DATA FABRIC MARKET ANALYSIS

The global data fabric market size was valued at US$ 1.83 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 25.1% from 2023 to 2030. The global data fabric market will witness significant growth due to surging need for business agility and accessibility of data. The increasing need for data collaboration and centralized access to diverse data sources in a secure manner is driving the market growth. Furthermore, the growing need for data analytics in BFSI sector is also fueling growth of the data fabric market.

Global Data Fabric Market: Regional Insights

North America is expected to gain significant growth in the global data fabric market over the forecast period, this rise in cloud-enabled activities and growing cloud marketplace in the region. For instance, as per Coherent Market Insights, nearly 33% companies in Canada are adopting “cloud first” approach, while 54% of them are continuing to have a “cloud also” mindset. Moreover, the region has robust presence of major market players due to increasing need for transforming digital data eco-system across businesses in the region. Thus, these factors are in turn expected to boost the market growth across the region in the coming future.

Europe is anticipated to show strong growth in the global data fabric market during the forecast period, owing to increasing need for controlling, managing, and automating data management processes in different industries, and rise in demand for omni-channel data analysis. Moreover, increasing development of hybrid cloud is also driving growth the market in this region. As several European companies are shifting to hybrid cloud platforms due to architectural and costs issues related to cloud migration, the market will continue to flourish in this region.

Figure 1: Data Fabric Market Share (%), By Region, 2022

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Global Data Fabric Market Drivers:

Growing variety and volume of business data to boost the market growth

With emergence of social media networks, the amount of data produced through online applications, portals, and websites has increased in recent years. The demand for fast accessibility to data such as images, text, and videos among people is driving the demand for data fabric solutions. This is owing to the capability of data fabric to integrate various data sources and offer a platform accumulating unified environment seamlessly. Thus, rise amount of data generated by businesses is driving the adoption of data fabric, which in turn is expected to drive growth of the global data fabric market over the forecast period.

Increasing need for business agility and data accessibility to drive the market growth

The need to ensure usability, accuracy, and secure transfer of velocity, variety, sheer volume, and access requirements of data in different silos is growing rapidly. Due to this, the adoption of data fabric solutions is rising across enterprises, as it offers unified data access portal including data virtualization, data movement, and application-to-application connections with in-built security. Along with this, businesses are considering data fabric as a strategic tool to provide appropriate integration solution that can lucratively affect the strategic component of current data infrastructure, as it helps streamline and maximize use of data in the businesses. Thus, this factor is anticipated to support growth of the market in the coming future.

Global Data Fabric Market Opportunities:

Rise in amount of data in emerging regions is expected to create ample opportunities in the global data fabric market over the forecast period. Due to emergence of Industry 4.0 and digitalization, specifically across emerging nations is proliferating the amount of data generated through these initiatives. The advent of Industry 4.0 increases the amount of data generation through machine-to-machine communications systems, which are known as Industrial Internet of Things (IIoT) devices. Thus, demand for reliable and secure data architecture is increasing, which in turn is creating growth opportunities in the global market.

Positive return on investment in data fabric solutions is creating various opportunities in the global data fabric market over the forecast period. Investment in data fabrics offers positive RoI in different ways for organizations. Using data fabric systems, improves efficiency of operations. Eliminating paper forms and minimizing handoff delays becomes possible with the use of data fabric solutions. These solutions allow to target the best prospects, efficiently use available resources, and price risks with more accuracy. This in turn is translated into positive return on investment in many ways. Thus, this factor is likely to offer multiple opportunities in the market.

Global Data Fabric Market Trends:

Increasing adoption of data management solutions for better data security is a major trend

For successful outcomes and proper business operations, strong and secured data is important. Achieving secure data for businesses require adhering to global safeguarding regulations for sensitive data of consumers or clients. Several companies are looking for solutions to protect their data, which is leading to adoption of data management solutions. This in turn is expected to support growth of the global data fabric market over the forecast period.

Implementation of artificial intelligence and machine learning solutions in the architecture

By implementing such advanced technologies including AI and machine learning increases operational capabilities of the architecture. In December 2021 for instance, Radiant Logic, an identity unification company introduced RadiantOne Intelligent Identity Data Platform as the Identity Data Fabric for strengthening compliance and security abilities. This further enhances data security features. As a result, the global digital fabric market is likely to show substantial growth in the near future.

Global Data Fabric Market Restraints:

Low awareness regarding data fabric to hamper the market growth

There is still reluctance among organizations toward adoption of edge technologies, specifically the ones related to storage technologies, owing to security risk. Even with the reliability and security of data fabric, its adoption is low across several regions due to the lack of awareness. Along with this, implementing these solutions requires modified architecture. These factors further impact investment in trial and run of data fabric solutions. As a result, growth of the global data fabric market is likely to be hindered in the coming years.

Issues regarding integration of legacy systems to hamper the market growth

The administrative philosophy developed on evaluation and storage of business data with the use of conventional methods, such as data marts and data warehouses is a major factor hampering growth of the market. Due to these increasing awareness among businesses for deriving a sustainable impact of adopting data fabric. However, the lack of well-defined interfaces and skilled professionals creates issues around integration of legacy systems. This factor in turn is expected to hinder growth of the global data fabric market over the forecast period.                      

Figure 2: Data Fabric Market Share (%), By Enterprise Size, 2022

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Global Data Fabric Market Segmentation:

The global data fabric market report is segmented into Deployment, Type, Enterprise Size, and Industry Vertical.

Based on Deployment, the market is segmented into On-premise, Cloud. Out of which, On-Premise is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of on-premise-based data fabric solutions across all enterprises due to its benefits such as enabling a cohesive analytics environment for the enterprises. With increasing on-premise assets, the demand for data fabric is increasing, which in turn is likely to support growth of the market.

Cloud segment is also expected to witness significant growth in the near future and this is owing to the increasing migration activities from disk to cloud storage, leading to increase in demand for cloud-based data fabric solutions. These solutions offer seamless and secure data transfer. Along with this, rise in deployment of hybrid cloud is proliferating the adoption of these solutions at rapid pace, as these solutions can leverage several infrastructure instances. Thus, the segment is likely to boost growth of the market.

Based on Type, the market is segmented into Disk-based Data Fabric, and In-memory Data Fabric. Out of which, Disk-Based Data Fabric is expected to dominate the global market over the forecast period and this is attributed to the increasing number of data silos and related data centers driving the adoption of disk-based data fabric solutions. Along with this, increase in the demand for optimizing integration as well as management of data in various data repositories is also likely to drive growth of this segment in the near future.

In-Memory Data Fabric segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of in-memory data fabric solutions. In-memory databases need lesser time to analyze information, as it uses hardware memory for storing data. It can be deployed on-premise on commodity hardware ecosystems as well as the cloud. For instance, in March 2020, Oracle launched a novel solution, Oracle Coherence version 14.1.1, which creates novel applications in the industry.

Based on Enterprise Size, the market is segmented into Small & Medium Enterprises, and Large Enterprises. Out of which, Large Enterprise is expected to dominate the global market over the forecast period and this is attributed to the increasing expenditure on IT infrastructure in large enterprises. This in turn has boosted adoption of data fabric solutions for the data management services. Data fabric can unify data silos, edge devices, replicated data in data centers, and cloud instances, smooth transfer exabytes of cloud, data across edge, and on-premise deployments. Due to such advantages, the adoption of data fabric solutions is increasing in large enterprise, which is further driving growth of this segment.

Small & Medium Enterprises segment is also expected to witness significant growth in the near future and this is owing to the increasing need for data optimization and analytics of the available data in the organization. Using data fabric offers standardized data management practices in cloud, edge devices, and on-premise. Along with this, various other benefits of data fabric is driving growth of this segment.

Based on Industry Vertical, the market is segmented into BFSI, Telecommunications & IT, Retail, Healthcare, Manufacturing, Government, Energy & Utilities, Media & Entertainment, and Others. Out of which, BFSI is expected to dominate the global market over the forecast period and this is attributed to the various benefits such as analyzing, accessing, and managing large volumes of data driving the demand for data fabric in BFSI industry. Along with this, financial industries are increasingly adopting data fabric solutions for incorporating a data-driven approach into their business while making use of data for processing mortgages, mitigating risk, ensuring customer delight, and managing fraud. Thus, this in turn is driving growth of the segment in the global data fabric market.

Telecommunications & IT segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for data fabric to overcome various challenges around data management in multi- and hybrid-cloud deployment models. With increasing growth of this industry, the adoption of data fabric solutions is rising rapidly. As a result, the segment is anticipated to gain significant growth in the coming future.

Global Data Fabric Market: Key Developments

In October 2020, Reformulary Group and Cinchy announced partnership for automation and enhancement of the management and data collection.

In August 2021, EY expanded its strategic partnership with Microsoft Corp. for further aligning EYs business ingenuity with cloud technologies of Microsoft for designing long-term value for their particular clients.

In November 2021, Nasdaq introduced a managed data solution, Data Fabric, for offering support in investment management firms to scale their data infrastructure and improve governance, quality, and integrity.

In April 2022, Privitar and Denodo announced partnership with the aim of advanced modern data provision and placing safe data at the core of all data mesh as well as logical data fabric charged through virtualization of data.

Global Data Fabric Market: Key Companies Insights

The global data fabric market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global data fabric market are Denodo Technologies, Talend, Global IDs., Splunk Inc., Hewlett Packard Enterprise Company, Software AG, IBM Corporation, SAP SE, NetApp, and Oracle Corporation.

*Definition: A data fabric is a new approach to accessing and leveraging a company’s data assets, regardless of their location – on-premises or in the cloud. It improves data access, availability and performance across an enterprise, and enables data-driven business transformation and innovation.