ID: MRFR/ICT/4599-HCR | February 2021 | Region: Global | 100 pages
The industrial sectors are getting their hands on cloud computing systems and thereby modernizing their infrastructure and data-related services. Such adaptations have increased the Data as a Service market value in recent times. The industries with the help of Data as a service can improve the data agility, reduce their time to insight, and increase the reliability and data integrity.
Data as a Service Market COVID 19 Analysis:
The COVID 19 pandemic has created an economic slowdown in several countries that is due to the movement restrictions and several industries have halted their production work. Therefore the industries had begun to work from remote places. This culture has increased the demand for digital solutions and since many industries are data-driven, essential decisions are taken with the help of crucial data; the pandemic has positively impacted the overall growth of the Data as a service market in recent years.
The Data as a service model offers the companies customized software solutions. Since the pandemic has brought in the work from home trends to the industrial sector, remote employees have become more vulnerable to cyber-attacks. The Device-as-a-Service model is gaining demand due to this factor, as the model comprises the management solutions and the defense tool kit. The Data as a Service carry out security measures like managing passwords and data logging to ensure that system complies with the companies’ security protocols.
The Data-as-a-service is increasingly utilized in auditing and accounting firms in recent years. This utilization has benefitted the auditing firms, the auditors are gaining a better understanding of the clients’ organizations than ever before with the aid of the software. The Data as a service enables the data analysts to test complete sets of data rather than the samples, perform risk assessments by comparing the organization’s data, and point out the item that requires further investigation. Such prompt performance of the Data as a Service model has increased the overall data as a service market growth.
Data as a service model performs the data-related services efficiently while eliminating the data redundancy and streamlines operational costs. The efficiency of the Data as a Service is due to several technologies like enterprise resource planning, customer resource management, e-commerce, and supply chain management. The reduced setup time required to perform crucial data processes as storage and processing has also augmented the Data as a service market demand.
The characteristics of the Data as a Service model are increasing the opportunity for the data as a service market to grow. The Data as a service model requires the data to be available in any one location in the cloud for it to empower the entire organization on several tasks and data-related matters. Such factor has increased the communication and better understanding of the clients’ requirements. The overall functionality of the organization has increased, as the adoption of the cloud is very less likely to fail; the organization is less prone to disruptions.
For large organizations, the workloads can be heavy. The flexible Data as a Service system offers higher scalability and permits more resources instantaneously. The processing costs and data management costs can be optimized since the data as a service model optimizes the utilization of the resources for the particular workload. The resources allocation can also be adjusted accordingly, such practices have highly benefitted the organization those have deployed the DaaS system. These characteristics have increased the Data as a Service market value.
The DaaS platforms might reduce the number of tools for the data processing, in such cases, users might have to work with only those tools that are hosted on the system. The way the DaaS system restricts the availability of the various tools has significantly reduced the Data as a Service market demand. Several companies have to choose the DaaS solution that offers maximum flexibility.
Data transferring processes could take much time; the time is highly based on the volume of the data being transferred and the frequency of the organization that would like to transfer the data to the DaaS platform. Additionally, in such cases, the limited data bandwidth may further delay the data processing and transfer speeds. To mitigate the challenges, companies are focusing on adopting edge computing strategies and data compression techniques to increase the speed of such processes.
The organization should consider deploying additional security measures since the Data as a Service is not protected from information leaks and permits easy access to the data in the environment. Additionally, the Data as a Service system can make the business-critical data sets open to multiple vulnerabilities. This has been a huge challenge for the organization while deploying the Data as a Service system. Additionally, the confidentiality issues, data integrity while managing large sets of data are still challenging for the Data as a Service industry.
Data verification which is the most crucial part of data processing is difficult to deploy. Such factors have restricted the organizations to meet the quality standards. Additionally, the requirement of additional compliance procedures has restricted the growth of the Data as a Service industry. The compliance issue is raised when the sensitive data is transferred to the cloud systems.
Cumulative Growth Analysis:
The Data as a Service system is a data management strategy that utilizes cloud services to provide the facilities like storage, precise integration, processing, analyzing, over the network connection. These features have enhanced their understanding of the client’s requirements. The Data as a Service often gets compared with the Software as a Service, since the advent of Software as a Service has eliminated the necessity of deploying the software onto the devices. Rather, the solutions are provided over the network. Similarly, Data as a Service system is performing the processes like data storage, integration, processing over the network.
The advanced features of the Data as a Service have increased the overall growth of the industry. The data as a service market is expected to grow at a CAGR of ~39% and reach ~12 Billion by the end of 2023. The shared cloud services have gained demand in recent years and began to emphasize the services like integration, analytics, and data processing. Additionally, cloud storage which is available at affordable rates and cheaper bandwidth has augmented the growth of the Data as a Service industry in recent years.
Value Chain Analysis:
The advent of cloud storage and cloud-based solutions and increasing adaptation of cloud-based solutions have significantly impacted the growth of the Data as a Service Market in recent years. The cheaper cloud storage facilities, affordable bandwidth enables the organization to process a large scale of data quickly and hence they are the major driving factors of the Data as a Service industry. Costs saving is the major factor that aids the growth of the Data as a Service industry, because cloud storage, bandwidth, optimization of the resources are the primary factors that encourage the organizations to deploy the Data as a Service system. The Data as a Service provider ensures to update the tools and services associated with the system which eliminates the additional procedures of updating them from the organization side.
However, the pitfalls like exposing the critical data to the third party software solution have restricted some companies to deploy the Data as a service system. Confidentiality is the major factor that restricts the overall growth of the Data as a Service industry. Since the information shared is critical information to the organization and might affect the key operations of the businesses. Key endeavors are carried out by the DaaS provider to design the system with better functionalities.
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Data as a Service Market Regional Analysis:
Currently, North America is witnessing the higher growth in the Data as a Service market value. The market growth is mainly due to the presence of leading market players in the region and the developed economic condition of the country. The shifting trends towards the cloud-based workspace, a huge amount of data generated by the organizations, and the necessity of quicker data processing and analyzing and other essential operations have significantly impacted the growth of the Data as a Service industry. Other than North America, countries in Asia-pacific are likely to witness steady growth owing to the rising industrialization and increasing investments in the regions. Additionally, the countries in Asia-pacific possess a direct correlation with the end-user industries and the rising promotion strategies of the social media platforms.
This report has covered:
|Market Size||12 Billion (2023)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Deployment, Organization Size|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Microsoft Corporation (U.S.), IBM Corporation (U.S.), Facebook, Inc. (U.S.), Fair Isaac Corporation (U.S.), Alibaba Group Holding Limited (China), Google Inc. (U.S.), Oracle Corporation (U.S.), Bloomberg Finance L.P. (U.S.), Salesforce.com, Inc. (U.S.), LinkedIn Corporation (U.S.), Mastercard Advisors LLC (U.S.), and LexisNexis Corporation (U.S.).|
|Key Market Opportunities||
|Key Market Drivers||Asia Pacific is expected to grow at a significant pace during the forecast period. Due to increasing adoption of cloud-based services and enormous opportunities across businesses in the Asia Pacific countries, there is better scope for advancement in the data as a service (DaaS) market.|
Frequently Asked Questions (FAQ) :
The data as a service market is expected to reach a signficant market value of USD 12 billion by 2023.
The global data as a service market is maturing at a whopping 39% CAGR over the review period of 2017 to 2023.
A few significant players of the global data as a service market are Microsoft Corporation (U.S.), IBM Corporation (U.S.), Facebook, Inc. (U.S.), LinkedIn Corporation (U.S.), Mastercard Advisors LLC (U.S.), among others
The hybrid cloud segment is likely to witness the highest demand in the data as a service market.
The SME segment is slated to witness higher growth over the assessment period.