Predictions for the Data Conversion Services Market to 2031

As organizations collect the data they need to operate and thrive, one of the major challenges they face is managing this data. Effective data management is necessary to make data relevant, easily accessible, and ready to use to unlock insights. Data conversion services support data management by standardizing, digitizing, and improving the quality of data. The global data conversion services market is growing at a fast pace, according to recent reports. Allied Market Research predicts that the data conversion services market, which was valued at $39.8 billion in 2021, is set to reach $566 billion by 2031, growing at a CAGR of 30.6% from 2022 to 2031.

Types of Data Conversion

Data conversion is the process of transforming data from one format to another. This includes:

• converting data from paper-based formats to electronic formats (document scanning), or
• converting data from one digital format to another.

Simple and complex conversion: Data conversion can be simple or complex based on the environment and data formats involved. The main goal of data conversion is to improve data management. Document scanning services convert paper-based records to digital format to improve efficiency and accessibility. Another type of data conversion service involves converting legacy data to newer formats in order to make it compatible with newer software and systems.

Manual and automated conversion: Data conversion can be done manually or using automated tools and software. Manual data conversion involves manual inputting of data into a new format by data entry professionals. Automated data conversion services, on the other hand, involve using software tools to automate the conversion process, making it faster and more efficient.

Factors driving the Demand for Data Conversion Services

Reports predict that the demand for data conversion services will continue to surge due to various reasons:

• Increasing volume of data in organizations : According to a survey conducted by CIO, on average, an organization receives data from 400 sources (www.dataversity.net). Data is being generated from diverse sources such as cloud applications, smartphones, websites, and social media networks. However, this data comes in varying input formats and structures and has to be presented in formats that enable reporting and analysis. Data conversion helps organizations achieve this goal.

• Need to improve data management: The upsurge in data volume has increased the need to improve data management. Data conversion improves data management in several ways.
• Converts data from older or incompatible formats into newer formats compatible with modern software systems
• Helps standardize organizational data and make it easier to integrate data from different sources and create a unified view of the data.
• Digitizes paper-based records and makes them easier to store, search, and access.
• Improves data quality through data cleansing which involves identifying and correcting errors or inconsistencies so that the converted data is accurate and reliable.

• Digital transformation : Digital transformation refers to the utilization of digital technologies to revolutionize established traditional and non-digital business operations and services, or to establish new ones, to meet changing market and customer demands. This completely transforms business management and operations, as well as the way in which value is provided to customers. Conversion of paper-based information into digital data or digitization is the key component of digital transformation efforts in virtually every industry or sector.

• Cloud computing : Cloud computing is the delivery of IT infrastructure and applications via the internet, which means users do not have to install and maintain them on-premises. Cloud migration is the process of moving data, applications or other business elements to a cloud computing environment. The process of data migration often requires data conversion, data transformation, and/or data cleansing.

• Big data analytics : Big data analytics is increasing the demand for data conversion services. As organizations amass big data or larger, complex, and voluminous data, they have to convert it into actionable insights. Big data analytics involves processing and analyzing large and complex data sets to uncover patterns, trends, and insights. Before data can be processed and analyzed using big data analytics tools and techniques, it must first be converted into a digital format suitable for analysis. For example, when unstructured data, such as text or images is converted into structured data, such as a table or graph, it will be easier to analyze using big data analytics techniques.

• Artificial intelligence : Adoption of artificial intelligence is also driving the growth of the data conversion market in many ways:
• Data conversion services help convert data from different formats and sources into a format that AI algorithms can use.
• Outsourcing companies are using AI to automate the data conversion process, reducing the risk of errors and improving efficiency. Accurate and efficient data conversion is necessary to enable AI algorithms to analyze large datasets and make accurate predictions.
• As AI adoption increases rapidly across industries such as healthcare, finance, and manufacturing, the demand for data conversion services is likely to increase.
• AI has resulted in the creation of new data formats and types including image and voice data. Data conversion services are expanding to include these new formats.

Data Conversion Market Segments

The Allied Market Research report segments the market for data conversion services on the basis of 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, etc.
• By enterprise size, the market is classified as large enterprises and SMEs.
• By industry vertical, the market is categorized into BFSI, IT and telecom, government, manufacturing, retail, healthcare, media and entertainment, and others. BFSI type includes banking, financial services, and insurance; manufacturing includes food and beverages, industrial machinery and heavy equipment, high tech and consumer electronics, automotive, and others; the high tech and consumer electronics segment includes consumer electronics, PCs & laptops, and others. The region-wise or geographical segment includes North America, Europe, Asia-Pacific and LAMEA (Latin America, Middle East and Africa.

While the demand for data conversion services is expected to grow fast, data conversion is often a complex and error-prone process that involves several steps and requires the help of experts. Outsourcing solutions are available to manage all these steps, such as data extraction, data cleansing, data transformation, and data loading. The support of an experienced data conversion outsourcing company provider can go a long way in helping businesses extract value from their data for informed decision making.