Report Details:
15 Companies Covered
100 Pages
Market Research Future (MRFR) has published a cooked research report on the “Data Classification Market” that contains information from 2019 to 2035.
The Data Classification Market is estimated to register a CAGR of 23.4% during the forecast period of 2024 to 2035.
MRFR recognizes the following companies as the key players in the Data Classification Market — include Microsoft Corporation, Amazon Web Services, IBM Corporation, Google LLC (Alphabet Inc), Salesforce, Inc, Symantec (Broadcom), Oracle Inc, SAP SE, Cisco System Inc, Adobe Inc.
Data Classification Market Highlights
The Data Classification Market is estimated to register a CAGR of 23.4% during the forecast period and is estimated to reach USD 19,365.50 Million by 2035.
The Data Classification Market has been experiencing significant growth in recent years and is projected to reach USD 19,365.50 million by 2035, growing at a compound annual growth rate (CAGR) of 23.4 % during the forecast period from 2025 to 2035. The Data Classification Market is growing rapidly, driven by accelerated cloud adoption, rising data sprawl, and stricter global data privacy regulations over 94% of enterprises use cloud services, and 70% of privacy laws require classification. Organizations see major benefits, including 70% fewer breaches and 30% lower data handling costs, yet challenges persist. These include difficulty classifying unstructured and legacy data (which makes up 90% of enterprise data), high implementation costs, and resistance to change. Workforce skill gaps and complex integrations with legacy systems further restrain adoption. However, significant opportunities lie in AI/ML-powered classification engines, industry-specific frameworks, and real-time data discovery, offering a path forward for businesses prioritizing risk reduction and data-driven decisions in remote and hybrid environments. This expansion is driven by the exponential growth of enterprise data, rising cybersecurity risks, stricter global data protection regulations, and accelerating adoption of cloud and digital technologies. Automated and machine learning–based classification represents the fastest-growing segment, supported by increasing deployment of AI-driven and continuous classification solutions that enable real-time identification and protection of sensitive data. Content-based classification remains the largest segment in value terms, benefiting from advancements in natural language processing, pattern matching, and metadata analysis, while user-driven classification continues to be used alongside automated approaches despite relatively slower growth. In Data Classification segment User-Driven Classification segment has the largest share. In Deployment Type segment On-Premises has the largest share with USD 971.15 million in 2024.
Segment Analysis
Based on data classification type, the Data Classification Market is segmented into content-based classification, context-based classification, user-driven classification, and automated or machine learning–based classification. Content-based classification dominated the market in 2024, accounting for 510.89 million, driven by its extensive use in identifying sensitive data such as personally identifiable information (PII), financial records, and intellectual property through pattern matching, keyword analysis, and natural language processing (NLP). Within this segment, NLP-based classification and pattern matching techniques are witnessing strong growth. User-driven classification represented a significant share in 2024 at 758.54 million, supported by continued reliance on manual labeling and role-based permissions in structured enterprise environments, although it is growing at a comparatively moderate. In contrast, automated or machine learning–based classification is the fastest-growing segment, expanding from 376.65 million in 2024 to 5,897.33 million by 2035, driven by increasing adoption of AI-driven continuous classification and dynamic reclassification based on risk.
By sensitivity level, the market is segmented into public, internal, confidential, restricted, and highly confidential or regulated data. The confidential data segment held the largest market share in 2024, valued at 646.25 million, reflecting enterprises’ growing focus on protecting business-critical and customer-related information. However, the restricted data segment is expected to grow at the fastest rate, registering a CAGR of 27.2% from 2025 to 2035, driven by stringent regulatory requirements and increasing penalties for data breaches. The highly confidential or regulated data segment is also experiencing strong growth, supported by rising compliance needs across industries such as BFSI, healthcare, and government.
Based on deployment type, the Data Classification Market is segmented into on-premises, cloud-based, and hybrid deployments. The on-premises segment accounted for the largest share in 2024, generating 826.03 million, owing to continued adoption by large enterprises and government organizations prioritizing data sovereignty and regulatory compliance. However, cloud-based deployment is the fastest-growing segment, projected to expand from 650.40 million in 2024 to 9,237.26 million by 2035, driven by scalability, cost efficiency, and integration with cloud-native security platforms. Hybrid deployment models are also gaining momentum, as organizations balance legacy infrastructure with cloud transformation initiatives.
By End-Use Industry
By end-use industry, the market is segmented into BFSI, healthcare and life sciences, government and defense, IT and telecom, retail and e-commerce, manufacturing, legal and professional services, and others. The BFSI sector led the market in 2024, accounting for 410.48 million, driven by stringent regulatory requirements and high volumes of sensitive financial data. Meanwhile, the IT and telecom segment is expected to witness the fastest growth, supported by rapid cloud adoption, digital service expansion, and increasing data generation. Healthcare and life sciences also represent a high-growth segment, fueled by rising adoption of data classification solutions to ensure compliance with healthcare data protection regulations.
Regional Analysis
The Data Classification Market accounted for USD 1,936.62 Million in 2024 and is projected to grow at a CAGR of 23.4% during the forecast period. Global market is further segmented into North America, Europe, Asia-Pacific, South America, Middle East & Africa.
North America is a leading region in the data classification market, driven by the increasing adoption of advanced data governance and security solutions across multiple industries. Organizations in sectors such as BFSI, healthcare, government, IT, telecom, retail, and manufacturing are implementing structured classification systems to manage sensitive information effectively. These solutions help protect customer data, intellectual property, and operational information while ensuring compliance with privacy and industry regulations.
The European Data Classification Market is experiencing significant growth, driven by increasing data volumes and stringent regulatory requirements. Organizations across various sectors are adopting data classification solutions to manage sensitive information effectively and ensure compliance with evolving data protection laws. The integration of advanced technologies such as artificial intelligence and machine learning into data classification tools is enhancing their efficiency and accuracy, enabling organizations to automate data handling processes and reduce manual errors.
The Asia-Pacific data classification market is experiencing rapid growth, driven by the increasing volume of data generated across various industries and the need to comply with stringent data protection regulations. Organizations are adopting data classification solutions to manage sensitive information effectively, enhance data security, and ensure compliance with evolving privacy laws. The integration of advanced technologies such as artificial intelligence and machine learning into data classification tools is further accelerating market expansion, enabling organizations to automate data handling processes and improve accuracy.
Key Findings of the Study
- The Data Classification Market is expected to reach USD 19,365.50 Million by 2035, at a CAGR of 23.4% during the forecast period.
- In Deployment Type segment On-Premises has the largest share with USD 971.15 million in 2024.
- In region Asia Pacific hold the largest share of 34.7%.
- Microsoft, Amazon, IBM, Google LLC, Salesforce, Oracle, SAP SE, Cisco, and Adobe are the key market players.