Data Science Platform Market

Market Overview

The global data science platform market size was valued at USD 132.35 billion in 2023. It is estimated to reach USD 744.10 billion by 2032, growing at a CAGR of 21.15% during the forecast period (2024–2032). Businesses and individuals have generated huge amounts of data in recent years due to the rapid proliferation of the internet worldwide. This huge amount of data makes the use of data science platforms to analyze and gain insights into customer behavior and market trends to make data-driven decisions based on this information, thereby driving the demand for data science platforms. Moreover, the higher adoption of cloud-based data science platforms owing to its advantages like lower cost, higher scalability, better security, and easier access and integration is further estimated to boost the global market growth. 

Data science platforms are software applications that offer various tools and services for every stage of a data science project, encompassing data exploration, data preparation, model creation, and model deployment. Data science platforms facilitate the management, retrieval, and examination of data for enterprises while also harnessing technologies like AI and ML to produce valuable insights and solutions. This all-encompassing term encompasses data mining, analytics, machine learning, and other related fields.

Data science platforms offer an integrated platform for data scientists and other individuals to work together and perform diverse tasks associated with data-based decision-making. Its purpose is to optimize and improve the effectiveness of the complete data science process, simplifying the extraction of important insights from data for enterprises. There are multiple commercial and open-source platforms accessible, each possessing distinct features and capabilities.

Highlights

• BFSI dominates the vertical segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Data Science Platform Market Drivers:

Growing Amount of Data and Data-Driven Decision Making

The rapid increase in data produced by enterprises and individuals has created a higher need for advanced tools and platforms to analyze and extract valuable insights from these extensive databases. The Cisco Annual Internet Report predicted that the global internet user base will reach 5.3 billion, constituting 66% of the world's population by 2023. This is an increase from 3.9 billion users in 2018, which accounted for 51% of the global population. This is anticipated to lead to an increased volume of data produced, indicating a favorable outlook in the science platform market.

Data has become a highly useful resource for firms in several sectors, as it enables them to obtain vital information on customer behavior, market trends, operational efficiency, and competitive edge. Data science platforms facilitate data conversion into practical insights and solutions while facilitating data-driven decision-making in multiple areas, including marketing, sales, logistics, finance, customer support, and more. Data science platforms enable the optimization of business processes, enhance customer experience, and improve enterprise performance and profitability. These factors are projected to stimulate the growth of the global market.

Rising Adoption of Cloud-Based Solutions 

The adoption of cloud computing has had a significant influence on the market for data science platforms. Cloud-based data science systems provide numerous advantages compared to on-premises solutions, including reduced expenses, increased scalability, enhanced security, and simplified accessibility and integration. Cloud-based data science platforms allow enterprises to utilize the computational capabilities and storage capacity of the cloud and access cutting-edge technologies and tools without the need to invest in physical hardware and software infrastructure.

Gartner predicts that global end-user expenditure on public cloud services will reach USD 679 billion by 2024 and is expected to surpass USD 1 trillion by 2027. It also forecasted that over 50% of businesses will adopt industry cloud platforms by 2028 to expedite their company operations. By 2028, most firms will utilize cloud computing as an essential requirement for their business operations. This is expected to increase the usage of cloud-based data science platforms, stimulating market growth.

Global Data Science Platform Market Restraint:

Data Privacy and Security Issues

Data science platforms encompass collecting, storing, manipulating, and distributing huge quantities of data, which may comprise confidential and personal data of consumers, employees, and collaborators. Data privacy and security face considerable obstacles due to the potential occurrence of data breaches, cyberattacks, and unauthorized access, which can lead to the loss, theft, modification, and abuse of data.

Data science platforms must adhere to different regulations and standards, like the Health Insurance Portability and Accountability Act, the General Data Protection Regulation (GDPR), and the Payment Card Industry Data Security Standard. These regulations and standards may differ depending on the region and industry. These obstacles could impede the implementation and expansion of data science platforms, particularly in areas like healthcare, finance, and government.

Global Data Science Platform Market Opportunities:

Launch of Novel Data Science Platform

The players in the data science platform industry are introducing innovative platforms and solutions to fulfill the needs of various end-user industries. For instance, in May 2022, Morningstar, Inc., a prominent source of independent investment research, unveiled Analytics Lab, a data science platform designed for finance professionals. The Analytics Lab allows users to systematically examine Morningstar data and conduct in-depth research to uncover new investment prospects for achieving success.

Additionally, in September 2023, ClosedLoop, a well-known healthcare data science platform serving providers, accountable care organizations (ACOs), payers, pharmaceutical companies, and digital health enterprises, recently launched two cutting-edge data science solutions. ACO-Predict and Evaluate are specialized technologies designed to aid healthcare organizations in studying, evaluating, monitoring, and enhancing their programs. The main goals of these solutions are to reduce negative events, improve health outcomes, and lower unnecessary costs. These factors are expected to create opportunities for market expansion.

Regional Analysis

North America Dominates the Global Market

Based on region, the global data science platform market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global data science platform market shareholder and is expected to expand substantially during the forecast period. Data science platforms are widely adopted across various sectors in the North American region, including BFSI, retail, IT, healthcare, and manufacturing. This region's organizations embrace data science to improve their business performance, efficiency, and innovation. The region also benefits from a legislative and policy framework that promotes the growth and implementation of data science and AI technologies. Moreover, the region's dominance can be ascribed to a robust data science ecosystem characterized by prominent industry leaders like IBM, Microsoft, Google, and Amazon, who provide cutting-edge and advanced data science platforms and solutions.

For instance, in May 2023, Microsoft introduced Microsoft Fabric under the Microsoft Power BI platform. Fabric, currently in its preview stage, is a comprehensive analytics product designed with a focus on the needs and experiences of users. It consolidates an organization's data and analytics onto a single platform. The platform integrates the most advanced features of Microsoft Power BI, Azure Synapse, and Azure Data Factory, creating a unified software-as-a-service (SaaS) solution. Professionals in data engineering, data warehousing, data science, data analysis, and business may easily work together in Fabric to promote a productive data culture throughout the enterprise.

Similarly, in October 2023, Dotmatics, a prominent provider of R&D scientific software that integrates science, data, and decision-making, introduced Dotmatics Luma™, an innovative scientific data platform designed to assist scientists and administrators in the life sciences field in consolidating and analyzing substantial amounts of data to enhance decision-making processes. These factors contribute to the regional market expansion.

The Asia-Pacific region is experiencing the highest rate of growth in the market for data science platforms. This is due to the increasing demand for such platforms from emerging economies, including China, India, and Japan. These countries are undergoing rapid digital transformation and economic expansion. The region possesses extensive and varied data collection, providing data science platforms with the potential to offer valuable insights and solutions across numerous fields and applications. Moreover, the region is experiencing an increasing influx of funds and advancements in data science and AI technologies. These developments are being facilitated by government efforts and policies, such as China's New Generation AI Development Plan, India's National Strategy for Artificial Intelligence, and Japan's Society 5.0.

Moreover, the universities in this region provide data science courses to improve knowledge and comprehension of data science, promoting the utilization of data science platforms. For instance, in July 2023, IIT Guwahati will launch a Bachelor of Science (Hons) program in Data Science and AI on the online learning platform Coursera. This is expected to propel the Asia-Pacific data science platform market.

Segmental Analysis

The global data science platform market is bifurcated into components and verticals.

Based on components, the global data science platform market is segmented into platforms and services.

The platform segment encompasses the software tools and applications that facilitate various data science processes and tasks, such as data ingestion, integration, exploration, visualization, modeling, testing, and deployment. The platform segment holds a substantial portion of the market and is projected to experience a higher CAGR in the forecast period. This is due to companies' increasing adoption of data science platforms to improve their data analysis capabilities and achieve better outcomes. Moreover, the services area encompasses providing professional and managed services to facilitate data science platform implementation, maintenance, and optimization.

Based on verticals, the global data science platform market is bifurcated into BFSI, IT and telecom, retail and e-commerce, manufacturing, energy and power, and others. 

The BFSI segment dominates the global market. Data science platforms are essential in the Banking, Financial Services, and Insurance (BFSI) industry as they provide diverse applications that utilize data analytics and machine learning. The BFSI segment accounted for the biggest market share and is predicted to maintain its leading position due to the use of data science platforms by enterprises in this sector to effectively handle risk, fraud, and compliance and improve customer loyalty, retention, and satisfaction.

Moreover, data science platforms facilitate the segmentation of clients according to their behavior, tastes, and demographics. This enables targeted marketing and individualized services, leading to increased market expansion within this sector. It also aids in the automation of repetitive processes, hence decreasing operational expenses and enhancing effectiveness.

Impact of covid-19

There is no doubt that the novel COVID-19 outbreak has severely impacted several industrial verticals, and the aftereffects are too early to be studied. However, unlike other markets data science platform market is analyzed to have a positive impact as its features are helping sectors regain sustainability. Below mentioned are some examples of how data science and its associated platforms & tools are helping sectors amid the outbreak.

• Help in tracking the spread: Graph databases are considered instrumental in depicting a visual representation of how COVID-19 spreads as it studies the link between people, places, and things. Data scientists refer these entities like nodes, and the connections are termed as “Edges”.  It is studied that in the early days of the outbreak, i.e., Q1 of 2020, China being the primary source of the virus, built a graph database tool named “Epidemic Spread”. This thread enabled people to identify their travel details, namely flight numbers, and car license plates to track them. The database will further help link the fellow passengers that have taken the same trips.
• Help to devise a speedier way to handle contact tracing: Contact tracing is one of the effective measures to slow down the spread of COVID-19, which constitutes getting in touch with an individual’s close contacts after being tested positive to suggest self-isolation. Medical experts, along with data scientists at Oxford University, have been studied to have teamed up and designed a mobile phone-based solution with the help of a data science platform to eliminate the need for people to call their contacts manually. Instead of implementing the manual method, those parties get text messages confirming the need for self-isolation. Thus making the process of contact tracing less time-consuming and more efficient.

Such applications of data science and associated platforms in the period of COVID-19 pave the way for several untapped growth opportunities for the global data science platform market.

Recent Developments

• June 2023- E2E Networks, a hyperscaler company focused on artificial intelligence (AI), introduced Tir, a sophisticated Jupyter Notebook Framework designed specifically for data scientists. Tir aims to simplify the process of constructing and training AI models. Tir enables data scientists to overcome obstacles related to deployment, data transmission, Linux administration, and DevOps.
• August 2023- Google and Deloitte collaborated to integrate data science and marketing using AI.