Data Pipeline Market Size, Share & COVID-19 Impact Analysis, By Component (Tools and Services), By Deployment (Cloud and On-Premise), By Enterprise Type (SMEs and Large Enterprise), By Industry (BFSI, IT & Telecom, Healthcare, Marketing & Advertising, Manufacturing, and Others), and Regional Forecast, 2023-2030

The data pipeline market size was valued at USD 6.81 billion in 2022 and is projected to grow from USD 8.22 billion in 2023 to USD 33.87 billion by 2030, exhibiting a CAGR of 22.4%. North America dominated the global market with a share of 40.38% in 2022.

A data pipeline is a set of techniques that move data from one system to another and make it available in a usable format. These solutions focus on analytics, data science, Artificial Intelligence (AI), and machine learning. The basic operation of a data pipeline consists of extracting data from a source, applying transformation and processing rules, and moving the data to its desired location. 

Whereas the market study includes various applications such as real-time analytics, sales, and marketing data, data migration, predictive maintenance, and Customer Relationship Management (CRM), among others.

COVID-19 IMPACT

Rising Data Generation Owing to Work from Home Culture During COVID-19 to Boosted the Market Growth

The novel coronavirus (COVID-19) outbreak has positively impacted the market. As the majority of people have begun to adopt a work-from-home culture, it has generated large amounts of structured, semi-structured, and unstructured data in the form of video, voice, email, and more on online platforms.

In addition, Talend, Hevo Data Inc., and several other various data pipeline providers have made their COVID-19 datasets available to users. For instance,

In April 2020, Talend partnered with Byte Code to develop an ETL tool for the COVID-19 dataset. This tool is specifically designed to assist health researchers. 

Further, the tools are becoming more popular as data corruption incidents increase worldwide. The data generated has grown exponentially, especially during the COVID-19 epidemic. Therefore, tools are introduced to protect data flow and reduce the risk of data corruption. Thus, the aforementioned factors boosted the data pipeline market growth.

LATEST TRENDS

Growing Acceptance Rates of Machine Learning and Data Analytics to Propel the Market Growth

Many leading companies adopt altered frameworks to power pipeline services. For instance, in January 2022, Metaflow launched a framework for real-world data pipeline tools and machine learning. It helps build and manage ML projects and data science, addressing the needs of data scientists working on demanding real-world data analytics and machine learning projects. As a result, the adoption of data analysis tools and machine learning has skyrocketed, contributing to the growth of the market. 

DATA PIPELINE MARKET GROWTH FACTORS

Increased Use of Advanced Data Pipeline Tools for Cloud Flexibility among Organizations to Bolster Market Growth

Businesses that need data should be able to access it at any time. Traditional pipelines require access to data by many organizations within an enterprise. At the same time, outages and disruptions can occur. Organizations must scale data storage and processing capabilities quickly and affordably instead of taking days or weeks. 

Legacy data pipelines are often rigid, slow, precise, hard to debug, and scale. Production and management require a lot of time, money, and energy. It also impacts peak business operations; as different processes typically cannot run simultaneously. 

Thus, advanced pipeline tools provide immediate cloud flexibility at a fraction of the price of traditional systems. This facilitates access to shared data, enables immediate and flexible deployment as data sets and workloads grow, and allows organizations to easily scale their entire pipeline without being constrained by hardware configurations.

These factors, as mentioned above, fuel the market growth.

RESTRAINING FACTORS

Lack of Access to Data in Business Processes May Impede Market Growth

Data is the primary driving force behind the decision-making and operations of data-driven enterprises. Data can become unreliable or incomplete, especially during events such as infrastructure upgrades, mergers and acquisitions, restructurings, and migrations.

Lack of access to data can negatively impact the business in many ways, from customer complaints to unsatisfactory analytical results. Data engineers spend a significant portion of their time updating, maintaining, and ensuring the integrity of these pipelines. These factors are hampering the market.

SEGMENTATION

By Component Analysis

Data Pipeline Tools to Hold Maximum Share Backed by Increased Development of Big Data in Data Sources

Based on component, the market has been bifurcated into tools and services. Tools segment is further segmented into batch processing and streaming. Services are further segmented into strategy & architecture, design & development, and support.

Among these, the tools segment is set to capture the maximum market share in 2022. With the data companies create and collect, the need to combine information from multiple independent sources is growing rapidly. The development of big data will drive the growth of tools as these tools consist of large amounts of unstructured, structured, and complex data sources that must be transferred to data repositories. 

Services segment is expected to show the highest CAGR during the forecast period due to the rising adoption of data pipeline services by some large enterprises such as AWS and IBM Corporation. Further, multiple companies use these services, such as strategy, architecture, design & development, and support to transfer data to their primary servers. 

By Deployment Analysis

Cloud to Generate Highest Share Fueled by the Increased Cloud Computing Usage

Based on deployment, the market has been categorized into cloud and on-premise.

Among these, the cloud segment is anticipated to lead the market with the highest share and show the highest CAGR during the forecast period. The growing demand for data pipeline tools to move data from disparate sources to the cloud or warehouse and the rise of cloud computing is creating demands for effective data pipelines and practices contributing to segmental growth. For instance,

• In 2021, according to the O'Reilly Cloud Adoption survey, 90% of companies use cloud computing as part of their business processes. 

Moreover, the on-premise segment will grow considerably during the forecast period (2023-30).

By Enterprise Type Analysis

SMEs Contributing to the Highest Share Owing to Adoption of Various Strategies

The report considers the revenue generated by SMEs and large enterprises by adopting tools and services.

The small & medium-sized enterprises segment dominates the market with the highest market share. This is owing to the significant presence of small and medium size companies across countries, including India, China, the U.S., France, and Italy. Further, players such as AltexSoft, Inc., Hazelcast, Inc., and others adopt various strategies, including partnership, merger, and acquisition.

SMEs can use data to make important business decisions that will help them advance in their growth strategy and fiercely compete with their larger counterparts. Small and Medium-sized Enterprises (SMEs) are a powerful engine for industrial expansion and, by extension, general economic development, particularly in developing and transitional economies. The SME sector is breaking the misconception that data can only be used extensively in large firms by exploiting data insights.

Whereas the report suggests large enterprises to witness the highest CAGR during the forecast period as major companies are investing in tools and services worldwide. The market's rapid growth is due to the large amount of data generated within large types of organizations as more efficient data transmission media is overgrowing. These factors drive the growth of the market for large enterprises. 

By Industry Analysis

Increasing Demand for Effective Data Transformation in IT & Telecom Sector Boost the Demand

Based on industry, the market is divided into BFSI, IT & telecom, healthcare, marketing & advertising, manufacturing, and others.

Amongst them, IT & telecom segment is anticipated to lead the market with the highest share. Technological innovations, increasing the demand for effective data transformation, data separation, and data transformation tools all contribute to the market growth in the IT & telecom sector. Additionally, the increasing deployment of 5G networks has augmented the industry's demand for data pipeline systems, as 5G networks require continuous performance monitoring. 

However, healthcare is expected to show the highest CAGR during the forecast period. With ever-advancing technology, the healthcare sector is undergoing a digital transformation. Healthcare facilities strive for a more connected and supportive healthcare environment to improve their services. A healthcare data pipeline refers to the connections that move and modify healthcare data between systems. Healthcare facilities need access to reliable and up-to-date medical data to make accurate diagnoses and predictions. All these factors will support the healthcare industry's growth in the upcoming years.

REGIONAL INSIGHTS

Geographically, the market is divided into five key regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

North America dominated the market with a significant data pipeline market share in 2022. This region is considered the presence of major market players such as Microsoft Corporation, IBM Corporation, and AWS, Inc., which plays a key role in determining the direction of the global market. Rapid transmission of massive data sets and subsequent generation of reliable data are the major factors driving the North American market. Various industrial and commercial companies in the U.S. and Canada use data pipeline systems to simplify operations, reduce data security, and contribute to local economic prosperity. 

Europe holds the second-highest market share due to increasing innovation and emerging new technologies such as artificial intelligence (AI) and machine learning (ML). Growing demand to combine different data sets from disparate sources via a single cloud is increasing the need for data pipelines and integration in the U.K. and France, which is expected to boost the market during the forecast period.

The Asia Pacific market is expected to grow with the highest CAGR due to various industry efforts to reduce latency in the region. For instance, in November 2022, Nokia partnered with Australia-based telecom company Optus to launch an ultra-low latency, and high-speed network, between Sydney and Melbourne. 

Further, South America and the Middle East & Africa will likely exhibit considerable market growth. Numerous organizations across South America are adopting data pipeline tools and services. This is anticipated to create several growth opportunities for the market in these regions.

KEY INDUSTRY PLAYERS

Key Players Emphasize Advanced Data Pipeline to Strengthen their Positions

There is a vibrant startup ecosystem in the global market. Over 100 start-ups in the market are expected to develop and innovate consumer data pipeline tools and services. In such a fragmented market, intense competition can occur as incumbents must continuously improve their products and introduce new developments. Increased competition can lead to market expansion and provide more opportunities for market participants. 

LIST OF KEY COMPANIES IN DATA PIPELINE MARKET:

• IBM Corporation (U.S.)


• Snowflake (U.S.)


• QlikTech International AB (Talend) (U.S.)


•  Amazon Web Services, Inc. (U.S.)


• Software AG (Germany)


• Informatica, Inc. (U.S.)


• Skyvia (Czech Republic)


• SnapLogic, Inc. (U.S.)


• Blendo (U.S.)


• Denodo Technologies (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• May 2023– Informatica, an enterprise cloud data management provider, expands its relationship with Amazon Web Services (AWS) with new announcements to expand integration and go-to-market efforts for data, analytics, and AI products for zero-cost data pipelines.


• May 2023 –Talend was acquired by Qlik. This acquisition helps to combine data integration with Talend's data transformation, quality, and governance capabilities.


• July 2022 – SAP SE acquires Askdata to improve data capacity. The acquisition will enable businesses to leverage AI-driven natural language search to make more informed decisions. 


• July 2022 – Snowflake has partnered with Zuora, an enterprise software company. Through this partnership, both companies sought to provide the data businesses need to grow and monetize their customer relationships. 


• May 2022 – Stripe expanded its infrastructure with a data pipeline to sync financial data with Amazon and Snowflake. The company expansion allows users to create shortcuts between Stripe transactional data and their data stores in Snowflake's Data Cloud or Amazon Redshift.

REPORT COVERAGE

The study on the market includes prominent areas worldwide to get a better knowledge of the industry. Furthermore, the research provides insights into the most recent industry and market trends as well as an analysis of technologies that are being adopted quickly on a worldwide scale. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2019-2021
Growth Rate	CAGR of 22.4% from 2023 to 2030
Unit	Value (USD billion)
Segmentation	By Component, By Deployment, By Enterprise Type, By Industry, and By Region
By Component	Tools Batch Processing Streaming Services Strategy & Architecture Design & Development Support
By Deployment	Cloud On-Premise
By Enterprise Type	SMEs Large Enterprise
By Industry	BFSI IT & Telecom Healthcare Marketing & Advertising Manufacturing Others (Transportation)
By Region	North America (By Component, By Deployment, By Enterprise Type, By Industry, and By Country) U.S. Canada Mexico Europe (By Component, By Deployment, By Enterprise Type, By Industry, and By Country) U.K. Germany France Italy Spain Rest of Europe Asia Pacific (By Component, By Deployment, By Enterprise Type, By Industry, and By Country) China Japan India South Korea ASEAN Oceania Rest of Asia Pacific Middle East & Africa (By Component, By Deployment, By Enterprise Type, By Industry, and By Country) Turkey Israel GCC South Africa North Africa Rest of Middle East & Africa South America (By Component, By Deployment, By Enterprise Type, By Industry, and By Country) Brazil Argentina Rest of South America