Master Data Management Market Overview :
Master Data Management (MDM) market size is forecast to reach $26.4 billion by 2025, after growing at a CAGR of 18% during 2020-2025. Master data management deals with the information sources related to product, location, supplier, customer, and asset that drive a business. The increasing usage of MDM eliminates redundancy and costly inefficiencies by unreadable stored data. Additionally, it satisfies the need for businesses to increase the consistency and quality of their key data assets which include product data, customer data, location data, and asset data. Thus, the MDM platform plays a vital role in supporting an enterprise data strategy, as it provides accurate and timely information along with up to date data definitions. For this, today’s global enterprises and organizations are turning to MDM to experience improved decision making which solve numerous data challenges, thereby contributing to the expansion of the cloud-based software market size.
Report Coverage :
The “Master Data Management Market Report – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Master Data Management Market.
Key Takeaways :
The growing popularity of MDM solutions coupled with the increasing usage of data quality tools for effective data management in the BFSI sector, to enhance customer service and optimal management of business risks associated with banks, is likely to aid in the market growth of MDM.
Increasing adoption of an on-premises deployed software at data center to offer secured and customized data to enterprises, will further increase the market demand for MDM in the near future.
North America dominates the master data management market owing to the presence of primary MDM solution providers and their investments in varied strategies are attributing to MDM market growth
Deployment – Segment Analysis :
The on-premises deployment segment occupied the major share in the master data management market as of 2018. The deployment of MDM software in an on-premise data center is preferred by the enterprises, as it offers total control on the security of enterprise sensitive data, such as product data, enterprise asset details, customer details, and supplier data. This data exists on dedicated servers which has no connection with other business data of the enterprise, thus data is secured. The growing adoption of on-premises deployment mode is evident as it allows enterprises to install highly secured, customized, and complex master data management solutions, which matches the requirements of enterprises. Therefore, all these factors together driving the growth of the on-premises deployment segment in the global MDM market.
End-User Industry – Segment Analysis :
Banking, financial services and insurance (BFSI) has been the primary market for master data management, as this sector generates a huge amount of financial data during transactions. It includes sensitive financial and transactional data and detailed information of customers. In addition to this, it also accommodates data from financial systems and institutions. Hence, banks and insurance companies are adopting MDM solutions for efficient management of data and also to prevent duplicity of data. Furthermore, the BFSI sector using MDM solutions to sustain data governance, operationalize marketing insights, enhance customer-centric applications, centralize data models and competently enhance preference & privacy management. Proper implementation of MDM solutions provides critical information to banks which is beneficial to comply with huge number of regulations across many countries.
Geography – Segment Analysis :
North America occupied the largest share of more than 50% of the global MDM market followed by Europe and APAC. It is majorly due to the presence of major MDM solution providers such as IBM Corporation, Teradata Corporation, Oracle Corporation, SAS Institute, Informatica Corporation, Talend, TIBCO Software, and Riversand along with several start-ups in this region are providing improved MDM solutions & services to satisfy the essentials of customers. On the other hand, rising investments in R&D activities by well-established/ notable economies of this region are empowering the development of new technologies in the North America master data management market.
Drivers – Master Data Management Industry Outlook :
Growing adoption of MDM especially, by SMEs to integrate critical data into a single point of reference
Increasing usage of data quality tools for effective data management coupled with the rise of strict regulatory compliances within small, medium-sized, and large enterprises are boosting the growth of the MDM market. IT companies and corporate businesses are choosing MDM, a revolutionary method to categorize, organize, and to localize the master data and also to implement improved marketing and operational strategies for specific requirements.
Advancing technology resulted in more agile and cloud-based MDM that meets changing business needs
The integration of data science, machine learning algorithms, and cloud computing resources further increased the sophistication of MDM. It is resulted in the scaling of operational efficiencies, opportunities and cost savings as well. Moreover, the consumption of MDM by end-users through real-time connectivity results in faster and better decision making related to business. Therefore, business processes are embedded with a micro service that combines the MDM capabilities with systems real-time connectivity to enable flexibility to meet changing business needs.
Challenges – Master Data Management Industry :
Growing concerns regarding data security :
The Data security concerns are hampering the growth of the MDM market. Presently, most organizations are operating using data-driven business environments, which in turn increases the risk of cyber-attacks, phishing attacks, and advanced data breaches. Data presence in disparate systems is increasing the probability of security threats. Thus, isolated data systems act as a restraint for many organizations as it multiple the threat of security breaches and hinder the growth of the MDM market.
Market Landscape :
Acquisitions, Technology launches, and R&D activities are key strategies adopted by players to mark their position in the master data management market share. In 2018, the market of master data management has been consolidated by the top five players accounting for 30% of the share. IBM Corporation, Informatica Corporation, Oracle Corporation, Orchestra Networks, SAP AG, Syncforce, Talend, SAS Institute, TIBCO Software, and Teradata Corporation are the master data management top 10 companies.
Acquisitions/Technology Launches :
In June 2019, Riversand announces the launch of the new MDM and PIM ready-to-go offering. These pre-packaged offerings are useful for businesses in need of quick deployment with negligible IT intervention. This will stand as a game-changer in MDM and PIM. Furthermore, this suite of offerings of flexible platform attracts the enterprises to adopt this customizable option.
In December 2018, TIBCO Software Inc. has signed an agreement to acquire Orchestra Networks, a pioneer in data sheet management. This acquisition is intended to expand the operations of connected intelligence platform along with data assets to drive innovations in critical analytical processes.