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The latest Research and Markets report on the direction on the data quality market was recently released. The report suggests that the data quality tools market size will increase from $610 million in 2017 to $1.3 billion in 2022. The in-depth report tells us quite a bit about the projected growth of the industry, as well as some reasons for the explosion in data production on behalf of consumers and businesses.
Reasons for Increase in Data Quality Importance
The report is quick to point out the reasons that data quality has become so important in recent years, and cites these similar reasons for why data quality tools will only become more valuable in the future. One main reason is that as the costs of technology (smartphones, laptops, etc.) comes down, the barrier to entry for the poorer segments of the consumer population drops. This means more consumers creating more data - and more data for companies to organize, ensure cleanliness, and hopefully analyze. Additionally, the emergence of the cloud makes storing data far more affordable, thus prolonging the usefulness of the data created, as well as allowing more businesses to use cloud services to store their data as well as customer data.
However, as more data is created by consumers and businesses alike, and it’s stored in more varied and more complex formats, adopting a data quality solution is imperative to gleaning meaningful insight of data as a company or organization.
Challenges to Data Quality Adoption
The report cites the lack of awareness of data quality solutions as a major restraining factor in data quality solution adoption. While not mentioned in the report, it’s also been shown that the industry has a wide skills gap that is hindering companies’ ability to adopt and implement and data quality solutions. However, based on the projected increase in segment valuation, these impediments will be relatively minor factors in the overall health of the segment.
A Brief Summary
Any time an industry segment grows at a Compound Annual Growth Rate of 17.7%, as the report suggest the data quality industry will do between now and 2022, we can be assured that it’s doing so due to high demand. The creation of data across the world by consumers and companies will ensure that organizations will need new and innovative data quality solutions to ensure they’re making meaningful decisions based on accurate metrics. To be sure, the organizations that can adopt and implement these data qualities solutions will have an inherent competitive advantage within the industries they operate. In short, the race for effective data quality solutions is very much on.
For our blog post on a data analytics report using 1,200 CEOs, be sure to head here. We also have an exceptional post on using data as a competitive advantage that you might find enlightening.
Wes is a technology professional who specializes in marketing and business development.