Data Preparation Market Size and Share
Data Preparation Market Analysis by Mordor Intelligence
The data preparation market size stands at USD 6.95 billion in 2025 and is projected to reach USD 14.71 billion by 2030, expanding at a 16.2% CAGR. This expansion mirrors the surge in AI-ready infrastructure as enterprises embed generative AI into day-to-day workflows; adoption has reached 83% of organizations in China and full production roll-outs in 24% of United States companies[1]SAS Institute, “AI Adoption Barometer 2024,” sas.com. Proliferating data-governance programs, now present in 71% of organizations compared with 60% in 2023, reinforce spending on systematic data preparation tools. Deployment choices continue to diverge: on-premises solutions controlled 65.7% of 2024 revenue, while cloud deployments are scaling fastest at 17.8% CAGR, a pattern shaped by sovereign-cloud regulations such as Vietnam’s Data Law, effective July 2025, that restrict cross-border transfers. Large enterprises held 68.9% revenue share in 2024, yet small and medium enterprises (SMEs) show the strongest momentum at 18.1% CAGR as low-code analytics and consumption-based pricing lower entry barriers. Data-ingestion modules retained the top 24.3% slice of 2024 revenue; however, governance-centric solutions are rising fastest at 17.3% CAGR, pushed by greenhouse-gas-reporting mandates emerging from the EU Corporate Sustainability Reporting Directive. IT and telecommunications contributed the largest 22.8% vertical share in 2024, while healthcare and life sciences climbed at a 16.8% CAGR through 2030 as AI enters diagnosis, patient-workflow and life-science research and development. Regionally, North America led with 37.1% revenue in 2024, yet Asia-Pacific will outpace all others at 17.5% CAGR, underpinned by expanding data-center capacity—12,206 MW active and 14,338 MW in development. Mergers and acquisitions activity signals intensifying competition: Salesforce agreed to purchase Informatica for USD 8 billion in May 2025, and Alteryx was taken private for USD 4.4 billion in March 2024.
Key Report Takeaways
- By deployment, on-premises platforms held 65.7% of the data preparation market share in 2024; cloud models are forecast to expand at a 17.8% CAGR through 2030.
- By enterprise size, large organizations led with 68.9% revenue share in 2024, while SMEs are advancing at an 18.1% CAGR to 2030.
- By solution type, data ingestion captured 24.3% of 2024 revenue; data governance solutions are set to grow at 17.3% CAGR to 2030.
- By end-user vertical, IT and telecommunications accounted for 22.8% of 2024 sales; healthcare and life sciences post the quickest 16.8% CAGR through 2030.
- By geography, North America commanded 37.1% revenue share in 2024; Asia-Pacific shows the strongest 17.5% CAGR outlook to 2030.
Global Data Preparation Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Low-/no-code self-service analytics tools | +3.2% | Global, led by North America and Europe | Medium term (2-4 years) |
Cloud adoption by SME analytics teams | +2.8% | Global, with Asia-Pacific highest growth | Short term (≤ 2 years) |
GenAI copilots inside data-prep workflows | +3.5% | North America and Asia-Pacific core, spill-over to Europe | Medium term (2-4 years) |
Vendor bundling into data-fabric suites | +2.1% | Global, enterprise focus in developed markets | Long term (≥ 4 years) |
Vertical-specific AI data-prep pipelines | +2.4% | North America and Europe, expanding to Asia-Pacific | Medium term (2-4 years) |
Sovereign-cloud regulation and repatriation | +1.8% | Asia-Pacific and Europe, regulatory focus | Long term (≥ 4 years) |
Source: Mordor Intelligence
Accelerated Shift to Low-/No-Code Self-Service Analytics Tools
Low-code interfaces are redefining the data preparation market by enabling business specialists to build pipelines via drag-and-drop designs rather than scripts. Google Cloud’s BigQuery data preparation illustrates the trend, offering AI guidance that cleans, profiles and transforms data with natural-language prompts[2]Google Cloud, “Introducing BigQuery Data Preparation,” cloud.google.com. The approach reduces reliance on scarce data engineers, shortens development cycles and aligns analytics delivery with domain expertise. GenAI-powered augmentation is spreading quickly; industry forecasts suggest nearly all BI platforms will embed GenAI by 2026. Adoption, however, requires diligent governance to keep proliferating citizen-built flows aligned with enterprise quality and security standards.
Surging Cloud Adoption Among SME Analytics Teams
SMEs are scaling cloud-native pipelines to close capability gaps with larger rivals, driving incremental demand across Asia-Pacific where 60% of firms plan AI language-model implementation by 2025. Cloud elasticity and consumption pricing let smaller firms avoid capital expenses while accessing advanced data-prep functions. UK research shows sub-1% of SMEs exploit big-data analytics today, underscoring runway as cost and complexity hurdles fall. Yet skills shortages persist; managed service providers are stepping in to configure pipelines and enforce compliance, particularly around emerging data-localization rules.
Integration of GenAI Copilots Inside Data-Prep Workflows
Seventy-five percent of organizations intend to fund GenAI within twelve months, making AI copilots central to transformation strategies. Copilots automate tedious profiling, suggest optimal joins and flag anomalies, compressing the 94% of project time traditionally spent on cleaning. Natural-language interaction lowers the expertise threshold, though automated outputs must still pass governance gates that track lineage and validate accuracy. Investment momentum is highest in data-intensive verticals such as telecom and finance, where even marginal time savings yield material ROI.
Vendor Bundling of Data-Prep Modules into Broader Data-Fabric Suites
Acquisitions such as Salesforce-Informatica illustrate consolidation toward unified fabrics housing catalog, quality, lineage and orchestration. The strategy simplifies integration overhead by delivering an end-to-end workspace from ingest to BI, improving consistency across multi-cloud estates. However, the all-in-one push raises vendor-lock-in risks and limits plug-and-play agility. Enterprises are evaluating standards such as OpenLineage and Apache Arrow to preserve optionality.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Skills gap for data-governance configuration | -2.3% | Global, acute in emerging markets | Medium term (2-4 years) |
High TCO of multi-cloud data pipelines | -1.9% | North America and Europe | Short term (≤ 2 years) |
Escalating data-sovereignty penalties | -1.4% | Asia-Pacific and Latin America | Medium term (2-4 years) |
Compute-intensive jobs face carbon quotas | -1.1% | Europe and North America | Long term (≥ 4 years) |
Source: Mordor Intelligence
Skills Gap for Complex Data-Governance Configuration
Nearly one-third of CIOs cite data-management complexity as a critical obstacle, and shortages of governance specialists delay the rollout of scalable pipelines[3]Lenovo and IDC, “AI Readiness Study 2024,” lenovo.com. The challenge intensifies where legislation such as California’s climate-disclosure rule mandates automated capture of Scope 1-3 emissions. Emerging markets face deeper shortages as academic programs lag, pushing firms toward external consultants and managed-service contracts that inflate deployment budgets.
Steep Total Cost of Ownership for Multi-Cloud Data Pipelines
A majority of multicloud programs miss ROI targets as integration, replication and monitoring expenses rise faster than forecast. Region-specific storage mandated by localization laws further inflates spend as firms duplicate infrastructure across zones. Operational overhead can exceed 25% of aggregate cloud budgets once security and lineage tools are added, pressuring mid-market buyers to compromise between architectural elegance and affordability.
Segment Analysis
By Deployment: Cloud Acceleration Balances On-Premises Dominance
The data preparation market size for on-premises platforms totaled USD 4.57 billion in 2024, translating to 65.7% data preparation market share, a reflection of enterprise demand for direct control amid tougher localization rules. Vietnam’s Data Law and India’s Digital Personal Data Protection Rules reinforce on-prem and sovereign-cloud models that keep sensitive records within national borders. Cloud services, though smaller, are projected to compound at 17.8% through 2030 as SMEs and digitally native units prioritize agility. In North America, hybrid blueprints predominate, fusing local clusters for regulated data with hyperscale reservoirs for lower-risk workloads. Cloud providers respond with dedicated regional instances and encrypted-key control to offset compliance fears, widening adoption beyond traditional tech hubs as smaller cities gain direct-connect fiber.
The economic calculus hinges on workload variability: steady ETL batches and predictable enrichment jobs remain on-prem due to licensing amortization, while bursty AI inference and citizen-developer sandboxes migrate to pay-as-you-go clouds. Over half of multinationals are expected to run sovereign-cloud instances by 2029, creating demand for seamless policy enforcement across private, public and edge nodes. Vendors now emphasize unified control planes that propagate data-quality rules and lineage graphs no matter the substrate.
By Enterprise Size: SMEs Propel Future Upside Despite Large-Company Lead
Large corporations generated USD 4.79 billion revenue in 2024, equal to 68.9% of the data preparation market, supported by dedicated governance teams and global footprints. Their spend skew favors platform bundles that integrate catalog, lineage and observability into existing data fabrics. Conversely, SMEs contributed USD 2.16 billion yet will outgrow other cohorts at 18.1% CAGR, lifting the data preparation market size for SME solutions to a projected USD 5.6 billion by 2030. Consumption billing and automated schema-detection reduce capital obstacles, enabling regional retailers, fintechs and SaaS start-ups to achieve parity with incumbents.
A Small Business Institute Journal survey shows 70% of U.S. SMEs acknowledge analytics value, but only a minority has in-house talent to execute end-to-end pipelines. Low-code cloud workbenches and managed-service ecosystems fill gaps, while industry associations offer modular training to accelerate citizen usage. Challenges persist in developing policy frameworks that map to emerging AI-act obligations, creating openings for channel partners specializing in compliance overlays.
By Solution Type: Governance Gains Speed as Ingestion Retains the Crown
Data ingestion retained a commanding 24.3% of 2024 revenue, underlining the foundational need to collect structured, semi-structured and unstructured feeds for downstream refinement. Yet governance modules will post the quickest 17.3% CAGR, reflecting the regulatory pivot toward audit-ready ESG and AI-ethics disclosures. The data preparation market size for governance tools is forecast to reach USD 3.28 billion by 2030. Integrated metadata-driven catalogs now attach automated policy checks, making lineage visualizations central to risk management. Synthetic-data generators embed privacy safeguards while expanding AI training sets, helping firms meet minimization requirements without degrading model accuracy.
Adjacent categories—quality, wrangling, enrichment—are coalescing into single UI layers. Product roadmaps prioritize context-aware suggestions that learn preferred business rules and propose standardization patterns. Vendors court partner ecosystems to package vertical templates, such as healthcare HL7-FHIR normalizers or financial FIX-protocol mappers, boosting time-to-value and reinforcing switching costs.

Note: Segment shares of all individual segments available upon report purchase
By End-User Vertical: Healthcare Surges While IT and Telecom Stays on Top
IT and telecommunications booked USD 1.46 billion in 2024, equating to 22.8% of the data preparation market, fueled by 5G roll-outs that generate telemetry requiring rapid cleansing and enrichment. Operators lean on AI to optimize network utilization and predict churn, driving spend on high-throughput pipeline automation. Healthcare and life sciences, at USD 970 million in 2024, will climb fastest at 16.8% CAGR as hospitals digitize patient pathways and pharmaceutical firms orchestrate multi-omics datasets for drug discovery. The data preparation industry faces strict HIPAA, GDPR and upcoming EU AI Act stipulations that elevate governance modules to must-have status.
Banking, financial services and insurance (BFSI) sectors adopt GenAI for fraud detection and hyper-personalized advice—China already logs 83% organizational usage—placing heavy emphasis on explainability and lineage to satisfy supervisory boards. Retailers deploy customer-graph enrichment to feed recommendation APIs and measure Scope 3 emissions, linking transactional records with supplier audits to meet emerging sustainability pledges. Government programs harness open-data portals and internal dashboards for evidence-based policy, although budget ceilings and procurement cycles elongate project timelines.
Geography Analysis
North America’s USD 2.58 billion spend in 2024 reflected 37.1% data preparation market share, an outcome of early AI experimentation and dense vendor ecosystems. California’s climate-disclosure statute compels companies above USD 1 billion revenue to publish Scope 1-3 emissions, reinforcing governance-tool demand across the continent. Multinationals headquartered elsewhere yet active in the United States must still report, extending influence beyond borders. Canada advances parallel frameworks through Bill C-27’s Consumer Privacy Protection Act, while Mexico’s data-localization proposals are prompting hybrid-cloud blueprints for cross-border maquiladora supply chains. The region’s investment focus has pivoted from initial ingestion capabilities to advanced observability and automated remediation that reduce operational toil.
Asia-Pacific is the fastest climber, expanding 17.5% annually as public-cloud growth surpasses other regions. China’s 83% GenAI adoption manifests in aggressive pipeline modernization, while South Korea and Japan allocate national AI funds to health-record digitization and smart-factory programs. Vietnam’s Data Law and India’s DPDP Rules trigger data-residency layers within multinational stacks, increasing on-prem edge deployments and stimulating demand for integrated policy engines. Australian enterprises face new Critical Infrastructure Security obligations that require real-time anomaly detection in upstream data-prep stages. Meanwhile, Singapore’s IMDA grants push SMEs to cloud services, reinforcing the region’s mass-market momentum.
Europe posts steady mid-teens growth as ESG mandates drive “report-ready” pipeline investments. The EU Corporate Sustainability Reporting Directive forces roughly 50,000 firms to log greenhouse-gas metrics using consistent taxonomies, elevating data catalog and quality tooling to the executive agenda. Germany and France lead spend, though momentum accelerates in Italy and Spain as Recovery and Resilience Facility grants underwrite digital-transition projects. The EU AI Act requires transparency, bias monitoring and human-oversight logs, deepening the need for secure lineage archives that span edge nodes and hyperscaler zones. Eastern European states ramp local-cloud capacity to keep citizen data domestic, encouraging partnerships between regional telcos and global hyperscalers.

Competitive Landscape
Consolidation is reshaping the vendor map. Salesforce’s USD 8 billion agreement to buy Informatica underscores the pivot toward full-suite fabrics combining ingest, governance, catalog and AI-assisted analytics under one commercial license. The move answers Microsoft and Oracle bundles and locks a broad customer base into Salesforce’s Agentforce platform. Private-equity appetite remains high: Clearlake Capital and Insight Partners took Alteryx private for USD 4.4 billion, accelerating its transition to cloud-native SaaS and GenAI copilots. IBM, Microsoft and Oracle extend footprints with horizontal releases that integrate lineage observability and automated remediation into broader AI studios, while Google Cloud doubles down on BigQuery data preparation.
Disruptors focus on AI-first architectures. Scale AI raised USD 1 billion Series F funding as Meta invested USD 14.3 billion and tapped CEO Alexandr Wang to head a new super-intelligence lab. Claud-native start-ups such as Prophecy emphasize visual pipelines and MIGRATION Copilot that ports legacy ETL code to Spark and Snowpark, appealing to enterprises modernizing mainframe workloads. Vertical specialists emerge: Tamr for life-sciences entity resolution, Precisely for ESG metrics alignment, and One Data for data-product marketplaces.
Competitive intensity heightens around differentiation levers: automated data-quality remediation, embedded privacy-enhancing computation, and domain templates that assure regulators. Price competition remains moderate because buyers prize reduced risk and compliance readiness over lowest cost, though freemium tiers from open-source entrants exert pressure at the lower end of the SME market.
Data Preparation Industry Leaders
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Informatica LLC
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IBM Corporation
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SAS Institute Inc.
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Microstrategy Inc.
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Tableau Software, LLC (Salesforce.com Inc.)
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- June 2025: Meta finalizes USD 14.3 billion investment in Scale AI, valuing the label-and-prep provider at USD 29 billion and recruiting CEO Alexandr Wang to helm a new super-intelligence lab.
- May 2025: Salesforce signs a definitive deal to acquire Informatica for USD 8 billion in cash at USD 25 per share, adding catalog, governance and pipeline automation to the Agentforce stack.
- January 2025: Prophecy raises USD 47 million Series B1 led by Smith Point Capital, funding its Migration Copilot that auto-converts legacy ETL logic into spark-native pipelines.
- October 2024: Google Cloud debuts BigQuery data preparation, embedding AI suggestions and low-code visuals to trim manual cleaning now estimated at 94% of effort in complex sectors.
- May 2024: Clearlake Capital and Insight Partners complete the USD 4.4 billion take-private of Alteryx to expedite cloud-native and GenAI feature delivery.
Global Data Preparation Market Report Scope
Data preparation is an exhaustive process of gathering, combining, structuring, and organizing data to be analyzed with the help of data visualization, analytics, and machine learning applications. Advanced analytics utilize different data types from other sources and apply precise algorithmic processing. Moreover, with the rising demand for ETL (Extract, Transform, Load) integration, the time and cost spent preparing the data for analysis fuel the direction of the data preparation market during the forecast period.
The Data Preparation Market is segmented by deployment (on-premise, cloud), by enterprise size (small and medium enterprise, large enterprise), by end-user vertical (BFSI, healthcare, retail, manufacturing, IT and telecommunication), and by geography (North America, Europe, Asia Pacific, Latin America, Middle East & Africa). The market sizes and forecasts are provided in terms of value in USD for all the segments.
By Deployment | On-premises | |||
Cloud | ||||
By Enterprise Size | Small and Medium Enterprises (SMEs) | |||
Large Enterprises | ||||
By Solution Type | Data Ingestion | |||
Data Cataloging | ||||
Data Quality | ||||
Data Governance | ||||
Data Wrangling | ||||
Data Enrichment | ||||
By End-user Vertical | BFSI | |||
Healthcare and Life Sciences | ||||
Retail and e-Commerce | ||||
Manufacturing and Industrial | ||||
IT and Telecommunications | ||||
Government and Public Sector | ||||
Others (Energy, Education, Media) | ||||
By Geography | North America | United States | ||
Canada | ||||
Mexico | ||||
Europe | Germany | |||
United Kingdom | ||||
France | ||||
Italy | ||||
Spain | ||||
Russia | ||||
Rest of Europe | ||||
Asia-Pacific | China | |||
Japan | ||||
India | ||||
South Korea | ||||
Australia and New Zealand | ||||
Rest of Asia-Pacific | ||||
South America | Brazil | |||
Argentina | ||||
Rest of South America | ||||
Middle East and Africa | Middle East | Saudi Arabia | ||
United Arab Emirates | ||||
Turkey | ||||
Rest of Middle East | ||||
Africa | South Africa | |||
Nigeria | ||||
Rest of Africa |
On-premises |
Cloud |
Small and Medium Enterprises (SMEs) |
Large Enterprises |
Data Ingestion |
Data Cataloging |
Data Quality |
Data Governance |
Data Wrangling |
Data Enrichment |
BFSI |
Healthcare and Life Sciences |
Retail and e-Commerce |
Manufacturing and Industrial |
IT and Telecommunications |
Government and Public Sector |
Others (Energy, Education, Media) |
North America | United States | ||
Canada | |||
Mexico | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Italy | |||
Spain | |||
Russia | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
South Korea | |||
Australia and New Zealand | |||
Rest of Asia-Pacific | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Middle East and Africa | Middle East | Saudi Arabia | |
United Arab Emirates | |||
Turkey | |||
Rest of Middle East | |||
Africa | South Africa | ||
Nigeria | |||
Rest of Africa |
Key Questions Answered in the Report
What is the current size of the data preparation market?
The data preparation market is valued at USD 6.95 billion in 2025.
How fast is the data preparation market expected to grow?
Revenue is forecast to rise at a 16.2% CAGR, reaching USD 14.71 billion by 2030.
Which deployment model is expanding fastest?
Cloud-based deployments are scaling at 17.8% CAGR, driven by SME adoption and AI workload elasticity.
Why are data governance tools gaining momentum?
Global sustainability and AI regulations require transparent lineage, quality and ESG reporting, pushing governance modules to a 17.3% CAGR.
Which region will post the strongest growth?
Asia-Pacific is projected to lead with a 17.5% CAGR, supported by digital-transformation programs and sovereign-cloud investments.
How are mergers and acquisitions shaping competition?
Large suites are forming through deals such as Salesforce-Informatica and the Alteryx take-private, consolidating ingest, catalog and governance under unified platforms.