Enterprise Architecture Tools Market worth $1,283 million by 2026
According to a research report "Enterprise Architecture Tools Market Size by Component (Solutions and Services (Managed Services and Professional Services)), Deployment Type, Organization Size, Vertical (BFSI, IT, Manufacturing), and Region - Global Forecast to 2026" The global Enterprise architecture tools market size is expected to grow from USD 989 million in 2020 to USD 1,283 million by 2026, at a Compound Annual Growth Rate (CAGR) of 4.4% during the forecast period. Key factors that are expected to drive the growth of the market are the increasing adoption of the business-driven enterprise architecture approach for strategic business transformation and an increasing need to align enterprise information technology architecture with business strategy. With an enterprise architecture tool, landscapes, blueprints, and roadmaps are created to perform an ongoing and controlled enterprise transformation via projects. Such tools also enables organizations to understand their systems, applications, and assets from a holistic, top-down perspective. The solution helps in identifying gaps in organization’s current architecture to better understand how to reach the desired future-state objectives and architecture. Solutions segment to hold a larger market size during the forecast period Based on solutions, the enterprise architecture tools market is segmented into infrastructure architecture, application architecture, data architecture, security architecture, and others. These solutions assist in increasing collaboration and improving workflow environments to accelerate productivity. Major reasons behind the decline of enterprise architecture tool solutions across the globe are reduced profit margins and less allocation of IT budgets. These reasons lead to low investments in new subscriptions. The demand for consulting, integration, and implementation services has also decreased with low technology spending on new subscriptions. These trends are expected to decrease the demand for enterprise architecture tools solutions. SMEs segment to grow at the highest CAGR during the forecast period SMEs are defined as organizations with an employee strength ranging from 1 to 1,000. SMEs have a low marketing budget and often lack the resources and capabilities for effective marketing orchestration. The majority of SMEs are prone to cyberattacks compared to large enterprises due to the lack of security infrastructure. According to a survey, nearly 43% of cyberattacks occur in small enterprises. Hence, SMEs need robust infrastructure to fight against cyberattacks and avoid data loss and downtime. The IT spending in the SMEs segment is estimated to increase at a high rate. However, in 2020, due to COVID19 the demand for enterprise architecture tools have been reduced by SMEs. Reduced IT spending across SMEs, which led to low spending on new software and solutions. Further, the high cost associated with the enterprise architecture tools is another reason, which led to reduced demand for the solutions and services during a pandemic. BFSI industry vertical to grow at the highest CAGR during the forecast period The BFSI institutions are facing challenges due to changing business environment. The advent of advanced technologies will play a crucial role in the growth of the BFSI vertical. Digital technologies have enabled banking customers to access real-time banking and financial information services on any device. The financial crisis, changing customer behavior, increased risk awareness, focus on cost reduction, and the entrance of new financial players are some of the factors behind the changing landscape in the BFSI vertical.