Data Preparation Tools Market Size | Share and Trends 2024 to 2034

Data Preparation Tools Market Size and Companies

The global data preparation tools market size accounted for USD 7.01 billion in 2024 and is expected to reach around USD 31.45 billion by 2034, expanding at a CAGR of 16.2% from 2024 to 2034. The North America data preparation tools market size reached USD 2.17 billion in 2023.

Data Preparation Tools Market Key Takeaways

• North America led the largest market share of 36% in 2023.
• Asia Pacific is expected to witness the fastest CAGR of 17.54% during the forecast period.
• By platform, the data integration platform segment has held a major market share of 54% in 2023.
• By function, the data collection segment has accounted for more than 28% of the market share in 2023.
• By vertical, IT and telecom segment led the market with the highest market share of 38% in 2023.
• By deployment, the cloud segment has generated more than 57% of the market share in 2023.

U.S. Data Preparation Tools Market Size and Growth 2024 to 2034

The U.S. data preparation tools market size was estimated at USD 1.52 billion in 2023 and is predicted to be worth around USD 8.11 billion by 2034, at a CAGR of 16.4% from 2024 to 2034.

North America led the data preparation tools market with the largest market share in 2023. The growth of the market in the region is attributed to the rising digitalization and the technological advancements in the industries in the region is driving the growth of the market. The rise in the IT and telecom sector and the rising investments in further innovation and development in technologies are propelling the market’s growth. Additionally, the early adoption of technologies and the rising investments in cloud technologies in organizations are looking for data preparation solutions and the rise in the data-drives enterprise is driving the growth of the data preparation tools market in the region.

Asia Pacific is expected to witness the fastest growth in the data preparation tools market during the forecast period. The growth of the market in the region is expected to increase due to the rising foreign investments, especially in the IT and telecom sectors of the region. The rise in digitization across the region for the development of data-driven enterprises is contributing to the expansion of the data preparation tools market in the region. Moreover, the emphasis on technological advancements along with the integration of AI and ML solutions in the industry is observed to create a potential for the market to expand in the upcoming years.

Market Overview

Data preparation is an agile and complex process of cleaning, finding, transforming, combining, and sharing curated database for different analytics and data that includes the use cases as data science/machine learning (ML), analytics/business intelligence (BI), and self-service data integration. Data preparation tools provides the faster insights to the analysts, data engineers, citizen integrators, and citizen data scientists  and delivers curated and combined data. Some of the tools are designed with the machine learning algorithms and in some tools it’s automated to do repeated data preparation tasks. The rising digitalization across industries are generating the large databases in the organization that demand for the efficient and faster tools which drives the growth of the data preparation tools market. 

Data Preparation Tools Market Growth Factors

• The rising technological adoption by various industries creates larger databases in the industries that drive the demand for the data preparation tools for the management and analyzing the data that boosts the growth of the market. 
• The increasing demand for the data analysis by the several major industry giants and demanding for the increased efficiency and faster time to insights for sustain in the competition that drives the growth of the market. 
• The rise in integration of machine learning, artificial intelligence in the data interpretation to interpret, read, and analyze the complex data structure by the industries are driving the growth of the market.
• The rising flow of data and data generation by the companies for analyzing the market trends, to take precise decision, and enhance efficiency. Data preparation help in employees to turn data into actions which also fueling the demand for the data preparation tools market. 
• The rising industrial infrastructure across the globe, thus the increasing IT, and automation sector that generates huge amount of data which propels the growth of the market. 
• The rising investments in the growth of the technological advancements and R&D activities for the launch of latest technologies are driving the growth of the market. 

Market Scope

Market Dynamics

Driver

Expansion of IT infrastructure

The rise in the IT and telecom infrastructure in the economically developed and developing countries globally that are highly contributing in the expansion of the market. The rise in the telecom industry and the major market players are evolving continuously which had the large database of the consumers that demand the high-end solution for the data analyzing and management that boosts the company insights and helps in making informed decision which helps to make company grow.

Data preparation tools help the telecom and IT sector by enhancing analytics, productivity, and increased organizational data usage. In recent times, many major firms adopted data preparation tools for enhancing the services of their company and sustaining their business which contributed to the growth of the data preparation tools market.

Restraint

Complexity and skill requirements

Some data preparation tools may be complex to use, requiring significant technical expertise or training. This can limit their adoption by users who lack the necessary skills or resources.

Cost can be a significant barrier to adoption for some organizations, especially smaller businesses or startups with limited budgets. High licensing fees or subscription costs for data preparation tools may deter potential users.

Opportunity

Wider acceptance in various industries

There are wide range of industries that are adopting data preparation tools for enhancing the consumer experience and growth of the industries. The launch of digital capturing devices like smartphone cameras is the biggest contributor to increasing the data volume. There are large numbers of data generated or gathered by the various modes of mobile platforms such as websites, apps, and social networks.

The e-commerce industry is widely accepted data preparation by enabling image labeling, in this consumer search for their choice of accessory, clothing, and other material, they just take a picture of it from their smartphone which is uploaded by the e-commerce site which uses the artificial intelligence they analyze the picture and show the similar results to the website. For instance, the e-commerce industry is leveraging data preparation tools to increase its services and generate opportunities for the market’s growth.

Platform Insights

The data integration platform segment dominated the data preparation tools market with the largest market share in 2023. The growth of the segment in the market is attributed to the higher adoption of the data integration platform by major companies due to ease of management, accessibility, and business intelligence.

The adoption of digitization in the industries is driving the demand for data integration solutions. Many online companies are using several platforms for advertising their products, selling, handling clients, managing traffic on their website, etc. data integration platform helps to maintain and integrate all these data into one platform and analyzes it’s with reduced time and enhanced efficiency. The rising industrial development in the countries is driving the expansion of the data integration platform. 

Functions Insights

The data collection segment led the data preparation tools market in 2023. The growth of the segment is due to the rising demand for the data collection process by the companies to make informed decisions and enhance the productivity of the companies. Data collection is the process of gathering data on a specific topic for research and marketing purposes. High-quality data collection is categorized into seven types that are accuracy, validity, time relevance, reliability, accessibility, completeness, and uniqueness. The quality of data collection is differentiated by the source of the data collection. Companies collect data from reliable sources for better decision-making and to improve the productivity of the company. 

Vertical Insights

The IT and telecom segment dominated the data preparation tools market in 2023. In industries like IT and telecom, massive amounts of data are generated daily from various sources such as customer interactions, network operations, and service usage. This data needs to be cleaned, integrated, and prepared for analysis to extract valuable insights and make informed decisions. Data preparation tools play a crucial role in this process by automating tasks like data cleansing, normalization, and transformation, allowing organizations to streamline their data pipelines and accelerate their analytics initiatives.

Deployment Insights

The cloud segment dominated the data preparation tools market in 2023. The segment is observed to sustain the position throughout the forecast period. The growth of the segment is attributed to the rising adoption of cloud technologies by data-driven companies as it offers the user access to local and cloud sources. Most of the data interpretation tools are deployed with cloud technologies. 

For instance: Alteryx Designer Cloud, Tableau Prep Builder, Microsoft Power BI, Talend Data Preparation Tool, Datameer, AWS Glue DataBrew, Altair Monarch, Dataiku, etc are a few of the companies that have already adopted cloud solutions. 

Data Preparation Tools Market Companies

• Alteryx, Inc.
• Datawatch Corporation
• Informatica Corporation
• International Business Machines Corporation
• Microsoft Corporation
• Micro Strategy Incorporated
• Qlik Technologies Inc.
• SAP SE
• SAS Institute Inc.
• Tibco Software Inc.

Recent Developments

• In April 2024, the Data and AI company ‘Databricks’ is introducing the Data Intelligence Platform for Energy. The launch of these platforms brings AI to data and the people associated with the energy industry. 
• In April 2024, Google Cloud and Bayer come in the collaboration for the development of artificial intelligence (AI) solutions for supporting the operations of radiologists and enhancing the patient's services. Bayers is continuing to support the deployment of artificial intelligence in healthcare and focusing of radiology with the use of Google Cloud’s technology. 
• In April 2024, Mindee, the AI document processing platform announced the launch of docTI (Document Tailored Intelligence), the launch is an AI-powered optical character recognition (OCR) made for the revolutionalize SaaS products process documents. 
• In April 2024, Multilateral Development Banks will introduce the tool to access government procurement (e-GP) systems. The launch of the tool is designed for assessing work or service contracts financed by MDBs through e-GP systems. 
• In April 2024, Darktrace, a major provider in cybersecurity AI launched the Darktrace ActiveAI Security Platform™. The latest platform is a revolution in best-in-class security products including operational and email technology (OT). 
• In April 2024, a national leader in real estate appraisal technology, ‘Aloft’, launched AI-Driven Image Analysis a revolutionary development. 
• In April 2024, Availity, a major real-time health information network introduces the Predictive Editing in the Availity Essentials Protm, the feature of the organization’s end-to-end robust revenue management cycle. 
• In April 2024, Halcyon, a leading provider of income verification services organization announced the collaboration with SettlementOne Data utilizing the IRS 8821 income verification tool and stepping ahead in mortgage processing accuracy and efficiency. 
• In April 2024, Quantum ® Corporation, a leading provider of end-to-end data management solutions launched the ActiveScale® Z200 for helping consumers accelerate massive data workflows and mission-critical AI pipelines.

Segments Covered in the Report

By Platform

• Data integration
• Self service

By Deployment

• Cloud
• On-premise

By Verticle

• Data Collection
• Data Cataloging
• Data Quality
• Data Governance
• Data Ingestion
• Data Curation

By Functions

• IT & Telecom
• Retail & E-commerce
• BFSI
• Government
• Healthcare
• Energy & Utilities
• Transportation
• Manufacturing

By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa