Master Data Management (MDM) Solutions Market size to grow by USD 20.29 billion, 33% of market growth is expected in North America - Technavio

NEW YORK, March 8, 2024 /PRNewswire/ -- The Global Master Data Management (mdm) Solutions market size is estimated to grow by USD 20.29 bn from 2024 to 2028, according to Technavio. The market is estimated to grow at a CAGR of  16.72% during the forecast period. North America held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 33%. 

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Segment Overview
Technavio has segmented the market based on Type, Deployment (Cloud and On-premises), End-user (BFSI, Healthcare, Retail, and Others), and Geography (North America, Europe, APAC, South America, and Middle East and Africa). 

• The BFSI segment's growth is fueled by revenue enhancement, regulatory compliance, customer-centricity, and cost reduction needs. With complete digitalization and rising data volumes, adoption is on the rise, enabling better risk management, decision-making, and compliance. Unified, accurate master data enhances visibility into counterparty risk exposures, driving segment growth in risk management, decision-making, and regulatory compliance during the forecast period.

Geography Overview
By geography, the global master data management (mdm) solutions market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global master data management (mdm) solutions market.

• North America is projected to contribute 33% to global market growth in the forecast period. The region has been an early adopter of solutions, particularly cloud-based delivery, with enterprises increasing IT budgets for such solutions. The US leads in market contribution, followed by Canada and Mexico. However, year-over-year growth in North America is expected to decline due to sectoral maturity in the US and Canada. Despite this, increased digitization and adoption of advanced AI are expected to drive substantial market growth. The maturity of the industrial sector, high data generation rates, and adoption of advanced technologies for enterprise productivity are key drivers of market growth in North America.

Insights on the market contribution of various segments including country and region wise, historic (2017 to 2021) and forecast market size (2023 to 2027)

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Increased dependency on the Internet for critical operations is notably driving market growth.

• Personal information shared online and critical data stored in the cloud drive the growth of the global e-commerce market.
• E-commerce companies are responding by increasing advertising efforts on search engines and other platforms to attract customers.

This expansion brings a heightened need for advertising, data management, customer-centricity, and decision-making. Utilizing analytics, these vendors can efficiently develop, edit, and publish digital media advertisements, leading to an expected rise in digital advertising and driving growth in the solutions market.

Leading trends influencing the market 

• Increase in mobility solutions shapes market growth.
• Growing adoption of mobile devices boosts video management software usage.

The rise in mobility solutions fuels market growth, spurred by the growing adoption of mobile devices. This trend has led to increased usage of video management software, with providers offering apps for iOS and Android platforms. Organizations are embracing mobility solutions to access enterprise documents through smart devices, facilitated by cloud-based platforms. This seamless access to business-related documents enhances efficiency by enabling remote document exchange and synchronization with business processes.

Major challenges hindering the market growth

• Shortage of skilled analytics professionals and high attrition rates hinder market growth.
• Demand for data analytics surpasses availability of skilled professionals.

Despite the immense benefits data analytics offers, there is a scarcity of professionals with expertise in logical and analytical thinking, including mathematicians, statisticians, data scientists, and analysts. This scarcity hampers the ability of analytics vendors to meet client needs, as demand for data analytics exceeds the available talent pool. Additionally, difficulty in acquiring and retaining key employees in outsourcing destinations like India and China, due to better pay scales in countries like the US and Canada, exacerbates the shortage of skilled professionals. Consequently, this trend negatively impacts the growth of the global market in developing countries during the forecast period. 

Insights on Market Drivers, trends, & Challenges, historic period (2017 to 2021) and forecast period (2023 to 2027)

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Analyst Review

In today's data-driven landscape, effective data governance plays a pivotal role in ensuring organizational success and regulatory compliance. Data governance encompasses a comprehensive framework of policies, strategies, and controls aimed at managing data assets across their lifecycle, from acquisition to disposal. Key components of data governance include data integration, data quality, data modeling, and data stewardship.

Data integration involves the seamless combination of data from disparate sources to create a unified and coherent view of organizational data. This process ensures that data is accessible, accurate, and consistent across different systems and platforms. Data governance policies and standards govern the integration process, defining rules for data mapping, transformation, and validation.

Data quality is paramount in data governance, as it ensures that data is accurate, complete, and reliable for decision-making purposes. Data governance frameworks incorporate mechanisms for data cleansing, validation, and enrichment to maintain high-quality data standards. Data governance tools and platforms facilitate ongoing monitoring and assessment of data quality metrics, enabling organizations to proactively address data issues and anomalies.

Data modeling plays a crucial role in data governance by providing a structured framework for organizing and representing data entities, relationships, and attributes. Data governance principles dictate the design and implementation of data models, ensuring alignment with business objectives and regulatory requirements. Data architecture, including data warehouse design and implementation, forms the foundation for effective data management and analytics.

Data stewardship is essential for enforcing data governance policies and standards, assigning ownership and accountability for data assets within the organization. Data stewards oversee data lifecycle management, data access controls, and data usage policies, ensuring compliance with data governance guidelines and regulations. They collaborate with data owners, data custodians, and other stakeholders to promote data governance best practices and foster a culture of data-driven decision-making.

In conclusion, robust data governance is essential for organizations seeking to harness the full potential of their data assets while mitigating risks associated with data misuse, privacy breaches, and regulatory non-compliance. By implementing a comprehensive data governance framework supported by effective data governance tools and processes, organizations can achieve greater data transparency, integrity, and trustworthiness, driving business success in today's data-centric environment.

Market Overview:

In the realm of data management, organizations prioritize data integration, governance, quality, modeling, stewardship, architecture, synchronization, consolidation, cleansing, and warehousing. Data integration ensures seamless connectivity and accessibility across disparate systems, while governance establishes policies and standards for data usage. Quality management ensures accurate, reliable, and consistent data, supported by robust modeling techniques. Stewardship involves overseeing data assets and ensuring their ethical use. Architectural frameworks facilitate data organization and access, while synchronization and consolidation streamline data processes. Cleansing enhances data accuracy and completeness, ultimately stored in data warehouses for efficient retrieval and analysis.

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Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio