Data Virtualization Market - Industry Analysis, Market Size, Share, Trends,Application Analysis, Growth and Forecast 2021 - 2026

Key Takeaways

• Banking & Financial Sectors segment is likely to dominate the Data Virtualization market owing to the growing need to access large volumes of data stored across various systems, to  reduce  infrastructure costs and increasing demand for data integration software tools.

• Academics & Research segment is expected to achieve the highest CAGR of 25.9% during the forecast period 2020-2025 owing to the higher requirement of gathering plenty of information using a variety of data tools which deploy data virtualization software. 

• The growth of Banking & Financial Sectors particularly in China, Japan, and India along with massive rise in Retail & Ecommerce consumers will boost the Data Virtualization Market in APAC.

• Lack of expertise in using relational databases and traditional architecture and infrastructure may create hurdles for the Data Virtualization Market.

 

The data integration solution Segment has been analyzed to attribute to the majority of shares in Data Virtualization market during the forecast period 2020-2025. The data virtualization platform with integration capabilities enables organizations to collect data from various sources on a single platform. Various industry verticals, such as Banking, Financial Services, and Insurance (BFSI), healthcare, and retail and ecommerce, are deploying data virtualization software and solutions to access and analyze large volumes of data which is propelling the growth of Data Virtualization Market. Moreover, enterprise applications like CRM, ERP, BI, CMS, ESB, Web conferencing, among others will boost the adoption of data virtualization solutions. 

 

Among end users the Banking, Financial Services, and Insurance (BFSI) sector is expected to dominate the Data virtualization Market with the highest CAGR of 21.21% during the forecast period 2020-2025 with a market share of 22.5%.Modern data virtualization vendors offer a wide range of important capabilities beyond data federation, including read-and-write access to a wide range of source data systems, the inclusion of a metadata repository, the ability to persist federated queries, data abstraction, and advanced security, governance, and query processing features, all of which were not possible with earlier generation data federation tools. The shift to digital banking demanded the need for generation of larger volumes of data and demand for data integration software tools. The increasing need for data virtualization solutions, automation and need to access large volumes of data stored across various systems to get a consolidated view is driving the Data Virtualization Market. The market capitalization of the global banking sector was valued at 7.2 trillion euros in the third quarter of 2019 which implies the growth opportunity of Data virtualization Market in the BFSI sector.

 

The Asia-Pacific is growing with the highest CAGR of 24.5% in the Data Virtualization Market accounting for 40% of the total market share during the forecast period 2020-2025 followed by North America accounting  for 35.4% of market share with a CAGR of 20.3% during the forecast period. The rapidly growing Banking, Financial Services, and Insurance (BFSI) sector as well as retail and ecommerce sector is expected to be the major driver for the adoption of Data Virtualization Market in the APAC region. Large Enterprises are incorporating data virtualization for their business intelligence tools owing to dealing with a large amount of data every day. The APAC region is forecasted to generate a revenue of 2 billion dollars in 2025 owing to its extensive market penetration towards Data Virtualization coupled with transcendence in IT & Telecommunication segment in China, Japan, and India. Rising demand for business integration tools along with higher adoption of cloud based solutions is propelling the growth of Data Virtualization Market. For instance, 25% of Fortune 1000 used Data Virtualization tools in 2017 and 50% of enterprises will implement some form of data virtualization as one enterprise production option for data integration by 2020.

 

The BI tools offer capabilities that help organizations in making real-time business decisions with maximum accuracy. Moreover, in order to formulate business strategies, organizations are required to access large volumes of data stored at heterogeneous sources to gain business insights and to develop the decision-making process while reducing infrastructure cost. Data Analytics & BI Tools segment is adopting data visualization to integrate all the sources of information and deliver big data solution by reducing the data warehousing and data storage which is a driving factor for the Data Virtualization Market.

 

Data Virtualization Market is growing rapidly as it doesn't involve high expenses in data storage unlike data warehousing system and lesser probabilities in risks of data errors. Data virtualization solution enables enterprise to virtually integrate, access and provide critical data to business intelligence and analytical tools. The increasing demand for data integration software tools is anticipated to boost the demand for data virtualization solutions. Furthermore, rising adoption of business intelligence tools among SMEs is expected to create new opportunities for the growth of Data Virtualization Market.

 

 

Poor Data Standardization can result in incomplete and inaccurate data collection. Especially in industry verticals like Health care, the need for accurate and up to the minute patient information and data is required. The lack of equality in enterprise data management and traditional architecture and infrastructure can result in patient matching issues, and slower organizational workflows. Lack of standardization is the biggest barrier to healthcare interoperability. Standardization in enterprise data management is inevitable to prevent corruption, security breaches, and loss of data.

 

Partnerships and acquisitions along with investments are the key strategies adopted by the players in the Data Virtualization Market. The top ten companies in the Data Virtualization Market includes International Business Machines Corporation (IBM; US), SAP SE (Germany), Informatica (US), Denodo Technologies (US), Oracle Corporation (US), TIBCO Software (US), Microsoft Corporation (US), Red Hat (US), SAS Institute (US), and Information Builders (US).

 

• In September 2019, Oracle Corporation partnered with VMware Inc.  The new partnership will enable their joint customers to setup hybrid cloud environments that can run VMware services in Oracle’s cloud. Customers will be able to run the VMware Cloud Foundation, an infrastructure software stack which includes the vSphere hypervisor, NSX virtual network software and vSAN virtual storage software, on Oracle’s Cloud Infrastructure.
• In July 2019, Microsoft and Oracle announced that they were creating a cloud interoperability partnership enabling customers to migrate and run mission-critical enterprise workloads across Microsoft Azure and Oracle Cloud. Enterprises will be able to seamlessly connect Azure services, like Analytics and AI, to Oracle Cloud services, like Autonomous Database.
• In October 2017, TIBCO Software Inc., acquiredCisco’s Data Virtualization business (formerly Composite Software), specifically Cisco Information Server, a market-leading solution that powers enterprise-scale data virtualization, and associated consulting and support services.