Asia-Pacific Data as a Service (DaaS) Market Research Report: Forecast (2022-27)
Data as a service (DaaS) is a data management platform that utilizes cloud-based networking to deliver enterprise requirements, including data storage, integration, processing, and analytic services. This helps the enterprise minimize its internal technology & server costs through on-demand data for consumers, reducing the need for in-house data collection, verification, cleaning, and analysis. Therefore, the growing adoption of cloud computing in various industry verticals in Asia-Pacific is expected to surge the opportunities for DaaS implementation in the upcoming years.
The Asia-Pacific Data as a Service (DaaS) market is projected to grow at a CAGR of around 42.65% during the forecast period, i.e., 2022-27. The Asia Pacific region has been experiencing unprecedented growth in its fintech industry due to increasing awareness about online payment platforms, a rising count of startups in the region as well as integration of advanced technologies, such as the Internet of Things (IoT), Artificial Intelligence (AI), Blockchain, Industry 4.0, BigData, among others. All these factors have well supported the growth of Data as a Service (DaaS) in the historical years.
Moreover, DaaS not only manages the large datasets of enterprises but also provides advanced analytical services, which help in sales, marketing, demand forecasting, resource management, supply chain management, and behavior analytics, among others. Traditionally, the organizations used to store & manage their data in-house, which required a dedicated team of experts possessing high technical expertise in technologies, including AI, BigData, ML, etc.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Country Covered||China, India, Japan, South Korea, Singapore, Rest of Asia Pacific|
|Key Companies Profiled||Microsoft Corporation, Google, Amazon Web Services, IBM Corporation, Oracle Corporation, Alibaba Group Holding Limited, SAP SE, Teradata Corporation, SAS Institute, Inc|
|Unit Denominations||USD Million/Billion|
However, with the rising implementation of advanced technologies, the data-driven landscape has become increasingly complex & costly. Hence, implementation of the DaaS model delegates the risks & responsibilities of data management to a third-party cloud-based service provider. Thus, with the rapid establishment of new enterprises in the region, the demand for DaaS solutions would escalate in the forecast years.
Key Trends in the Market
The auditing & accounting firms have a vast data pool, ranging from financial information to internal decision-making reports, hence these large enterprises have a dire need to implement advanced data models to ascertain business development & generate insights from the gathered data. Moreover, the level of datasets with the accounting & auditing firms can be a highly profitable landscape for data as a service to implement.
In this regard, the firms such as Ernst & Young, PricewaterhouseCoopers (PWC), Grant Thornton, and KPMG, among several others, have been increasingly integrating data as a service & leveraging the power of data to the fullest. Hence, this trend is expected to generate notable demand for DaaS in the upcoming years.
Impact of COVID-19 on the Asia-Pacific Data as a Service (DaaS) Market
The outburst of the COVID-19 pandemic in the region increased the adoption of cloud computing across various businesses & led the organizations to adopt the remote working culture throughout the pandemic. This raised the number of users using cloud services due to the incalculable number of new devices connected through centralized systems of the organization. In regard to this, the companies adopted data analytics for gauging the performance of the output & rectifying the processes to attain maximum efficiency & productivity. In the aftermath, the organization saw an unprecedented incline in data generation.
Thereby, the requirement for DaaS also surged considerably for managing the large datasets & turning them into actionable acumens that can benefit the organization in the long run. In the post-COVID-19 scenario, many organizations have adopted 'remote working' as a culture & have started working on a hybrid model to reduce operational & capital costs. Therefore, this has further escalated the scope of cloud services & data as a service and would further prevail in the region during the forecast years.
Based on the Deployment:
Among them, Public Cloud acquired a significant share in the Asia-Pacific Data as a Service (DaaS) market during the historical period. The public cloud runs on a subscription-based model & eliminates the need for keeping IT infrastructure on-premise, which accelerates its adoption in small & medium enterprises because of being cost-effective. The near unlimited scalability provided by the public cloud has led many enterprises in the region to choose the public cloud to attain cost-effectiveness in data-related services such as storage, processing, and analytics. In addition, implementing a public cloud simplifies the internal operations, catalyzes the rollouts of new business initiatives, provides better delivery & collaboration, and also enhances data gathering & analysis ability.
Additionally, innovation is crucial for organizations to survive & thrive in a competitive market. As a result, implementing the public cloud enables companies to convert IT capital expenditures to operational expenditures, enabling them to lower their entire annual spending. In this regard, leveraging the innumerable possibilities of DaaS application to track costs as they are incurred, hence, the escalating demand for hybrid & multi-cloud platforms has heightened the scope of DaaS in the historical years.
Based on Organization Size:
Of them, Large Enterprises have assimilated a significant share in the Asia-Pacific Data as a Service (DaaS) market during the historical period. Large enterprises possess vast amounts of data, ranging from internal operational data to sensitive client information from different geographies, therefore, incorporating DaaS provides advanced analysis of the data aggregated from various enterprises. An increase in the adoption of cloud-based services across numerous verticals, especially by BFSI, IT & telecom, and healthcare, among others, has augmented the demand for DaaS services across these domains. Furthermore, these enterprises have diverse operational needs, including data handling, storage, network security, etc., hence the incorporation of DaaS helps them to generate useful insights by implementing advanced analytics in the data warehouse in no time.
Additionally, it is anticipated that the increasing collaborations between major corporations for the adoption of cloud services, to store & process data from the telecommunications, automotive, banking & finance, healthcare, etc., that could support the company to generate higher revenues, would significantly accelerate the revenue growth of DaaS in the area.
Based on End User:
Here, the demand for DaaS in the BFSI sector has been growing enormously during the historical period. The countries such as India, China, Singapore, and Japan, among others, have become the global financial hub with the increasing presence of large financial institutions in the region. The unstoppable wave of digitization in the banking industry has led to the adoption of complete cloud-based processes with minimal or zero requirement of human interaction for running banking operations. This has led to the generation of gigantic amounts of data that can be used to analyze & enrich consumer behavior, customer service, and pitching the right product, among others. Additionally, these developments have led to the adoption of DaaS services to be used for diverse application areas, such as online banking applications, banking as a service, open banking platforms, and embedded finance, among various others. Furthermore, the banking industry has also improved its service delivery by adopting online cloud platforms that have enriched customer engagement by eliminating the need for a physical presence to conduct banking operations or even opening bank accounts. Therefore, with the growing emergence of new ways of how businesses work, the data generated by the BFSI sector in the form of unstructured or structured format would play a vital role in achieving maximum efficiency in processes. Hence, the deployment of DaaS is expected to create lucrative opportunities for the solution providers in the forecast years.
Geographically, the Asia-Pacific Data as a service (DaaS) Market expands across:
Of all the regions, India accumulated a sizeable share in the Asia-Pacific Data as a service (DaaS) market during 2017-21. With the quick adoption of digitalization across multiple areas, including government services & commercial organizations, etc., the country's ICT industry has been undergoing a remarkable transformation that would foster the growth of DaaS solutions & services. Further, the promising government initiatives towards startup incubation, fast-tracking R&D investments to brush up its technological capabilities, and continuous investments made by various global IT players, among others, have created a firm foundation for a technologically sound environment. These factors have led to large volumes of data generation & processing in the country.
Moreover, due to the notable software development capabilities of India, it has developed numerous payments gateways & comprehensive platforms to integrate its payments systems, such as the Unified Payments Interface (UPI). This has pushed more & more businesses to operate digitally due to its ease of operations, hence creating gigantic volumes of data. Furthermore, the initiatives, such as Digital India, SAMARTH Udyog Bharat 4.0, etc., by the government of India have compounded the adoption of DaaS in the country. Thereby, the demand for DaaS is anticipated to magnify the possibilities of DaaS during the forecast period.
Key Drivers: Increasing Digitalization Across Diverse Verticals in the Region to Augment the Market Growth
The rising digital transformation through the incorporation of digitalized services, such as cloud computing, serverless computing, software as a service, business process automation, etc., has augmented the demand for data services to manage & extract insights from data aggregators. This can further be integrated & utilized for making informed decisions for the enterprises. Hence, have catalyzed the adoption of DaaS services in the historical years. Moreover, the trend of DaaS solutions has been increasingly driven by investments in the fields such as fintech, digital payments, data processing & hosting, cloud computing, and professional & technical services, among others.
Furthermore, the establishment of investment promotion agencies, digital clusters, and digital special economic zones across the Asia-Pacific region by various private & public players has led to the incubation of DaaS. Additionally, the perpetual implementation of digitalization services through data localization policies, local storage requirements, and conditional flow regimes would augment the use case of DaaS in the coming years.
Possible Restraint: Concerns Over Exposure of Mission-critical Data of Enterprises to Negatively Impact the Market
With numerous advantages of DaaS implementation, several challenges may hinder the market growth of DaaS in the Asia-Pacific. The foremost concerns of an organization are related to data privacy, data security, and proper governance. Moreover, for implementing DaaS, the enterprise needs to migrate all of its data from on-premise to the cloud. Therefore, the risk of privacy revolves around the fact that the data shared by the organization may include information about mission-critical applications, client information, business secrets, etc. Therefore, there is a high possibility of data vulnerability & exposure concerning data security, if the DaaS vendor’s security is not up-to-date. Hence, this leads to distresses in the organization regarding their data security which may further hinder the DaaS adoption.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Asia-Pacific Data as a Service (DaaS) Market is projected to grow at a CAGR of around 42.65% during 2022-27.
A. The End-Users segment is anticipated to emerge as an area of remunerative opportunities for the leading players in the Asia-Pacific Data as a Service (DaaS) Market during 2022-27.
A. The Expanding Size of the Fintech Industry in the Region is a growth opportunity for the leading industry players in the coming years.
A. In the post-COVID-19 era, the trend of working remotely on cloud platforms in the enterprises is expected to generate huge amounts of data which would escalate the market growth in the coming years.