Gartner: Data Management Software Market Will Surge in 2012By CIOinsight | Posted 01-03-2012
Worldwide master data management (MDM) software revenue will reach $1.9 billion in 2012, a 21 percent increase from 2011, according to IT research firm Gartner. And the market is forecast to reach $3.2 billion by 2015.
The report found the overall MDM market is dominated by three major players--IBM, Oracle and SAP--although within the overall MDM market, more than half the revenue is driven by products from small and best-of-breed vendors, as the market continues to favor specialized solutions over "generic" offerings.
From a regional perspective, North America and Europe will drive the demand for MDM, and both regions will grow at a steady pace to reach the billion-dollar mark in 2013 for North America and in 2015 for Europe. In 2013, MDM software revenue will see faster growth in Asia/Pacific, where revenue will increase by 30 percent from 2012 to reach $209 million.
"This is the biggest annual growth we've seen for this market since 2008," said Colleen Graham, research director at Gartner. "Pressures to optimize costs and efficiencies in a heterogeneous IT environment are driving organizations to turn to MDM as a more efficient way to manage and maintain data across multiple sources. In addition, the increasing governance, risk and compliance regulations are forcing organizations to focus on MDM to support these initiatives."
The largest domains of the MDM software market are MDM of customer data and MDM of product data, each of which is predicted to more than double in size over the next four years. MDM of customer data helps an organization cross-sell and cross-market, as well as retain customers and provide a consistent high-quality customer experience. "MDM has become a critical discipline required for dealing with the challenges of social data, big data and data in the cloud," Graham said.
The market for MDM of customer data is expected to reach $644 million in 2012 and to exceed $1 billion in 2015.
The market for MDM of product data, which helps an organization store product-related master data, metadata or both, is projected to reach $688 million in 2012 and to surpass $1.1 billion in 2015. "In the next four years we expect larger vendors will continue to acquire for this specialization while smaller vendors will acquire each other to build market share and increase the functionality within their portfolios," said Chad Eschinger, research director at Gartner.
To read the original eWeek article, click here: Data Management Software Revenue to Grow 21 Percent in 2012: Gartner