April 12, 2024
Ict

Data Lake Market is Anticipated to Witness High Growth Owing to Rise in Demand for Advanced Data Analytics

The data lake market has been gaining immense traction over the past few years. Data lakes refer to centralized repositories that allow organizations to store vast amounts of raw data in their native format until it is needed. It helps organizations unlock deeper insights by collecting and storing large amounts of data from various sources like connected devices, social media, websites, applications, and more. Organizations have realized the potential of data lakes in digital transformation initiatives for driving competitive advantages and revenue growth. Data lakes allow gathering of useful intelligence from data to personalize customer experience, improve operational efficiencies, optimize supply chains, enhance products and services. The growing volumes of digital data across organizations have compelled businesses across verticals like BFSI, retail, healthcare, government and manufacturing to leverage data lakes for extracting value from data.

The global Data Lake Market is estimated to be valued at US$ 4.2 Bn in 2024 and is expected to exhibit a CAGR of 24.% over the forecast period 2023 to 2030. Need for real time business intelligence and analytics to gain actionable insights from volume, velocity and variety of data streams is a key factor augmenting demand for data lakes.

Key Takeaways
Key players operating in the data lake market are Amazon Web Services, Microsoft, IBM, Oracle, Cloudera, Informatica, Teradata, Zaloni, Snowflake, Dremio, HPE, SAS Institute, Google, Alibaba Cloud, Tencent Cloud, Baidu, VMware, SAP, Dell Technologies, Huawei.

Key players are focusing on strategic collaborations and partnerships to enhance their product and service portfolios and gain traction in emerging markets. For instance, in November 2022, Cloudera partnered with IBM to integrate Cloudera DataFlow with IBM DataStage to facilitate easier ETL process management.

North America and Europe currently dominate the global data lake market owing to rapid digitalization across end-use sectors. However, Asia Pacific is anticipated to witness highest growth in adoption of data lake technologies over the forecast period supported by increasing IT infrastructure investments in China, India and Southeast Asian countries.

Major players are expanding their global footprints through acquisitions and partnerships with local players. For example, in 2021, AWS acquired CloudEndure to integrate its data migration services with AWS migration services portfolio and strengthen presence in Europe and Israel.

Market Drivers
Rise in data volumes: Proliferation of IoT devices, connected machines and digital services has led to exponential growth in data generation across organizations. This has compelled businesses to deploy data lake solutions for storage and management of massive volumes of data.

Demand for advanced analytics: Data lakes allow retrieval of real-time insights by processing both structured and unstructured data through machine learning and predictive analytics tools. This drives its adoption across industries aiming to leverage data-driven decision making.

Market Restraints
Data security and privacy risks: Centralized data repositories in data lakes raise privacy issues due to risk of unauthorized access or hacking. This limits large scale deployments of data lakes for sensitive domains like banking and healthcare.

Integration challenges: Integrating heterogeneous data from multiple sources into a unified data lake model requires enormous effort. Incompatibilities between various data formats and structures hamper full realization of benefits.

Segment Analysis
The cloud segment dominates the data lake market currently due to growing need for cost-effective data storage and analytics. Organizations are increasingly adopting cloud data lakes as they provide limitless storage, quick availability and easy accessibility of data. The cloud-based data lake allows flexible deployment of analytical workloads and data pipelines on-demand. Factors like pay-per-use pricing models and high scalability make cloud deployment an attractive choice for most companies. Within cloud, SaaS segment led by AWS is expected to continue its leading position in the forecast period given the advantages of rapid deployment and reduced costs of managing infrastructure.

The structured data segment forms the largest sub-segment currently due to availability of sizable amount of structured data across industries like banking, healthcare, manufacturing. Most organizations already have their data stored in structured formats, making it easier to integrate additional sources in data lake. However, the unstructured segment is anticipated to witness highest growth on account of growing digitization and internet usage. The need to gain insights from documents, images, emails and sensor data is propelling companies to store and analyze unstructured sources in data lakes.

Global Analysis

The North American market holds the major share of data lake currently owing to stringent data privacy regulations and early adoption of advanced big data technologies among companies in the US and Canada. Presence of leading market players and huge investments in data analytics are other factors spurring growth. Asia Pacific is projected to show highest growth during the forecast years due to growing internet penetration, rising digitalization of processes across industries in major countries like China, India. Rapid economic expansion is also stimulating organizations to optimize operations using data-driven insights gained from data lake implementations.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it