What are the Historical Developments and Current Growth Metrics of the Data Preparation Software Market?
The data preparation software market has seen considerable growth due to a variety of factors.
• The market size for data preparation software has experienced swift expansion in the previous years. Its growth is projected to increase from $1.73 billion in 2024 to $1.97 billion in 2025, with a compound annual growth rate (CAGR) of 14.3%.
Factors contributing to the growth during the historic period include an enhanced need for data preparation in sophisticated analytics and AI applications, an upsurge in investments for data preparation automation, adoption of data preparation for data science and machine-learning assignments, increasing demand for data preparation in data lakes and data warehouses, plus the growing need for data preparation in regulatory reporting.
What is the Forecasted Market Size and CAGR for the Data Preparation Software Market?
The data preparation software market is expected to maintain its strong growth trajectory in upcoming years.
• The data preparation software market is projected to exhibit swift expansion in the upcoming years, reaching a value of $3.35 billion by 2029 with a compound annual growth rate (CAGR) of 14.1%.
This growth during the forecasted period can be credited to the incorporation of AI and machine learning into data preparation software, advancements in technology, a transition towards adaptable and scalable data preparation platforms, combination of data preparation with data governance frameworks, and the amalgamation of data preparation with data integration platforms. Key emerging trends during this forecasting period encompass the inclusion of AI and machine learning in data preparation software, technological progress, preference shift towards scalable and agile data preparation platforms, merging of data preparation with data governance structures, and conjugation of data preparation with data integration platforms.
What Key Factors and Trends Are Driving The Growth Data Preparation Software Market?
The growth of data preparation software markets is likely to be fueled by the rising demand for self-service data preparation tools. These tools allow users to reimagine and reshape raw data into a consumable form without needing substantial technical skills or the assistance of IT experts. The growing complexity and volume of data, combined with the desire for speed and ease in data analysis processes, has led to an increased demand for these self-service tools. The data preparation software stimulates the demand for these tools by providing solutions that make data cleansing, integration, and enrichment more streamlined, thus enhancing the call for user-friendly, efficient data preparation solutions. An example of this was seen in July 2022, when GRUBBRR, a software development company based in the US, predicted that self-service kiosk technology would contribute to 50% of revenues from 2022 to 2032. Furthermore, projections show that the kiosk technology sector will reach a staggering $51.05 billion by 2028. Hence, the growth of the data preparation software market can be attributed to the increased demand for self-service data preparation tools.
What Are The Market Segments In The Data Preparation Software Market?
The data preparation software market covered in this report is segmented –
1) By Type: Cloud Based, Web Based
2) By Deployment: On-Premise, Hosted
3) By Pricing Model: Subscription, One-Time
4) By Functionality: Data Integration, Data Cleansing, Data Transformation, Data Profiling
5) By Industry Vertical: Banking, Financial Services, And Insurance (BFSI), Healthcare, Manufacturing, Retail, Telecom, Energy, Education
Subsegments:
1) By Cloud-Based: Public Cloud, Private Cloud, Hybrid Cloud, Multi-Cloud
2) By Web-Based: SaaS (Software As A Service), PaaS (Platform As A Service), On-Demand Web Applications
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What Emerging Trends Are Influencing The Growth Of The Data Preparation Software Market?
Key players in the data preparation software market, such as IBM, are focusing on creating advanced solutions, including new business analytics enterprise software. This software aims to dismantle data silos, providing companies a competitive advantage. The enterprise software aids organizations in consolidating data from diverse sources, eliminating data silos, and enabling rapid, data-driven decisions amid unexpected disruptions. For example, in November 2023, the US technology company, International Business Machines Corporation (IBM), introduced IBM business analytics enterprise. This new software is crafted to dismantle data silos and enhance planning and analytics. Furthermore, it comes with features such as data silo breakdown, business intelligence, in addition to state-of-the-art technologies such as AI-powered planning and multidimensional analysis. Its value in the datafication market pertains to facilitating enterprises to become increasingly driven by data. It does this by offering extensive access to analytics tools, dismantling data and analytics silos, and enabling efficient planning and data-based decisions.
Who Are the Key Players In The Data Preparation Software Market?
Major companies operating in the data preparation software market are:
• Amazon Web Services Inc.
• Microsoft Corporation
• International Business Machines Corporation
• Oracle Corporation
• Salesforce.com Inc.
• SAS Institute Inc.
• SAP SE
• Hitachi Vantara Corporation
• NICE Ltd.
• Teradata Corporation
• Informatica Inc.
• Tibco Software Inc.
• Quest Software Inc.
• Alteryx Inc.
• Rapid Insight Inc.
• QlikTech International AB
• Altair Engineering Inc.
• Micro Strategy Incorporated
• DataRobot Inc.
• Dataiku Inc.
• Datawatch Corporation
• Unifi Software Inc.
• Datameer Inc.
• InfluxData Inc.
• Crate Tech Inc.
What Are The Regional Insights Into The Data Preparation Software Market?
North America was the largest region in the data preparation software market in 2024. The regions covered in the data preparation software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
