Western European Data Warehousing Tools Forecast and Analysis, 2002-2006

IDC expects the relative slowdown in the data warehousing tools market observed in 2001 to continue into 2002, with growth picking up again in 2003 and then increasing over the next two years. As companies once again put budget money aside for implementing data warehouse projects to access and analyze data and get a complete view of the business, growth will pick up especially in the data warehouse access and extract, transform, load (ETL) segments of the market. The Western European data warehousing tools market is expected to reach $3.4 billion in revenue by 2006, for a 2001 to 2006 CAGR of 11.4%.

Market Drivers

The following are some of the market forces that will drive growth in the Western European data warehousing tools market over the next five years:

Different trends will result in continued growth for the data integration tools part of the warehouse generation market: Continued pressure to increase the capacity for storing business intelligence data will provide a vehicle for continued growth of warehouse management software. Increased intranet and extranet adoption brings data warehouse access tools to broader classes of users both within and outside the enterprise. The increased end-user population will come from all levels of the organization, and opportunities for data warehouse access tools therefore exist across all business functions. The requirement for faster implementations of data warehousing projects will support continued growth in the packaged data marts/warehouses segment of the warehouse access market. This is a unique market segment in the overall data warehousing market in that it spans all three segments of the market. By implementing packaged data mart/warehouse products, companies can increase implementation times and free up resources. There is continuing demand for tools that help companies understand and predict customer behavior and risk. This demand will fuel growth of data mining software used in data warehouse solutions.