Data Masking Market is forecast to reach $435 million by 2025, at a CAGR of 15.03% during 2020-2025. Increasing penetration of data analytics coupled with the rising internet security and privacy concerns throughout the world are expected to accelerate the Data Masking market during forecast period. In 2018, EU General Data Protection Regulation (GDPR) took legal effect to change the whole data capture, storage and processing arena. According to GDPR, businesses must handle and protect personal data, with a specific focus on the privacy and rights of individuals. These regulation are likely to bring demand for data protection and security thereby accelerating the demand for Data Masking Market.
Key Takeaways
- APAC is expected to witness highest CAGR in data masking market due to measures to promote the data security.
- Retail and eCommerce vertical is expected to grow with highest CAGR of 16.45% throughout the forecast period due to organizations which are operating in this industry are using data masking to maintain their brand image in the market and to ensure the security of customer's sensitive data.
- Industries ranging from BFSI to government are becoming really cautious about internal hacking and data privacy concerns which is expected to increase the growth of data masking technology market.
- Complexities in data integration & customization and loopholes in identifying sensitive data are still not achievable which expected to hamper the market growth of data masking technology.
Type - Segment Analysis
Dynamic data masking is expected to grow at a higher CAGR of 8.5% due to rising risk of data breaching across the globe. Dynamic Data Masking masks the Personal sensitive data and protects it from non-privileged users using built-in or customized masking functions, without preventing them from retrieving the unmasked data field. Increasing need for protected big data by dynamically masking sensitive information in Hadoop will be the key driving factors for Dynamic data masking. For Instance, in March 2019, IBM Watson group announced its plan to invest more than $1 billion in big data technology. Similarly, in June 2019, Sales force Inc. agreed to buy big data firm Tableau Software Inc. for $15.3 billion. The increased demand for Big Data will create opportunities for dynamic data masking technology and therefore accelerate the data masking market size.
By Vertical - Segment Analysis
Retail and eCommerce vertical is expected to grow with highest CAGR of 16.45% throughout the forecast period due to organizations which are operating in this industry are using data masking to maintain their brand image in the market and to ensure the security of customer's sensitive data. For Instance, in june 2019, Flipkart had announced an investment of $800 million for several technologies including data masking to help the organization to minimize frauds. Similarly in 2018, Amazon has adopted data masking technology to hide the sensitive data from the hackers. Retail and eCommerce uses a myriad of other applications to to maintain their brand image, security and financial efficiency. This has created a way for the data masking making necessary for the Retail and eCommerce to implement data masking technology.
Geography - Segment Analysis
In 2018, North America dominated the data masking market share for about 38.95% due the presence of developed economies such as US and Canada which stressing over innovating the existing solutions. North America contributes a major share in the generation of data as this region contains data masking industry in a large sector, and thus data security and protection share are in great demand in this region. APAC is expected to witness highest CAGR in the forecast period. The economy of APAC is majorly influenced by the countries such as China and India. In these countries, government have taken several measures to promote data security. For instance, in India, the need for data masking is strongly supported by the government. In July 2018, "Personal Data Protection Bill, 2018" was released that notes the right to privacy is a fundamental right. Stringent regulations as such will drive the data masking market in this region. Similarly Chinese government has been implementing various laws and regulations to increase data security within China. These regulations will enforce the use of data security tools there by creating opportunity for data masking market.
Drivers –Data masking Market
- Rising risk of internal hacking and data privacy issue
Industries such as BFSI, Ecommerce, government etc. are becoming really cautious about internal hacking and data privacy concerns which expected to increase the growth of data masking technology market. BFSI and Ecommerce industries are growing at a CAGR of 8.2% and 9.5% in the forecast period. The Countries like India, China witnessed highest growth rate in Ecommerce sector for year 2018. This is likely to create new opportunity for data privacy and data security thereby creating demand for data masking market.
- Implementation of Stringent Government Regulations
The demanding requirement from regulatory bodies on reducing data obfuscation, data breaching, cyber hacking and data privacy attacks are some of the reasons for rising growth of data masking technology. For Instance, in September 2019, US Federal trade commission (FTC) brought enforcement actions to protect consumer against unfair or deceptive practices and to enforce federal privacy and data protection regulations. Similarly, Indian government is planning to pass personal data protection bill to protect the individuals from cyberattacks threats. These regulations are likely to create demand for data masking technology.
Challenges – Data Masking Market
Complexities in data integration and loopholes in identifying sensitive data
Complexities in data integration and customization, and loopholes in identifying Personal sensitive data are still not achievable by data masking technology. On the other hand data masking is still a difficult process as the changed data must retain any characteristics of the original data that would require specific processing. These challenges will negatively hamper the demand of data masking market.
Market Landscape
Partnership and acquisitions are key strategies adopted by players in the Data Masking market. In 2018, Data masking industry outlook has been fragmented by the top five players accounting for 52% of the share. Data masking top 10 companies include IBM Corporation, CA Technologies Inc., Informatica LLC, Oracle Corporation, Delphix, Micro Focus International plc, Mentis Inc., Compuware Corporation, Arcad Software, and Ekobit among others.
Acquisitions/Partnerships:
- In February 2019 - Informatica acquired AllSight an AI-enabled customer insights startup. With the AllSight acquisition, Informatica accelerated its data hub strategy.
- January 7, 2016 – Actifo, the copy data virtualization company, today announced its partnership with Camouflage Software Inc., a leading provider of solutions for data masking in Test Data Management. The partnership brings a best-in-class solution to address the challenges of data access, control security, and storage costs in the test and development space.
