Data conversion is converting one data format into another. This technical process is mostly done using software, although rarely hardware or human intervention is used. The main purpose of document conversion is to enable interoperability and to maintain all of the data embedding as much as information as possible. Most businesses are now relying on data conversion outsourcing to get even their bulk documents converted into the required data formats.
According to a report from Allied Market Research, the global data conversion services market size that was valued at $39.8 billion in 2021, is projected to reach $566 billion by 2031. The market is predicted to grow at a CAGR of 30.6% from 2022 to 2031.
Factors that are boosting the growth of the global data conversion services market are – the need for low-latency, real-time view and analytics on operational data, and rising volume of data within the enterprise. In addition, business automation is also positively impacting the market growth. However, lack of understanding of source data is hampering the market growth.
The COVID-19 outbreak has also highly contributed to the growth of the data conversion services market, as increasing number of smartphone users, growing adoption of connected devices, and the surging e-commerce sector provide lucrative opportunities for the growth of the market.
The data conversion services market is segmented into Service Type, Enterprise Size, Industry Vertical, and Region.
By service type, the market is segmented into HTML conversion services, XML conversion services, document conversion services, media format conversion services, SGML conversion services, catalog conversion services, and others. The HTML conversion services segment dominated the market in 2021, accounting for nearly one-fourth of the global data conversion services market, as HTML conversion services help organizations in streamlining their document management pipeline. Owing to the notion of accessibility for customers and the need to keep them updated about the happenings within the manufacturing product line, the catalog conversion services segment is estimated to register the highest CAGR of 33.6% during the forecast period.
By enterprise size, the market is categorized into large enterprises and SMEs. The SMEs segment is expected to portray the highest CAGR of 32.0% through 2031, due to rise in dependency on the internet and the worldwide digital transformation. The large enterprises segment held the largest share in 2021, accounting for around three-fifths of the global data conversion services market, due to increase in the number of SMEs that depend on the internet and digital transformation.
By industry vertical, the market is categorized into BFSI, IT and telecom, government, manufacturing, retail, healthcare, media and entertainment, and others. The BFSI market is further categorized into banking, financial services, and insurance. By manufacturing type, the market is categorized into food and beverages, industrial machinery and heavy equipment. By high tech and consumer electronics type, the market is categorized into consumer electronics, PCs & laptops, and others.
By industry vertical, the BFSI segment held the largest share in 2021, contributing to nearly one-fifth of the market, as adoption of data conversion services is expected to develop at a critical rate owing to development in digitalization of banking exchanges and big data analytics. The healthcare segment is expected to register the highest CAGR of 32.8% during the forecast period, owing to rise in demand for managing patient information, scheduling appointments, checking hospital inventory, and minimizing clinical errors.
Region wise, the market is divided into North America (U.S., Canada), Europe (UK, Germany, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia, Rest OF Asia-Pacific), and LAMEA (Brazil, Mexico, UAE, Saudi Arabia, South Africa, Rest Of LAMEA).
North America dominated the market in 2021, accounting for more than two-fifths of the market, owing to the presence of substantial industrial base in the U.S., large purchasing power, and government initiatives to promote innovation. The Asia-Pacific market is expected to showcase the highest CAGR of 33.0% during the forecast period, due to growing economies such as India and China.
The key players operating in the Data Conversion Services industry include Amazon Web Service (AWS), Attunity, Damco Group, Hitachi, Informatica, International Business Machine (IBM), Invensis Technologies Pvt Ltd., Intel Corporation, Microsoft Corporation, Oracle Corporation, Precisely, Qlik Technologies, SAP SE, SAS Institute, Talend, Tibco Software, Inc., and Vista Equity Partners.