Worldwide master data management (MDM) software revenue will reach $1.9 billion in 2012, a 21% increase from 2011, according to a report.
The Gartner report also said the market is forecast to reach $3.2 billion by 2015.
“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.”
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, Gartner said.
In 2013, MDM software revenue will see faster growth in Asia/Pacific, where revenue will increase by 30% from 2012 to reach $209 million.
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. However, the overall MDM market is dominated by three major players — IBM, Oracle and SAP, the report added.
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.
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.