Enterprise Data Management Market Size, Share & Trends Analysis Report By Component (Software, Services), By Services (Managed Services, Professional Services), By Deployment (Cloud, On-premise), By Organization (Small and Medium Enterprise, Large Enterprise), By Industrial Vertical (IT and Telecom, BFSI, Retail and Consumer Goods, Healthcare, Manufacturing, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global enterprise data management market size was valued at USD 85 billion in 2021, and it is envisioned to grow to USD 271 billion by 2030, with a CAGR of 13.8% during the forecast period (2022–2030).

Enterprise data management (EDM) involves arranging, absorbing, and preserving a business's created and acquired data. Proper data management is required to implement the IT systems that run business applications and provide analytical data to help operational decision-making and strategic planning by corporate executives, business managers, and other end-users. The data management process comprises a variety of operations that strive to ensure that the data in business systems is correct, accessible, and readily available.

Data management is a prerequisite for implementing successful data analysis at scale. With excellent data management, individuals within an organization can locate and obtain reliable data for their queries. The enterprise data management market is comprised of IT vendors, platform providers, system and network integrators, enterprise data management software providers, distributors, end-users, and aftermarket services.

Due to the rising demand for real-time information, a structured process for data delivery from developers, and the efficient management of hierarchical master data produced across various verticals, the global enterprise data management market is envisioned to experience significant growth over the forecast period. In addition, the growing need to ensure regulatory compliances and the increasing adoption of IoT devices are expected to drive market growth over the forecast period.

Market Dynamics

Drivers: increasing requirement for risk management system

Many organizations have opened offices across the globe due to globalization's continuation. However, the fluctuating data based on the location of the offices creates difficulties for data procurement. In such instances, data management services can facilitate single-source reporting and multi-user access, thereby providing clients with consistent data in every location.

EDM solutions can assist the incumbents of various industries and industry verticals, such as BFSI and manufacturing, gain valuable insights from historical and current data, and predict market changes that may affect client requirements. Reorganizing the workflows at this time can have a significant impact on an organization's baseline. EDM solutions can be advantageous for such organizations by ensuring the accuracy of the data and implementing effective risk management.

EDM solutions can guarantee adaptability, industry standards, robust quality controls, and simple distribution while providing multiple deployment modes. EDM solutions can assist in generating a stable version of the data in an environment that can be viewed and examined. They can benefit both small and medium businesses and large businesses by providing unified integration with consumer applications, data control, enhanced transparency, and regulatory compliance support.

Furthermore, they help organizations with data governance and data quality rules, which can be particularly beneficial for organizations' confidence in the data, risk management, and strategic decision-making. Therefore, encouraging enterprise deployment of data management solutions for risk management.

Drivers: growing emphasis on regulatory compliance

Organizations must adhere to specific rules and regulations based on the region they operate and the industry or industry vertical to which they belong. Typically, laws and regulations vary from region to region and country to country, making it difficult for organizations to ensure regulatory compliance. Consequently, the increasing need to ensure full compliance with regulations such as the General Data Protection Regulation (GDPR) and the Act on the Protection of Personal Information (APPI) is expected to spur the adoption of enterprise data management solutions.

Enterprise data protection and security protocols are essential to the success of any modern business. Enterprise data management primarily ensures compliance with an organization's data security practices and standards. Enterprise data management solutions also aid in ensuring data security across all devices utilizing the information. Companies that are not vigilant and vigilant enough to protect their assets could be vulnerable to data threats, resulting in data breaches, a tarnished reputation, and financial losses. All of these factors are driving industries to adopt enterprise data management solutions.

Restraints: issues with data address and validation

The absence of address information is the primary reason for route optimization issues. Difficulties with addressing structures and varying validation rules from country to country are significant obstacles. Validation of addresses is a component of the address data management strategy. Even though EDM solutions can aid in data management, data quality and address validation emerge as potential restraints on the growth of the enterprise data management market.

Large enterprises comprising departments that continuously process large volumes of information may end up with cluttered data elements if they fail to adopt data management solutions or do not choose the appropriate data management solutions, impeding the market's growth.

What are future key opportunities in enterprise data management market?

Due to the growing need to effectively manage hierarchical master data generated by various departments, the increasing use of Internet of Things devices, and digitalization, the global enterprise data management market is anticipated to grow during the forecast period. Every day, the BFSI industry collects various consumer financial and other data. This data must be managed precisely, emphasizing making effective business decisions.

Adopting EDM in the BFSI facilitates the efficient management of information and the fulfillment of predetermined predictive models for risk assessment and regulatory obligations. It also enables the management of enterprise-wide risks, the enhancement of sales and marketing operations, and the tracking and monitoring of finance and accounting. Further, enterprise data management market participants face intense competition. Some of them are among the leading providers of enterprise data management and have a large customer base, significant competitive advantages, and a lengthy operation history.

In addition, the positive impact of market leaders is relatively high. The majority of them have established relationships with diverse suppliers and distributors and a global presence. It is anticipated that the industry will continue to be driven by innovation, with frequent acquisitions and strategic alliances serving as the critical strategies for players seeking to expand their market presence.

Regional Analysis

The enterprise data management market share is categorized into North America, Europe, Latin America, Asia-Pacific, and the Middle East and Africa.

Asia-Pacific and North America are expected to dominate the enterprise data management market with massive shares. Asia-Pacific will have a share of USD 83 billion at a CAGR of 16.6% by 2030. Various governments in Asia-Pacific are encouraging software companies to design and develop free and open-source services for managing and gaining access to voluminous amounts of data, which will likely increase demand for management. The increasing popularity of cloud-based deployment to improve operational efficiency is anticipated to boost the region's market share.

North America will have an expected share of USD 58 billion at a CAGR of 11% by 2030. Due to significant data management solution providers, high-level expertise, and increasing investments in data management, this region dominates the enterprise data management market. IBM Corporation, Oracle Corporation, Amazon Web Services, Cloudera, Inc., Teradata, and SAP SE are major enterprise data management solutions and services providers.

Companies in the United States place a significant emphasis on digital transformation and are frequently regarded as early adopters of next-generation technologies, including IoT, big data analytics, AI, and ML. US businesses' continued adoption of cutting-edge technologies bodes well for expanding the enterprise data management market.

Segmental Analysis

Based on components, the enterprise data management market is segmented into software and services. Software is expected to account for the largest market value, with USD 197 billion, registering a CAGR of 13.8% by 2030. The increasing adoption of EDM solutions by small and medium-sized businesses (SMEs) is expected to increase the software component market during the forecasted period.

Organizations are increasingly adopting enterprise data management solutions for data security and privacy protection, regulatory compliance, and financial reporting. The adoption of enterprise data management solutions is anticipated to be driven by benefits such as reducing inaccurate and duplicate data and enhancing organizational productivity.

The enterprise data management market is segmented into managed and professional services based on services. Professional services are anticipated to grow at a CAGR of 14.5% to reach USD 55 billion by 2030. Professional data management services can optimize staffing, enhance collaboration, and automate time and expense management. Small businesses have traditionally utilized spreadsheets for resource and time management, among other tasks.

However, as a business expands and its complexities increase, it often becomes difficult for organizations to maintain business quality, increase throughput, enhance effectiveness, and align resources while delivering projects on time and profitably, thereby driving the need to automate these tasks. The rising demand for operational efficiency enhancement is anticipated to drive the expansion of the professional services sector over the forecast period.

Based on deployment, the market is categorized into cloud and on-premise. The on-premise segment is expected to be valued at USD 134 billion, with a CAGR of 11.8% during the forecast period. Different organizations are transitioning from manual to automated systems for various operations. Correspondingly, demand for on-premise software has increased. Some enterprise data management solutions do not require an internet connection and are easily customizable, so organizations prefer on-premise deployment. Consequently, the on-premises segment is anticipated to experience steady growth over the forecast period.

Based on the organization, the market is segmented into small and medium enterprises and large enterprises. The larger enterprises will likely have a share of USD 191 billion, accounting for a CAGR of 13.9% by 2030. Typically, large enterprises generate, access, utilize, and manage large amounts of data. Large enterprises' associated processes and operations frequently necessitate high-tech tools, such as advanced analytical engines, process blueprints, and real-time data compilation tools, which drive their adoption of business software solutions.

Which industrial vertical sector drives the most demand for enterprise data management?

Based on the industrial vertical, the market is categorized into IT and telecom, BFSI, retail and consumer goods, healthcare, manufacturing, and others. The BFSI industry is expected to account for USD 86 billion, with a CAGR of 14.5% by 2030. The BFSI industry has to manage diverse data sets, including, among others, customer information, product information, solutions and services, financial transactions, purchasing history, and marketing strategies.

Master Data Management (MDM) solutions have enabled significant parties in the BFSI industry to reduce costs, foster innovation, and improve customer relationships and flexibility. Implementing enterprise data management solutions can assist incumbents in the BFSI industry in better managing enterprise-wide risks, enhancing sales and marketing operations, tracking and monitoring finance and accounting procedures, and managing various compliances more effectively. Technological advancements have substantially influenced the adoption of enterprise data management solutions throughout the BFSI sector.

Impact of covid-19

With the spread of coronavirus, the GDP and operations of significant economies decreased. Lockdowns imposed by the government and regulatory authorities across the globe disrupted market participants' operations and activities. It proffered a grave threat to humanity and society, destabilizing economies worldwide. In contrast, the demand for data management solutions increased due to the rapid adoption of security tools and answers due to the widespread deployment of remote work access by businesses in numerous nations.

According to a report commissioned by IDG from NTT Ltd., the normalization of the work-from-home model in the context of local and global quarantine was predicted to increase the demand for value-added services to mitigate security risks. Organizations around the world turned to enterprise data management providers for various services and solutions, which had a significant impact on the market for data management.

Market Recovery Timeline

As a result of the pandemic, every type of business faced challenges, including enterprise data management providers. The pandemic compelled organizations in several industries to temporarily suspend spending on new automation initiatives. However, there was a boost in the adoption of cloud-based solutions and expenditures on enabling remote work.

Additionally, demand increased for application platforms, collaborative applications, service management software, security software, and content workflow and management applications. During a crisis period, enterprise data management solutions provided businesses with agility and continuity, which were of immense value.

Recent Developments

• 2022- IBM Corporation announced an expanded partnership with SAP to undertake one of the world's most significant corporate transformation projects based on SAPÒ ERP software.
• 2022- IBM Corporation signed a strategic collaboration agreement with Amazon Web Services to deliver IBM software-as-a-service on AWS.
• 2022- Cloudera, Inc partners with Shionogi to accelerate R&D and achieve data-driven innovation in pharmaceuticals.