Preliminary research of Fairfield Market Research indicates a promising growth outlook for global data masking market during the course of next few years.
Data Masking Market Grows Strong with Critically Rising Need for Financial Data Security of Businesses
Data masking, an intelligent technique, provides real-time production data masking. Large-scale data analysis is made possible by data masking technology without interfering with regular business operations. Data masking technology creates a phony but accurate version of the data to protect critical organizational information. The market for dynamic data masking, anticipated to experience rapid growth over the forecast period, is driven by the growing need to reduce the risk of a data breach. Additionally, active data masking supports outsourcing, offshoring, and cloud-based activities while protecting sensitive and private data. Additionally, the need for data masking, and improved security solutions is anticipated to be crucial to the expansion of data masking market, given the significant demand among businesses for the security of their financial data. Data-driven finance has mandated every company to have an accounting department for storage and maintenance of fianancial data, which includes significant financial transactions that, if revealed, could affect the company's reputation, cause financial losses in the market, as well as lead to conflict with regulatory requirements like PCI DSS, HIPAA, and other laws that are in effect. This factor, above all others, drives the expansion of the data masking market in this particular business function.
However, growth of data masking market could be hampered by lack of standardization, technological competence, and skilled labor in poor and developing countries. The complexity of data synchronization and integration may also hinder industry growth. In developing countries, a strong IT infrastructure would also impede market expansion. Countries have put preventative measures in place due to the COVID-19 outbreak. Many businesses discovered a way to let employees work from home as schools were closed and communities were asked to stay indoors. As a result, there were more data breaches, driving the progress of data masking market. Following the subsidence of pandemic, rapid digitization has been driving the data masking market ahead.
Data Masking Market: COVID-19 Impact
The data masking market has yet to be able to expand due to the COVID-19 disease's quick spread. Many nations worldwide put themselves under a lockdown to stop the further spread of disease. This resulted in losses for several commercial enterprises. But there was a significant change in favor of digitization. The change has increased the demand for data security and privacy across several companies. The data masking market will continue to expand quickly in the future.
Rising Instances of Cyber-attacks Accelerate Data Masking Market Growth
The most significant threats to the US are those posed by nation-state hackers. China is a close second, with Russia posing the most advanced cyber menace. Russia has been involved in American efforts to hack political organizations like the Democratic National Committee. Many cyberattacks that disrupted various parts of the Ukrainian electric system are allegedly the work of Russian hackers. China aims to resurrect its economy through widespread commercial and intellectual property theft. At least 20 million federal employees' personal information was compromised due to the OPM's cyber security breach, resulting from a campaign that the Chinese government was allegedly behind.
North Korea has also launched high-profile cyberattacks against the United States, the most notable of which was launched next to Sony Entertainment over a film that allegedly painted a negative picture of the country. The hackers took terabytes of confidential material and made five Sony movies available to the public along with personal data. To combat this growing threat, the United States should exert market pressure on the private sector to encourage it to undertake the ongoing and flexible investments required to secure the nation's different cyber networks. The Inheritance Foundation has prepared legislative policy suggestions to start bringing about the needed changes. Rising cyberattacks across regions will likely expedite the growth of data masking market.
Real Data is Not Always Required for Business Operations, Which Favours Data Masking Market Growth
The EU sets standards for how any company handling the data of any EU citizen may store or process that data. In Article 32 of the General Data Protection Regulation (GDPR), among many other criteria, it is clearly stated that data masking should be used to pseudonymize sensitive data in order to safeguard EU residents from data breaches, and other unauthorised access. It is in the best interest of a business to comply with the GDPR given that noncompliance can result in anything from a written warning to a punishment of 20 million EUR. Other laws in Asia Pacific that mandate data masking for the use of sensitive production data in non-production settings include those from Korea (PIPA, Article 3), Singapore (PDPA, section 25), Malaysia (Personal Data Protection Code of Practice), Singapore (PPI, Chapter IV, Section 2), Japan (PPI, Article 36), Australia (Privacy Act 1988), and Singapore (PPI, Section 25). Presence of varying government regulations thus increase the financial implications over vendors and in return affects the growth of data masking market in the region.
Stringent Government Regulations Act as a Speed Bump Facing Data Masking Market
The EU sets standards for how any company handling the data of any EU citizen may store or process that data. Article 32 of the General Data Protection Regulation (GDPR), among many other criteria, clearly states that data masking should be used to pseudonymize sensitive data to safeguard EU residents from data breaches, and other unauthorized access. It is in the best interest of a business to comply with the GDPR, given that noncompliance can result in anything from a written warning to a punishment of 20 million EUR. Other APAC laws that mandate data masking for the use of sensitive production data in non-production settings include those from Korea (PIPA, Article 3), Singapore (PDPA, section 25), Malaysia (Personal Data Protection Code of Practice), Singapore (PPI, Chapter IV, Section 2), Japan (PPI, Article 36), Australia (Privacy Act 1988), and Singapore (PPI, Section 25). Varying government regulations thus increase the financial implications for vendors, in turn challenging the data masking market growth.
BFSI Sector Maintains Dominance in Data Masking Market on Account of a Higher Number of Data Breaches
Due to its enormous client base and the sensitive financial information involved, the BFSI business is one of the essential infrastructure industries that frequently experience data breaches and privacy problems. As a very profitable business model with great returns and the bonus of being relatively low risk and detectable, cybercriminals are optimizing a variety of nefarious cyberattacks to paralyze the financial system. Threats associated with these assaults include Trojans, ATMs, ransomware, mobile banking malware, data breaches, institution invasions, data thefts, and financial breaches. Banks use data from insurance companies, credit bureaus, and lenders to comprehend and deepen their interactions with their clients and assess market volatility and steady growth. Data privacy regulators are becoming more stringent in their compliance requirements due to the valuable data sought by both insiders and cybercriminals. Designing new, individualized client experiences is made safer using data masking solutions.
Following several data breaches experienced by operators, including Mobikwik and payment aggregator JusPay, the Reserve Bank of India (RBI) proposed cybersecurity norms for payment service providers (PSPs) in April 2021. The RBI clearly states that companies must go above and beyond the minimum requirements to ensure that digital safety transactions gain further traction. The standards for fintech-driven payment service providers would be similar to cyber hygiene norms issued for banks and non-banking finance companies. Innovative new ransomware strategies that maximized ROI for the threat actors in 2022 had an impact on financial institutions all over the world. Although financial institutions are rarely the direct targets of ransomware attacks, they can and have been affected by attacks on third parties, who are the main targets. The BFSI sector will likely use cybersecurity solutions more frequently due to these threats.
With Extending POS Terminal Implementation, Retail and E-commerce Segment Leads in Data Masking Market
During the forecast period, the retail and eCommerce sectors are anticipated to hold the biggest market share and dominate the data masking market. This increase can be linked to the expansion of POS terminal implementation, which collects client input for better decision-making. Data masking ensures data security, reducing the possibility of fraud and its related concerns.
Asia Pacific Leads the Pack in Data Masking Market, Automotive Indutry’s Unprecedented Growth Crucial in Market Build-up
Being home to the two largest economies in the world-developing nations like China and India-Asia Pacific is anticipated to experience faster growth than other regions in data masking market. Recently, the region's automotive industries have grown. Large population shifts and rising disposable incomes, which raised demand, were major drivers of these sectors' expansion. These two nations are expanding more quickly, and numerous developmental initiatives are being undertaken to establish new industrial sectors and product launches—big data results from these actions. A lot of data must be stored every day. The majority of unstructured data has been created by the rapid digitization occurring in developing nations like India, China, and Singapore. Additionally, due to technological advancements, China sees an increase in the number of connected devices. The Internet of Things (IoT) market there is the biggest worldwide. Additionally, the interconnectivity of the devices will exponentially increase with the deployment of 5G and 5 G-capable hardware. As a result, more connected devices increase demand for security products. This makes the websites more vulnerable to manipulation and impersonation by outsiders, making it easier for foreign intelligence agencies to intercept sensitive user data sent to the website.
On the other hand, more businesses are moving their business systems to cloud platforms due to the growing popularity of public cloud computing. These businesses have gradually turned their attention toward issues like data security, tenant isolation, and access control. Due to the Chinese government's recent aggressive promotion of data privacy policies and regulations, data privacy has become a hot topic in China. The Data Security Law (DSL) (2021), the Personal Information Protection Law (PIPL), and the Cybersecurity Law (CSL) (2017) have all been published and are now in force. For instance, in June 2022, China released the Certification Specification for Cross-Border Processing of Personal Information in its final form. This publication may offer businesses advice on obtaining certification for their cross-border data transfer as one of the authorized ways for business operators to transfer personal information outside China.
Global Data Masking Market: Competitive Landscape
A few key players in the data masking market include SAP, Microsoft, Oracle., IBM, TIBCO Software Inc., Delphix, Solix Technologies, Inc., MENTIS INC., Informatica, Broadcom., Information Resources, Inc., ARCAD Software, CyberDB., Imperva., BMC Software, Inc., Hewlett Packard Enterprise Development LP, Red Gate Software Ltd, Micro Focus, Ekobit d.o.o, and Thales.
Recent Notable Developments
Global Data Masking Market is Segmented as Below:
By Business Function
By Deployment Type
By Organization Size
By Industry Vertical
Key Elements Included In The Study: Global Data Masking Market
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