Digital Rights Management Industry Outlook, 2025 – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Digital Rights Management Industry Outlook – Forecast (2020-2025)” report has been added to from ResearchAndMarkets.com offer.

The global Digital Rights Management (DRM) market size is expected to reach USD 4.35 billion by 2025, growing at a CAGR of 15.12% during 2020-2025.

The rise of web-based data has increased the need to streamline secure data access and management. DRM Technologies protects the interests of copyright holders and has become an essential tool for securing any digital content. The use of technological protection measures (TPM) and access control technologies has become unavoidable in digital content due to the growing threat of online pirates, which further creates market growth for the DRM market .

Likewise, the government of various countries are mandated to provide increased security of digital data, which further increases the demand for digital rights management solution. In addition to these technological advantages, advancements such as the blockchain platform increase the capabilities of digital rights management software and make them more secure and convenient tools for business and other industrial applications.

Application Type – Segment Analysis

The digital rights management market is likely to register a CAGR of 19.87% from media and entertainment applications. With the availability of high-speed internet and the growing popularity of subscription-based entertainment tools, the demand for digital rights management software is expected to witness significant growth over the forecast period.

For example, music streaming revenue in the United States was around $7 billion in 2018, while subscription video-on-demand services were estimated at $11 billion. Revenues generated by video streaming and music streaming services together grew by more than 20% during the 2016-2018 period. Therefore, digital rights management being important tools to obtain copyright protection for these digital contents, it is expected to accelerate the growth of the market during the forecast period.

Deployment Type – Segment Analysis

The cloud-based deployment of digital rights management software is expected to grow at a CAGR of 17.59% over the period 2020-2025. The growing adoption of cloud-based solutions by enterprises is increasing the volume of digital data transactions and making cloud-based software deployment more convenient. In 2019, approximately 80% of businesses worldwide used some form of cloud-based service.

The cloud computing market is expected to reach $375 billion by 2025, growing at a CAGR of 18.45% during the period 2020-2025. It is also predicted that by 2020, 60% of enterprise software will be cloud-based. Similarly, mobile data consumption globally is expected to grow at a CAGR of 40% during the period 2016-2021, owing to the availability of high-speed internet connectivity. Cloud-based digital rights management will be the most efficient and cost-effective solution for managing these large amounts of digital content.

Geography – Segment Analysis

In 2019, the digital rights management market holds the largest market share of around 34.38%. The presence of leading national solution providers, the growing popularity of digital content, and the widespread adoption of new technologies make the North America region a lucrative market for digital rights management software.

The United States is the main country in this region to generate maximum revenue due to the growing need for digital rights solutions in the media and entertainment sector. In 2018, online video subscriptions in the United States reached approximately $180 million, with annual growth of more than 15%. Netflix subscribers in the United States increased by more than 11% between 2017 and 2019. This has led to an increased demand for digital rights management solutions in this region.

Drivers – Digital Rights Management Market

Growing volume of digital content

Digital rights management is a key tool for protecting digital content. In recent times, this particular solution is finding widespread application due to the increasing consumption of data in digital format. Since 2016, most media consumption has been in digital formats. The availability of high-speed internet connectivity and the growing adoption of smartphones are rapidly increasing the demand for digital media since 2016.

Furthermore, the upcoming deployment of 5G technology and increasing adoption of IoT-based devices are expected to increase digital content at a faster rate during the forecast period. In 2018, video and audio streaming generated approximately 80% of consumer internet data traffic globally. Similarly, in 2018, more than 85% of Americans aged 18 or older used smartphones, leading to growing digital media and data consumption in this region.

Digital Rights Management Market

The introduction of blockchain technology in the DRM solution has increased the flexibility of the software to run on a distributed system and provide a solution to the double spend problem. Therefore, this type of technology is likely to prove more beneficial for cryptocurrency and other financial transactions.

In 2018, Sony announced the development of a new blockchain-based digital rights management system. This new technology will help manage copyright information for digital content, citing educational content as a primary use case.

Challenges – Digital Rights Management Market

High cost of digital rights management solution

The cost of the Digital Right Management solution includes initial software license fees, annual maintenance fees, and development and deployment fees. In total, a typical DRM could cost between $15,000 and $22,000. For example, Adobe offers the solution with an initial license fee of $10,000, an annual maintenance fee of $1,500, and development and deployment fees of $10,000 to $15,000.

There are several other cost-effective alternatives such as password protection, watermark available to replace digital rights management solutions. Thus, the high cost of the product is likely to restrain the digital rights management market over the forecast period.

Market landscape

Top 10 companies in the digital rights management market include Kudelski, Intertrust Technologies Corporation, Adobe Systems Incorporated, Oracle Corporation, Apple, Microsoft Corporation, Locklizard, Vaultize Technologies, Verimatrix, OpenText, Seclore Technology, Vera Security, Vitrium Systems, Dell EMC, Fasoo, Intralinks, Nextlabs.

The digital rights management market share held by the top 5 players was estimated to be around 34.52% in 2018. Acquisition, partnership and service differentiation are the key strategies adopted by most companies in this industry. market.

Acquisitions/Technology launches

  • In 2019, Intertrust acquired Viteos for $330 million. This acquisition will help Intertrust provide technology solutions for companies and funds.

  • In 2019, OpenText announced the purchase of Carbonite, a data protection and endpoint security company for $1.42 billion to expand its product offering.

Key points to remember

  • North America dominates the digital rights management market owing to the growing consumption of digital media in the United States.

  • Cloud-based deployment is expected to accelerate the digital rights management market at a faster pace due to lower initial investment.

  • The rapid growth of digital content globally is expected to accelerate the digital rights management market.

  • The growing popularity of online streaming and online gaming is expected to provide new opportunities for the digital rights management industry.

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