Graph Database Market

Market Overview

The global graph database market size was valued at USD 1.9 billion in 2022. It is projected to reach USD 11.89 billion by 2031, growing at a CAGR of 22.6% during the forecast period (2023–2031).

A “graph database” database uses graph structures for semantic queries, representing and storing data as edges, nodes, and properties. A node represents every entity (person or company), and an edge represents every connection or relationship between nodes. A “graph databases” technology translates relational OLTP (online transaction processing) databases. The market for graph databases is anticipated to be significantly accelerated by the growing use of virtualization for big data analytics and the adoption of Artificial Intelligence (AI)-based graph database tools and services. The market for Graph databases will continue to expand due to flexible and appropriate performance that adapts to the companies' changing needs and business processes. But lack of knowledge about the potential advantages of graph databases serves as a market growth inhibitor. To gain a competitive advantage, telecommunications companies are putting more and more emphasis on this technology, which is expected to create lucrative opportunities for the market for Graph databases. The implementation challenges will challenge the market for Graph databases.

Market Dynamics

What Are the Main Factors Driving The Market For Graph Database?

Escalating Need for Low-Latency Query Processing Solutions

Though theoretically, it might lower costs, in practice, the method can limit and degrade the performance of database queries. A graph database is transforming conventional brick-and-mortar businesses into digital business powerhouses when it comes to digital business initiatives. Large connected data sets must be placed in a database not optimized for the desired use, which presents business challenges. Companies can use a real-time recommendation system built on top of a graph database capable of handling low-latency queries in place of a complex batch process on top of a legacy relational database. It can significantly outperform conventional relational databases to uniquely query past purchases made by customers during an online visit to match historical and session data. Graph databases provide lower latency. Because the nodes and links "point" to one another, millions of related records can be traversed through any size database with a constant response time. Queries are broken down into smaller, concurrently running sub-queries to achieve low latency and high throughput.

What Are The Challenges For Graph Database Market?

A Lack of Standards and Simple Programming

Although technically NoSQL databases, graph databases must be run on a single machine because they cannot be implemented across a low-cost cluster. This is the cause of the network's rapid performance degradation. Another potential drawback is that developers must write their queries in Java since there is no Standard Query Language (SQL) to retrieve data from graph databases. This requires hiring expensive programmers or using SparcQL or another query language designed to support graph databases, which would require learning a new skill. Because of this, graph database systems lack programming simplicity and standardization. Although there are visualization tools for graph databases, they are still in the early stages of development.

What Are The Future Opportunities For Graph Databases?

Open Knowledge Networks' Emergence

To establish usability across applications, support knowledge-intensive applications, and link various fields to create a cross-domain knowledge network, knowledge networks must assimilate and integrate knowledge from various domains and possess datasets, schemes, and documentation. Applications like monitoring and caring for elderly patients demand an understanding of biometrics, the patient's medical history, the state of their homes, and their current behavior. This is where personalized healthcare knowledge graphs and multimodal cross-domain information curated from various sources can be linked together by knowledge networks. This knowledge network contains several proprietary knowledge graphs, which are expensive for academic or research use. Due to this situation, several academic, governmental, and business experts have developed the “open knowledge network” concept to create an open-source infrastructure that connects cross-domain information from pertinent entities. An effort of this nature aims to build an open knowledge graph of all knowledge in the world, represented as entities and relationships.

Regional Analysis

The global graph database market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant global graph database market shareholder and is expected to grow at a CAGR of 21.5% during the forecast period. The U.S. and Canada are included in the analysis of the graph database market in North America. Because North American businesses rely so heavily on data, graph database tools and related technologies are growing in popularity. Additionally, the emergence of technology-based industries and businesses in this area has created significant growth potential for companies that provide graph databases. The market for graph databases in North America is expanding due to the region's technological advancements. The increasing number of regional market players in the graph database industry is also predicted to support market growth. It is because these regions were early in the development of the technology, have well-established fintech solutions, and have made advances in information technology. Fin-tech solutions established in the early stages of technological development and advancements in information technology are all helping this sector grow. Adopting AI and Internet of Things (IoT) devices is another factor that is anticipated to support market expansion in the region.

Asia Pacific is expected to grow at the fastest CAGR of 23.3% during the forecast period. China, India, Japan, Australia, and the rest of Asia-Pacific are all included in the analysis of the Asia-Pacific graph database market. As opportunities for smaller graph database vendors to launch graph database solutions for numerous sectors have significantly increased, Asia-Pacific is predicted to experience profitable growth. As cloud computing solutions gain significant traction, there is a growing need to analyze data from the banking, financial, and e-commerce sectors to gain competitive insights. Additionally, nations like China and Singapore use information-intensive technologies to their advantage.

Segmental Analysis

The market is segmented by type, solution, application, and industry vertical.

Based on type, the global graph database market is bifurcated into RDF and property graph.

The RDF segment is the highest contributor to the market and is expected to grow at a CAGR of 21.9% during the forecast period. The Resource Description Framework segment obtained a sizeable revenue share in the graph database market. In an RDF graph model, each information update is represented by a unique node. The user in an RDF model must create a different node that connects to the natural person node. Arcs and nodes are the main components of an RDF graph model. An RDF graph notation or a statement is represented by a node for the object, a node for the subject, and an arc for the predicate. A node may be literal, empty, or have a URI attached to it. An arc can also be identified using a URI.

Based on the solution, the global graph database market is bifurcated into software and service.

The Service segment is the highest contributor to the market and is expected to grow at a CAGR of 22.3% during the forecast period.  These services are essential for the operation of graph database solutions and for ensuring a faster, more effective implementation that maximizes the return on company investments. A significant portion of the market is devoted to services related to this kind of software, ensuring the efficient application of graph database solutions. Because they ensure the smooth operation of the platforms and software throughout the process, there is an increase in demand for these services due to an increase in end-user adoption of services.

Based on application, the global graph database market is bifurcated into analytics, risk management & fraud detection, and recommendation engines.

The risk management & fraud detection segment is the highest contributor to the market and is expected to grow at a CAGR of 22.8% during the forecast period. To create a network of synthetic identities, fraudsters combine accurate information like a social security number or another national identification number, a person's name, a phone number, and a physical address. The majority of traditional fraud detection systems are built on the analysis of the behavior of a single business entity, such as a patient, the patient's family, a device, a doctor, or a healthcare provider, and the discovery of unusual patterns in that behavior.

Based on industry vertical, the global graph database market is bifurcated into BFSI, information technology, telecommunication, travel & logistics, manufacturing, and others.

The BFSI segment is the highest contributor to the market and is expected to grow at a CAGR of 23.1% during the forecast period. The BFSI sector obtained the graph database market's largest revenue share. Various banks' increased investments and efforts to bring digitalization to their processes drive this segment's rising growth. Thanks to graph database solutions, executives can efficiently manage their workloads to offer better customer experiences. As a result, this factor is accelerating this market segment's growth.

Recent Developments

• October 2022, The New York Giants and Teradata jointly announced that Teradata had been appointed as the team's official analytics provider. The New York Giants will start utilizing Teradata VantageCloud Lake on AWS to provide its fans with a distinctive and alluring user experience.

• September 2022, GIS WebTech has expanded its partnership with MarkLogic to now power its market-leading Guru application, a Zillow-like experience for commercial real estate and economic development, according to a recent announcement from MarkLogic Corporation, a pioneer in complex data integration and portfolio company of Vector Capital.