The data analytics and management market is forecast to be worth $116 billion by year’s end, fueled by enterprise demand for data-driven insights and ESG compliance as well as increasing adoption of AI.
Further, the market is expected to grow by a CAGR of 10.9% from 2021 to 2026, according to the “Software Market Forecasts: Analytics and Data Management, 2021-26” report from sister research firm Omdia.
"Lessons learned from the COVID-19 pandemic have created a lasting demand for business optimization, expense compression, and adaptive innovation. These demands are in turn fueling a healthy increase in buyer spending across all technologies that support data-driven insights,” said report author Bradley Shimmin, chief analyst of AI and data analytics.
Opening up opportunities for growth are the increase in the variety of data, along with evolving data workloads and growth of self-service tools. Savings from going cloud native also are driving market growth, with ultra-affordable storage and serverless computing options leading to large-scale enterprise projects such as customer 360 and supply chain visibility.
Adding to the demand as well is a desire to automate processes and improve human decision-making through advances in AI by a new crop of business users and domain experts, according to Shimmin.
“This demand is being further propelled by access to specialized hardware and software infrastructure both capable of aligning capability and cost for highly demanding use cases such as real-time AI inferencing at scale.”
Fastest Growing Segments
Within this market, the data science platforms, tools and services segment is forecasted to remain the fastest growing, with a CAGR of 17.82% through 2026. Its market value is expected to reach $12.8 billion by 2026 from $5.6 billion this year.
Enterprise demand for business optimization, automation and innovation, as well as advanced analytics, should fuel growth in this category.