DaaS: Key market research findings
- Demand for data management drives the market
- Increasing need for enterprise mobility
- Key vendors—IBM, Microsoft, Oracle, and SAP
Technavio’s market research analysts expect the global DaaS market to reach almost $1288 million between 2016 and 2020. The growing need to reduce data management costs is the primary driving force behind market growth. Increased data volumes cause a corresponding escalation in the overall costs of on-premise storage infrastructures. Enterprises can considerably reduce storage costs by the implementation of data-as-a-service (DaaS) as the expenses involved are based on data usage and not infrastructure. In 2015, the Americas dominated the global DaaS market by accounting for more than 55% of the market share. The rapid increase in data generation across industry verticals such as BFSI, healthcare, retail, and public due to increased digital transformation is responsible for the booming of the DaaS market in the Americas. Increased investments by organizations in latest digital technologies such as cloud, mobility, analytics, and social media are projected to boost growth in the market during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the DaaS segments by end-user.
“The increasing need for enterprise mobility is the latest trend in the market. Enterprises are adopting mobile devices, wireless networks, and related services to ensure employee connectivity on the go (OTG), enhance customer service, and reduce costs through bring your own device (BYOD) initiatives. The ubiquity of mobile devices and social networking platforms in the workplace make it possible for workforces to communicate and function remotely. This shift towards easy data management benefits is augmenting the demand for DaaS solutions across the globe,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
During 2015, the banking, financial services and insurance (BFSI) sector held a share of over 21% to dominate the global DaaS market. The growth of this segment is attributed to the increasing demand for managing large volumes of transactional data. Furthermore, tightening of financial regulation compliances such as the Dodd-Frank, Basel III, Foreign Account Tax Compliance Act (FATCA), Markets in Financial Instruments Directive (MiFiD) II, and Solvency II are prompting enterprises to enhance information security to reduce compliance costs and risks, thereby propelling growth in this segment.
The key vendors in the global DaaS market include IBM, Microsoft, Oracle, and SAP. The market is highly fragmented due to the presence of many large and small players. Competition in the market is expected to intensify with the entry of several new players. Vendors are entering into data integration partnerships and are offering business issue-specific DaaS solutions to increase their market share. To gain a competitive edge over their peers, many players are providing value-added services such as consultancy, integration of solutions, support and maintenance, and end-user training to address available opportunities and risks.
A more detailed analysis is available in the Technavio report, Global DaaS Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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