Global Data Integration Market Overview

The Global Data Integration Market size is expected to grow from USD 11.68 billion in 2023 to USD 35.34 billion by 2032, at a CAGR of 13.09% during the forecast period (2024-2032).

Data integration software combines data from several sources to provide users with a unified picture of the information. The need for diverse applications that can access, link, utilize and integrate several heterogeneous information repositories and sources has increased dramatically in recent years (including knowledge bases, databases, file systems, information retrievals systems, digital libraries, and electronic mail systems). In the search for an ultimate information integration system for data integration and integrity software, a variety of strategies have been proposed and accepted. Data integration and integrity software sharing must take place inside a well-defined governance procedure and legal framework, using suitable technology. This assures data security as well as the data integration and management staff's capacity.

Because of the increase in new start-ups, expansion of established firms, and the changing nature of enterprises, the adoption rate is increasing. Cloud-based services are becoming more popular among new start-ups as a sophisticated deployment methodology. Due to significant improvements in AI, learning algorithms, and software development, the industry is expected to evolve in the future. However, the market's growth is hampered by a lack of standards, competence, and management strategy in the business, and the process of combining data spread across several systems, sources, and silos are difficult.

Market Dynamics and Factors For Data Integration:

Drivers

Big data technology is shaping data integration, reflecting the growth of the market.
Data Integration is a growing need for companies with massive customer and client bases. Organizations are encountering several issues in dealing with fast-rising data sources as their client base grows and they expand into new regions and industries. Organizations have begun to see the benefits of fully utilizing big data and are investing in big data technologies, including data integration, as a result of the introduction of big data technology. Internal data sources such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), financial transactions from various departments, and external data sources such as online and cloud data sources, which are establishing many information silos, are among the rising data sources. Traditional technologies are increasingly insufficient to gather and integrate data and combine these information silos, requiring enhanced data integration solutions to enable organizations to combine these information silos and gain useful business insights. Modern data integration systems, including sophisticated transformation tools supplied by various vendors, come with advanced capabilities like data capture, data profiling, data quality, data governance, and metadata management to handle data post-integration, resulting in seamless and reliable data extraction.

Restraints

Over 92 percent of firms are aware that their systems contain duplicate data. Duplicates, while appearing harmless at first, can cause major issues in the long run. The bigger the danger to a firm, the more duplicate data it has. In the system, true data identification becomes a time-consuming and manpower-intensive operation. The majority of the time, these duplicates are caused by a 'silo mindset' issue. Duplicates and inexplicable variances become the norm in data integration pipelines if teams don't exchange data and communicate properly, which is a limiting constraint in the Data Integration Market.

Opportunities

The need for cloud computing technology is increasing every day because it enables enterprises to collect data from a variety of sources, including linked distant sensors, dispersed servers, and the web, and derive important business insights from it. Organizations require powerful big data integration solutions to gather and integrate this huge volume of data acquired from diverse internal and external sources, as well as to unite information silos. These technologies may quickly adapt to the needs of enterprises, allowing them to fully use their data pool by merging cloud data with on-premise data transported to the cloud. Organizations are favoring cloud deployments over on-premises installations following the COVID-19 epidemic and worldwide lockdown. As a result, enterprises have been forced to change their data management methods and embrace data integration techniques, creating a huge potential for the data integration industry to develop and thrive.

Challenges

To deliver projects efficiently, an organization's data integration and management methods must be aligned with its business strategy. However, because there are various departments in a business, and separate departments have distinct data integration requirements based on their information silos, enterprises frequently fail in their enterprise-level planning. For efficient enterprise-level planning, a business needs a consistent data integration approach. Data integration channels are frequently duplicated in organizations. They employ several versions of the same items or apply multiple tools and techniques for the same task. As a result, comprehensive enterprise-level planning and deployment of standards in data integration and management strategies are critical for enterprises to enhance productivity at all levels and departments.

Market Segmentation

By Component, the Services segment is dominating the Data Integration Market. This is because of the growing need to combine several heterogeneous data sources along with the rise of cloud computing, thereby creating demand for effective data integration tools and services. The service segment has seen significant demand from small and medium-sized businesses due to expansion and a growing customer base. However, Large enterprise dominates the demand for data integration services. Also, data integration services for government agencies are pushing the market further. Government agencies have enormous public data which required to be filtered, managed, sorted, and integrate. Such demand from government bodies creates long-term demand in the market. For instance, FedRAMP from Informatica is designed for Government agencies to data-driven integrated solutions for better data handling. Therefore, the service segment is expected to be dominating in the Data Integration Market.

By Deployment Model, on-premises is dominating in the deployment segment of the Data Integration Market. On premises, deployment is the most used method of opting for data integration service. On-premises solutions are the software that is installed and maintained by the customer or enterprise itself instead of relying on service-providing companies to operate on behalf of them. One of the advantages of on-premises deployment is the operations and data maintenance is controlled by the enterprise itself. Therefore, impromptu changes and requirement can be sought out within the organization which saves time and improve productivity. On premises, deployment is expected to gain more momentum in the coming years.

By Enterprise Size, Large Enterprises dominate the segment in Data Integration Market. Large enterprises are in the need of sophisticated data integration solutions. Companies with massive customer and client information that need to secure on their platform in a well-segregated manner opt for the data integration tools such as Oracle GoldenGate, AWS Glue, SQL Server Integration Services (SSIS) by Microsoft and Informatica PowerCenter. These tools are highly capable to provide seamless data integration and warehouse solutions for large enterprises. Currently, E-commerce companies are in major need of data management and integration due to multi-domain integration such as customer data, payment gateway process, and information as well as product-related data which is required to be up to data and integrated. Hence, large enterprises are expected to generate more demand in Data Integration Market.

By Industry Vertical, BFSI is dominating the Data Integration Market and projected to be the fastest-growing segment by industry vertical. At present, financial firms face certain issues in manual processing systems related to costs and time management. Also, customers take a lot of time to gather relevant documents in many cases. In recent years banking and finance sectors have become more focused on online presence related to customer data as well as market-sensitive data. Data Integration tools allow BFSI companies to store, manage and transfer their sensitive data on a cloud-based platform which provides bomber security to data. Also, to improve customer experience and streamline the process, the adoption rate of data integration and integrity in the BFSI Sector is attributed to the growth of the market.

Players Covered in Data Integration market are :

• IBM(US)
• Microsoft (US)
• SAP(Germany)
• Oracle (US)
• SAS Institute (US)
• Talend (US)
• Informatica (US)
• Precisely (US)
• Software AG(Germany)
• Salesforce (US)
• Qlik (US)
• Tibco (US) and other major players.

Regional Analysis of Data Integration Market

North America is dominating the Data Integration Market. One of the primary driving drivers for the big data industry in the United States is the increase in data collecting from unstructured sources. The high-demand sectors, such as public utilities, are responsible for the market's growth. As more government agencies use mobile, social media, and weblogs to do business, these apps and websites are responsible for creating massive amounts of data daily. This information is used to provide business insights and projections. As a result, data integration technologies assist the US market in gaining a competitive advantage by gathering, translating, and analyzing raw data from a variety of sources into useful business information. The Canadian Big Data and Analytics market is predicted to develop at a CAGR of 9.4%, according to market analysis. Big data technologies are one of the top software investment goals for Canadian firms to draw useful insights and automate processes. Big data subsequently reflected on the structured data integration methods in various verticals.  Experts feel that the introduction of big data and analytics is laying the groundwork for the future acceptance of AI-related technology.

The Asia Pacific is the fastest-growing region in Data Integration Market. Countries like China, Japan, India are considered to be IT enabling countries in Asia Pacific Region. The large population in the region generates the demand for sophisticated data integration and data warehouse solutions. The key factors of this market are – a sudden rise in the application of social media to study the customer behavior pattern by the businesses to make their strategies more effective. The growth in the amount of transitional information also acts as a driver for accelerating the data integration market in Japan.  The big data sector in China will continue to depict steady expansion by 2028. Policy support and technology integration are major factors driving this growth. Due to the growing adoption of big data technology, data integration became more effective and safer which led to demand generating factors for Data Integration Market. Observing the up-surging graph of big data, the report predicts that AI platforms will become the third-largest sub-market of the overall big data industry by 2028 while replacing commercial services.

Key Developments of Data Integration Market

• In January 2024, Microsoft introduced new AI and data solutions for retailers, enabling personalized shopping experiences, empowering store associates, and unifying retail data. These solutions include copilot templates on Azure OpenAI Service, retail data solutions in Microsoft Fabric, copilot features in Microsoft Dynamics 365 Customer Insights, and the launch of Retail Media Creative Studio in the Microsoft Retail Media Platform. These new capabilities provide retailers with more options to enhance copilot experiences throughout the shopper journey.

• In November 2023, IBM announced that it has been working with Amazon Web Services (AWS) on the general availability of Amazon Relational Database Service (Amazon RDS) for Db2, a fully managed cloud offering designed to make it easier for database customers to manage data for artificial intelligence (AI) workloads across hybrid cloud environments.