Vector Database Market Share, Growth Prospects and Key Opportunities by 2028
The global Vector Database Market Share is expected to grow from USD 1.5 billion in 2023 to USD 4.3 billion by 2028 at a CAGR of 23.3% during the forecast period. As AI and machine learning applications grow, vector databases are crucial in storing and querying high-dimensional data, such as embeddings from deep learning models. This trend will persist as AI and ML adoption expands.
The vector database market is expanding, and vendors are adopting a strategic focus to attract customers. Vector databases are a powerful new technology well-suited for many applications. As the demand for machine learning and AI applications grows, vector databases will likely become even more popular. Vector databases are essential for many machine learning and AI applications, such as natural language processing, image recognition, and fraud detection; this is because vector databases can efficiently store and query large amounts of high-dimensional data, which is the type of data used in machine learning and AI. These services are increasing the demand for the vector database market.
The NLP segment holds the largest market size during the forecast period.
In the Natural Language Processing (NLP) context, the vector database market is a rapidly evolving sector driven by various factors. Vector database is instrumental in NLP applications for efficient storage, retrieval, and querying of high-dimensional vector representations of textual data. In NLP, a vector database is used for tasks like document retrieval, semantic search, sentiment analysis, and chatbots. They help store and search through large text corpora efficiently. Companies like Elasticsearch, Milvus, and Microsoft have been actively serving NLP applications. Many organizations also develop custom solutions using vector databases. The proliferation of text data on the internet and within organizations drives the need for an efficient vector database for text indexing and retrieval. Storing and searching for text embeddings enables content tagging, which is vital for content classification and organization in NLP applications.
The growth of the vector database market in NLP is due to the increasing importance of efficient text data management and retrieval. As NLP plays a significant role in various industries, including healthcare, finance, e-commerce, and content generation, the demand for advanced vector database solutions will persist and evolve. This trend will likely drive further innovations in vector databases, making them increasingly efficient and tailored to NLP-specific needs. NLP-driven applications aim to understand the context and meaning behind text data. Traditional databases may struggle to capture complex semantic relationships between words, phrases, and documents. Vector databases excel in storing and retrieving high-dimensional vector representations of text, which capture semantic relationships; this enables semantic search capabilities, allowing users to find information based on the meaning and context rather than relying solely on keywords.
Semantic search involves finding documents or pieces of text that are semantically similar to a given query. It goes beyond keyword matching and considers the meaning of words and phrases. NLP techniques enable understanding the semantic meaning of words, phrases, and documents. It goes beyond traditional keyword-based search and considers the context and relationships between terms.
Healthcare and Life Sciences vertical to record the highest CAGR during the forecast period.
The healthcare industry vertical is seeing a rise in using vector databases as a valuable tool. It offers medical professionals assistance in various areas, such as diagnosing diseases and creating new drugs. Vector database algorithms learn from vast sets of medical images and patient records, allowing them to detect patterns and anomalies that may go unnoticed by humans; this leads to more accurate and faster diagnoses and personalized treatments for patients. Vector database is used in healthcare, particularly in medical imaging. Generating high-resolution images of organs or tissues aids doctors in detecting early-stage diseases. Additionally, vector databases can assist in identifying new drug candidates for drug discovery by generating virtual molecules and predicting their properties. Furthermore, it can analyze patients’ medical history and predict the efficacy of different treatments, enabling the development of personalized treatment plans.
Our analysis shows North America holds the largest market size during the forecast period.
As per our estimations, North America will hold the most significant market size in the global vector database market in 2023, and this trend will continue. There are several reasons for this, including numerous businesses with advanced IT infrastructure and abundant technical skills. Due to these factors, North America has the highest adoption rate of the vector database. The presence of a growing tech-savvy population, increased internet penetration, and advances in AI have resulted in an enormous usage of vector database solutions. Most of the customers in North America have been leveraging vector databases for application-based activities that include, but are not limited to, text generation, code generation, image generation, and audio/video generation. The rising popularity and higher reach of vector databases are further empowering SMEs and startups in the region to harness vector database technology as a cost-effective and technologically advanced tool for building and promoting business, growing consumer base, and reaching out to a broader audience without a substantial investment into sales and marketing channels. Several global companies providing vector databases are in the US, including Microsoft, Google, Elastic, and Redis. Additionally, enterprises’ increased acceptance of vector database technologies to market their products modernly has been the key factor driving the growth of the vector database market in North America.
Market Players
The prominent players across all service types profiled in the vector database market’s study include Microsoft (US), Elastic (US), Alibaba Cloud (China), MongoDB (US), Redis (US), SingleStore (US), Zilliz (US), Pinecone (US), Google (US), AWS (US), Milvus (US), Weaviate (Netherlands), and Qdrant (Berlin) Datastax (US), KX (US), GSI Technology (US), Clarifai (US), Kinetica (US), Rockset (US), Activeloop (US), OpenSearch (US), Vespa (Norway), Marqo AI (Australia), and Clickhouse (US).
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
Contact:
Mr. Aashish Mehra
MarketsandMarkets™ INC.
630 Dundee Road
Suite 430
Northbrook, IL 60062
USA: +1-888-600-6441
Email: sales@marketsandmarkets.com
