GDPR Services Market

GDPR compliance creates transparency between the customer and the enterprise. With the rollout of GDPR in the year 2018, companies across different industry verticals had to restructure their entire business processing system in line with various compliances. Some of the key countries that lead all the other countries in GDPR compliance include the US, UK, Spain, Germany, and the Netherlands. More than 50% of the enterprises operating in these countries have largely or completely become compliant to GDPR. In terms of industry verticals, manufacturing, retail, utilities, and telecommunications were leading in GDPR compliance. Companies operating in these industries have been investing a significant share of their global revenue on restructuring their business process as per GDPR compliance. US-based companies are expected to spend in the range of USD 2-10 Million to meet the GDPR requirement. This share is expected to be more for Europe-based companies. The entire intention behind GDPR was to rebuild the customers’ trust among various enterprises and to create a more transparent environment for customers where they can freely share their personal data without it being breached, lost or misused.

With the growing need to become compliant with GDPR regulation, the demand for various GDPR solutions and services is increasing. This, in turn, is acting as a major growth factor for the market. Over the last 3 years, companies that were not compliant with the GDPR have had to pay heavy fines. For instance, In July 2019, British Airways was imposed with a fine of USD 223.5 Million (proposed penalty by ICO) by the UK’s Information Commissioner’s Office (ICO) for data breach under GDPR. The fine is equivalent to 1.5% of British Airway’s annual global turnover in the year 2017. The fine was imposed after ICO investigation found out that the company did not take strict security measures to protect personal data of approximately, 500,000 customers. Poor security arrangement to protect customer information led to the loss of half million-personal data of the airline’s customers. Therefore, to avoid such hefty fines, enterprises are restructuring their business operations. This, in turn, is driving the overall market for GDPR services.