Data Mining Tool Introduction
Data Mining is a process that is used to analyze data, finding unidentified patterns, categorizing data and understanding the identified relationships. The components that are used within data mining include extraction, processing, transforming data and creating models in a multidimensional database system, thereby providing access to business analysts and IT experts.
Data mining tools empower enterprises to extract usable data from a large set of raw data and analyze hidden data patterns to categorize these patterns into useful information. The data mining has various applications in numerous fields. As a use of data mining tool, organizations can gather more information about their clients and grow more viable methodologies identified with different business capacities in a smoother and more ideal way. This helps the organizations to achieve their goals sooner and get settled on better choices. Data mining tools further aids businesses to make optimal business decisions, advanced business intelligence, thereby improving the company’s profit and reducing cost overheads. Furthermore, using suitable data mining tools helps enterprises in improving their planning & forecasting, customer acquisition, opens up new revenue stream, helps in customer retention and contributes immensely in improved customer relationship.
Market Size and Forecast
Data mining tool usage has grown rapidly in last few years. The growth rate can be attributed to its tremendous use across various industries. In BFSI sector, data mining is used to create accurate risk models for loans and mortgages. Additionally, they are very helpful when detecting fraudulent transactions. In marketing, data mining tool enables enterprises to understand the historical transaction patterns of customers, thus helping them plan and manage new marketing campaigns. Furthermore, data mining provides insights into customer-buying patterns and helps the organizations in managing the demand and supply match while offering customized offerings to their clients. Data mining tool allows companies to streamline their inventory operations and may even empower small and mid-sized companies to move to a complete on-demand model.
The data mining tools market is expected to grow from USD 591 Million in 2018 to USD 1,376.8 Million by 2027, expanding at a CAGR of 11.45% during the forecast period, owing to the significant increase in data volume and increased awareness among enterprises to leverage the benefits of available data assets. Data mining tool market is segmented on the basis of function type bifurcated into marketing, finance, supply chain & logistics and operations out of which, marketing segment is expected to have the largest market share in revenue terms during the forecast period. The data mining tool market is further segmented by service type into consulting, managed and others. On the basis of industry type into retail, healthcare and life sciences, BFSI, energy and utilities, government, manufacturing, IT and telecommunication, others. By deployment type, the market is segmented into on premises and cloud. CLICK TO DOWNLOAD FREE SAMPLE
Potential for New Insights that Drive Competitive Advantage
Developing a better understanding of customers is increasingly becoming a strategic necessity, because fast-moving markets, new technologies, and new business models are changing what customers want and how they make their purchase. With the use of data mining tool, large pool of data can be brought together and analyzed to discern patterns and make better decisions. It has become the basis of competition and growth for individual firms, enhancing the productivity and has created significant value for the world economy by reducing waste and increasing the quality of products and services. Hence, this factor is expected to propel the growth rate of data mining tool market during the forecast period.
Significant Increase in Data Volume
Data around us is growing at a very fast rate. The smartphones and data plans are getting cheaper, data speeds are getting faster, and social media is becoming a trendy way of connecting with friends or voicing one’s opinions. All these changes are generating a lot of data around us and organizations realize that all this data can be cleaned and analyzed to find useful information. To make use of all the data, businesses need proper data mining tool thus, data mining tool market is anticipated to grow at a healthy rate during the forecast period.
Apprehension about Misuse of Information
Information collected through data mining, intended for the ethical purposes, can be misused. This information may be exploited by unethical people or businesses to take benefits of vulnerable people or discriminate against a group of people. With consumers being apprehensive about sharing information due to privacy and security issue it would directly impact the data mining industry. This would hinder the growth rate of data mining tool market.
Our-in depth analysis of the data mining tool market includes the following segments:
By Service Type
By Function Type
By Industry Type
By Deployment Type
On the basis of regional analysis, the global data mining tool market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is expected to dominate the global market during the forecast period. This region has stringent government policies which forms a crucial driver for the growth of the data mining tools market in North America. APAC is expected to be a cash cow region for the data mining tool and service providers during the forecast period. There are huge untapped opportunities and increasing commercial investment in different verticals in the region. Increasing adoption of cloud technology by huge population, startup entrepreneurs, and booming e-commerce have led to the rapid implementation of data mining tools and services in the APAC countries. All these factors are anticipated to drive the growth rate of data mining tool market.
Global data mining tool market is further classified on the basis of region as follows:
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