The demand for real-time data analysis is increasing rapidly across various enterprises. Because of swift digitization, a large volume of semi-structured, unstructured, and structured data is being created. By making use of this information, enterprises can enhance their productivity, reduce future risks, retain and gain customers, and increase their profits. However, organizations need a place for storing, aggregating, organizing, and analyzing the generated data in order to use it properly. Attributed to this, companies are increasingly making use of data warehouse-as-a-service (DWaaS) solutions. With the utilization of DWaaS, third-party business intelligence solutions can be deployed easily and query results can be received quickly.
As per a report by P&S Intelligence, the global DWaaS market is predicted to attain $23.8 billion by 2030, rising from $1.4 billion in 2019, registering a 29.2% CAGR during the forecast period (2020–2030). Operational data store (ODS) and enterprise data warehouse (EDW) are two types of DWaaS, between which, the demand for EDW was higher in the past. This is owing to the fact these DWaaS solutions enable enterprises to sort and access data from different sources, thereby making sure that crucial business-related decisions are taken easily. Other than this, the demand for ODS is also expected to increase considerably in the near future.
This is ascribed to the fact these, with the utilization of these solutions, data from several sources can be integrated on a single platform, thus making operational reporting easy. Visualization, analytics, data mining, and reporting are the major tools that are offered by DWaaS, among which, the demand for analytics is projected to grow substantially in the coming years. This is on account of increasing investments in artificial intelligence (AI) and data analytics, as companies are focusing on predicting consumer behavior and preference, in order to provide improved experience.
Major applications of DWaaS include risk & compliance management, fraud detection & threat management, and supply chain management. The demand for DWaaS is expected to be the highest for fraud detection & management application in the years to come, which is due to the increasing incidents of online fraud, focus of companies towards utilizing AI for data analysis, and surging volume of data. Some of the key industries that are making use of DWaaS are manufacturing, banking, financial services, & insurance, government, retail & e-commerce, healthcare, and information technology & telecom.
Among all these, the retail & e-commerce industry is projected to generate a considerable demand for DWaaS in the near future, owing to the expanding retail sector and growing adoption of AI by organizations for predicting consumer behavior through data analysis. Geographically, North America has been the largest DWaaS market up till now, which can be ascribed to the increasing utilization of data analytics in the BFSI, retail & e-commerce, healthcare, and government sectors in the region. In addition to this, the surging requirement for personalized services from customers is further leading to increasing adoption of DWaaS in North America.
In conclusion, the increasing demand for real-time data analytics is resulting to the growing need for DWaaS solutions.
