Global data science platform market is estimated to witness high growth, owing to increasing demand for cloud-based services and rapid adoption of deep learning and artificial intelligence
Global data science platform market is estimated to be valued at US$ 11.03 Bn in 2024, exhibiting a CAGR of 22.6% over the forecast period (2024-2031). Furthermore, proliferation of cloud computing and increasing popularity of deep learning and artificial intelligence techniques can drive the market growth.
Market Dynamics:
Global data science platform market growth is primarily driven by rising adoption of deep learning and artificial intelligence across industries. Deep learning has emerged as a breakthrough technology that enables machines to learn from large and complex datasets through neural networks inspired by the human brain. Various enterprises like IBM Corporation, Microsoft Corporation, Google Cloud, SAS Institute Inc., Oracle Corporation, Tableau Software (Salesforce), etc. are leveraging deep learning for applications such as predictive analytics, image recognition, natural language processing, and others. Moreover, rapid penetration of cloud-based services can also drive the market growth. Cloud deployment helps smaller firms and organizations to access advanced data science platforms at affordable costs. Proliferation of real-time streaming data from IoT devices has augmented the need for scalable data science platforms for faster data processing and insight generation. Major platform providers are focusing on integrating advanced deep learning and AI capabilities within their offerings. This can boost demand for data science platforms during the forecast period.
Growing demand for data-driven decision making can drive the global data science platform market
Increasing focus on data-driven decision making across various industries can drive the global data science platform market growth. As large amounts of data are being generated every day through various digital channels, companies are increasingly recognizing the importance of extracting useful insights from data to gain strategic and tactical advantages. Data science platforms provide various functionalities to collect, organize, analyze and visualize data to help organizations make better informed business decisions. This focus on gaining business value from data assets drives more companies to adopt data science platforms.
Rising need for businesses to derive insights from unstructured data
Growing volumes of unstructured data such as text, images, videos, and others that organizations are dealing with has boosted need to derive actionable insights. Traditional data analysis tools are not well equipped to analyze and extract insights from such complex unstructured data. Data science platforms come with advanced capabilities such as natural language processing, machine learning and others to efficiently handle unstructured data sources. This capability to gain meaningful insights from various structured and unstructured data sources can boost demand for data science platforms.
Shortage of data science skills can hamper the market growth
Acute shortage of data science and analytics skills can hamper the global data science platform market growth. Significant expertise is required to effectively use advanced data science tools and platforms for developing predictive models and data visualizations. The limited availability of data scientists and analysts with relevant experience can inhibit organizations from fully leveraging the power of data science. Vendors are trying to address this issue by integrating simplified visual interfaces in their platforms to make them easier for non-experts to work with.
Lack of data governance policies can pose challenge
Lack of robust data governance policies and guidelines in many organizations can hamper the market growth. With rising privacy and security concerns around data usage, it is critical to have clear policies and standard operating procedures in place regarding data access, sharing and usage. But many companies still lack well-defined data governance frameworks. This makes it difficult to reap the desired benefits from investments in advanced data analytics technologies, thus, impeding market growth. Vendors need to work closely with customers to establish governance best practices.
Growth of cloud services opens new opportunities
Migration of data and analytics workloads to cloud-based environments and services can offer new opportunities for data science platform providers. Cloud-based deployment models are making advanced analytics more accessible and affordable for organizations of all sizes. Several vendors are enhancing the cloud capabilities of their platforms. These are leveraging the flexible pay-as-you-go models of cloud platforms like AWS, Microsoft Azure and others to target cost-conscious customers and boost adoption. This transition towards cloud-enabled data analytics solutions holds significant potential for future expansion of the market.
Rising integration of AI creating room for innovation
Rising integration of artificial intelligence and machine learning capabilities in data science platforms can offer new opportunities for vendors to innovate and expand their offerings. Technologies like deep learning and neural networks are starting to transform how organizations derive insights. Platform providers are augmenting existing tools with latest AI techniques for more powerful predictive analytics, automated data preparation and personalized experience. This ongoing convergence of data science and AI will open avenues to tap new customer demand.
Link: https://www.coherentmarketinsights.com/market-insight/data-science-platform-market-4417
Key Developments:
- 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 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.
- 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.
- 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.
Key Player:
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., and Snowflake Inc.
