DATA SCIENCE PLATFORM MARKET ANALYSIS

Data Science Platform Market Size and Trends

Global data science platform market is estimated to be valued at US$ 11.03 Bn in 2024 and is expected to reach US$ 45.86 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 22.6% from 2024 to 2031.

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Global data science platform market growth is driven by widespread adoption of data-driven decision making across various industries such as BFSI (Banking, Financial Services, and Insurance), Healthcare, Retail, Telecommunications, and Others. Increasing focus on generating insights from structured and unstructured data to gain competitive advantage can boost demand for data science platforms. Proliferation of cloud-based platforms and availability of open-source tools can boost adoption of these platforms by small and medium enterprises. Integration of advanced technologies including AI, machine learning and deep learning can boost the attractiveness of data science platforms. However, shortage of data science professionals may hamper the market growth.

Increasing Demand for Data-Driven Decision-Making across Industries

As businesses across industries are moving towards digital transformation, data has become important assets for any organization. With data now being recognized as the new oil that fuels the digital economy, companies are investing heavily in developing data-driven cultures and processes. Advanced analytics and machine learning techniques are enabling executives to gain deeper insights from data, which helps them make more informed decisions. Data science platforms provide businesses with the tools and infrastructure to collect, store, process and analyze vast amounts of data from various sources within the organization as well as external sources. This aids in identifying patterns, trends and correlations that would otherwise be impossible to detect.

Across all these sectors, the need to derive actionable insights from data on a real-time basis can boost demand for advanced analytics tools, data scientists and integrated data science platforms. Businesses want platforms that can automate various stages of data analytics like data preparation, modeling, deployment as well as support collaborative work between data scientists, business analysts and other teams. This makes data science platforms a crucial investment area as businesses realize the true transformational potential of data-driven decision making.

For instance, in November 2023, IBM, a global leader in hybrid cloud and AI solutions, collaborated with Amazon Web Services (AWS), a premier cloud services provider, to announce the general availability of Amazon Relational Database Service (Amazon RDS) for Db2. This fully managed cloud offering is designed to simplify data management for artificial intelligence (AI) workloads across hybrid cloud environments. Users will benefit from a comprehensive suite of integrated data and AI capabilities provided by IBM on AWS, enabling them to efficiently manage data and scale their AI workloads effectively.

Market Concentration and Competitive Landscape

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Growing Volume of Data from Various Sources

With proliferation of smartphones, sensors, IoT devices and digital services, huge amount of data is now being generated on an unprecedented scale from a wide variety of sources. Business operations are becoming highly digital as organizations adopt technologies like cloud, mobile apps and digital processes. This continuous digitization of human activity and enterprise functions leads to growth in enterprise data over the past decade across structured, unstructured and multi-structured formats.

Rise of new data types like graphs, geospatial, genomic and other specialized forms of data that are being collected. Problems around data storage, processing and extracting useful insights are further compounded by the different velocities at which data streams in - from real-time streams to batch processing of archived data. The varied and massive volumes of data pose tremendous challenges for tech infrastructure and human capabilities when it comes to data management, analytics and science. Traditional tools are unable to handle these sizes, varieties and velocities of modern data ecosystems.

This has accelerated the need amongst organizations to invest in unified, scalable and collaborative data science platforms. Platforms that can ingest and process high volumes of data from multiple internal and external sources, and also support both streaming and historical analysis use cases. These provide the ability to glean knowledge from massive and diverse datasets much more effectively than isolated point tools. This boosts adoption of data science platforms as the primary infrastructure for data management as well as advanced, enterprise-grade data analytics at scale.

Key Takeaways from Analyst:

Global data science platform market can witness growth as enterprises across industries increasingly adopt data science and analytics technologies to gain actionable insights from their growing volumes of data. This has boosted demand for advanced platforms that can help organizations leverage data science techniques. North America currently dominates the market due to heavy investments by organizations in data-driven transformations. However, Asia Pacific is expected to emerge as the fastest growing region with China and India.

The ability of data science platforms to help companies extract useful knowledge from their data assets and build predictive and prescriptive models can drive the market growth. This enables effective decision making. Moreover, these platforms provide data scientists with a centralized place to collaborate and share models. However, data privacy and security concerns can hamper the market growth. Data science tools also require substantial capital investments and expertise to implement.

Incorporation of machine learning and artificial intelligence capabilities into platforms can expand their scope. Integration of data science workflows with business intelligence and reporting suites will enhance usability. Adoption of cloud-based platforms can further lower entry barriers. More partnerships between platform vendors and consultancies/system integrators can drive commercialization of solutions.

Market Challenge - Data Privacy and Security Concerns

Global data science platform market growth can be hampered due to data privacy and security concerns. With increasing usage of big data and advanced technologies like machine learning and artificial intelligence, a large amount of personal and sensitive data is being collected and stored by various companies. However, ensuring privacy and security of this valuable data has become a daunting task. Many countries like U.S., Japan, Canada, etc., have also implemented strict data privacy laws to protect individuals. Any data breach can damage company's reputation and result in severe financial and legal penalties. Data science platform providers need to focus on implementing robust privacy and security measures to address these concerns. These must be transparent about data usage and ensure user consent. Companies also need to audit their systems regularly and plug any security loopholes to build user trust in this evolving landscape. Unless these challenges are addressed suitably, widespread adoption of data science platforms may remain limited.

Market Opportunity - Advancements in AI and Machine Learning Technologies

Global data science platform market can witness growth opportunities due to advancements in the fields of artificial intelligence and machine learning technologies. These technologies are finding increasing applications across various industries for analytics, predictive modeling and automation. Both large enterprises as well as startups are investing heavily in developing new AI and ML solutions. This generates huge volumes of data that needs to be processed and analyzed. Data science platforms offer the required infrastructure and tools to harness this data through advanced algorithms. These help organizations transform raw data into valuable business insights at scale. As AI and ML technologies evolve rapidly, the opportunity for data science platforms also grow significantly. This can boost adoption of these platforms.

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Insights By Component - Ease of deployment boosts demand for software

By component, software segment is estimated to contribute the highest market share of  71.3% in 2024, owing to its user-friendly nature and ease of deployment. Software provides organizations a hassle-free way to build and deploy data science projects without needing to maintain server infrastructure or worry about ongoing software updates. With cloud-based software, users can access tools from anywhere without lengthy installation processes. This flexibility allows data science teams to focus more on analytics and model building rather than IT maintenance.

Software also offers scalability, allowing platforms to support growing volumes of data and multiple users. With software, additional computational power and storage can easily be provisioned on demand. This is crucial for data scientists working on complex AI and machine learning models that require significant processing and memory. The scalable nature of software removes infrastructure limitations and enables data teams to seamlessly expand their workloads over time.

Self-service capabilities of data science software can also drive the segment growth. Platforms provide graphical user interfaces, scripting environments, and point-and-click tools that empower users across skill levels to engage in data science processes. The self-service attributes of software lower the barriers to entry and allow organizations to democratize analytics across departments.

The on-demand availability and low upfront costs of software also make it more appealing than permanently installing dedicated hardware or perpetual licenses. With subscription-based plans, companies only pay for what these use each month, avoiding large capital expenditures. This cost-effective model has increased the adoption of data science platforms among small-to-medium businesses and academic institutions working with constrained budgets. User-friendly nature and flexible deployment of data science software drives its leading position within global data science platform market.

Insights By Deployment Mode - Superior security and governance boosts cloud-based adoption

By deployment mode, cloud-based segment is estimated to contribute the highest market share of 64.5% in 2024, owing to its security and governance capabilities. Cloud architectures provide robust data protection using firewalls, encryption, identity management, and activity monitoring tools installed across vast server networks. This safeguards sensitive customer information and intellectual property when using cloud-based data science platforms. Rigorous protocols constantly defended by experts ensure cloud infrastructures meet stringent compliance standards for industries like healthcare and financial services.

Centralized governance and access controls in the cloud also strengthen data governance. Granular policies regulate data usage according to compliance, privacy, and business classification rules. Strong access safeguards combined with detailed audit logs build confidence for using governed cloud platforms, especially among regulated firms handling personal data.

Cloud deployments further assure high availability, business continuity, and disaster recovery. Geographically distributed data centers maintain redundancy to prevent outages from localized disruptions. Auto-scaling services can also address sudden capacity needs without delays. These capabilities are crucial to supporting mission-critical applications and time-sensitive analytics workflows. Cloud-based platforms provide unparalleled scalability, security, and governance required to responsibly maximize data’s business value across highly distributed organizations. For instance, in August 2023, Google Cloud, a prominent cloud computing service provider, expanded its partnership with NVIDIA, a leading AI computing company, to enhance AI computing, software, and services. This partnership aims to facilitate the building and deployment of large models for generative AI while accelerating data science workloads. The partnership will deliver end-to-end machine learning services to some of the world's largest AI customers, simplifying the operation of AI supercomputers through Google Cloud offerings powered by NVIDIA technologies.

Insights By End User - Advanced analytics boosts platform adoption in BFSI sector

By end user, BFSI (Banking, Financial Services, and Insurance) segment is estimated to contribute the highest market share of 35.7% in 2024, owing to the sector's complex data and analytics requirements. Banks and insurers manage immense volumes of customer transaction records, account profiles, claims dockets, risk assessments, and other documents containing key insights. However, deriving value from these vast databases requires sophisticated tools to capture nuanced signals amid noise.

Data science platforms enable BFSI organizations to gain a competitive edge through advanced customer analytics. Risk modeling, personalized recommendations, fraud detection, financial crime monitoring, and predictive lead scoring are some key use cases empowered by technologies like machine learning, predictive modeling, and text mining. Drawing hidden correlations across dispersed customer touchpoints fuels hyper-personalized services, accelerated underwriting, and razor-sharp compliance checks.

Strategic partnerships also connect BFSI platforms to external data sources, broadening insight scope. Public record data, demographic profiling, and alternative credit bureau records offer a 360-degree view of each individual when blended with internal holdings. Such cross-channel analysis sparks highly profitable innovations in areas like alternative lending, cross-sell recommendations, and pre-emptive claims management. Benefits of leveraging all available internal and external data using AI/ML techniques has made data science crucial for the BFSI industry to embrace. This drives BFSI firms to widely adopt dedicated analytic platforms.

Regional Insights

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North America has established itself as the dominant regional market for data science platform with an estimated market share of 33.6% in 2024, due to strong investments by enterprises across industries such as BFSI (Banking, Financial Services, and Insurance), Healthcare, Retail, Telecommunications, and Others towards advanced analytics capabilities. There has been highly developed technological infrastructure in the region to support data-intensive workloads, with many homegrown data science platform providers having significant market share.

Asia Pacific has emerged as the fastest growing regional market for data science platform due to rising technological adoption rates and increasing digital transformation initiatives in densely populated nations such as China, India and Indonesia. There has been tremendous surge in volumes of enterprise and consumer data being generated daily in these countries. Companies across industries like BFSI (Banking, Financial Services, and Insurance), Healthcare, Retail, Telecommunications, and Others are recognizing data science and advanced analytics as key imperatives to gain valuable insights from their customer and operational data assets. Moreover, Asia Pacific governments are actively promoting initiatives to convert data into economic value. This has fuelled heavy investment from both private sector organizations as well as public sector into building sophisticated analytics capabilities leveraging data science platforms. The relatively lower costs for operations in Asia compared to Western Data Science Platform markets has also attracted global platform providers to expand their presence in the region. Innovation hubs focusing on new data-driven technologies are rapidly sprouting up in major cities, aiding the development of local data science talent.

Market Report Scope

Data Science Platform Industry News

• In November 2023, Stagwell, a challenger network dedicated to transforming marketing, announced a partnership with Google Cloud, a leading cloud services provider, and SADA, a Google Cloud Premier Partner. This partnership aims to develop generative AI (gen AI) marketing solutions that will enhance the capabilities of Stagwell agencies, client partners, and product development within the Stagwell Marketing Cloud (SMC). The partnership focuses on leveraging data analytics and insights by creating a proprietary Stagwell large language model (LLM) tailored for its clients, productizing data assets via APIs to generate new digital experiences for brands, and maximizing the value of first-party data ecosystems to create new revenue streams using Vertex AI and open-source models.
• In November 2023, AnniQ, a leading data analytics and business intelligence firm, launched a new service aimed at empowering small and medium-sized enterprises (SMEs) through data-driven insights and strategic execution. This innovative offering is designed to help SMEs harness the power of data analytics to enhance their business operations, make informed decisions, and gain a competitive edge in the market. By providing tailored solutions and actionable insights, AnniQ's data analytics service enables SMEs to effectively engage with and utilize data to drive growth, optimize processes, and achieve their strategic objectives.
• In August 2023, Infor Nexus, a supply chain platform that connects over 85,000 brands and suppliers, partnered with DBS Bank, a leading financial institution in Asia, to launch a pre-shipment financing solution aimed at small and medium-sized enterprises (SMEs) within the Infor Nexus ecosystem. This innovative solution leverages historical data from the Infor Nexus platform to provide data-driven lending options, assisting suppliers in meeting their working capital needs before goods are delivered to buyers.
• In May 2023, IBM, a global leader in AI and cloud computing, launched a new AI and data platform called watsonx, designed to help businesses accelerate the use of advanced AI with trusted data, speed, and governance. The platform also introduced GPU-as-a-service, tailored to support AI-intensive workloads, along with an AI dashboard for measuring, tracking, and reporting cloud carbon emissions. With watsonx, IBM provides an AI development studio that offers access to IBM-curated and trained foundation models, open-source models, and a data store for gathering and cleaning training data, enabling businesses to optimize their AI initiatives effectively.

*Definition: Global data science platform market provides companies with a centralized platform to perform end-to-end data science functions like data ingestion, cleaning, modeling, deployment and monitoring of machine learning models. It offers tools and services that enable data scientists, analysts and developers to collaborate and build/deploy predictive and prescriptive machine learning models. The platform's key value proposition is to simplify and accelerate data science processes allowing organizations to maximize the value.

Market Segmentation

• By Component Insights (Revenue, US$ Bn, 2019 - 2031)
• • Software
  • Services
• By Deployment Mode Insights (Revenue, US$ Bn, 2019 - 2031)
• • Cloud-based
  • On-premises
• By End User Insights (Revenue, US$ Bn, 2019 - 2031)
• • BFSI (Banking, Financial Services, and Insurance)
  • Healthcare
  • Retail
  • Telecommunications
  • Others
• Regional Insights (Revenue, US$ Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • IBM Corporation
  • Microsoft Corporation
  • Google Cloud
  • SAS Institute Inc.
  • Oracle Corporation
  • Tableau Software (Salesforce)
  • Alteryx, Inc.
  • RapidMiner, Inc.
  • DataRobot, Inc.
  • TIBCO Software Inc.
  • QlikTech International AB
  • KNIME AG
  • Domo, Inc.
  • Sisense, Inc.
  • Snowflake Inc.