Worldwide master data management (MDM) software revenue will reach $1.9 billion in 2012, a 21 percent increase from 2011, according to Gartner, Inc. The market is forecast to reach $3.2 billion by 2015.

Master data management (MDM) is a software that includes comprehensive methods which enables companies to link all of its critical data to one file, called a master file, This master file serves as a common point of reference. MDM is most widely used in data sharing.

Colleen Graham, research director at Gartner said that this has been the highest growth interms of revenue generation since 2008 for MDM software market.

As per a press release by Gartner ‘The largest domains of the MDM software market are MDM of customer data and MDM of product data, each of which is predicted to more than double in size over the next four years. MDM of customer data helps an organization cross-sell and cross-market, as well as retain customers and provide a consistent high-quality customer experience. The market for MDM of customer data is expected to reach $644 million in 2012 and to exceed $1 billion in 2015. The market for MDM of product data, which helps an organization store product-related master data, metadata, or both, is projected to reach $688 million in 2012 and to surpass $1.1 billion in 2015.

 “The increased demand for more effective decision-making and a focus on improving the timeliness and accuracy of business decisions makes MDM paramount for organizations,” said Ms. Graham. “MDM supports these goals by ensuring the high quality of key data needed at the point of decision, removing uncertainty and increasing confidence.”

Chad Eschinger, research director at Gartner said that in next four years they would look up to larger vendors expecting them to continue to acquire this specialization while smaller vendors would acquire each other in order to construct market share and increase functionality within their portfolios.