Market Analysis and Insights

The predicted value of the global market for digital rights management is US$ 18.9 billion in 2032 with a CAGR of 14.5% between 2022 and 2032. The market for digital rights management services generated US$6.4 billion in 2021, although it is anticipated that sales would top US$ 5 billion in 2022.

Digital Rights Management is primarily fueled by one of these sources. The need for network copyright protection regulations for digital intellectual property protection is rising, as is the need for corporate data protection, both of which are driven by market expansion. The market is also anticipated to profit from growing OTT content delivery demand and rising data volume brought on by the growing ubiquity of digital devices.

Digital Rights Management Market Scope:

Market Definition

Software, media (music, videos, e-books), and other digital assets may all be controlled and managed through the use of a system known as digital rights management (DRM). 

DRM's main objective is to safeguard the authors' and distributors' intellectual property rights by prohibiting unauthorized use, distribution, and copying of their digital material. To prevent unauthorized access or copying, digital material is frequently encrypted as part of DRM. 

Only people or devices with the required decryption keys will be able to access the material thanks to encryption. The usage and access of the content is restricted by DRM mechanisms. This covers actions like calling for a legitimate license, user authentication, and permission checks. 

The terms and conditions under which users may access and utilize digital material are outlined in license agreements issued by content providers. These licenses could have limitations on how many devices can access the material, how long that access is permitted, and if sharing or copying is permitted.

Some DRM systems incorporate distinctive identifiers into the material via digital watermarking techniques. These codes can be used to trace the origin of unauthorized copies and offer proof of copyright violations.

Specialized software platforms or services frequently provide DRM solutions. These platforms give content producers and distributors the ability to regulate access, manage licenses, and keep an eye on consumption.

Key Market Segmentation

Insights on Application

The Video-on-Demand Segment is Valued for the Highest Share

The video-on-demand market segment held the largest market share for digital rights management globally in 2021 and is predicted to continue to do so in the years to come. While providing lag-free distribution and playback, it safeguards video material. Furthermore, it outlaws watching these films on portable media devices. The adoption of DRM tools is being sparked by this aspect of protecting videos.

Insights on Region

The North American Region Accounted for the Highest Share

The fast expansion of internet content, changes in how people connect, view, and engage with online material, and the broad acceptance of OTT technologies by consumers will all contribute to a significant increase in the digital rights management market share in North America, which will reach 40.03%. Social media behemoths like Facebook, Instagram, and Youtube have implemented DRM security measures on their websites in order to provide users with a better watching experience. China is at 10%, while Europe is at 24%.

Key Company Profiles

The key players operating in the digital rights management market include Adobe Inc., EZDRM Inc., Fasoo Inc., NextLabs Inc., Vitrium Systems Inc., CapLinked Inc., DivX LLC, Google LLC (Alphabet Inc.), OVH Groupe SAS, Seclore, LockLizard Limited, and Vobile Group Limited, etc.

COVID-19 Impact and Market Status

The use of streaming services, e-books, online courses, and other digital information increased significantly as a result of the lockdowns and limitations that were put in place. 

The DRM business expanded as a result of the increased demand for digital material. Online collaboration tools and remote work have become popular in many enterprises and educational institutions. To guarantee the secure sharing and preservation of critical digital assets, this increased the need for DRM solutions. 

The pandemic-related economic slowdown made people and companies more cautious with their expenditures. Some businesses may have postponed or reduced their purchases of DRM solutions. As more content became accessible online, the likelihood of piracy and unauthorized dissemination increased. The need for DRM systems to safeguard content from unauthorized access and dissemination may have grown as a result.

Latest Trends

1. Through the provision of transparent and impenetrable records of content ownership, licensing, and distribution, blockchain technology has the ability to completely transform DRM. Digital content transactions benefit from increased security, traceability, and transparency thanks to blockchain-based DRM solutions.

2. Due to the ability to supply DRM services using a subscription-based model made possible by cloud computing, organizations may now scale their DRM systems more effectively and pay less for infrastructure.

3. Artificial intelligence and sophisticated data analytics are being utilized to examine consumer engagement and behavior with digital material. Content providers may improve their strategies, optimize pricing, and cater their services to customer preferences with the aid of this data-driven strategy.

4. Some DRM solutions are moving towards more user-friendly interfaces, enabling customers to access material on various devices without any difficulty and assuring adherence to licensing requirements.

5. Given that people consume information on a variety of devices, multi-platform compatibility is essential. DRM systems are evolving to offer uniform user interfaces across a variety of devices, including smart TVs, PCs, tablets, and smartphones.

6. DRM solutions are developing to enable adaptive streaming technologies and ensure the delivery of high-quality material across a variety of network circumstances as streaming services become more prevalent.

Significant Growth Factors

The market for DRM has been significantly influenced by the rising demand for digital material, which includes music, films, e-books, software, and more. As more information is delivered online, it is more important than ever to safeguard intellectual property and restrict access. 

In order to prevent unauthorized use, distribution, and piracy of their intellectual products, content producers, publishers, and distributors are increasingly looking for protective measures. DRM gives them the means to protect their intellectual property protection. The streaming analytics services, online gaming, and digital publication sectors of the entertainment and media sector are all growing.

Solutions for DRM are necessary for monetizing and delivering material securely. DRM is employed in the business sphere to safeguard confidential company records, trade secrets, and confidential information. Businesses increasingly require safe data sharing and control as they adopt digital transformation.

Securing digital material and intellectual property across a variety of linked devices is necessary as the Internet of Things (IoT) expands. Digital material may now be distributed internationally, which has raised the need for DRM to impose geographical limitations and licensing agreements.

Restraining Factors 

DRM restrictions that are too stringent might degrade the user experience by making it difficult to obtain material and reducing use flexibility. 
DRM solutions need to work with a variety of hardware, software, and operating systems. It might be difficult to guarantee a smooth experience across all of these factors.

Some DRM methods involve gathering user information for analytics and authentication. It can be difficult to strike a compromise between efficient DRM and user privacy. Due to alleged limitations on how they may use the content they have purchased, some consumers object to DRM. This could cause people to rebel against DRM-protected media. 

Determined people or organizations could try to get around DRM restrictions, which would result in piracy and unauthorized dissemination. Economic downturns or budget restrictions may cause content producers and enterprises to spend less on DRM solutions.

The viability and efficacy of DRM solutions may be impacted by changing copyright laws and regulations. These changes might be difficult to adjust to. DRM has occasionally drawn criticism because of high-profile issues and unhappy customers.

Recent Developments in the Global Digital Rights Management Market: A Snapshot

• In April 2019, OpenText paid $1.42 billion to acquire the startup company Carbonite, which specialized in data protection and end-point security, to expand its product line.

• Intertrust paid USD330 million to acquire Viteos in October 2019. Through this acquisition, Intertrust will be able to provide technologically enhanced business and funding solutions.