The global data preparation tools market size was valued at USD 1.10 billion in 2016 and is anticipated to grow at a CAGR of 25.1% from 2017 to 2025.Data preparation tools help combine data from multiple sources and prepare the data for analysis. They are particularly used in data-driven sectors, such as IT, BFSI, and retail, among others.
Although data preparation tools have been there for a long time, experts’ assistance was necessary to use the older generation of data preparation tools. Looking forward, the data preparation tools industry is expected to grow as organizations continue to employ data-driven business intelligence platforms to obtain organic data on a timely basis and to help make informed decisions.
Demand for self-service data preparation tools in increasing rapidly as enterprises and organizations continue to adopt advanced analytics and Business Intelligence (BI) platforms. Adopting a combination of a cloud platform and a self-service data preparation platform is a growing trend among data-driven IT companies.
Based on the platform, the data preparation tools market has been sub-segmented into self-service and data integration. The data integration sub-segment dominated the market and accounted for more than 70% of the market share in 2016.
However, the self-service sub-segment is anticipated to grow at a noticeable CAGR over the forecast period owing to the growing adoption of self-service data preparation tools. Self-service data preparation platforms are gaining popularity owing to their capability to ensure easy access to data, offer higher levels of data security, and assist in data governance.
The self-service platform also assists in integrating and analyzing the data collected from IoT devices, thereby helping organizations develop their business intelligence. In March 2016, IBM partnered with Datawatch Corporation in order to ensure better and quicker access to data and self-service data preparation to users of IBM Cognos Analytics and IBM Watson Analytics.
Based on function, the market has been sub-segmented into collection, cataloging, quality, governance, ingestion and curation of data. However, the data collection function captures significant market share.
Moreover, the data cataloging function is expected to grow at a significant CAGR owing to continuous rollout of IoT devices that generate large volumes of data. Thus, need for efficient cataloging tools to analyze IoT data is expected to increase over the forecast period.
The demand for data cataloging is growing as a result. The market size of this sub-segment is anticipated to grow at the highest CAGR over the forecast period. The growing concerns over security while handing and analyzing big data is anticipated to increase the demand for the data security functions.
Based on vertical, the data preparation tools market has been sub-segmented into IT and telecom, retail and e-commerce, BFSI, government healthcare, energy and utilities, transportation, manufacturing, and others.
Incumbents of the IT and telecommunication sectors widely use data preparation tools, as these two sectors generate large volumes of data. The IT and telecom sub-segment already holds a significant market share, and the size of this sub-segment is expected to grow at the highest CAGR over the forecast period.
Retail analytics is one of the primary applications of data preparation tools. Retail analytics requires data to be collated from different input sources and supplied to various analytics firms for analysis. Self-service data preparation tools can automate this entire process. Hence, the market size of the retail and e-commerce sub-segment is expected to grow at a significant CAGR over the forecast period.
The market has been further segmented into cloud and on-premise deployment. The on-premise sub-segment dominated in 2016. However, the cloud segment is expected grow at a highest CAGR over the forecast period.
The rising adoption of the cloud technology in various sectors, such as IT, telecom, and retail, is expected to boost the demand for data preparation tools deployed on the cloud over the forecast period.
The North America sub-segment accounted for a significant share of the data preparation tools market in 2016 leveraging the U.S. regional market, which is home to several IT and technology companies.
However, the Europe sub-segment is catching up rapidly owing to the growing investments in data analytics in the European regional markets, particularly in the UK. Several data preparation and analytics companies have started rolling out cloud-based solutions in the European region.
Data preparation happens to be a part of data analytics. The demand for data analytics is growing rapidly in developing economies, such as China and India, as the retail and e-commerce sectors continue to gain traction in these regions. These factors are expected to fuel the growth in the Asia Pacific region.
Datawatch Corporation, Informatica Corporation, , Microsoft Corporation, MicroStrategy Incorporated, Alteryx, Inc,, Qlik Technologies Inc, SAS Institute Inc, ,IBM Corporation, Tibco Software Inc. and SAP SE, are some of the key incumbents of the industry.
Data preparation tools call for various innovative technologies and software solutions, such as data integration, data science, BI, and analytics. Market incumbents of this industry remain keen on staying ahead of their peers by introducing innovative solutions. For instance, in January 2018, SAS Institute Inc. introduced an innovative and self-service data preparation tool that can boost the productivity, reusability, and analytical capabilities of enterprise users. The launch of this tool helped the company enhance its product portfolio and increase its market share.
Base year for estimation
Actual estimates/Historical data
2014 - 2015
2017 - 2025
Revenue in USD Million & CAGR from 2017 to 2025
North America, Europe, Asia Pacific, South America, and MEA
U.S., Canada, Mexico, UK, Germany, France, China, Japan, India, and Brazil
Revenue forecast, company share, competitive landscape, growth factors, and trends
15% free customization scope (equivalent to 5 analyst working days)
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global data preparation tools market report based on platform, function, deployment, vertical and regions:
Platform Outlook (Revenue, USD Million, 2014 - 2025)
Self - service
Function Outlook (Revenue, USD Million, 2014 - 2025)
Deployment Outlook (Revenue, USD Million, 2014 - 2025)
On - premise
Vertical Outlook (Revenue, USD Million, 2014 - 2025)
IT and Telecom
Retail and E - commerce
Energy and Utilities
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Middle East and Africa
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