What Has Been the Growth of the Data Preparation Tools Market So Far?
The data preparation tools market has seen considerable growth due to a variety of factors.
• The market size for data preparation tools has experienced rapid expansion in recent years. The market is projected to surge from $7.79 billion in 2024 to $9.59 billion in 2025, reflecting a compound annual growth rate (CAGR) of 23.2%.
The notable growth during the historical period can be linked to factors such as the increasing complexity in data formats and sources, which necessitates more sophisticated tools, the rising trend of data preparation as a service (DPaaS), the application of data virtualization technology in preparation processes, the emergence of data preparation solutions tailored to specific industries, and the uptake of federated learning strategies for distributed data preparation tasks.
What Is the Forecasted Market Size and Growth Rate for The Data Preparation Tools Market Size In The Coming Years?
The data preparation tools market is expected to maintain its strong growth trajectory in upcoming years.
• The market for data preparation tools is projected to experience a significant increase in size in the coming years, expanding to $21.84 billion in 2029 with a compound annual growth rate (CAGR) of 22.8%.
This upsurge during the predicted period is primarily due to the application of edge AI for on-device data preparation functions, rising use of AI and machine learning for data organisation tasks, escalating demand for self-help data preparation tools, increasing requirement for data quality and control in preparation methods, and need for instantaneous data preparation abilities. Key trends during the predicted period involve technological progress, advancement of big data and IoT increasing the need for scalable data preparation solutions, collaboration features for group-based data preparation initiatives, application of federated learning techniques for distributive data preparation tasks, and merger of data preparation with data governance and stewardship platforms.
What Factors Are Driving Growth In The Data Preparation Tools Market?
The swift expansion of data quantity is predicted to boost the data preparation tools market's advancement. Data, usually existing digitally, constitutes unprocessed facts and figures amassed for investigation or consultation purposes. The accelerated growth in data volumes can be ascribed primarily to the rise in digitalization, technological enhancements, and the ubiquity of connected devices. With the complexity and immensity of dealing with large data sets, having data preparation tools becomes critical for proficiently purifying, restructuring, and arranging data for analysis. For example, a report divulged by the Linux Foundation, an American nonprofit consortium in December 2022, indicates that an average end-user organization possessing a storage capacity of up to 20 petabytes witnessed an annual data growth of 566 TB in 2021, escalating to 1,746 TB in 2022. In the same vein, organizations with a storage capacity reaching 25 petabytes reported a pronounced annual data growth of 2,208 TB in 2022 which was threefold higher than that recorded in 2021 (700 TB). Thus, this burgeoning volume of data is expected to stimulate the growth of the data preparation tools market.
What Are The Main Segments Of The Global Data Preparation Tools Market?
The data preparation tools market covered in this report is segmented –
1) By Platform: Self-Service, Data Integration
2) By Deployment Mode: On-Premises, Cloud
3) By Function: Data Collection, Data Cataloging, Data Quality, Data Governance, Data Ingestion, Data Curation
4) By Vertical: Information Technology (IT) And Telecom, Retail And E-Commerce, Banking, Financial Services, And Insurance (BFSI), Government, Healthcare, Energy And Utilities, Transportation, Manufacturing, Other Verticals
Subsegments:
1) By Self-Service: Data Wrangling, Data Cleansing, Data Transformation, Data Visualization, Data Profiling, Automated Data Preparation
2) By Data Integration: Data Aggregation, ETL (Extract, Transform, Load) Integration, Data Pipeline Management, Real-time Data Integration, Cloud Data Integration, Data Migration And Synchronization
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How Are New Trends Impacting The Size Of The Data Preparation Tools Market?
Leading businesses in the data preparation tools market are prioritizing the development of cutting-edge technologies like SnapGPT, to enhance the efficiency of data pipeline creation. SnapGPT is a generative AI tool, a form of artificial intelligence designed to generate fresh and original content in various formats encompassing audio, code, images, text, simulations, and videos. For example, SnapLogic, a software company from the United States, unveiled SnapGPT in August 2023, an innovation in generative AI specifically designed to simplify the development of data pipelines and offers an accelerated, instinctive approach to integration tasks. It is capable of generating precise and workable queries and transforming data from one form to another, thereby facilitating a faster and more user-friendly integration process. It also comes with standout features like text recognition, image recognition, speech-to-text, pipeline generation, and rapid integration prototyping which collectively seals its position as a robust tool for data integration. By fusing AI-powered capabilities with user-friendly features, it simplifies data pipeline and workflow creation.
Who Are the Key Players In The Data Preparation Tools Market?
Major companies operating in the data preparation tools market are:
• Amazon Web Services Inc.
• Microsoft Corporation
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Salesforce.com Inc.
• SAS Institute Inc.
• Hitachi Vantara Corporation
• Teradata Corporation
• Informatica Inc.
• Tibco Software Inc.
• Zoho DataPrep
• 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
What Is The Most Dominant Region In The Data Preparation Tools Market?
North America was the largest region in the data preparation tools market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data preparation tools market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
