Master Data Management Market

Master Data Management Market Outlook from 2024 to 2034

The global master data management market is estimated to be valued at US$ 8,121.6 million in 2024 and is forecast to reach a value of US$ 78,632.1 million by 2034, with a projected CAGR of 15.7% from 2024 to 2034.

As enterprise sizes get bigger, the amount of data to be handled increases in quantity, too, reinforcing the need for data management systems. In large organizations, there is a risk of the master data becoming incorrect due to interference, whether intentional or unintentional. Thus, the rising demand from organizations for master data management to keep track of the correct master data is fueling growth in the market.

Key Market Growth Drivers

As data size increases, the amount of redundant data in master data also rises. This superfluous data not only takes up space but also has the potential to slow down processes and can lead to confusion about the work of a particular department. This complexity generates the demand for master data management to counter the redundancy of data and streamline processes.

The need for master data management is even more pronounced during mergers and acquisitions of two or more companies, as the master data of two or more organizations needs to be reckoned with. Thus, companies that are undergoing mergers and acquisitions are expected to drive market to deal with the sudden influx of data.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 8,121.6 million
Forecasted Market Value (2034F)	US$ 78,632.1 million
Global Market Growth Rate (2024 to 2034)	15.7% CAGR
On-premise Segment Growth Rate (2024 to 2034)	16.3%
North America Market Share (2024)	27.5%
East Asia Market Share (2024)	36.5%
Key Companies Profiled	SAP SE SAS Institute Inc. IBM Corporation Tibco Software Inc. Informatica Corporation Oracle Corporation Teradata Corporation Orchestra Networks Riversand Technologies Inc. Talend

Which Factors are Surging the Demand for Master Data Management?

“Trend of Data-Driven Research and Decision Making in Companies”

Data-related functions are increasing in the modern business world. Organizations are relying on data for decision-making and research avenues. To utilize and identify relevant data for decision-making, companies are increasingly adopting master data management as a popular solution to manage complex data processing.

“Popularity of Cloud-based Solutions Boosting the Master Data Management Industry”

Storage of data has become a concern for organizations, especially with the increase in the size of businesses. Cloud-based data solutions have thus carved a stronghold for themselves, offering more storage capabilities to organizations. Master Data Management is one such cloud-based solution that is winning over end users, driving growth in the market.

What is Restraining the Expansion of the Master Data Management Market?

“High Cost of Master Data Management Services”

Master data management works on consolidating and maintaining one version of the master data. However, stakeholders in the organization, such as shareholders and department heads, might not see the need to maintain a single version of the master data. Stakeholders often desire to have their own set of master data that may be different from others. Thus, in organizations where different sets of master data are the norm, master data management is not sought after.

The cost of master data management systems is another impediment to the growth of the market. While the price may not be an issue for large organizations, smaller organizations are hesitant to spend on a master data management system. The data management solution also requires dedicated employees. However, the vast amount of data, even in smaller organizations, gets unmanageable without data management solutions. Thus, there is less reluctance on the part of medium- and small-scale enterprises to adopt the system despite the price.

Country-wise Insights

East Asia accounts for a considerable share of the master data management market. In 2024, the value of the market in East Asia is estimated to be US$ 6,651.1 million, accounting for a share of 36.5%. The market is expected to progress at a CAGR of 16.3% from 2024 to 2034. By 2034, the industry value for East Asia is projected to reach US$ 30,194.7 million, with an increased market share of 38.4%.

The master data management market is set to expand at a CAGR of 16.3% in North America. In 2024, it is estimated to be US$ 5,011.1 million. By 2034, the market value in North America is anticipated to reach US$ 22,646.0 million.

What Makes Japan a Promising Country for Master Data Management Providers?

“Rapid Technological Advancements Accelerating Master Data Management Demand”

Attribute	Detail
CAGR (2024 to 2034)	16.9%

Japan is expected to be one of the most lucrative countries for master data management services. In 2024, the market value for Japan is estimated to be US$ 1,602.9 million. The market is projected to rise at a CAGR of 16.9% over the forecast period. By 2034, the value of the market is forecast to increase to US$ 7,609.1 million.

Japan is one of the most technologically advanced nations in the world, and industries in the region play a key role in driving the market. With the integration of technology, companies in Japan are propelling the demand for master data management solutions.

Why is the United States Emerging as a Lucrative Market for Master Data Management Solutions?

“Use of Master Data Management in Banking and Healthcare Sectors in the United States”

Attribute	Detail
CAGR (2024 to 2034)	16.5%

The United States master data management market is estimated to be valued at US$ 3,618.0 million in 2024. From 2024 to 2034, the market is expected to progress at a CAGR of 16.5%. By 2034, the market is expected to reach a valuation of US$ 16,599.6 million.

Data protection is increasingly becoming a subject of interest in the United States. Industries such as banking and healthcare are highly desirous of data solutions that provide security in addition to complying with regulations. Thus, a secure data management solution like master data management is being sought after in the United States.

Category-wise Insights

By deployment, the on-premise segment will lead the market with a share of 76.3% in 2024. Public cloud deployment is expected to make up the remaining industry share of 23.7% in 2024. Master data management is used in various sectors such as government, BFSI, IT & telecommunication, healthcare, and energy & utilities. The use in other sectors is expected to account for 23.4% of the market share in 2024. Government use of master data management is expected to account for a share of 22.7% in 2024.

Why is the On-premise Deployment Segment Leading the Market?

“Medium and Small-Scale Organizations Driving Demand for On-premise Deployment of Master Data Management Solutions”

Attribute	Detail
Market Share in 2024	76.3%

The on-premise deployment segment is expected to account for a market share of 76.3% in 2024, progressing at a CAGR of 16.3% through the period from 2024 to 2034.

On-premise deployment is often a cost-conscious choice for organizations, especially for smaller and medium-sized companies. Businesses also prefer in-house solutions for security and convenience reasons.

Competitive Landscape

The master data management market is highly fragmented. While a few giants are thriving, the market is not top-heavy and there is plenty of room for small-scale enterprises and new entrants.

Recognizing the fledging industrial development in the region, Western players are targeting expansion into Asian markets. Tie-ups with local Asian companies are common for this purpose.

Market players are also striking partnerships with each other for the development of new products and services. Some of the key companies in the master data management industry are SAP SE, SAS Institute Inc., IBM Corporation, Tibco Software Inc., Informatica Corporation, Oracle Corporation, Teradata Corporation, Orchestra Networks, Riversand Technologies Inc., and Talend.

Recent Developments :

• In November 2023, IBI launched Data Intelligence, a data management platform that aims to integrate various data management solutions in one offering, with master data management among them.
• In June 2023, Reltio released the Reltio Connected Data Platform 2023.2. The platform has AI and Machine Learning (ML) capabilities and focuses on entity resolution.
• In May 2023, Informatica announced the launch of Claire GPT. It boasts of being the first generative AI-driven data management tool, with master data management highlighted as one of its capabilities.

Segmentation of Master Data Management Market Research

• By Deployment :

  • Public Cloud
  • On-premise

• By End-use Sector :

  • Government
  • BFSI
  • IT & Telecommunication
  • Healthcare
  • Energy & Utilities
  • Others

• By Component :

  • Services
  • Software

• By Region :

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa