Data Science Platform Market size was valued at USD 130.3 billion in 2023 and is estimated to reach USD 917.5 billion by the end of 2036, expanding at a CAGR of 16.4% during the forecast period, i.e., 2024-2036. In 2024, the industry size of data science platform is assessed at USD 151.6 billion.
The primary growth driver for data science platform market is the expansion of big data, which is pushing organizations to invest in more advanced and capable data science platforms to leverage their data effectively. According to the United Nations Organization, data creation reached 64.2 zettabytes in 2020, increasing 314% from 2015.
Data science platforms offer a wide range of advanced analytics tools such as machine learning, deep learning, and predictive analytics, to extract valuable insights from big data. Therefore, as organizations generate and collect increasing amounts of data, there is a growing need for sophisticated tools and platforms such as data science that can handle, analyze, and derive actionable insights. Additionally, the integration of artificial intelligence (AI) capabilities into data science platforms is becoming increasingly important for deriving actionable insights and automating data analysis.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
16.4% |
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Base Year Market Size (2023) |
USD 130.3 billion |
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Forecast Year Market Size (2036) |
USD 917.5 billion |
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Regional Scope |
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Component (Platform, Services)
The platform segment in the data science platform market is poised to capture 82.6% revenue share by the end of 2036. The segment growth can be attributed to the increasing use of data science platforms by small and medium-sized businesses. Companies are shifting towards digitalization and automation, which speeds up big data and leads to more complex business processes. To meet these challenges, businesses need cutting-edge technologies that enable them to gain immediate insights across massive data pools. According to the World Bank Group, the number of small businesses investing in digital solutions increased from 10 to 20% between April 2020 and December 2022, while the percentage of large businesses increased from 20 to 60%.
Application (Marketing & Sales, Logistics, Finance and Accounting, Customer Support)
The marketing & sales segment in the data science platform market is expected to hold a notable share of 34.7% during the forecast period. The segment has the highest revenue share and improved return on investment (ROI) since the marketing and sales department can leverage data science to gain deeper insights into the buyer's profile and adjust the marketing budget accordingly. In addition, factors such as increased customer satisfaction, more consistent revenue generation, and reduced financial risk due to precise spending calculations all contribute to the market expansion.
Vertical (IT & Telecommunication, Healthcare, BFSI, Manufacturing, Retails and E-commerce, Energy and Utilities, Government)
The BFSI segment is estimated to gain the largest market share of 20% by 2036. The segment growth can be attributed to the increased focus on customer support and the growing adoption of advanced technologies such as AI and IoT. Banks can effectively assess and reduce risks by using data science to analyze historical data, spot trends, and create prediction models. This covers measures to detect fraud, assess credit risk, and prevent money laundering.
Our in-depth analysis of the data science platform market includes the following segments:
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Application |
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Vertical |
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Enterprise Size |
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Deployment Mode |
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North America Market Statistics
The data science platform market in North America is anticipated to hold the largest share of 36.4% by the end of 2036. The market growth can be accredited to the presence of major key players across various industries and their continuous advancements and market strategies. For instance, in May 2023, Microsoft Fabric, an end-to-end, unified analytics platform that combines all the data and analytics capabilities required by enterprises, was presented by Microsoft Azure.
By combining technologies such as Power BI, Azure Synapse Analytics, and Azure Data Factory into a single, cohesive platform, Fabric enables data scientists and business executives to fully utilize their data and build the groundwork for the AI era. Also, increasing investment in advanced technologies such as AI, IoT, and machine learning is another factor escalating the market growth in the region.
The U.S. market for data science platforms is expanding as a result of the increased use of cutting-edge technology and the availability of infrastructure to facilitate the application of advanced analytics. According to a survey by Pew Research Center in 2022, 27% of Americans interact with AI several times a day. Data science platforms in the country serve a wide range of industries, including finance, healthcare, retails, technology, and government, reflecting the broad adoption and integration of data science across various sectors.
Many key companies and industries in Canada find data science and discovery platforms very effective, which is propelling market growth. The increasing need for businesses to make data-driven decisions and the growing importance of good data management are driving the market growth in the region.
APAC Market Analysis
APAC will also encounter huge growth for the data science platform market during the forecast period owing to the recent advances in big data analytics. Many APAC countries are undergoing rapid digital transformation, leading to increased adoption of data science platforms across various sectors. Moreover, various governments in the region are implementing policies and initiatives to promote digital innovation and data-driven decision-making.
In China, the government is highly investing in big data analytics tools considering their vast applications and uses. However, due to the importance of the business and increasing market competitiveness, the retail sector and online retail sales will demand customer analytics the most. According to the National Bureau of China, China spent over USD 4714.39 billion on online retail transactions, representing a 1.2% rise.
The Government of South Korea supports digital transformation and smart technology initiatives such as the Digital New Deal and Smart Korea projects. These initiatives promote the adoption of advanced data science tools and technologies. Moreover, the country has strong educational and research institutions focusing on data science and related fields. This contributes to the development of new technologies and methodologies in the data science market.
Data science is thriving in India, due to the country's rapidly developing technical environment, which includes widespread internet connectivity and an increasing number of mobile devices. According to the Press Information Bureau (PIB), in September 2020, the total number of broadband connections reached 726.32 million. This has accelerated the growth of internet traffic, with wireless data usage totaling 75.21 Exabytes from January to September 2020. This framework makes it easier to collect, store, and analyze vast amounts of data, accelerating the market growth.
The data science platform market is defined by the existence of multiple major companies, all of whom support the industry's expansion, innovation, and strategic alliances. These businesses, which range from well-known tech behemoths to up-and-coming startups, are striving for a piece of the growing market for sophisticated analytics and machine learning skills.
Author Credits: Abhishek Verma
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