demand for privacy, security, authenticity, legality, trust, universality, and scalability in organizational operations and quality monitoring. Other factors driving market growth include expanding industrial infrastructure and rising smartphone adoption in developing nations.
The global GDPR service market is segmented by type of deployment, offering, organization size, and end-user industry.
Based on the type of deployment, the global GDPR service market is bifurcated into on-premise and cloud.
The cloud segment is the highest contributor to the market and is expected to grow at a CAGR of 27.6% during the forecast period. New platforms are being developed using cloud technology more frequently to enhance digital business transformation. However, due to their lack of expertise and infrastructure, numerous businesses may find it challenging to implement a multi-cloud environment. Businesses can now quickly and affordably scale their operations thanks to consumption-based pricing models offered by cloud-based service providers. Towards the end of 2019, DXC Technology introduced a multi-cloud orchestration, automation, and governance solution that VMware powered to revolutionize the delivery of managed services across any cloud. With the aid of the common security, governance, and compliance framework provided by the company's services, their IT teams could quickly deploy a universal management experience across cloud environments, reducing risk and accelerating cloud adoption.
On-premise services are typically deployed on customer servers and computers. On-premises deployment of these services gives businesses control over their data, procedures, and policies, aiding in risk management and compliance. The segment's flexibility and growth come from its ability to tailor services to an organization's needs, data security, and privacy requirements. Due to market competition, the cost is a significant factor in choosing a solution, and on-premises solutions cost more. Hardware, software, installation, configuration, and implementation are included. Public cloud services expand an organization's trust boundary, making security and governance crucial. Cloud-based services have helped businesses adopt best governance practices.
Based on the offering, the global GDPR service market is bifurcated into data management and API management.
The data management segment owns the highest market share and is expected to grow at a CAGR of 23.8% during the forecast period. To extract value for well-informed business decisions and increase visibility to ensure that the decision-makers receive the appropriate information, users of data discovering and mapping solutions can locate and manage both structured and unstructured data across the enterprise. This accelerates the adoption of GDPR-compliant data discovery and mapping solutions. However, enterprises are concentrating on implementing all-inclusive solutions instead of investing in different keys, as the latter increases the cost of the business. The adoption rate is now slightly off-balance as a result. To accommodate all requirements in a single solution, vendors in the market are concentrating on such conditions and continually increasing investments in research and development.
The challenges of preventing third-party developers from accessing or extracting user data and harvesting massive quantities of collected personal data are also addressed by GDPR-compliant API management. A data breach like the one that exposed the personal information of 90 million Facebook users without their permission is widely recognized. The company's release of its open graph API gave third parties a legitimate way to access Facebook's data ecosystem, which led to holes in the company's API. The adoption rate of GDPR-compliant API management solutions currently available from market leaders like IBM and Microsoft, to name a few, is rising in response to an increase in global cybersecurity threats and data breaches.
Based on organization size, the global GDPR service market is bifurcated into large enterprises and small and medium enterprises.
The large enterprise segment is the highest contributor to the market and is expected to grow at a CAGR of 24.1% during the forecast period. The effectiveness of cyberattacks has grown since they now routinely bypass conventional security measures and do not appear in virus databases or on signature lists. Cyber attackers often target large, delicate organizations like financial institutions, multinational corporations, and governments, necessitating a proactive strategy. Furthermore, due to their large spending capacities, large businesses invest more money in the "as-a-service" sector, which positively affects the market. They also hold a significant portion of the market. Large corporations typically have a lot more data, touchpoints, and assets than small and medium businesses. Businesses that deal with unprecedented volumes of customer data and personal information, among other things, must increasingly rely on compliance-based services. It is anticipated that rising cloud adoption trends among major corporations will propel service provider market revenues.
Small and medium-sized businesses are expected to grow faster than larger businesses over the forecast period. GDPR can be overwhelming for SMEs with limited resources, and SMEs may not prioritize GDPR compliance. In the EU, breaking the law can result in hefty fines or revoked business permits. Higher compliance solution costs may reduce SMEs' profit margins. SMEs may benefit from working with service providers to stay legal. As a result, vendors have introduced new SME-focused services, and Munich's DataGuard offers GDPR-as-a-service. It provides a cloud-based platform to help online businesses comply with local laws and privacy best practices by examining their data processing activities. Digital transformation in SMEs makes team coordination more difficult, especially regarding sharing, rendering, and maintaining document confidentiality. This will raise database maintenance costs, boosting demand for these services. Costs, innovation in business processes, massive data and files maintenance, security, scalability, and flexibility in managing data are factors.
Based on the end-user, the global GDPR service market is bifurcated into banking, financial services, and insurance (BFSI), telecom and IT, retail and consumer goods, healthcare and life sciences, and manufacturing.
The BFSI segment owns the highest market share and is expected to grow at a CAGR of 25.4% during the forecast period. Organizations must establish a centralized data governance structure to manage critical information assets from definition to creation to security to usage. Banks typically implement consent management with a self-service portal at the start of a compliance project. Banks are implementing blockchain technology to streamline operations, which raises the issue of blockchain GDPR compliance. The US startup ULedger claims blockchain technology can help companies to comply with GDPR. The blockchain solutions provider launched plug-and-play tools to use blockchain technology and adhere to new standards effectively.
The GDPR defines health data as personal information about a natural person's physical or mental health, including the delivery of health care services, which may reveal details about that person's overall health. Developed nations have acknowledged that institutions sometimes roll out new platforms, technologies, or features without putting the required security measures in place unless the data is particularly vulnerable. Many developing nations still lack the resources needed to set up crucial protocols. Healthcare organizations regularly suffer cyberattacks and maintain sensitive data. As any data loss indicates a high-priority situation, enhanced management services are required to safeguard hospitals and their patients from attacks on these systems and technologies.
By region, the global GDPR services market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Europe Dominates the Global Market
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Europe is the most significant shareholder in the global GDPR services market and is expected to grow at a CAGR of 27.5% during the forecast period. Due to GDPR's popularity, the region is working to become data-driven and to demonstrate widespread GDPR service adoption. As the collection and sharing of data accelerates to harness AI and other emerging technologies, governments, businesses, and other organizations must investigate and deploy sound data management tools to protect the rights of data owners while achieving common objectives. Governments are looking for new tools to encourage moral and equitable data sharing among ecosystem actors. As IoT devices increase, so does their vulnerability to cyberattacks. Smart city initiatives and an increase in IoT and connected devices are expected during the forecast period. The digital transformation of healthcare is increasing the number of wearables and connected medical devices that allow remote health monitoring.
North America is expected to grow at a CAGR of 24.9%, generating USD 3.77 billion during the forecast period. The strict laws governing data privacy and management in the nation are driving the growth of the GDPR services market in North America. For instance, on June 28, 2018, the California Consumer Privacy Act, a consumer privacy law, became operative in California. The CCPA impacts companies with Californian headquarters and those conducting business with state residents. It implies to companies everywhere in the US and abroad, and this law was enacted because of Facebook's data misuse incident. Organizations are eager to implement innovative solutions to help with data management because they think doing so will make it easier to extract value from data, relieving the IT team of some of the burden of managing data and ensuring compliance with GDPR and other regional data privacy laws.
Asia-Pacific, led by nations like India, China, Japan, and Singapore, is embracing digital innovation quickly across all its end-user industries. IoT, big data analytics, and other emerging digital technologies in Asia-Pacific may help it capture a large share of the GDPR services market. The Privacy Commissioner of Personal Data (PCPD) intends to review the Personal Data (Privacy) Ordinance (PDPO) to bring it into compliance with the EU's GDPR and China's cybersecurity laws and are required by International privacy regulations. The PDPA is being reviewed to conform to international law, including the GDPR of the EU. The Japanese PM recently said the G-20 summit should discuss expanding digital information. These factors are anticipated to drive market growth during the forecast period.
Most Latin American countries had already passed or tightened their data protection laws, which were modeled after the European Data Protection Directive of 1995 and were implemented long before the GDPR was created. However, they no longer address current issues with data protection, much like the Directive itself. In order to facilitate cross-border data transfers to and from the European Union, it is becoming more necessary to update the current regulations and frameworks by the GDPR and introduce new frameworks to ensure compliance with the EU GDPR. The regional government's cybersecurity policies and strategies are anticipated to increase demand for GDPR services in the area.
Several worldwide firms are rapidly extending their offers in the Middle East and Africa by capitalizing on the aforementioned trends and developments, taking advantage of the opportunity given by the regional market. Metallic Backup and Recovery was designed to provide data protection to support customers' efforts to comply with the General Data Protection Regulation (GDPR) and maintain their data sovereignty.