Findings show that the market is projected to grow to $5.6bn (US dollars) by 2027. The Open Data Institute (ODI) has published a market briefing based on research conducted by Metia Group which analyses the market for business-to-business data assurance products and services. The research highlights the growing need for recognised standards and codes of conduct, as well as the desire to have tools that enable the management of risk.
The ODI defines data assurance as ‘the process, or set of processes, that increases confidence that data will meet a specific need, and that organisations collecting, accessing, using and sharing data are doing so in trustworthy ways’.
It is essential to enable trusted and trustworthy data practices. However, businesses face significant challenges in developing their data assurance strategies, including guarding against breaches and mitigating reputational risks.
Existing technical solutions are often costly, complex and ineffective, leading to low customer satisfaction. The market research found that there is high demand for data assurance products and services that are both affordable and effective. There is also a strong appetite for accredited external suppliers. Nearly three-quarters (73%) of data users trust suppliers more if they are recognised by a data assurance standards body.
As the need for data assurance services continues to increase, there is a growing global desire for recognised practices, standards and codes of conduct that can provide credibility and trust to suppliers and consumers.
To help meet this market demand, the ODI is developing new tools and services in 2023 to help businesses assess, build and demonstrate trustworthiness with data and minimise the risks of data sharing. They include a Data Sharing Risk Assessment workbook, and a Code of Conduct for those striving for excellence in data assurance practices. These new offerings are expected to launch in Autumn/Winter of 2023.
Angela Baker, ODI data assurance lead, said:
“This research has revealed the growing importance of data assurance services. We believe that wider adoption of data assurance practices, products and services will reassure organisations and individuals who want to share or reuse data, and support better data governance practices, fostering trust and sustainable behaviour change.”
“At the ODI, we are working to help as many people as possible to benefit from the value of data sharing, and our future work will look to create tools and develop guidance for a global data assurance market.”
The market research conducted by Metia used a multi-method approach, including primary and secondary research and analysis of publicly available and ODI-provided sources.
It also included a multi-country survey that investigated the appetite of data holders and users for data assurance products and services and examined the offerings of assurance providers. The survey involved professionals responsible for the assurance of external data, including data assurance service providers on the supply side and data holders and data users on the demand side. It covered five markets: the UK, Germany, France, the USA and Singapore.
The research found that the data assurance market is in its infancy, with potential for future development:
- Two thirds (66%) of respondents believe that data assurance supply does not fully meet their needs
- However, assurance of external data is expected to grow strongly in the next five years, with 98% of service providers believing this to be likely.
- There is demand for external data assurance among data users, particularly in Western Europe (71%)
- 63% of respondents agree that increasing market demand for data sharing is the key driver behind external data assurance growth
- Respondents estimate it to be worth $3.5bn (US dollars) in 2022 and it is projected to grow to $5.6bn (US dollars) by 2027.
The research revealed that the market understands assurance to be associated with security and protection but more education is required on external data assurance, including how it builds trust:
- 94% of data holders and data users believe that external data assurance boosts organisations’ trustworthiness.
- 38% of data users believe that data assurance has a highly positive impact on their organisation’s trustworthiness, while 58% believe it has a moderately positive impact.
Data holders believe that the data assurance services they need exist, but that there are significant gaps in the availability of solutions tailored to their specific needs:
- Data quality (41%), governance (41%) and compliance (37%) are the top challenges that data holders want to overcome.
Steve Ellis, founder of Metia Group, said:
“The findings of this new research show that the market is dominated by professionals who prioritise mitigating risks, complying with legal requirements and boosting trustworthiness.”
“The growing volume of data that organisations use in their day-to-day operations is a key driver of increased demand in external data assurance services, and in future more agile and customised products and services will be essential in order to meet the needs of this market.”