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The Data Preparation Tools Market size is estimated to grow at a CAGR of 22.9% between 2022 and 2027. The market size is forecast to increase by USD 6,659.71 million. The growth of the market depends on several factors, including the data preparation tools helping in predictive analytics, the rising need to improve business efficiency, and the exponential increase in data.
This data preparation tools market report extensively covers market segmentation by deployment (on-premise and cloud), platform (data integration and self-service), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rising need to improve business efficiency is notably driving the market growth, although factors such as data privacy and security concerns may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising need to improve business efficiency is the key factor driving the growth of the global data preparation tools market. The growing number of connected devices across all industries has generated enormous data. Businesses have realized that data can be used to optimize costs, provide better service, and increase sales. As a result, business models worldwide are moving from experience and perception driven to data driven. For example, an aero engine manufacturer now offers comprehensive rental programs for equipment and maintenance. Feedback from motor users is expected to improve designs, reduce manufacturing and maintenance costs, and significantly increase competitive advantage. Companies are introducing automation and flexible production techniques in manufacturing to improve productivity. In addition, predictive asset maintenance helps businesses save money on planned repairs, reduce maintenance costs, and avoid downtime.
Moreover, business analytics with substantial amounts enhances business productivity using several predictive mechanisms and risk-averting models. It helps companies in creating new growth opportunities and entirely new categories of products and services with a reduction in errors and failure rates. To implement these technologies in the industrial framework, there is a pressing need to establish a seamless connection for efficient communication among machines, systems, and people. Therefore, data preparation tools have become a strategic priority for several industrial organizations. Thus, the rising need to improve business efficiency will further enhance the growth of the global data preparation tools market during the forecast period.
The prevalence of Internet and increased use of linked and integrated technologies is the primary trend in the global data preparation tools market growth. The use of the Internet and the availability of numerous ways of accessing the Internet have resulted in a significant increase in data quantities. This assisted in progress and expanded high-speed Internet services. Globalization and economic expansion are also important factors promoting increased data creation globally. With the increase in touchpoints and the requirement for data collection to understand consumer behavior, every customer contact has become an essential data point that can be analyzed to disclose user activity.
Organizations are now engaging data scientists and analysts to handle acquired data due to the exponential growth in individual and organizational data. Another element driving adoption is data preparation tools' revenue-generating potential. This is persuading businesses to invest in data preparation tools. Hence, it is expected to drive the growth of the global data preparation tools market during the forecast period.
Data privacy and security concerns are major challenges impeding the growth of the global data preparation tools market. Privacy and security concerns are among the biggest challenges for any organization as devices are connected to the Internet and rely on the use of private and public networks. Since essential data is transmitted through networks such as the IoT and cloud, it is necessary to build a highly secure environment. Additionally, IoT networks contain multiple devices that can pose data theft problems. Increased connectivity and data sharing have created multiple cybersecurity issues and privacy breaches. Cybersecurity has traditionally focused on a limited number of connected devices.
However, with the IoT revolution, there will be a large-scale combination of both physical and virtual worlds in the future. Potential economic loss from cyber-attacks in industries is significant compared with the privacy breaches of personal data. Therefore, cyberattacks can hamper the sensor and device data in industrial setups, as these devices are connected over the Internet and can be easily hacked. Such data are accessible via the Internet, and they should pass through authentication layers. The possibility of cyber intrusion will reduce the adoption of analytics services (third-party services), which, in turn, will hinder the growth of the global data preparation tools market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Data Preparation Tools Market Customer Landscape
The market share growth by the on-premise segment will be significant during the forecast period. In the on-premises segment, on-premises data preparation tools are purchased, installed, and run on-premises at your company. To access this type of solution, companies must set up internal hardware and purchase software licenses. This requires significant capital investment and a skilled workforce. On-premises solutions are highly customizable and adaptable to large enterprises, driving revenue growth in the market.
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The on-premise segment was valued at USD 880.30 million in 2017 and continued to grow until 2021. Accessibility is one of the major concerns with on-premises data preparation tools. The data cannot be accessed from any device, and the recruiter must stay within the institution to gain access. Moreover, several servers are installed to back up the data, taking up additional space and investments. On-premise deployment acts as the best solution for those enterprises that focus on data profiling and visualization. Hence, the need for enhancing business productivity is expected to drive the growth of the on-premise segment of the global data preparation tools market during the forecast period.
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North America is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America has the largest market share as it is an early adopter of data preparation tools, and technology has reached saturation in the region. Due to the presence of many enterprises in North America, which are adopting BI solutions, increased investments in data preparation tools can be witnessed, which is driving the growth of the market in North America.
The expansion of data in the region, fueled by the increasing adherence to mobile and IoT, the presence of major data preparation tool vendors, stringent data-related regulatory compliances, and ongoing projects, will further boost the growth of the market in North America during the forecast period. The US has been the major revenue contributor to the market in this region due to the presence of many major vendors in the country.
COVID-19 positively impacted the data preparation tools market in the region in 2020. However, the easing of lockdowns and massive vaccination campaigns in various countries in the region, coupled with increased funding for software infrastructure development in 2021, gradually increased the demand for data preparation tools as the resumption of operations is expected to attract further investments. It will lead to the growth of the data preparation tools market in North America during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alation Inc.: The company offers data preparation tools such as the alation data catalog, alation connectors, and alation platform.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The data preparation tools market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Data Preparation Tools Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 22.9% |
Market growth 2023-2027 |
USD 6,659.71 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
21.87 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alation Inc., Altair Engineering Inc., Alteryx Inc., Crate.io Inc., Datameer Inc., DataRobot Inc., Datawatch Systems Inc., EasyMorph Inc., International Business Machines Corp., Informatica Inc., Microsoft Corp., MicroStrategy Inc., Precisely, QlikTech international AB, Quest Software Inc., Salesforce.com Inc., SAP SE, SAS Institute Inc., Talend Inc, and TIBCO Software Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Platform
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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