Data Visualization Market - Growth, Trends, and Forecasts (2022 - 2027)

The global data visualization market is growing at a CAGR of 9.69% over the forecast period. The emerging nature of data visualization encourages a shift toward analytically driven businesses, where users can explore data in various forms of graphical representation, initially only available in tabular reports.

Key Highlights

• The growing penetration of digital technologies into business functions across various industries drives the market's growth. As the digitization of processes continues across all major industries, the focus of enterprises toward capitalizing on the huge volumes of data generated is increasing, boosting the demand for data visualization solutions. Hence, data visualization tools are also becoming more critical to help end -users make sense of the huge amount of data generated daily.
• The growth in big data obtained from the increasing number of internet and social media users, multi-device access to visualization, customized reports for specific roles, ongoing training for business users, and constantly changing optimizing dashboards are contributing to the growth of the market.
• The data visualization market has a wide range of applications across various industry verticals using different software or tools. Data visualization solutions help provide insights from the data quickly. The retail industry is one of the biggest beneficiaries. In addition, the increasing adoption of data visualization in small and medium enterprises is expected to fuel the growth of the data visualization market.
• The lack of a skilled workforce is hindering the market growth. There is a significant increase in the requirement for data analytics and data visualization tools. According to the IBM Quant Crunch, up to 2.72 million jobs requiring data science skills were expected to be in 2020, making it one of the highest-demand roles across industries. College graduates from MIS/CS departments know little about database modeling or real-world database environments.
• The COVID-19 pandemic has created a substantial socio-economic predicament, which resulted in the temporary collapse and closure of thousands of businesses worldwide. Businesses worldwide are compelled to make significant changes to their operations, such as downsizing, products, and service diversification. To address these changes quickly, companies need to adopt or capitalize on their business intelligence strategies through agile risk management, artificial intelligence systems, and data visualization to enable users to make informed decisions to enhance business operations amid COVID-19.

Key Market Trends

Retail to Witness Significant Growth

• The retail sector is witnessing massive growth in the amount of data generated from various channels, such as social sites, blogs, and apps. Most of the unstructured data produced are left unused, which, if utilized, may provide valuable information. The incorporation of the Internet of Things (IoT) in the retail sector has increased over the past few years through the increased utilization of devices, such as RFID and sensors.
• The retail industry utilizes data visualization tools as real-time decision support systems. With real-time analytics, it becomes easy for retail organizations to detect events, such as low inventory or high customer traffic, without writing custom code for alerts for every possible scenario that needs attention. This would enable even non-technical staff to monitor these events easily and respond immediately.
• Retailers worldwide are trying to embrace data visualization to understand their customers at every stage of the retail process. Data visualization tools provide the benefit of predicting trends, product demand, and competitive intelligence, thereby reaping the maximum profit potential.
• According to Accenture and the Retail Industry Leaders Association (RILA), the importance of retailers providing personalized shopping experiences has increased, indicating an evolved definition of retail that requires meeting customers' requirements. It also enables manufacturers to go for mass customization.
• Retailers have been focusing on enhancing their connectivity, communication solutions, and devices, generating a massive amount of big data. This is further analyzed to study a consumer's pattern and purchasing behavior, which in turn is expected to propel market growth over the forecast period.

North America to Hold Significant Share

• North America is a prominent market owing to the growing adoption of advanced technologies by end-user industries across the region. Moreover, the area has a strong foothold of vendors, contributing to the market's growth. Data visualization applications in North America are driven by factors such as growth in big data and the need for analytics in the retail sector.
• The US data visualization market is witnessing healthy growth due to the increasing amount of data generated in small- and medium-scale firms. For instance, a massive amount of data is being developed on digital information platforms every day. According to IBM Corporation, 2.5 quintillion bytes of data are generated daily.
• In July 2021, the United States Coast Guard adopted COVID-19 data visualization tools to assist commanders in making informed decisions on everything from vaccine distribution to operational readiness and has taken precautions to guarantee that the new technologies do not compromise guardsmen's privacy and security. The program aims to teach situational awareness and perspective, and it should not directly impact individuals.
• The implementation of data-driven decision-making is also rising in Canadian markets across various sectors. Cloud business management solutions vendor Sage launched its cloud-first Sage Data and Analytics service integration for Sage 300 and Sage 100 in the US and Canadian markets in March 2021. Its business intelligence toolkit can provide users with live sales dashboards and detailed P&L reports with the help of AI and machine learning algorithms. Such innovations are expected to drive the studied market.
• An increasing need to track data from various sources and compile it into different data representations to make critical business decisions can be observed in North America, as this region is a significant market for technology-based solutions.

Competitive Landscape

The data visualization market is moderately competitive. The players in the market are innovating in providing strategic solutions to increase their market presence and customer base. This enables them to secure new contracts and tap new markets.

• September 2022: To make Grafana natively compatible with the Azure cloud platform, Microsoft and Grafana Labs have established a strategic agreement. Azure Monitor and Azure Data Explorer are just two cloud services that Microsoft's new Azure Managed Grafana service offers native connections. Version 9.0 of Microsoft's Azure Managed Grafana includes a better alerting feature to inform IT administrators of potential technical difficulties. Zone redundancy and support for an API key are also included in this edition.
• December 2021: To automate data storytelling capabilities to its existing cache of natural language processing tools, Salesforce has acquired Narrative Science, a technology company based in Chicago.
• July 2021: Observable's data visualization platform expanded with the debut of a new enterprise solution. Individuals can make data visualizations for free with Observable's free tier. The Teams tier is on top of that, allowing smaller groups to cooperate on data virtualization using private data sources. The new Enterprise tier is available for enterprises with 25 or more users.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support