Data Discovery Market (By Offering: Solutions, Services; By Deployment: Cloud, On-premises; By Application; By End-use Industry) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global data discovery market size was estimated at around USD 11.71 billion in 2023 and it is projected to hit around USD 48.75 billion by 2033, growing at a CAGR of 15.33% from 2024 to 2033.

Key Pointers

• North America led the market with a revenue share of over 43% in 2023.
• Asia Pacific region is anticipated to register the fastest CAGR over the forecast period.
• By Offering, the solutions segment contributed the largest market share of 66% in 2023.
• By Deployment, the on-premises segment captured the maximum market share of 55% in 2023.
• By Deployment, the cloud segment is anticipated to witness substantial growth over the forecast period.
• By Application, the security and risk management segment had the largest market share of 27% in 2023.
• By Application, the sales and marketing management segment is anticipated to witness significant CAGR over the forecast period.
• By End-use Industry, the BFSI segment led the market with a global revenue share of over 21% in 2023.

Data Discovery Market Growth

In the burgeoning landscape of data discovery, several factors converge to fuel its remarkable growth. Firstly, the exponential increase in data generation across industries, commonly referred to as big data, acts as a catalyst. Organizations are compelled to seek sophisticated solutions to sift through vast datasets and extract meaningful insights. Additionally, the growing emphasis on data-driven decision-making underscores the importance of tools that facilitate the discovery and interpretation of relevant information. The democratization of data within organizations, with an increasing number of users requiring access to and understanding of data, propels the demand for intuitive data discovery platforms. Moreover, advancements in artificial intelligence and machine learning contribute to the market's expansion by enhancing the analytical capabilities of these tools. As businesses recognize the pivotal role data plays in gaining a competitive edge, the data discovery market continues to evolve, driven by a confluence of factors that signify its pivotal role in the digital era.

Report Scope of the Data Discovery Market

Data Discovery Market Dynamics

Drivers

• Escalating Data Volumes: The exponential growth in data generation across industries, commonly known as big data, acts as a primary driver for the data discovery market. Organizations seek advanced tools to navigate and derive actionable insights from the vast datasets at their disposal.
• Data-Driven Decision-Making: The increasing recognition of the strategic value of data in decision-making processes fuels the demand for data discovery solutions. Businesses are actively leveraging these tools to empower users at various levels to make informed decisions based on real-time insights.

Restraints

• Cost of Implementation and Maintenance: The upfront costs associated with implementing data discovery solutions, including software licenses, hardware, and training, can be substantial. Additionally, ongoing maintenance costs and the need for regular updates add to the financial considerations, making it a restraint for smaller organizations with budget constraints.
• Regulatory Compliance Challenges: Adhering to evolving data protection and privacy regulations presents a challenge for organizations leveraging data discovery tools. Ensuring compliance with various regional and industry-specific regulations requires continuous monitoring and adjustment of data practices, adding a layer of complexity.

Opportunities

• Emergence of Augmented Analytics: The integration of augmented analytics, leveraging artificial intelligence and machine learning, presents a significant opportunity in the data discovery market. These technologies enhance the analytical capabilities of data discovery tools, providing more advanced insights and automating the data discovery process.
• Rising Demand for Cloud-Based Solutions: The increasing adoption of cloud computing offers a substantial growth opportunity for the data discovery market. Cloud-based solutions provide scalability, flexibility, and accessibility, enabling organizations to efficiently manage and analyze vast datasets without the need for extensive on-premises infrastructure.

Offering Insights

The solutions segment led the market with a revenue share of 66% in 2023. The segment's growth is attributed to the comprehensive and integrated approach offered by data discovery solutions, encompassing data preparation, visualization, and analysis tools. Solutions exhibit scalability and customizability, making them particularly well-suited for large enterprises. Moreover, the escalating demand for data-driven decision-making, with businesses increasingly relying on data to enhance their performance, is driving the segment's growth in the market. Furthermore, the mounting complexity of data, which is growing in volume and becoming more unstructured, is addressed effectively by data discovery solutions, aiding businesses in comprehending and utilizing their data, regardless of its format or complexity.

The services segment is poised for significant growth over the forecast years. The services encompass both professional and managed services segments. Professional services segment includes consulting, implementation, training, and support, which aid organizations in selecting the right data discovery solution, deploying it effectively, and training their staff for proficient usage. Managed services segment involves outsourcing data discovery solution management and maintenance to third-party providers, relieving internal resources and allowing organizations to focus on core business activities. Furthermore, the services segment is fueled by the complexity of data environments, the demand for self-service data analysis, and the essential support and maintenance needed to ensure data discovery solutions work effectively in the evolving data challenges.

Deployment Insights

The on-premises segment contributed the largest market share of 55% in 2023. This dominance is attributed to several factors, including stringent security and compliance requirements that lead organizations to favor on-premises solutions for maintaining control over their data and infrastructure. On-premises deployments are highly adaptable, allowing customization to meet specific organizational data needs, which is particularly valuable for entities with intricate data requirements. In addition, on-premises deployments excel in providing superior performance in situations like real-time analytics, outperforming certain cloud-based alternatives.

The cloud segment is anticipated to witness substantial growth over the forecast period. The increasing adoption of cloud computing, favored by businesses of all sizes, is a significant driver, with more organizations transitioning their data and applications to the cloud, thereby elevating the demand for cloud-based data discovery solutions. The growing complexity of managing widely distributed cloud environments, where data and applications are spread across multiple providers and locations, has created a need for automated discovery and management. Cloud-based data discovery solutions address this challenge by providing a consolidated view of the data landscape. Moreover, cloud-based data discovery solutions can adapt to changing business needs, provide data access from any location at any time, and streamline deployment and management.

Application Insights

The security and risk management segment had the largest market share of 27% in 2023. The growth is attributed to the organizations' continued investments in data security and compliance. With the heightened awareness of safeguarding sensitive data against unauthorized access, theft, or loss, data discovery solutions have gained significance. They assist organizations in identifying and classifying sensitive data, evaluating data security risks, and implementing suitable risk mitigation measures. Moreover, with a growing emphasis on safeguarding sensitive data and meeting stringent regulations such as GDPR, HIPAA, and CCPA, data discovery solutions have become crucial for regulatory compliance and data protection.

Sales and marketing management segment is anticipated to witness significant CAGR over the forecast period. The increasing demand for data-driven decision-making across industries, associated with the escalating volume and complexity of data, highlights the need for businesses to identify trends and patterns within their data swiftly. Moreover, the rising adoption of cloud-based data discovery solutions has enhanced the ability of businesses to elevate their sales and marketing performance. This includes identifying new leads and prospects, more effective lead segmentation, precision in targeting marketing campaigns, accurate measurement of campaign effectiveness, and bolstering customer retention rates. Data discovery tools are becoming instrumental in empowering businesses to make data-driven, informed decisions that significantly impact their sales and marketing endeavors.

End-use Industry Insights

The BFSI segment led the market with a global revenue share of over 21% in 2023. The BFSI sector generates an immense volume of data, including customer information, transactions, and market data, and data discovery tools assist in extracting valuable insights from this data. Moreover, BFSI companies face growing regulatory compliance requirements, and data discovery tools aid in identifying and managing data risks to ensure adherence to relevant regulations. These tools also empower BFSI companies to harness data for better decision-making, identifying new opportunities, enhancing products and services, and reducing costs. They are instrumental in fraud detection, risk assessment, customer segmentation for targeted marketing, product development based on customer preferences, and improving operational efficiency by identifying and eliminating process inefficiencies. Thus, data discovery tools have become essential for BFSI companies in navigating their data, regulatory compliance, and strategic decision-making.

The healthcare sector is poised for substantial growth in the coming years. The escalating volume and complexity of healthcare data, encompassing electronic health records, medical imaging, and wearable device information, pose a significant challenge for healthcare organizations. Data discovery tools are becoming pivotal in aiding these organizations to identify and unify their scattered data, facilitating better insights and enhanced patient care. The increasing demand for value-based care models, which emphasize delivering high-quality care at reduced costs, is propelling the use of data discovery tools to identify efficiency improvements and cost reductions. Furthermore, the adoption of artificial intelligence (AI) and machine learning (ML) in healthcare applications, such as predictive analytics and personalized medicine, is on the rise. Data discovery tools are crucial for enabling these applications by providing access to the extensive and complex datasets required for training AI and ML models, contributing to improved patient outcomes and healthcare innovations.

Regional Insights

North America dominated the market with a revenue share of over 43% in 2023. The region's growth is attributed to the substantial presence of large enterprises known for their early adoption of innovative technologies such as data discovery. North America region also experiences a widespread surge in the demand for data-driven decision-making, cutting across diverse industries. Furthermore, a growing awareness of the essential value of data and the necessity for effective data management is contributing to the region's dominance. For instance, in November 2022, Wiz, Inc., a U.S.-based cloud security platform provider, expanded its partnership with BigID, a leading data platform aimed at enhancing visibility and control over enterprise data to prevent breaches. This collaboration combines Wiz, Inc's Cloud-Native Application Protection (CNAPP) platform with BigID's Data Security Posture Management (DSPM) platform, offering customers a comprehensive solution that addresses both cloud security and data protection needs.

Asia Pacific region is anticipated to register the fastest CAGR over the forecast period, driven by a surge in digital transformation initiatives across various industries in the region. The adoption of digital technologies by businesses in Asia Pacific has led to a surge in data generation, necessitating effective data management and analysis. Data discovery tools play a pivotal role by automating the process of locating and comprehending data. Substantial investments in IT infrastructure, including cloud computing and data centers, have made it more accessible and cost-effective for businesses to handle vast amounts of data, spurring the adoption of data discovery tools. The proliferation of e-commerce, digital services, and government-led data-driven projects contributes to the need for data discovery tools, particularly in improving customer experiences, developing products and services, and facilitating better decision-making. Moreover, industries such as finance, healthcare, manufacturing, and education actively embrace data discovery to enhance decision-making, gain competitive advantages, and enhance operational efficiency.

Data Discovery Market Key Companies

• IBM Corporation
• Microsoft
• Oracle
• Salesforce, Inc.
• SAS Institute Inc.
• Google
• Amazon Web Services, Inc.
• Open Text
• MicroStrategy
• Cloudera, Inc.

Data Discovery Market Report Segmentations:

By Offering

• Solutions
• Services
• Professional Services
• Managed Services

By Deployment

• Cloud
• On-premises

By Application

• Security & Risk Management
• Asset Management
• Sales and Marketing Management
• Supply Chain Management
• Others

By End-use Industry

• IT & Telecommunication
• Government
• BFSI
• Retail & E-commerce
• Media & Entertainment
• Healthcare & Lifesciences
• Transportation & Logistics
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• MEA