Data Fabric Market Size, Share & Industry Analysis, By Deployment (Cloud and On-premise), By Type (Disk-based and In-memory), By Application (Fraud Detection & Security Management, Governance, Risk & Compliance Management, Customer Experience Management, Sales & Marketing Management, Business Process Management, and Others), By Enterprise Type (Large Enterprise and Small & Medium Enterprise), By Industry (BFSI, IT & Telecom, Retail & E-Commerce, Healthcare & Life Sciences, Manufacturing, Government, Energy & Utilities and Others), and Regional Forecast, 2024-2032

The global data fabric market size was valued at USD 2.29 billion in 2023. The market is projected to be worth USD 2.77 billion in 2024 and reach USD 12.91 billion by 2032, exhibiting a CAGR of 21.2% during the forecast period. The data fabric Market in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.52 billion by 2032, driven by Enhanced Data Security Through Data Management Solutions.

In our scope, we have considered solutions such as Oracle Coherence Queryable, SAP Data Intelligence Cloud, HPE Ezmeral, and IBM Cloud Pak. Data Fabric is a complete data management and integration solution that offers a unique user experience and information for every company employee worldwide and in real time. Its robust architecture regulates feasibilities across the cloud, on-premises, data management practices, and edge devices. The quick shift of companies to the cloud and its diverse data sources will propel market growth.

Massive changes to digitalization have created unstable and new data sources. This has created devastating problems for businesses in managing large amounts of data. For instance, in 2020, Blackboard Inc. saw its daily log volume explode overnight as students around the world switched to online learning tools. Therefore, many companies are integrating data management architectures into their workflow systems to cope with the rapid data growth caused by the COVID-19 outbreak. As a result, companies around the world are rapidly implementing solutions to accelerate their digital transformation.

Data Fabric Market Trends

Enhanced Data Security Through Data Management Solutions to Aid Market Expansion 

Secured and robust data is essential for proper business operations and successful outcomes. Businesses can achieve secure data by complying with global regulations safeguarding sensitive data for clients or customers. According to the Consumer Intelligence Series: Trusted Tech Report, 80%-90% of customers across countries, such as the U.S., Canada, China, India, the U.K., and others, are looking for more trusted companies for their data protection. Thus, it has become indispensable for organizations across the globe to adopt more secure data management tools. Data fabric is a well-structured architecture offering additional protection against unauthorized access and data exploitation. Its ecosystem provides reliable data management by offering a secure-by-design framework. 

Moreover, implementing machine learning and artificial intelligence solutions in the architecture enhances its operational capabilities. In December 2021, identity unification organization Radiant Logic launched RadiantOne Intelligent Identity Data Platform as the Identity Data Fabric to strengthen security and compliance abilities. Thus, different data security features with the solution will boost the data fabric market share.

Data Fabric Market Growth Factors

Integration of AI/ML in Data Integration Tools to Surge the Demand for Architecture

The digital transformation and adoption of online platforms have fueled the data generation process. The enterprises store the data and its derived insights across different distributed sources. As a result, data management providers face various challenges in providing quick access to the data across these distributed landscapes. A higher distribution level and variety of business data assets create complexity in data management and integration.

As per the Data and Analytics Adoption Trends Study 2018, organizations planned to automate 49% of data integration and 37% of data preparation tools by 2020. Therefore, the data and analytics industries invest in advanced technologies to support data management strategies. This has resulted in the rise in demand for adopting artificial intelligence or machine learning-based architectures. The new tools and techniques help in enabling complex data use cases. Its ability to accelerate data and analytics design and offer transparent decision flow drives its demand for business survival.

Further, the ML/AI-powered solutions provide quick access to data to aid companies in targeting potential customers and planning new marketing strategies. It offers 360-degree acute insights concerning customer and supplier ends that help recover sales rates. For instance, in June 2021, IBM Corporation launched IBM Cloud Pak for Data 4.0, using AI lifecycle automation and data to deliver intelligent data management solutions.

RESTRAINING FACTORS

Lack of Control over Data to Hinder Market Growth

Data is an essential part of data-driven industries catering to various applications. The architecture directly connects data with the functional areas of businesses, such as human resources, finance, sales, operations, and more. However, these connections do not retain the historical data transaction. This transaction is potentially valuable for data scientists, business analysts, machine learning engineers, and other users. Its architecture lacks the unit for incorporating this data.

Similarly, the lack of visibility to store data on the cloud limits the control over the data directly. The lack of visibility will likely impact the protection and governance of the stored data, hampering the market growth.  

Data Fabric Market Segmentation Analysis

By Deployment Analysis

Improved Scalability and Flexibility to Fuel Cloud Demand

In terms of deployment, the market is categorized into cloud and on-premise. The cloud segment is expected to dominate the market in 2023 as it offers the efficiency, choice, and flexibility that enterprises need. Companies are scaling up their artificial intelligence and advanced analytics projects on the cloud, aiding them in making better data-driven decisions in progressively competitive markets.

On-premises deployments require significant upfront investment, support, and incur high operational costs and hence, are expected to hold minimum market share than cloud at the end of the forecast period. Additionally, the software needs to be installed on individual servers and computers, making implementation more time-consuming. For instance, SAP launched SAP Data Intelligence 3.1. This update includes integration & connectivity, deployment & delivery, metadata pipeline modelling & governance, and intelligent processing. This is the on-premises version of the SAP Data Intelligence system.

By Type Analysis

Disk-based Segment to Lead Due to Lower Cost of Ownership

As per type, the market is segmented into disk-based and in-memory.

Disk-based segment is likely to capture maximum market share owing to less cost of ownership and data compliance and the ever-increasing need for data integration and management across various data repositories.

In-memory segment is likely to grow rapidly as it is quicker than disk-based databases. As in-memory databases utilize hardware memory for data storage, it requires less time when probing the data. It can be used in the cloud and on commodity on-premise hardware ecosystems. This is expected to surge the demand for in-memory databases.

By Application Analysis

Growing Demand for Automation to Aid the Business Process Management Segment Growth

According to application, the market is categorized into fraud detection and security management, governance, risk and compliance management, customer experience management, sales and marketing management, business process management, and others.

Business process management assists businesses in overseeing their data to maximize its value of data. It is expected to hold the highest share in 2023 as companies use the solution to automate and optimize data management processes in less time and at minimum cost.

Data management tool is majorly used for business process management, and its use for fraud detection and security management is predicted to upsurge in the coming years.

Security management is a major challenge for businesses; thus, the demand for the software for fraud detection is expected to hold the highest CAGR during the forecast period. It also helps in improving regulatory compliance while reducing losses. In sales and marketing management, it helps extract data from various endpoints and offers insights to develop new strategies. Customer experience management is the most important data; therefore, the right technology is required to break down data silos. Data management techniques let companies share data among employees and partners in real time.

By Enterprise Type Analysis

Growing Adoption of Complex Technologies in Large Enterprises to Boost Market Growth

By enterprise type, the market is categorized into large enterprise and small & medium enterprise. Large enterprise segment is slated to lead during the forecast period. Large enterprises are implementing the data fabric technology to manage ongoing complex, disparate environments and new microservice-based and existing applications.

Similarly, small businesses have adopted the architecture to easily extract, transform, integrate, govern, and analyze cloud and on-premises data from multiple sources to deliver advanced data analytics. This is expected to boost the data fabric market growth.

By Industry Analysis

Growing Customer Data in BFSI to Boost Data Management Solution Demand

By industry, the market is segregated into BFSI, IT and telecom, retail and e-commerce, healthcare and life sciences, manufacturing, government, energy and utilities, media and entertainment, education, and others.

In the BFSI segment, the need for targeted insights, better user experiences, and better access to analytic capabilities drawn from different sources across the entire enterprise is bringing the tools into focus. Similarly, generating a huge volume of data daily in healthcare and life sciences organizations is expected to fuel market growth.

The retail industry is transitioning; thus, the digital or e-commerce marketplace is gaining prominence. To cope with this digital transformation, retail businesses deploy data management solutions to enable a comprehensive data and storage management strategy. The rapid adoption of digital technology across government sectors is poised to boost the market growth. Similarly, the fast-growing, data-driven IT and telecommunication industry will boost the market outlook.

REGIONAL INSIGHTS

The global market is classified across five regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Among these, North America dominates the market due to the presence of many data management solution providers in the U.S. Also, the region is considered one of the early adopters of advanced technologies. In the U.S., the increase in data collection from unstructured sources and the presence of most data centers are the major driving factors for the market.

Asia Pacific is anticipated to be the fastest-growing region during the forecast period. A growing number of data centers and a rapid shift toward digitization might propel the adoption of the solution in Asia Pacific. China is the second leading country globally, the first being the U.S. in data center adoption. As per the analysis, the Big Data industry in China is predicted to continue to depict steady expansion in the coming years.

In Europe, Big Data technologies are growing astonishingly, creating a space for adopting data management tools. The increasing use of electronic devices and networks advances information and communication technologies, and the digitalization of production processes generates data daily through social and economic activities. The U.K., Germany, France, Russia, Nordics, and Italy are among the major countries in Europe.

Growing product demand in the Middle East & Africa is due to the adoption of cloud and Internet of Things (IoT), upcoming mobile business intelligence, and domain-specific solutions. Similarly, the rapid adoption of analytical solutions by businesses of all sizes, a major focus on automation and fraud prevention across sectors, and growing demand for Software-as-a-Service (SaaS) are some of the factors fueling South America's growth market.

List of Key Companies in Data Fabric Market

Strategic Acquisitions and Collaborations to Boost Market Expansion

Key players invest in innovative data fabric solutions across all business segments. Major companies operating in the market extend the scope of underlying data to upgrade their tools and technology and create novel solutions.

LIST OF KEY COMPANIES PROFILED:

• IBM Corporation (U.S.)


• Oracle Corporation (U.S.)


• Hewlett Packard Enterprise Company (U.S.)


• SAP SE (Germany)


• NetApp, Inc. (U.S.)


• TIBCO Software Inc. (U.S.)


• Talend Inc. (U.S.)


• Denodo Technologies Inc. (U.S.)


• Cloudera, Inc. (U.S.)


• CluedIn (Denmark)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: CloudFabrix, the inventor of Robotic Data Automation Fabric (RDAF), launched Data Fabric for Observability with Cisco Observability Platform's Dynamic Data Ingestion and Automation Service (DIA). CloudFabrix also validated the use of this service in several application elements on the Cisco Observability Platform.


• May 2023: Sonata Software partnered with Microsoft to launch Microsoft Fabrics at the Microsoft Build event in Seattle, U.S. Microsoft Fabrics is a unified, complete analytics platform that gets together all the analytics tools and data that a business needs. Businesses will be able to manage their data in one place with a variety of analytics experiences.


• June 2022: HPE launched HPE GreenLake for data fabric, a service that united the industry's initial hybrid analytics with HPE GreenLake software, hardware, and services. This service maintains IT in control with a single outlook to monitor and manage distributed data.


• April 2022: Privitar Ltd. partnered with Denodo to develop modern data management and put secure data at the centre of any logical storage environment loaded with data networks and data virtualization.


• March 2022: Vyasa released Cortex, the largest provider of deep learning analytics software for biosciences, healthcare services, and enterprise applications. Cortex, an insightful data management solution, aids as the data fabric's "blueprint," allowing customers to manage and construct the required access to data sources associated with Vyasa Layar data fabrics.

REPORT COVERAGE

The research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION