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The global data mesh market is gaining momentum as organizations try to bring in frameworks of data silos and enable domain-driven ownership of data. It is a decentralized data architecture for promoting scalable and agile data management by distributing data ownership across domain-specific teams.
By technology evolution, data mesh tends to increase usage in both artificial intelligence development as well as in the creation of governmental data portals that bring cloud-nativity for real-time analytics, secure data sharing, and streamlined decision-making processes.
Increased Data Democratization Drives Market Growth
Increased data democratization is driving data mesh adoption, wherein decision-making is called for in a timely manner by allowing domain teams independent access to and management over data. In this regard, the Ministry of Electronics and Information Technology in India reported in 2023 that more than 4,320 open government datasets aligned with the data mesh principles. Additional enabling aspects are cloud-native platforms for smooth scaling, whereas the demand for mesh-based architecture has currently been scaled, given the growth in real-time analytics and AI applications.
Market Growth Hindered By Complexity, Resistance
But, as with all good things, the going is often slow, and such virtues may be difficult to adopt due to their complexity and the significant change in organizational structure, governance, and accountability required. In the absence of such common guidelines, interoperability tends to be problematic across domains. Also, resistance from organizations that are used to controlling the way data is managed hinders the smooth shift to a decentralized data model.
Data Mesh Market Shows Strong Growth
The data mesh market has strong growth potential, as developing economies in APAC adopt the architecture to simplify their growing data infrastructures and negotiate diversity in regulation. Companies in every sector, from banking to healthcare to retail, are using the data mesh approach to better govern their data and as a way to deliver custom service. Furthermore, it includes AI and ML capabilities for advanced analytics, which promotes innovation and optimizes industrial operations.
|
By Component |
By Deployment |
By Business Function |
By Mesh Approach |
By Industry |
By Geography |
|
β Solution β Services |
β On-premise β Cloud-based |
β Finance & Accounting β Sales & Marketing β Research & Development β Operations & Supply Chain β HR β ITSM |
β Fine-grained β Value chain-aligned Mesh β Coarse-grained |
β BFSI β Healthcare & Life Sciences β IT & Telecom β Retail & E-commerce β Government & Public Sector β Manufacturing β Others |
β North America (U.S. and Canada) β Europe (U.K., Germany, France, Spain, Italy, Scandinavia, and the Rest of Europe) β Asia-Pacific (Japan, China, India, Australia, Southeast Asia, and the Rest of Asia Pacific) β South America(Brazil, Mexico, and the Rest of South America) β Middle East & Africa (South Africa, GCC, and Rest of the Middle East & Africa) |
The report covers the following key insights:
By component, the market is divided into solution and services.
The data mesh market is expected to be dominated by the solutions segment due to an increase in the uptake of platforms for the creation, governance, and discoverability of data products. These tools support the organization in decentralizing data ownership to make decisions at scale.
The services segment will be the one to have significant sales growth over the next several years due to the increasing demand for consulting, integration, and support services, which will help tide us over the complexities involved in the implementation of Data Mesh architecture.
By deployment, the market is divided into on-premise and cloud-based.
The cloud-based segment is poised to dominate the market due to scalability, quick deployment, and adaptation to various decentralized data environments, as multi-cloud implementation furthers its strengthening.
While remaining in the shadows of cloud-based solutions, premises are still showing a significant growth band within organizations with stringent compliance requirements and a security protocol, especially in the regulated industries.
By business function, the market is divided into finance & accounting, sales & marketing, research & development, operations & supply chain, HR, and ITSM.
The finance & accounting application is expected to dominate the market, as there is a rising demand among companies to have consistent and decentralized financial data. As a result, open-access data available across the organization allows decision-making in real-time and supports forecasting, compliance, and auditing, leading to effective decision-making and financial management.
The Operations & Supply Chain segment is anticipated to witness significant growth as organizations are focusing on improving the efficiency of their supply chains with the help of decentralized data access. By allowing information to be shared in real time, we can accurately track inventory, consolidate information, and optimize transportation across multiple points in the transportation chain, creating more efficiencies and saving time and money.
By mesh approach, the market is divided into fine-grained, value chain-aligned mesh, and coarse-grained.
The fine-grained sector is tipped to dominate the market as it gives teams the ability to work with extremely detailed, domain-specific data products. This method is more flexible and more specific, and it enables more accurate and closer analytics that are better suited to different business departments.
Value chain-aligned mesh is expected to experience considerable growth, particularly in areas such as manufacturing and retail, where connecting data products to business value chains is essential. Through better data synchronization, organizations can achieve greater responsiveness, flexibility, greater integration and optimization across their business processes.
By industry, the market is divided into BFSI, healthcare & life sciences, IT & telecom, retail & e-commerce, government & public sector, manufacturing, and others.
The BFSI sector is expected to dominate the market due to its necessity for secure and real-time data critical to activities such as fraud detection, customer personalization, and regulatory reporting. The BFSI industry, which can decentralize and get real-time data, has better operational efficiency and can manage risk better.
The healthcare & life sciences segment is expected to grow significantly as the adoption of data mesh frameworks becomes more common among hospitals, healthcare providers, and research facilities. By decentralizing healthcare data, organizations can promote better patient care, enable clinical research, achieve data interoperability, and comply with stringent regulations.
Based on geography, the market has been studied across North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.
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North America is expected to be the largest shareholder of the data mesh market, given the strong cloud infrastructure, early adoption of mesh principles, and the presence of prime technology vendors in the area. The region is now accelerating adoption by focusing on real-time analytics and end-to-end data governance.
According to estimates, the Asia-Pacific region will emerge as the fastest-growing market in the next few years due to the unprecedented speed of digital transformation across economies such as China and India. Increasing investments in AI and the need to fathom a complex regulatory landscape are two key reasons why the region is witnessing ever-growing adoption of the data mesh.
At a steady pace, Europe holds its ground, particularly in states where stringent data protection laws have been enforced. The increase in interest in adhering to GDPR and demands for locally-based, decentralized data management solutions is fueling the rise of Europe's market share in the data mesh segment.
The report includes the profiles of the following key players:
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