Data science boom to push platform market to $163bn

The wholesale adoption of data science techniques is set to trigger exponential growth in the value of the global data science platform market, from $43.56bn (£33bn) in 2020 to $163.14bn (£124bn) in 2025, driven by a surge in organisations embracing data analysis and insight.

So says a new forecast by Reportlinker, which shows the market is being boosted by the major increase in data volumes from the rise of digitalisation and automation of processes; trends which have accelerated during the pandemic.

The study claims that companies are also increasingly focusing on analytical tools for deriving insights into consumer behaviour and purchasing patterns, shaping business decisions and strategies to compete in the market.

The growth is also inextricably linked to an increase in demand for big data analytics, which according to a separate Worldwide Big Data and Analytics Spending Guide by IDC will be worth more than $390bn by 2025.

North America was the largest region in the data science platform market in 2020 but it is expected that Asia Pacific will be the fastest-growing region in the forecast period, with Europe not far behind.

Major players in the market include tech giants Google, Microsoft, IBM, Oracle, SAS, SAP, and Alteryx.

IDC customer insights and analysis program VP Jessica Goepfert recently explained the market growth: “As executives seek solutions to enable better, faster decisions, we’re seeing healthy spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance.

“Firms in the professional services industry, for instance, are using data and analytics to support their 360-degree customer and client management efforts, as well as advanced project management initiatives.”

The increase in adoption of data science platforms is also boosting the recruitment sector. Last week it was claimed that salaries for UK data scientists are expected to hit £100,000 a year in London, as employers are forced to offer higher salaries to attract and retain staff.

Meanwhile, according to the Mana Search 2020 Salary Report published in March, data professionals are already so in demand that even trainee data science roles are now commanding salaries which exceed the pay of junior doctors, lawyers and dentists as more and more organisations wake up to the power of data insight.