The Industrial Data Management Software Market Will Reach $6.1 Billion In 2029

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The Industrial Data Management Software Market Will Reach $6.1 Billion In 2029

Industrial data management software seeks to address the unique needs of asset-heavy and resource-intensive industries, by providing connectivity between information technology (IT) and operational technology (OT) systems; optimizing storage and access to high-volume time-series data – while improving quality by eliminating duplicates, and anomalous and stale data; and adding meaningful context to operational data. 

In 2023, spend on industrial data management software amounted to $2.1 billion. This comprised spend on solutions from industrial DataOps-centric vendors, such as Cognite, HighByte and Litmus Automation, as well as industrial software providers, such as AspenTech and AVEVA, which have recently entered this space. Providers are rapidly developing their DataOps capabilities to deliver accurate, relevant and timely data for industrial AI analytics.

Verdantix research finds that the industrial data management software market will grow at a CAGR of 19.9%, to reach $6.1 billion in 2029. 

Spend on industrial data management solutions will continue to be primarily focused in North America and Europe, given the relatively higher digital maturity in these regions. Although establishing a strong data management strategy prior to digitization can be beneficial, firms are keener to invest in industrial data management software once they begin to experience issues with legacy OT systems, and poor data quality – and after several ‘do-it-yourself’ attempts combining internal resources, data lake platforms and consultants.

Growth in the industrial data management software market is also underpinned by recent advancements in generative AI. Cognite and SymphonyAI Industrial both offer industrial data management solutions that combine LLM-based information retrieval with knowledge graphs to extract information from unstructured data sources, and make these easy to discover and traverse through a natural language interface.

Despite this, growth will be hampered by low digital maturity outside of North America and Europe, as well as a lack of awareness of the value delivered by industrial DataOps solutions. Although the return on investment (ROI) is clear for industrial data analytics, industrial DataOps solutions are more geared towards improving data quality and facilitating the experience of engineers and frontline workers, rendering it difficult to quantify, prior to investment, how these solutions help the bottom line. Investing in educating customers on the tangible benefits of industrial DataOps is therefore critical to drive growth in this market.

To learn more about the current state of the industrial data management software market, such as segmentation by region and software functionality, and the drivers and challenges shaping the market in the next five years, read Verdantix Market Size And Forecast: Industrial Data Management Software 2023-2029 (Global)

Sayanh Alam

Analyst

Sayanh is an Analyst in the Verdantix Industrial Transformation practice. Prior to joining Verdantix, she completed an MSc in Chemistry with Molecular Physics at Imperial College London. Here, she undertook research in renewable energy, focusing on improving the thermal stability of organic solar cells under manufacturing and operating conditions.