GDPR Services Market Size, Share & Trends Analysis Report By Offerings (Solutions, Services), By Organization Size (Large Enterprise, Small Enterprise, Medium-sized Enterprises), By End-User Industry (Banking, Financial Services, and Insurance (BFSI), Telecom and IT, Retail and Consumer Goods, Government, Healthcare and Life Sciences, Manufacturing, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global GDPR services market size was valued at USD 2.2 billion in 2023. It is expected to reach USD 16.63 billion by 2032, growing at a CAGR of 25.2% during the forecast period (2024–2032).

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.

Market Dynamics

Global GDPR Services Market Drivers

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.

Global GDPR Services Market Restraints

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.

Global GDPR Services Market Opportunities

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.

Regional Analysis

By region, the global GDPR services market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

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.

Segmental Analysis

The global GDPR service market is segmented by offering, organization size, and end-user industry.

By offerings, the global GDPR service market is bifurcated into solutions (Data Management Solution and API Management) and services (DPO-as-a-Service Risk Assessment and DPIA, Training and Certification, GDPR Governance, Others).

The solutions segment within the GDPR service market, focusing on data management and API management, is crucial in helping businesses comply with the General Data Protection Regulation (GDPR). In order to ensure transparency, accuracy, and security, data management solutions are made to assist businesses in managing, organizing, and safeguarding personal data in compliance with GDPR. Organizations may follow the flow of personal data and manage it in accordance with GDPR's strict consent, access, and deletion regulations by using these solutions, which permit data mapping, data classification, and data governance. Companies may handle requests from data subjects more efficiently, keep thorough records of all processing operations, and lower the chance of data breaches by centralizing data management.

Conversely, API management solutions concentrate on the administration and protection of Application Programming Interfaces (APIs), which are essential for the interchange of data amongst systems. API management solutions make sure that only authorized users and applications can access sensitive data through safe APIs in light of GDPR's emphasis on data security and access control. Typically, these solutions incorporate features like encryption, rate limitation, and authentication to safeguard data while it's in transit and stop unwanted access. A clear record of data exchanges is provided via audit trails and logging, which are additional features of API management solutions that are necessary for GDPR compliance and incident response.

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.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• September 2022- To assist businesses in fostering innovation and pursuing their digital growth agendas, IBM Corporation recently announced plans to acquire Dialexa, a preeminent provider of digital product engineering services in the United States. It is anticipated that the acquisition will expand IBM's product engineering know-how and enable it to offer clients end-to-end digital transformation services.
• September 2022- The Global Renewables Watch (GRW), a first-of-its-kind living atlas designed to map and measure every utility-scale solar and wind installation on Earth using artificial intelligence (AI) and satellite imagery, has been announced by Microsoft Corp., Planet Labs PBC, and The Nature Conservancy. It will enable users to assess the status of the clean energy transition and monitor trends over time.