Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Datafication Market size was valued at USD 394.2 billion in 2024 and is poised to account for USD 1930.8 billion in 2037 by expanding at a CAGR of 13% during the forecast period from 2025 to 2037. In 2025, the industry size of datafication is evaluated at USD 445.4 billion.
The enterprise strategies worldwide have experienced a notable shift with datafication emerging as a linchpin. Organizations that convert operational processes and customer behaviors into structured data streams lead to streamlining decision-making. Technologies such as IoT sensors, AI-driven analytics, and 5G have significantly accelerated the shift. The sectors leading the adoption are manufacturing, healthcare, and financial services. Moreover, regulatory tailwinds such as real-time reporting and transparency have further assisted in embedding datafication. The trends reflect the recognition of data as a strategic asset of innovation.
The World Bank reported that 67% of the world’s population actively used the internet in 2023 and the number has steadily increased year-on-year. The National Cybersecurity Center of Excellence reported an estimated more than 75 billion IoT devices by the end of 2025. These numbers bode well for the growth of the datafication market. Additionally, the rapid scaling of datafication has intensified the debates around ethical governance, prompting robust policy frameworks to ensure accountability. Moreover, data is expected to become one of the most valuable assets in the age of digitalization, creating ample opportunities to invest in data-driven solutions.
Looking forward, the datafication market is set for continued growth throughout the stipulated timeframe. With key drivers of heightened focus on data privacy, security, and accelerated 5G network deployment ensuring sustained expansion, businesses are expected to find opportunities in providing end-to-end data solutions. In July 2022, the World Economic Forum (WEF) published a whitepaper on the Shared Value of Smart City Data, highlighting a framework to bolster the exchange of IoT data seamlessly between platform operators, end-users, and providers in the backdrop of less than 1% of the data not utilized to its full potential. Such proactive steps bode well for the datafication market with the public and private sector demands for data integration and analysis increasing over the years.
Datafication Sector: Growth Drivers and Challenges
Growth Drivers
- Expansion of data center infrastructure: The rapid growth in data center infrastructure is a major driver of the expansion of the datafication market. Modern data centers can process and manage significant data volumes generated. Data centers assist businesses in analyzing large-scale datasets. Moreover, the increase in data centers converges with the rapid adoption of IoT and AI which rely on data storage and processing. The table below highlights new major data centers planned or under construction.
Data Center Particulars
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Date |
Details |
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July 2024 |
Meta announced plans to develop USD 800 million worth of hyperscale data center in Wyoming, U.S. |
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July 2024 |
Elea Digital Data Centers announced USD 1 billion worth of investment plans to expand to Brazil amidst surging demand for data centers. |
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July 2024 |
Nxera and Telekom Malaysia announced a new 64MW data center. |
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November 2023 |
Microsoft announced the plans to build a hyperscale data center in Leeds, UK with investments worth USD 3.2 billion. |
The infrastructure expansion is set to allow companies operating in the datafication market to collect, store, and analyze vast repositories of data to further the data-driven strategies.
- Growth in adoption of edge computing: Trends highlight the increasing deployment of edge computing infrastructure driven by the requirement of real-time data processing. Industrial autonomous manufacturing and smart cities have been key factors and boosting the deployment rates. By decentralizing data storage, organizations reduce latency enabling better datafication. The Industrial IoT Roadmap of the U.S. Department of Energy (DOE) highlights a more than 70% reduction in data latency for manufacturing plants that are using edge computing systems driving an increase in edge node deployments.
Two recent reports indicate the market movement in edge computing which is expected to propel the datafication market by enabling efficient data processing strategies. For instance, in January 2025, Intel announced advancements in AI performance and power efficiency for businesses and consumers for the next era of edge computing while ZEDEDA announced a doubling of edge nodes and revenue in their 2024 annual report. - Rise of industry-specific regulatory compliance: Region and industry-specific mandates have pushed organizations to maintain auditable and structured data trails. The compliance pressures lead to businesses investing in datafication frameworks to ensure transparency. The trends highlight rising opportunities for profitable investments in unified data platforms to meet cross-border operational standards. Instances of sectoral mandates are the EU’s Digital Operational Resilience Act (DORA) and the U.S. FDA’s AI/ML action plan for healthcare. Moreover, the advent of regulatory frameworks has created opportunities for the launch of data guidance solutions. For instance, in October 2024, One Trust announced the release of its regulatory research platform, DataGuidance to assist businesses in faster data regulation interpretation.
Challenges
- Fragmented data governance frameworks: The lack of harmonized standards globally for data ownership creates complications in datafication initiatives. While certain regions, such as the EU, have adopted strict data regulations, i.e., GDPR, the conflicting policies in emerging markets can force multinational enterprises to maintain parallel systems for compliance. For instance, discrepancies in data sovereignty laws between China, the U.S., and India create bottlenecks in industries such as automotive, where real-time data sharing across borders is necessary for supply chain coordination.
- Data privacy concerns and reliance on legacy infrastructure: The public sector is prone to a slow transition from legacy infrastructure. Outdated IT systems are incapable of handling datafication workloads. Municipalities in emerging economies are particularly prone to relying on early-digital systems as per the World Bank. Furthermore, the datafication market faces challenges of data breaches and cyberattacks, which can lead to reputational losses. Organizations must invest in cybersecurity measures to mitigate these risks.
Datafication Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
13% |
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Base Year Market Size (2024) |
USD 394.2 billion |
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Forecast Year Market Size (2037) |
USD 1930.8 billion |
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Regional Scope |
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Datafication Segmentation
Deployment (Cloud-Based, On-Premises)
Cloud-based segment is set to dominate datafication market share of around 57.5% by the end of 2037, owing to rising demand for cloud-based software-as-a-service (SaaS) solutions for its cost-effectiveness. By leveraging cloud infrastructure, organizations can efficiently manage vast amounts of data without the requirement for significant upfront investments in physical hardware. This approach reduces the capital expenditures allowing for rapid deployment and scalability. Moreover, organizations offering datafication solutions benefit from cloud deployment expanding the scope of applications from multinationals to SMEs.
End user (BFSI, Healthcare, IT & Telecom, Retail, Education, Government)
The BFSI segment in datafication market is likely to register rapid revenue CAGR by the end of 2037. Converting large amounts of customer data into actionable insights, financial institutions can boost revenue growth by tailoring services to individual requirements. Consumer trends highlight the demand for personalized customer experiences, and data-driven decision-making fosters heightened deployment of personalized services. Moreover, the BFSI sector has been one of the earliest adopters of datafication to effectively structure surging amounts of data. The extensive data generation makes the BFSI sector an ideal candidate for datafication and analytics. In 2024, the Bank for International Settlements reported a reduction in default rates after leveraging AI-augmented loan assessment. Such successful use cases of deployment highlight further opportunities within the sector.
Our in-depth analysis of the global market includes the following segments:
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Deployment |
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End user |
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Customize this ReportDatafication Industry - Regional Scope
North America Market Forecast
North America datafication market is predicted to capture revenue share of around 37.7% by the end of 2037. A major driver is the widespread adoption of AI and big data analytics. The advent of data-driven decision-making in multiple sectors has created opportunities for businesses to expand the scope of data solutions in the region. Furthermore, interconnected cloud corridors enabled by initiatives such as the USMCA Digital Trade Annex facilitate seamless data flows for automotive supply chains. In December 2024, the U.S. Census Bureau reported an increase in AI usage amongst small firms, which is poised to expand the scope of datafication framework services in North America.
The U.S. datafication market is projected to expand during the forecast period. The increasing investment to bolster the AI ecosystem within the country is poised to create large data sets that require data management solutions. For instance, in January 2025, the government announced a massive USD 500 billion investment in private-sector AI infrastructure. Furthermore, the advanced digital infrastructure and digitalization adoption rates across multiple sectors ensure continued growth of the market. Additionally, the U.S. data collection and labeling market, a critical component of datafication, is experiencing substantial growth highlighting surging demand for annotated data to train AI and machine learning models.
The Canada datafication market is estimated to maintain its momentum by the end of 2037 owing to rising government investments in promoting digital transformation. The strategic investments in data center infrastructure have contributed to the expansion of datafication efforts across various industries. In December 2024, the government announced investment plans of around USD 2 billion to build domestic AI computing capacity while in the same month, the Digital Research Alliance of Canada announced that it would receive USD 85 million from the Canadian Sovereign AI Compute Strategy to advance the country’s digital infrastructure. The proactive investments are poised to create vast amounts of unstructured data in the private and public sectors in the country, driving the demand for datafication.
APAC Market:
The APAC datafication market is expected to register rapid growth owing to the rising adoption of data-centric technologies. Additionally, APAC leads in the adoption of generative AI solutions, with China paving the way in the AI ecosystem, while the Philippines and Singapore followed suit. The large volume of internet users in the region boosted by the penetration of 5G services has created a humongous amount of unstructured data which is leveraged by various businesses to leverage actionable insights.
The China datafication market is projected to remain the largest in APAC while expanding its presence globally. In July 2024, Reuters reported that China exhibited the largest usage of generative AI tools. Moreover, China has established itself as a leader worldwide in the AI race, with the release of Qwen 2.5-Max and DeepSeek in 2025. Provincial initiatives such as Zhejiang’s Industrial Brain integrate real-time production data from a large number of factories to centralized platforms, optimizing supply chains. The market analysis predicts China to provide lucrative opportunities by the end of 2037 in the backdrop of the removal of restrictions on the foreign ownership of cloud and data center services.
The India datafication market is poised to exhibit robust growth during the stipulated timeframe. A key characteristic of the market in India is the rising number of internet users. The 4G and 5G revolution in the country has expanded internet access throughout its extensive population leading to India having some of the highest internet users globally. The stats have resulted in the generation of large volumes of consumer data that businesses are actively leveraging to formulate ROI-driven action plans. Furthermore, opportunities are rife from nationwide schemes such as the Ayushman Bharat Digital Mission which has created over 500 million unified health records of citizens. The trends indicate a steady growth in opportunities within the India datafication market to offer data structuring solutions.
Companies Dominating the Datafication Landscape
- Oracle Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Microsoft Corporation
- SAP SE
- IBM Corporation
- Google LLC
- Amazon Web Services
- Teradata Corporation
- Workiva
- DataRobot Inc
- Dell Technologies
The datafication market is set to expand during the stipulated forecast period. Companies offering advanced data analytics platforms with AI and ML capabilities are expected to bolster revenue shares during the market’s forecast timeline. Additionally, businesses in the sector are forming strategic partnerships and joint ventures to improve service offerings and enter new markets. Opportunities are rife in collaborations between AI firms and multinational conglomerates to deliver customized AI solutions to businesses.
Here are some key players in the datafication market:
In the News
- In February 2025, New Relic, announced the only observability solution for monitoring DeepSeek generative AI. The announcement is expected to assist customers in reducing the cost associated with developing generative AI applications.
- In January 2025, ByteDance announced plans to invest USD 12 billion in AI chips in 2025. The company plans to invest around USD 6.8 billion to bolster its foundation model training capabilities using the advanced Nvidia chips.
Author Credits: Abhishek Verma
- Report ID: 7160
- Published Date: Feb 17, 2025
- Report Format: PDF, PPT
