Data Preparation Tools Market Size, Share & Trends Analysis Report By Platform (Self-service, Data Integration), By Deployment, By Vertical (IT & Telecom, Retail & E-commerce, BFSI), By Function, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global data preparation tools market size was valued at USD 3.08 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 18.6% from 2021 to 2028. Data preparation tools are mainly used for combing data from multiple sources and preparing the data for analysis. Data preparation tools have been in the market for a long time; however, there was a high need for expert assistance earlier. Data preparation finds greater acceptance in data-driven markets such as IT and BFSI. The primary function of these tools is to find the right data at the right time in an efficient way. However, issues arising in data preparation may lead to results that are insufficient and time-consuming, thereby hampering the decision-making process.

Demand for self-service data preparation tools is 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.

The rising demand for data analytics is expected to augment the demand for cloud-based data preparation tools in various data-driven applications. In addition, a rising focus on the self-service platform is anticipated to enhance the operations within the organizations and thus is expected to propel the demand for data preparation tools. The rising demand for analytics in enterprises has encouraged various data-driven organizations to invest in the research and development of the data preparation market.

The market is expected to witness a surge in the adoption of the technology owing to benefits such as extracting business insights from socially shared pictures and auto-organizing untagged photo collections. Also, it helps to offer enhanced safety features in autonomous vehicles, such as emergency vehicle detection, terrain detection, wear detection, and condition monitoring, among others. Machine learning, powered by data gathering, has been embedded in several fields, such as robotics & drones, automated image organization of visual websites, and face identification on social networking websites, among others.

Platform Insights

The data integration platform dominated the data preparation tools market and accounted for more than 60% of the revenue share in 2020. The market has been sub-segmented into self-service and data integration based on the platform. The self-service segment is widely adopted by several data analytics and big data companies such as Talend and Datameer Inc. as it provides a competitive edge to the companies. Self-service data preparation platforms are gaining popularity in the market 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 to ensure better and quicker access to data and self-service data preparation to users of IBM Cognos Analytics and IBM Watson Analytics.

Function Insights

The data collection dominated the market and accounted for more than 27% of the revenue share in 2020. Based on function, the market has been sub-segmented into data collection, data cataloging, data quality, data governance, data ingestion, and data curation. The data collection segment is expected to dominate the market owing to its ability to offer users access to data from various sources.

Moreover, the data cataloging function is expected to demonstrate a notable shift in its demand, registering a CAGR of 19.9% over the forecast period. Owing to the continued rollout of IoT devices that generate large volumes of data, there is a 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 the data cataloging sub-segment is anticipated to expand at the highest CAGR over the forecast period. The growing concerns over security while handling and analyzing big data are anticipated to increase the demand for the data security functions of data preparation tools.

Vertical Insights

IT and telecom dominated the market and accounted for more than 35% of the revenue share in 2020. Based on vertical, the market has been sub-segmented into IT and telecom, retail and e-commerce, BFSI, government healthcare, energy and utilities, transportation, manufacturing, and others. Data preparation tools are primarily used by IT and telecom players as these are the major data-driven sectors. The IT and telecom sub-segment already hold a significant market share, and the market size of this sub-segment is expected to register a CAGR of 20.1% 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 register a significant CAGR over the forecast period.

Deployment Insights

Based on deployment, the market for data preparation tools has been sub-segmented into on-premise and cloud. The on-premise segment dominated the global market and accounted for a revenue share of more than 49% in 2020. On-premise deployment of services gives the users control over systems or infrastructure and sensitive business data that are linked with a local network.

The cloud segment is expected to expand at the highest CAGR over the forecast period. Adoption of a combination of cloud technologies and a self-service platform is emerging as a popular trend among various data-driven companies, as it offers users access to local as well as cloud sources, thereby assisting them in significantly increasing the efficiency of the company.

Regional Insights

North America dominated the market and accounted for over 36% share of global revenue in 2020. This high share is attributed to the growing integration of artificial intelligence and mobile computing platforms in digital shopping and e-commerce. It creates a large amount of data for annotation. 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 U.K. Several data preparation and analytics companies have started rolling out cloud-based solutions in Europe.

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 of the market in the Asia Pacific region.

Key Companies & Market Share Insights

The key players are expected to focus on advancing their product line, through new product development and implementation of cutting-edge technologies to mark their footprint in the unreached market. 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. Alteryx, Inc.; Datawatch Corporation; Informatica Corporation; International Business Machines Corporation; Microsoft Corporation; MicroStrategy Incorporated; Qlik Technologies Inc.; SAP SE; SAS Institute Inc.; and Tibco Software Inc. are some of the key incumbents of the market. Data preparation tools call for various innovative technologies and software solutions, such as data integration, data science, BI, and analytics. Market incumbents remain keen on staying ahead of their peers by introducing innovative data preparation solutions. Some of the prominent players operating in the global data preparation tools market are:

• Alteryx, Inc.

• Datawatch Corporation

• Informatica Corporation

• International Business Machines Corporation

• Microsoft Corporation

• MicroStrategy Incorporated

• Qlik Technologies Inc.

• SAP SE

• SAS Institute Inc.

• Tibco Software Inc.

Data Preparation Tools Market Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global data preparation tools market report based on platform, function, deployment, vertical, and region:

• Platform Outlook (Revenue, USD Million, 2018 - 2028)

  • Self-service

  • Data integration

• Function Outlook (Revenue, USD Million, 2018 - 2028)

  • Data collection

  • Data cataloging

  • Data quality

  • Data governance

  • Data ingestion

  • Data curation

• Deployment Outlook (Revenue, USD Million, 2018 - 2028)

  • On-premise

  • Cloud

• Vertical Outlook (Revenue, USD Million, 2018 - 2028)

  • IT and Telecom

  • Retail and E-commerce

  • BFSI

  • Government

  • Healthcare

  • Energy and Utilities

  • Transportation

  • Manufacturing

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • South America

    • Brazil

  • Middle East and Africa