How big is the data classification market | Size, Share & Forecast to 2025

Q: What is the market size of the data classification market in 2025 and 2031?

The data classification market was valued at approximately USD 1.1 billion in 2025 and is projected to reach around USD 5.6 billion by 2031.

Q: What is the CAGR of the data classification market between 2025 and 2031?

The data classification market is anticipated to grow at a CAGR of 26.2% during the forecast period.

Q: What are the key trends in the data classification market?

Key trends of data classification market include AI-driven automated classification, integration with security platforms, and context-aware data categorization.

Q: What are the main drivers of the data classification market?

The data classification market is driven by data privacy laws, enterprise data expansion, growing cyber threats, and demand for centralized data security frameworks.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA5783

Publication Date: Jul 2025

What is the Data classification Market Size?

According to 6Wresearch internal database and industry insights, Global Data classification market was valued at USD 1.1 billion in 2024 and is anticipated to exceed USD 5.6 billion by 2031, registering a steady at a CAGR of 26.2% during the forecast period.

This market is estimated to experience massive growth driven by the rising volume of formless data, strict data privacy guidelines, and increasing approval of data security frameworks across enterprises. The demand is also supported by the need for streamlined data management in hybrid and multi-cloud environments. Moreover, advancements in AI and machine learning technologies are enabling automation.

Major Growth Factors of the Data classification Market

There has been rise in data privacy and compliance requirements
There has been proliferation of unstructured enterprise data in the market
The market is increasing adoption of cloud and hybrid environments
There has been growing need for data risk management
The market is advancing in AI and automation technologies
Increasing cyber threats and insider risks
Rising demand for centralized data governance
Expanding use of BYOD and mobile workforce

Data classification Market Trends

The data classification market is anticipated to experience rapid conversion with the incorporation of AI and machine learning tools for automated classification processes. There is a growing importance on real-time data discovery, risk-based classification, and context-aware classification models. Enterprises are progressively prioritizing structured data governance and regulatory compliance, leading to a strong shift toward automated and scalable classification solutions.

Emerging Developments in the Data classification Market

The data classification market is witnessing new developments such as the integration of data classification tools into broader data security ecosystems, including DLP (Data Loss Prevention) and CASB (Cloud Access Security Broker) solutions. Startups and tech giants alike are investing in platforms that offer deep learning capabilities for adaptive classification. Additionally, increasing partnerships between cybersecurity firms and cloud service providers are enhancing platform integration and scalability.