The market for MDM of customer data is expected to reach $644 million in 2012 and to exceed $1 billion in 2015.
Worldwide master data management (MDM)
software revenue will reach $1.9 billion in 2012, a 21 percent increase from
2011, according to IT research firm Gartner. And the market is forecast to
reach $3.2 billion by 2015.
The report found the overall MDM market
is dominated by three major players-IBM, Oracle and SAP-although within the
overall MDM market, more than half the revenue is driven by products from small
and best-of-breed vendors, as the market continues to favor specialized
solutions over "generic" offerings.
From a regional perspective, North
America and Europe will drive the demand for MDM, and both regions will grow at
a steady pace to reach the billion-dollar mark-in 2013 for North America and in
2015 for Europe. In 2013, MDM software revenue will see faster growth in
Asia/Pacific, where revenue will increase by 30 percent from 2012 to reach $209
"This is the biggest annual growth
we've seen for this market since 2008," said Colleen Graham, research director
at Gartner. "Pressures to optimize costs and efficiencies in a heterogeneous IT
environment are driving organizations to turn to MDM as a more efficient way to
manage and maintain data across multiple sources. In addition, the increasing
governance, risk and compliance regulations are forcing organizations to focus
on MDM to support these initiatives."
The largest domains of the MDM software
market are MDM of customer data and MDM of product data, each of which is
predicted to more than double in size over the next four years. MDM of customer
data helps an organization cross-sell and cross-market, as well as retain
customers and provide a consistent high-quality customer experience. "MDM has
become a critical discipline required for dealing with the challenges of social
data, -big data' and data in the cloud," Graham said.
The market for MDM of customer data is
expected to reach $644 million in 2012 and to exceed $1 billion in 2015.
The market for MDM of product data,
which helps an organization store product-related master data, metadata or
both, is projected to reach $688 million in 2012 and to surpass $1.1 billion in
2015. "In the next four years we expect larger vendors will continue to acquire
for this specialization while smaller vendors will acquire each other to build
market share and increase the functionality within their portfolios," said Chad
Eschinger, research director at Gartner.
However, the variety of technologies
that can be applied to an MDM initiative leaves the door open for data
integration and data quality providers, in particular, Eschinger noted. As more
midsize organizations adopt MDM in the course of the next four years, they are
demanding lower prices and more flexibility from vendors. As a result, many new
MDM vendors and offerings capturing this market will be focused on areas such
as open source, as well as cloud computing and software as a service.
"The increased demand for more
effective decision-making and a focus on improving the timeliness and accuracy
of business decisions makes MDM paramount for organizations," said Graham. "MDM
supports these goals by ensuring the high quality of key data needed at the
point of decision, removing uncertainty and increasing confidence."