Data Preparation Software Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The data preparation software market size has grown rapidly in recent years. It will grow from $1.73 billion in 2024 to $1.97 billion in 2025 at a compound annual growth rate (CAGR) of 14.3%. The growth in the historic period can be attributed to demand for data preparation in advanced analytics and AI applications, increasing investment in data preparation automation, adoption of data preparation for data science and machine learning projects, rising need for data preparation in data lakes and data warehouses, and rising demand for data preparation in regulatory reporting.

The data preparation software market size is expected to see rapid growth in the next few years. It will grow to $3.35 billion in 2029 at a compound annual growth rate (CAGR) of 14.1%. The growth in the forecast period can be attributed to integration of AI and machine learning capabilities into data preparation software, technological advancement, shift towards scalable and agile data preparation platforms, integration of data preparation with data governance frameworks, and integration of data preparation with data integration platforms. Major trends in the forecast period include the integration of AI and machine learning capabilities into data preparation software, technological advancement, shift towards scalable and agile data preparation platforms, integration of data preparation with data governance frameworks, and integration of data preparation with data integration platforms.

The rising demand for self-service data preparation tools is anticipated to drive the expansion of the data preparation software market in the coming years. These self-service tools allow users to manipulate and transform raw data into an accessible format without needing extensive technical knowledge or IT support. Demand for such tools is growing due to the increasing complexity and volume of data, along with the need for greater agility and accessibility in data analytics. Data preparation software supports this demand by offering solutions that simplify data cleansing, integration, and enrichment, thereby fostering the need for efficient, user-friendly data preparation options. For example, according to GRUBBRR, a U.S.-based software development company, self-service kiosk technology is projected to generate 50% of revenue from 2022 to 2032, with the sector expected to reach $51.05 billion by 2028. Consequently, the rising need for self-service data preparation tools is fueling growth in the data preparation software market.

Key players in the data preparation software market are focused on innovating advanced solutions to maintain a competitive edge. One notable example is the development of new IBM business analytics enterprise software aimed at dismantling data silos. This enterprise software assists organizations in consolidating data from disparate sources, enabling swift data-driven decision-making and adept management of unpredictable disruptions. IBM's launch of the business analytics enterprise software in November 2023 underscores its commitment to breaking down data silos and streamlining planning and analytics processes. Offering features such as data silo breakdown, business intelligence capabilities, and AI-powered planning, this platform empowers enterprises to embrace a more data-driven approach and foster streamlined planning and decision-making.

In February 2022, Alteryx Inc. strengthened its position in the data preparation software market by acquiring Trifacta Inc. This strategic acquisition aims to offer flexible deployment options across various cloud providers, enhance collaboration between IT and business teams, and deliver actionable insights. Trifacta Inc., known for its expertise in cloud data engineering and data preparation software, aligns with Alteryx's vision of providing robust data analytics automation platforms and facilitating seamless data-driven workflows.

Major companies operating in the data preparation software market are Amazon Web Services Inc., Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, Salesforce.com Inc., SAS Institute Inc., SAP SE, Hitachi Vantara Corporation, NICE Ltd., Teradata Corporation, Informatica Inc., Tibco Software Inc., Quest Software Inc., Alteryx Inc., Rapid Insight Inc., QlikTech International AB, Altair Engineering Inc., Micro Strategy Incorporated, DataRobot Inc., Dataiku Inc., Datawatch Corporation, Unifi Software Inc., Datameer Inc., InfluxData Inc., Crate Tech Inc.

North America was the largest region in the data preparation software market in 2024. The regions covered in the data preparation software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data preparation software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The data preparation software market consists of revenues earned by entities by providing services such as data cleansing, data integration, data wrangling, data enrichment, and data profiling. The market value includes the value of related goods sold by the service provider or included within the service offering. The data preparation software market also includes sales of servers, storage devices, networking equipment, and computing infrastructure. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Data preparation software comprises tools specifically engineered to streamline the cleaning, transformation, and organization of raw data, rendering it suitable for analysis. These solutions play a pivotal role in expediting data processing tasks, thereby ensuring the accuracy and efficiency required for informed decision-making processes driven by data.

The primary categories of data preparation software are cloud-based and web-based solutions. Web-based software is accessible through web browsers, necessitating only an internet connection for use. These solutions are deployed either on-premise or hosted, with pricing models typically offered as subscription-based or one-time payment options. Functionality encompasses data integration, cleansing, transformation, and profiling, serving various industry verticals such as banking, financial services, insurance (BFSI), healthcare, manufacturing, retail, telecom, energy, and education.

The data preparation software market research report is one of a series of new reports that provides data preparation software market statistics, including the data preparation software industry global market size, regional shares, competitors with data preparation software market share, detailed data preparation software market segments, market trends, and opportunities, and any further data you may need to thrive in the data preparation software industry. This data preparation software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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