Data Governance Market Poised for Growth, Expected to Hit USD 16.93 Billion by 2032, says Coherent Market Insights

Burlingame, CA, Oct. 03, 2025 (GLOBE NEWSWIRE) -- The Data Governance Market is estimated to be valued at USD 4.75 Bn in 2025 and is expected to reach USD 16.93 Bn by 2032, growing at a compound annual growth rate (CAGR) of 19.9% from 2025 to 2032. The global governance market is witnessing strong demand as organizations across industries increasingly recognize the importance of data governance. Effective governance enables businesses to extract actionable insights from growing data volumes, ensure regulatory compliance, and enhance customer trust.

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Global Data Governance Market Key Takeaways

According to Coherent Market Insights (CMI), the global data governance market size is expected to grow nearly 3.6X, from USD 4.75 Bn in 2025 to USD 16.93 Bn by 2032, at a CAGR of 19.9%

By application, compliance management segment is expected to dominate the global market, capturing 27.2% share in 2025.

As per CMI’s new data governance market report, demand is anticipated to remain high for cloud-based data governance tools, holding a market share of 63.68% by 2025.

Based on organization size, large-scale business segment is projected to account for nearly three-fourths of the global data governance market share in 2025.

North America is expected to maintain its lead, accounting for over two-fifths of the global data governance industry share by 2025.

Asia Pacific, with an estimated 24.2% market share in 2025, is poised to emerge as the most lucrative pocket for data governance market companies during the forecast period.

Rise in Data Volume and Complexity Fueling Data Governance Market Growth

Coherent Market Insights’ latest data governance market analysis highlights key factors driving industry growth. One such prominent growth driver is the rapid rise in data volume and complexity.

The amount of data generated and handled by businesses is increasing exponentially due to usage of smartphones, IoT devices, sensors, cloud computing, and other digital solutions. This is pushing organizations to adopt governance solutions that ensure data quality, lineage, compliance, and usability.

According to the International Data Corporation (IDC), the global datasphere is estimated to reach 175 zettabytes by 2025. This surge in data volume and complexity is expected to boost demand for data governance solutions during the forthcoming period.

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High Costs and Implementation Complexity Limiting Market Growth

The future data governance market outlook looks bright, owing to rising data complexity and increasing regulatory pressure. However, high costs and implementation complexity may limit market to some extent over the forecast period.

Using advanced data governance solutions can be expensive. This deters organizations, especially small and medium-size enterprises (SMEs), from adopting them, slowing down overall data governance market demand.

Moreover, merging modern governance tools with legacy systems is technically complex and costly. This may also slow organizational rollout and scalability during the forthcoming period.

Regulatory Pressure and Compliance Requirements Unlocking Growth Opportunities

Governments and regulatory bodies globally are introducing stringent data privacy regulations like GDPR and CCPA. These frameworks require businesses to strengthen their data management practices, driving the adoption of data governance solutions.

Data governance tools play a critical role in ensuring data quality as well as security and compliance. They have the tendency to help organizations track, manage, and protect sensitive information while aligning with evolving legal and regulatory requirements.

Emerging Data Governance Market Trends

Ongoing digital transformation is expected to boost demand for data governance solutions during the forthcoming period. Organizations in the contemporary world are modernizing operations by using AI/ML, cloud services, and analytics. This modernization generates vast amounts of structured and unstructured data, requiring robust governance frameworks to ensure quality, security, and compliance.

Rising popularity of AI-powered data governance is a key market trend. AI and machine learning are increasingly being integrated into data governance platforms to automate metadata management, anomaly detection, and policy enforcement. They help organizations streamline compliance as well as reduce operational risks.

Cloud-based data governance solutions are gaining popularity, thanks to their scalability, accessibility, and lower upfront costs. Rising adoption of these cloud-based solutions is expected to boost the data governance market value during the forthcoming period.

Increasing incidence of cyberattacks and data breaches is providing a big market push. Data governance provides the framework and tools to protect sensitive data by establishing policies, controlling access, and ensuring compliance.

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Analyst’s View

“The global data governance industry is set for robust growth, owing to rising data volume and complexity, ongoing digital transformation, tightening regulatory compliance & data privacy laws, and increasing need for effective risk management and data quality initiatives,” said a senior analyst at CMI.

Current Events and Their Impact on the Data Governance Market

Event	Description and Impact
Surge in AI-related M&A activity	Description: Big tech companies are buying data infrastructure firms to strengthen their AI, e.g., Meta’s stake in Scale AI, Salesforce’s purchase of Informatica, and IBM’s acquisition of DataStax. Impact: This fuels demand for data processing, integration, and governance platforms to support AI operations.
EU AI Act Enforcement Underway	Description: The EU’s Artificial Intelligence Act is rolling out requirements for transparency and governance across risk-tiered AI systems through 2025–2026. Impact: This will likely accelerate adoption of compliance, audit, and explainability tools for AI and data software.
Rising Legal and Operational Risk from AI in the Workplace	Description: Use of AI for employee monitoring and decision-making is raising legal concerns around GDPR, hallucinations, copyright infringement, and misuse. Impact: This drives uptake of robust AI governance frameworks as well as compliance tooling for enterprise systems.

Competitor Insights

Key companies in the data governance market report:

Alation Inc.
Adobe Inc.
Datum LLC
Amazon.com Inc.
Collibra Inc.
Ataccama Corporation
Data Advantage Group Inc.
Denodo Technologies
erwin Inc.
Global IDs Inc.
Infogix Inc.
Global Data Excellence SA
Infosys Limited
Informatica LLC
Information Builders Inc.
Innovative Routines International Inc.
Oracle Corporation
Magnitude Software Inc.
International Business Machines Corporation
Micro Focus International plc
Microsoft Corporation
SAP SE
Orchestra Networks Inc.
Reltio Inc.
SAS Institute Inc.
TopQuadrant Inc.
Symantec Corporation
Talend Inc.
TIBCO Software Inc.
Varonis Systems Inc.
Syncsort Incorporated

Key Developments

In May 2025, OneTrust launched a new governance solution called Data Use Governance. It is designed to accelerate AI initiatives with automated data and policy enforcement.

In October 2024, Alation launched its AI Governance Solution to help businesses get more value from their data and AI initiatives. The solution ensures that AI models are built with secure, compliant, and well-documented data.

In September 2024, Microsoft made the Microsoft Purview Data Governance solution generally available. This AI-powered, business-friendly, and unified governance tool is designed to help modern data leaders tackle governance and security challenges in an era of AI.

Market Segmentation

Application Insights (Revenue, USD Bn, 2020 - 2032)

Incident management
Process management
Compliance management
Risk management
Audit management
Others

Deployment Insights (Revenue, USD Bn, 2020 - 2032)

Cloud
On-premise

Organization Size Insights (Revenue, USD Bn, 2020 - 2032)

Large-scale Business
Small- and Medium-scale Business

Industry Vertical Insights

Banking, Financial Services, and Insurance (BFSI)
Government and defense
Retail and consumer goods
Telecommunications and IT
Construction and engineering
Others

Regional Insights

North America
- U.S.
- Canada
Latin America
- Brazil
- Argentina
- Mexico
- Rest of Latin America
Europe
- Germany
- U.K.
- Spain
- France
- Italy
- Russia
- Rest of Europe
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- ASEAN
- Rest of Asia Pacific
Middle East & Africa
- GCC Countries
- South Africa
- Israel
- Rest of Middle East & Africa

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