Master Data Management Market Flourishing, Although Security Remains Primary Concern

Large organizations produce mountainous amount of data, which not only is essential for the proper functioning of several departments, but also helps in improving the efficiency and reducing mistakes. Master data management can help the organizations to manage critical and confidential business data pertaining to financial transactions, products, consumers, suppliers and others. The advent of master data management has proved to be an asset for the decision-makers of an organization and helped them increment their sales and profits with enhanced customer service.

According to the estimates of a recent study by Transparency Market Research, the global master data management market will be worth US$37.97 bn by the end of 2024, escalating at an exceptional CAGR of 27.25% during the forecast period of 2016 to 2024, significantly up from its anticipated valuation of merely US$4.35 bn in 2015. Rapid rise of several economies across the world, inflow of foreign investment in emerging nations with workforce, growing dependency on a centrally located business headquarters, growing need for business performance and data quality of optimum level, and requirements of verification and authorization are some of the key factors driving the global master data management market. Data security, on other hand, remains the primary concern over the market’s growth rate. Business collaborations with integrated solution providers is expected to open new opportunities for the players in the global master data management market.

Which master data management market segments are most profitable?

Based on software, the TMR report segments the global master data management market into on cloud and on premise. Among these, on premise segment currently serves the maximum demand, although the glaring advantaged offered by cloud-based master data management is projected for the most prominent growth rate and overtake the demand for on-premise segment significantly by the end of the forecast period.

By end-use industry, the report bifurcates the market for master data management into banking, finance and insurance (BFSI), government, healthcare, IT and telecommunication, manufacturing, transportation and logistics, retail, and energy and utility. As of 2015, BFSI segment accounted for the maximum demand of valuation US$890.0 mn in 2015, although IT and telecommunication is anticipated to expand the demand at most robust CAGR of 27.56% during the forecast period.

What is the nature of competition among the leading players?

The TMR report has detected that three companies, Oracle Corporation, Informatica, and IBM Corporation, accounted for 35% of the shares in 2015 while rest of the market was fragmented into smaller and regional organizations. Consequently, mergers and acquisitions is quickly turning into the most preferred strategy of the leading companies in this market to maintain their stronghold. In addition to that, with data privacy emerging as the paramount concern for the consumers, the report suggests the players in this market to create hybrid solutions with added data security, and gain consumer’s confidence.


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