Technavio expects the global data-as-a-service market to observe an incremental growth of USD 29.82 billion between 2020 and 2025. However, the growth momentum is expected to decelerate at a CAGR of 38.87% during the forecast period.
Key Market Dynamics:
- Market Driver
- Market Challenges
The growing amount of data and increase in the adoption of big data services in industries are some of the key market drivers.
The volume of data generated across industries has significantly increased over the past decade. In 2020, people generated approximately 1.7 megabytes of data every second. By 2025, more than 200 zettabytes of data are expected to be in cloud storage across the world. The increasing volumes of data generated are creating difficulties in analyzing and managing large databases efficiently. This is creating the need for DaaS across organizations to transform unstructured and semi-structured data into structured and meaningful data, thereby ensuring security, agility, and performance of business operations. Thus, the growing amount of data generated is expected to foster the growth of the market in focus over the forecast period.
The data-as-a-service market report is segmented by end-user (BFSI, retail, telecom, and others) and geography (North America, Europe, APAC, South America, and MEA).
Based on the end-user, the demand for DaaS will be significant in the BFSI industry during the forecast period. Digital transformation coupled with the need to generate useful insights is creating a high demand for DaaS solutions in the BFSI industry. Also, the rise in financial transaction volumes is driving the growth of the segment.
By region, North America will have the largest share of the market. About 35% of the market growth will originate from the region during the forecast period. The increase in data generation across industries, such as retail, BFSI, healthcare, and public sectors is one of the key factors driving the growth of the regional market. Also, the rising volume of real-time customer data and the need to predict customer requirements are contributing to the growth of the market in North America.
North America will be the leading region with 35% of the market’s growth during the forecast period. The US is the key market for data-as-a-service in North America.