GVR Report cover Enterprise Architecture Tools Market Size, Share & Trends Report

Enterprise Architecture Tools Market Size, Share & Trends Analysis Report By Solution (Security Architecture, Application Architecture, Data Architecture), By Deployment, By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Sep, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-626-6
  • Format: Electronic (PDF)
  • Historical Data: 2018 - 2019
  • Number of Pages: 120

Report Overview

The global enterprise architecture tools market size was valued at USD 973.6 million in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.9% from 2021 to 2028. The growing importance of business-driven enterprise architecture method for transitioning the business strategically and the growing need to affiliate enterprise IT environments with business strategies are driving the growth. Business-driven tools, which are adding big data capabilities, are saving time and speeding up the process of various pipeline projects. The outbreak of the COVID-19 pandemic negatively impacted the market. The reduction in IT spending across businesses and the high cost of enterprise architecture tools are the key factors hindering the market growth. Low spending on solutions and services was associated with the low spending on IT across organizations. However, the market for enterprise architecture tools is expected to recover post the pandemic as organizations are expected to focus on enterprise architecture tools solutions to increase agility in their business operations.

U.S. enterprise architecture tools market size, by solution, 2018 - 2028 (USD Million)

Enterprise architecture tools are being widely used by businesses around the world to support strategic and tactical decision-making. Enterprise architecture tools obtain and integrate scope and relevant data across business, information, solution, and technology contexts, as well as other relevant architectural perspectives, to help make strategic decisions on business applications. Enterprise architecture tools are all-in-one platforms that enable businesses to plan, model, build, analyze, and implement effective business and IT architecture for better results. They are used throughout the application development life cycle by companies to create and model system architectures, which are then implemented for business practices.

Enterprise architecture tools aid in the comprehension of strategic architecture, the identification of opportunities and business risks, the analysis of options and financial projections to goals, and the identification of patterns and technology strategies for business expansion. These solutions help businesses keep track of the links and dependencies that exist across business processes, data, apps, and other technologies. The tools also serve as a source of data integration and metadata for all significant assets and properties of an organization. Furthermore, they assist in displaying all links and associations, allowing the organization to make better IT and strategic decisions.

An increase in data thefts, complications in data security, higher cost of enterprise architecture tools, and lack of technical expertise are some of the other factors restraining the market growth. For instance, in 2017, in the Equifax data breach, millions of customers lost their personal information such as credit card data due to data theft. Furthermore, unskilled labor or workforce is another challenge in the enterprise architecture tools market for realizing better business planning and strategies using enterprise architecture tools.

Solution Insights

The application architecture segment accounted for the largest market share of over 30% in 2020. The most widely used architecture tool in the market is the application architecture solution, which allows businesses to assess the mapping and aggregation of their software applications as part of their overall corporate architecture. Businesses can adapt rapidly to changing user requirements and shorten time to market with strong, agile application architecture. It also helps businesses in discovering functional gaps and ensuring that applications are scalable and reliable.

The data architecture segment is anticipated to expand at a considerable CAGR over the forecast period as it supports the development and implementation of data governance. Many businesses are implementing modular data architecture, which employs better and open-source elements that can be updated with new technologies as needed without disrupting the rest of the data architecture. This architecture also leads to cross-system activities such as common reporting, Enterprise Application Integration (EAI), and data warehousing.

Deployment Insights

The on-premise segment accounted for the largest market share of over 60% in 2020. Customers' in-house servers and computer equipment are used to build and deploy software or solutions in an on-premises delivery model. Hence, this model is less expensive for the customers compared to the cloud. For instance, companies' Capital Expenditure (CAPEX) is one of the models that implement on-premises solutions. This strategy is mostly used by companies that manage sensitive and confidential information in their applications as this model is cost-sensitive and secure.

Due to the usage of machine learning, IT devices, sensors, and a variety of other devices, every organization generates massive volumes of data. The on-premises deployment option allows businesses to ingest data into their databases, ensuring data protection. The on-premises deployment option makes use of on-premises Finance and Operations components, as well as service fabric standalone clusters. For instance, to access Dynamics 365 for Finance and Operations, Enterprise version, various devices use a web browser or mobile application, similar to the cloud environment, which has made on-premise architecture a preferred choice for companies. Furthermore, growing concerns about data theft and the loss of critical company information via cloud-based platforms are driving the demand for on-premises enterprise architecture tools.

Enterprise Size Insights

The large enterprise segment accounted for the largest market share of over 65% in 2020. Enterprise architecture tools' agility and adaptability are driving their demand among large businesses, leading to the inclusion of new functionalities regularly. Organizations across the globe utilize a variety of software and systems to generate vast amounts of data. Enterprise architectural tools are expected to meet the growing needs of businesses for boosting efficiency and productivity in their operations owing to the ever-increasing data and growing need for technologies.

Large corporate networks and multiple revenue streams are the primary factors driving the adoption of enterprise architecture tools among large enterprises. Large companies have larger funds and are always keen on investing in new technologies to expand their business. Furthermore, large enterprises also face challenges based on the complexity of large system integration associated with advanced enterprise architecture tools. However, with robust integration, training, and support services by enterprise architecture providers, this challenge is expected to be resolved.

End-Use Insights

The IT and telecom segment accounted for the largest market share of over 30% in 2020. The segment growth can be attributed to the growth of digital transformation capabilities. Enterprise architecture tools help telecommunication companies enhance their technologies and strategic planning for product expansion. Furthermore, the advent of 5G technology is expected to increase competition in the market and also the demand for enterprise architecture tools that support the applications better. Digital transformation, the advent of 5G technology, and other technological advancements are some of the factors driving the deployment of enterprise architecture tools in the IT sector to support strategic initiatives and planning based on the future aspect of technology.

Global enterprise architecture tools market revenue share, by end use, 2020 (%)

Various upright challenges related to maintaining IP copyrights and cross-border data privacy and security are expected to increase with the use of applications and integrated solutions. Leading telecommunications companies have been implementing new approaches over the years for effective management of their IT infrastructure to achieve maximum value and maintenance practices of their architecture through integrations to improve their business performance. Changes in telecom companies' enterprise architecture are critical for delivering optimum value.

Regional Insights

North America dominated the global market with a revenue share of over 35% in 2020. The regional market growth can be attributed to the use of cutting-edge technologies and the implementation of digital business techniques. Many firms are increasing their cloud service investments, which is expected to boost the regional market growth throughout the forecast period. Moreover, the North American market is growing as organizations are adopting advanced enterprise planning software and solutions to better utilize assets and create better company growth plans.

Furthermore, the rising adoption of advanced enterprise planning software and solutions to better utilize assets and implement superior corporate growth plans is anticipated to drive the market growth in North America. However, the region is still in its early stages owing to the presence of numerous companies that provide enterprise architecture solutions and services. The Asia Pacific and Europe are expected to emerge as the fastest-growing markets due to increased investment by major companies in enterprise software solutions to gain greater market shares in these countries. In October 2020, LeanIX launched Business Transformation Management (BTM) Module for its LeanIX Enterprise Architecture product portfolio.

Key Companies & Market Share Insights

Strategic mergers and acquisitions and partnerships are expected to be the most effective ways for market players to gain quick access to emerging markets. For instance, in September 2020, Avolution and ABACUS partnered with ClayLogix Consulting to provide high-quality enterprise architecture solutions and IT strategies in India and other parts of Asia. Furthermore, in December 2020, erwin collaborated with Microsoft Corporation to consolidate and strengthen data management and enterprise architecture for joint customers. Through this collaboration, the former company aimed to further strengthen its competencies in enterprise architecture solutions and data management software. Furthermore, product differentiation and upgrades are anticipated to pave way for the expansion of companies in the market. For instance, in January 2021, BOC Group launched ADOIT 12.0, a major update to BOC Group's EA suite, which included all-powerful features cleanly and simply. It launched Lean EA, which enhanced the power and flexibility of ADOIT by making each step faster and more responsive than before. In November 2020, erwin introduced a new edition of its enterprise architecture and business process modeling and analysis software named erwin Evolve. Improved integration and enhanced data visibility are some of the features of the product. Some of the prominent players operating in the global enterprise architecture tools market are:

  • Software AG

  • Avolution

  • BiZZdesign

  • MEGA International

  • BOC Group

  • Orbus Software

  • QualiWare

  • LeanIX

  • erwin

  • ValueBlue

Enterprise Architecture Tools Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 1.01 billion

Revenue forecast in 2028

USD 1.41 billion

Growth rate

CAGR of 4.9% from 2021 to 2028

Base year for estimation

2020

Historical data

2018 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Solution, deployment, enterprise size, end use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; Germany; U.K.; China; Japan; India; Brazil

Key companies profiled

Software AG; Avolution; BiZZdesign; MEGA International; BOC Group; Orbus Software; QualiWare; LeanIX; erwin; ValueBlue

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global enterprise architecture tools market report based on solution, deployment, enterprise size, end use, and region:

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

    • Application Architecture

    • Data Architecture

    • Security Architecture

    • Infrastructure Architecture

    • Others

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

    • Cloud

    • On-premise

  • Enterprise Size Outlook (Revenue, USD Million, 2018 - 2028)

    • Small & Medium Enterprises (SMEs)

    • Large Enterprises

  • End-use Outlook (Revenue, USD Million, 2018 - 2028)

    • BFSI

    • Consumer Goods & Retail

    • IT & Telecom

    • Manufacturing

    • Healthcare

    • Others

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

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa

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