The master data management (MDM) software sub-sector is proving itself one of the fastest growing in the industry.

According to Gartner, revenues from MDM products rose 24% growth during 2008 to hit $1.3 billion. The analyst firm predicts demand for MDM software, which promises businesses a single, consistent view of their data, will increase steadily at a compound growth rate of 21% through to 2012 when the market segment will total $2.8 billion.

By Gartner’s own admission, the upbeat predictions are on the “optimistic” side, as MDM projects are generally considered to be large, ambitious infrastructure undertakings. The MDM forecast “comes at a time when the full impact of the financial ‘meltdown’ is unknown and therefore hinges on the ability and resolve of businesses to maintain some discretionary budgets”.

The largest markets for MDM in 2007 were manufacturing, retail and finance with those three taking 53% of the pie, and while Gartner expects these industries to remain dominant MDM forces, it also forecasts higher numbers of initiatives in the communications, government, health and utility sectors.