Datafication Market Size, Share, Opportunities, And Trends By Technologies (Artificial Intelligence, Machine Learning, Others), By Enterprise Size (Small, Medium, Large), By End-User (BFSI, Retail, Government, Healthcare, IT & Telecom, Others), And By Geography - Forecasts From 2023 To 2028

The datafication market is estimated to grow at a CAGR of 20.72% during the forecast period.

The datafication market is estimated to show strong growth during the forecast period. Datafication represents a modern technological movement seeking to convert numerous facets of an enterprise into measurable, analysable data. It involves implementing various tools and methodologies to make an organization data-centric, allowing for efficient tracking and monitoring across all business operations. Artificial Intelligence, Machine Learning, and other related technologies play a pivotal role in the datafication process. The datafication industry is expected to show positive growth owing to the escalating volume of data generation, surging demand for business intelligence, and rapid advancements in technology.

Increasing the volume of data generation boosts the datafication market size.

The exponential increase in the volume of data generated through the internet, social media, IoT devices, and digital transactions has emerged as a critical driver for the datafication market growth. Businesses and organizations are seeking to harness the immense potential hidden within this vast data volume as a result, datafication services are expected become indispensable for efficiently managing, processing, analysing, and transforming the diverse and complex information into actionable insights. According to the World Economic Forum, the daily global creation of data is projected to reach an astonishing volume of 463 exabytes by the year 2025.

Rising demand for business intelligence drives the datafication market expansion.

Datafication is used in business intelligence for transforming copious amounts of unstructured and raw data into a structured, analysable format. This conversion allows organizations to extract valuable insights, aiding in strategic decision-making, predictive analysis, operational efficiency, and identification of new market opportunities. The need for business intelligence is escalating as competitive business landscapes require more data-driven decision-making processes to gain an edge and datafication provides the necessary groundwork for extracting valuable business intelligence, thus propelling the growth of the datafication industry. According to the US Bureau of Labor Statistics, the need for skilled business intelligence analysts and managers is anticipated to increase by 11% over the decade from 2021 to 2031.

Rapid technological advancement drives datafication market growth.

Adoption of new technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Big Data analytics have been instrumental in propelling the growth of the datafication industry. These cutting-edge technologies have revolutionized the capability to process, interpret, and draw insights from complex and unstructured data sets that were previously inaccessible or incomprehensible. By enabling the conversion of these enormous volumes of unstructured data into meaningful and actionable insights, AI, ML, and Big Data analytics have amplified the value proposition of datafication. This transformation has allowed businesses to make more informed decisions, predict trends, improve efficiency, and create innovative solutions, thus increasing the demand for datafication services in the market.

North America is predicted to dominate the datafication market.

North America will constitute a significant market share as the major players in the region are taking proactive initiatives and making significant investments that have propelled technologies such as Artificial Intelligence (AI), Machine Learning, and Big Data analytics adoption. This has facilitated the need for more sophisticated data management and analysis solutions for the conversion of massive and complex data into actionable insights. For instance, in June 2023, SAS, a software company headquartered in North Carolina, invested an additional $1 billion over the next three years towards AI analytics. This investment aims to enhance the development of cloud-first, AI-driven advanced analytics solutions across a variety of sectors.

Data privacy concerns may restrain the datafication market growth.

The surge in the volume of data collection and processing elevates concerns surrounding data privacy and security which is posing substantial challenges to the growth of the datafication industry. For instance, in June 2023, OpenAI faced a lawsuit for misappropriating large volumes of consumers personal data to train its AI tools. Businesses are required to adhere to stringent data protection laws such as General Data Protection Regulation (GDPR). Additionally, the potential threats of data breaches and cyber-attacks is discouraging organizations from fully adopting datafication practices.

Key Developments

• January 2022: IBM announced the launch of new software aimed at assisting enterprises in dismantling data and analytics silos. This innovative solution is intended to enable swift data-driven decision-making and provide the agility to navigate the unpredictable disruptions that businesses often face. By integrating data from across different systems and making it readily accessible, IBM's software facilitates a more comprehensive and real-time understanding of business operations, thereby empowering companies to respond effectively to evolving situations.

Company Products

• Alteryx Designer Cloud: Trifacta's Alteryx Designer Cloud is a powerful tool designed to revolutionize business operations by transforming data. It provides comprehensive capabilities for data profiling, preparation, and pipeline management, thereby streamlining and enhancing the way businesses manage and utilize their data. Through these functionalities, businesses are empowered to leverage their data more effectively, driving significant improvements in their operations and outcomes.
• IBM DataStage: IBM offers IBM DataStage, a trusted data integration tool housed on a cloud-native insight platform. This industry-leading solution provides a robust data pipeline, modernizing the traditional ETL (Extract, Transform, Load) tool by enabling the designing, developing, and running of jobs to facilitate data movement and transformation. At its essence, DataStage supports not only the standard ETL pattern, but also the extract, load, and transform (ELT) pattern, providing a flexible and efficient solution for data handling needs.
• SAS Viya: SAS Institute Inc. offers SAS Viya, an advanced AI and analytics platform. It's designed to efficiently transform billions of data points into a clear perspective, providing an expedited pathway to extract meaningful insights from vast amounts of data. By harnessing these insights, businesses can make more informed decisions, thereby enhancing their overall operational effectiveness.

Segmentation

• By Technologies
  • Artificial Intelligence
  • Machine Learning
  • Others
• By Enterprise Size
  • Small
  • Medium
  • Large
• By End-User
  • BFSI
  • Retail
  • Government
  • Healthcare
  • IT & Telecom
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others