Data Integration Software Market

Data Integration Software Market Outlook (2022-2032)

The global data integration software market is valued at US$ 5.7 Bn at present and is projected to climb to US$ 19.5 Bn by the end of 2032, advancing at a CAGR of 13.9% over the decade.

The on-premise segment holds 57.2% share of the global market, with the United States controlling 16.4% market share.

Demand Analysis of Data Integration Software (2016-2021) Vs. Market Estimations (2022 to 2032)

Over the 2016-2021 historical period, the global data integration software market surged at a CAGR of 12.6%.

Data has become vital to all businesses. Data integration software aid in data organization, and data analysis, and provide self-access. Data integration software assists in the secure operation of data and overcomes gaps in cloud implementation.

Moreover, data integration software lowers hardware and maintenance expenses, making it more valuable for small and medium-sized organizations. Furthermore, the software gathers and organizes pertinent data for subsequent studies.

Businesses employ data integration software to assist them with a variety of tasks like database consolidation, business information integration, data migration, master data management, and metadata management.

The massive amount of data generated by enterprises and the requirement to handle that data effectively are expected to fuel the growth of the global data integration software market during the forecast period.

During the forecast period, the global data integration software market is estimated to surge at a CAGR of 13.9%.

Why is the Popularity of Data Integration Software Surging?

“Market Benefiting from Advent of Big Data Technology”

Organizations are facing numerous issues in dealing with the fast-expanding data sources as their customer base grows and they enter new markets and regions.

With the introduction of big data technology, organizations have started to understand the advantages of effectively utilizing big data and are engaging in big data technologies, particularly data integration.

Internal data sources such as customer relationship management (CRM), enterprise resource planning (ERP), financial transactions from various departments, and external data sources such as cloud and web data sources are among the expanding data sources that are generating many information silos.

Traditional technologies are becoming inadequate to gather and integrate data and merge these information silos; thus, organizations demand enhanced data integration software to assist them in acquiring useful business insights.

Moreover, improved data integration tools, such as advanced transformation tools provided by various vendors, are filled with sophisticated characteristics to manage data post-integration, such as data profiling, data capture, data governance, data quality, and metadata management, culminating in reliable and seamless data extraction.

Such aspects are projected to boost the global data integration software market during the forecast period.

“Incorporation of Machine Learning & Artificial Intelligence”

The incorporation of cutting-edge technologies such as machine learning and artificial intelligence (AI) in data integration software is anticipated to drive the global data integration software market during the forecast period.

These technologies contribute to the automation of data collection and evaluation and the enhancement of decision-making processes. Furthermore, the use of artificial intelligence (AI) and machine learning ensures the efficiency of data pipelines by making integration easier.

Moreover, by removing the need for human involvement, such technologies improve the overall cost-efficiency of data integration software.

As a result, the growing use of artificial intelligence (AI) and the increased deployment of advanced technologies in data integration software is expected to drive the global data integration software market during the forecast period.

“COVID-19 Pandemic Presented New Growth Avenues”

The COVID-19 pandemic had a significant impact on the sales of data integration software. The development of numerous prospective IT initiatives is likely to increase end-user usage of data integration software.

Market participants are concentrating on executing numerous business strategies to deal with the ramifications of the COVID-19 pandemic and supply cutting-edge software and services to their users.

For instance:

• In reaction to the region's growing cloud trend, Informatica, a provider of data integration software, introduced Intelligent Data Management Cloud on Azure for Asia Pacific in July 2021. The Intelligent Data Management Cloud (IDMC) system is an AI-powered end-to-end cloud platform for Asia Pacific and Southeast Asia that is available on Microsoft Azure.
• Precisely, a data integration software provider based in the United States, acquired Infogix, in May 2021. This acquisition aided the companies in making better use of reliable data utilizing data integration systems.

Considering market players' business plans in reaction to the COVID-19 pandemic, it is more probable that data integration software will experience a surge in demand due to the increasing adoption of cloud services.

As a result, the global data integration software market is anticipated to expand during the forecast period.

What are the Expected Hurdles for Global Market Expansion?

“Lack of Knowledgeable & Skilled Employees for the Job”

Organizations employ modern data integration technologies in business management and data management to gather and incorporate vast amounts of data from multiple external and internal data sources, as well as combine data silos, to gain significant business insights.

Nevertheless, workforce knowledge limits and insufficient skills prevent them from using data integration software. This is a major factor likely to hinder the growth of the global data integration software market during the forecast period.

Organizations typically work in silos; therefore, data integration becomes increasingly crucial to acquire a broader picture of many verticals and applications. Numerous studies and reports, as well as surveys, have frequently revealed the workforce's lack of knowledge and skills in enterprises.

• According to a survey, barely 19% of firms have enough knowledgeable employees to work on big data initiatives.

To address this issue, firms invest substantially in certifications and training so that the employees understand and apply big data integration strategies and methods for effective data management.

Country-wise Insights

Why is the United States Set to Lead the Global Market?

The United States accounts for 16.4% share of the global data integration software market. The country is heading toward more advanced and innovative technologies with the rising use of digital strategies.

Moreover, increasing technological breakthroughs in the field are critical aspects projected to propel the data integration software market in the United States. Furthermore, the growing number of data integration software companies in the country is expected to bolster market growth.

• For example, Software AG, a supplier of enterprise integration software solutions, acquired StreamSets, a U.S.-based firm that provides a data integration platform for building, deploying, designing, and operating smart data pipelines, in August 2022. The deal allows Software AG to penetrate the cloud data integration market, expanding the company's product offering. Furthermore, this acquisition is expected to aid the scale of their business, provide data integration services to their customers, and boost their presence in North America.

Category-wise Insights

Why is On-Premise Installation of Data Integration Software More Popular?

The on-premises segment holds 57.2% of the global data integration software market.

A large proportion can be ascribed to on-premises data integration software's ability to merge data from several on-premises sources, irrespective of type, volume, or structure, utilizing in-house software.

A data replication tool is included in the software, which monitors the consistency of data throughout the local and cloud network. Data from diverse on-premises software systems can be merged with the help of on-premises data integration solutions.

An on-premises data integration system is housed in one of the company's physical offices.

• For example, Equalum LTD., a provider of data integration platforms, revealed a US$ 14 Mn series C investment round in August 2022. The investment will boost the demand for hybrid cloud and on-premises projects that connect with Azure, Google LLC, and Amazon Web Services, Inc. Furthermore, it is also expected to expand its business globally through increasing data integration delivery.

Competitive Landscape

Key firms undertake strategic alliances and product development to expand their product offerings and gain a solid presence in the global data integration software market.

Data integration software providers have employed a variety of organic and inorganic growth techniques to increase their market offerings, including agreements and partnerships, new product releases, product upgrades, mergers and acquisitions, and business expansions.

Moreover, growing mergers and acquisitions and collaborations are projected to optimize economic and environmental advantages for market participants by allowing them to exchange ideas and improve their internal skills and technologies.

For example:

• In May 2022, Informatica Inc., a provider of data integration software, teamed with the Oracle platform for corporate connectivity and automation, which swiftly modernizes APIs (application programming interface), data, applications, and business processes. The collaboration intends to offer cloud data integration and governance solutions for data science, data warehouses, and enterprise analytics. Customers of both organizations can automate their data by shifting on-premises operations to a cloud-based platform. They can also leverage their investments and existing skills while receiving insights from reliable data at scale.
• In June 2022, TIBCO Software Inc. revamped its platform TIBCO Analytics Forum (TAF) for its consumer base. The platform will assist organizations in connecting, unifying, and accurately forecasting business results. The platform will aid in data integration and solution portfolio expansion. This will bring in more new customers for the business.
• In September 2021, Microsoft unveiled Azure Data Factory (ADF) to offer secure access to the data source and prevent data from being disclosed to the public internet.
• In May 2021, SAS strengthened its analytics and data performance foundation by introducing new data management capabilities into its cloud-native SASViya platform.

Data Integration Software Industry Report Scope

Data Integration Software Industry Research Segmentation

By Deployment Type:

• Cloud
• On-premise

By Component Type:

• Software
• Services

By End User:

• BFSI
• IT and Telecom
• Healthcare
• Manufacturing
• Government
• Retail and consumer goods

By Region:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East & Africa