January 5, 2012 – Revenue for the master data management market is expected to hit $1.9 billion in 2012, its largest annual growth in four years, according to industry estimates from Gartner.

In its report, “Forecast: Master Data Management, Worldwide, 2010-2015," the research and advisory firm predicts a 21 percent increase in MDM revenue from 2011. By 2015, MDM revenue is anticipated to swell another 40 percent to $3.2 billion. Regionally, the U.S. and Europe will lead the MDM market, though the fastest rate of MDM software revenue growth will be in Asia by 2013.

Gartner research director Colleen Graham said that cross-discipline capabilities with master data management have increased the market’s importance, especially as trends like social data, big data and cloud computing ramp up.

“Pressures to optimize costs and efficiencies in a heterogeneous IT environment are driving organizations to turn to MDM as a more efficient way to manage and maintain data across multiple sources,” Graham said in a news release. “In addition, the increasing governance, risk and compliance regulations are forcing organizations to focus on MDM to support these initiatives.”

Under the MDM software market umbrella, customer data and product data are both expected to more than double over the next four years, Gartner states. Research pegs customer data software to hit $644 million by the end of this year and $1 billion by 2015. Product data, including store content information and metadata, is projected to reach $688 million in 2012 and eclipse $1.1 billion in four years. Gartner also foresees more MDM focus in the areas of open source, cloud and SaaS as a response to enterprise demands for lower prices and flexibility.

More than half of all revenue in the MDM market is led by offerings from small and best-of-breed vendors, according to Gartner. That means the overall market surge will likely bring with it a host of smaller competitive mergers in addition to more specialty vendor buyouts by the three largest MDM providers – IBM, Oracle and SAP.

To access the report, click here.