Vector Database Global Market Report 2024

The vector database market size has grown exponentially in recent years. It will grow from $1.98 billion in 2023 to $2.46 billion in 2024 at a compound annual growth rate (CAGR) of 24.3%. The expansion observed in the historical period can be credited to factors such as the surge in geospatial data, the increasing prevalence of location-based services (LBS), expanding applications in smart cities, the advent of 5G networks, and a heightened demand for real-time spatial analytics.

The vector database market size is expected to see exponential growth in the next few years. It will grow to $5.76 billion in 2028 at a compound annual growth rate (CAGR) of 23.7%. The anticipated growth in the forecast period is driven by factors such as the upsurge in digital mapping, expansion of telecommunication network planning, advancements in GPS and satellite technology, increased focus on environmental and natural resource management, and the growing importance of transportation and logistics planning. Notable trends expected in the forecast period include the prevalence of spatial analytics and business intelligence, integration with cloud services, the proliferation of real-time geospatial applications, the development of smart infrastructure, and increased collaboration across different industries.

The anticipated surge in the utilization of cloud platforms is projected to drive the growth of the vector database market in the foreseeable future. Cloud platforms function as the operating system and server components within an Internet-connected data center, facilitating the independent coexistence and scalable operation of hardware and software products. Vector databases deployed on cloud platforms enable efficient retrieval and storage of high-dimensional data, supporting real-time analytics, deep learning, and personalized content recommendations on adaptable and scalable infrastructure. As of December 2023, Eurostat reported a 42.5% adoption rate of cloud computing among EU enterprises, showcasing a 4.2% increase from 2021. This surge in cloud platform usage serves as a key driver for the vector database market.

Prominent companies in the vector database market are strategically focusing on integrating vector databases with advanced technologies such as AI vector similarity search to enhance generative AI and elevate developer productivity. AI vector similarity search involves employing AI algorithms to compare and identify similarities among vectors in a dataset. Notably, in September 2023, Oracle Corporation integrated semantic search capabilities using AI vectors into Oracle Database 23c. This feature set includes a novel vector data type, vector indexes, and vector search SQL operators, allowing the Oracle Database to store semantic information of various data types and swiftly execute resemblance queries. The AI vector similarity search in Oracle Database 23c facilitates accurate responses in real-time, enabling Retrieval Augmented Generation (RAG), a groundbreaking generative AI approach that utilizes large language models and proprietary corporate data to respond to natural language inquiries.

In February 2023, Progress Software Corporation, a leading US-based software company specializing in vector databases, completed the acquisition of MarkLogic for approximately $355 million. This strategic move aligns with Progress's commitment to bolster its portfolio with industry-leading solutions, adding valuable client connections from MarkLogic to its extensive customer base and contributing significantly to its revenue stream. MarkLogic, a US-based software company renowned for its NoSQL database, brings complementary strengths to Progress Software Corporation through this acquisition.

Major companies operating in the vector database market report are Google LLC (Alphabet Inc.), Microsoft Corporation, Amazon Web Services Inc., Alibaba Cloud, Elastic N.V., MongoDB Inc., FD Technologies PLC, DataStax Inc., Redis Ltd., Vector AI, GSI Technology Inc., Chroma DB, Vald, SingleStore, OpenSearch, Rockset Inc., PlanetScale, Kinetica DB Inc., Qdrant, ClickHouse Inc., ClarifAI Inc., Pinecone Systems Inc., Vespa ai, Marqo AI, Activeloop, Zilliz, Milvus, S2Search Australia Pty Ltd, Weaviate.

North America was the largest region in the vector database market in 2023 and is expected to be the fastest-growing region in the forecast period. The regions covered in the vector database market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vector database market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The vector database market consists of revenues earned by entities by providing services such as data management, critical security features, fault tolerance, and a query engine. The market value includes the value of related goods sold by the service provider or included within the service offering. The vector database market also includes sales of graphics processing units, random-access memory, hard disk drives, solid-state drives, and central processing units. 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).

A vector database is a collection of data organized in a mathematical format. By storing information in the form of vectors, these databases facilitate the retrieval of previous inputs, enhancing their utility in applications such as search, recommendation systems, and text generation within machine learning models. Specifically designed for the handling of vector embeddings, these databases offer a robust solution for the management of semi-structured and unstructured data.

A vector databases come in various types, including relational, noSQL, and newSQL. Relational vector databases merge the principles of relational databases with vector or array-based data representation for efficient data management and retrieval. These databases are classified into solutions and services and find applications in diverse industries such as finance, healthcare, retail, manufacturing, telecommunications, government, energy, transportation, media, and more. These vector databases are utilized both on-premises and in the cloud by businesses across different sectors.

The vector database research report is one of a series of new reports that provides vector database market statistics, including the vector database industry's global market size, regional shares, competitors with a vector database market share, detailed vector database market segments, market trends and opportunities, and any further data you may need to thrive in the vector database industry. This vector database 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.


This product will be delivered within 3-5 business days.