(MENAFN- GlobeNewsWire - Nasdaq) The Clustering Software Market is growing steadily as organizations adopt AI, machine learning, big data platforms, and cloud-based analytics to enhance segmentation, automate insights, and support decision-making-reflected in consistent U.S. growth from USD 981 million in 2024 toward USD 1.2 billion by 2032 amid rising demand for efficient, intelligent data processing.

Austin, Nov. 21, 2025 (GLOBE NEWSWIRE) -- The Clustering Software Market size was valued at USD 5.8 billion in 2024 and is expected to reach USD 14.3 billion by 2032, growing at a CAGR of 11.91% during 2025-2032.

The growing application of data analytics, artificial intelligence, and machine learning across a range of industries is driving the growth of the clustering software industry. Clustering software is being used by businesses to enhance data segmentation, find trends, and support decision-making.

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The U.S. clustering software market is projected to be valued at around USD 981 million in 2024, expanding at a compound annual growth rate (CAGR) of 3.8% over the course of the forecast period to reach USD 1.2 billion in 2032.

The market's need for effective customer segmentation, the growing demand for data analytics, and the use of AI and machine learning technologies are all factors contributing to growth. These elements are probably going to support the market's steady rise in the upcoming years.

Segmentation Analysis:

By Type, Self-Service Clustering Segment Led the Market in 2024; Hybrid Clustering is the Fastest-Growing Segment during 2025-2032

Self-Service Clustering segment dominated the clustering software market and accounted for 44% of revenue share in 2024 due to easier UI, fewer requirements for IT team intervention, and rapid self-service analytic adoption of large enterprises. The hybrid clustering segment is expected to register the fastest CAGR during the forecast period, as it offers a flexible solution that allows integrated on-premise cybersecurity with cloud scalability.

By Deployment, On-premises Segment Led the Market in 2024; Cloud is the Fastest-Growing Segment during 2025-2032

The on-premises segment dominated the market and accounted for 69% of the clustering software market share in 2024, due to greater control over data, due to security compliance, and legacy infrastructure in large enterprises. Cloud segment is expected to register the fastest CAGR during the forecast period, due to increasing needs for scalability, remote access, and affordability.

By Enterprise Size, Large Enterprises Segment Dominated the Market in 2024; SME is the Fastest-Growing Segment over 2025-2032

The large enterprises segment dominated the clustering software market and accounted for a significant revenue share in 2024, as they have a huge volume of data to process and an advanced analytics infrastructure and resources to invest in such complex clustering solutions. The SME segment is expected to grow at the fastest CAGR owing to the increasing availability of low-cost cloud-based clustering tools and growing awareness about the advantages of data analytics.

By End-Use, Retail Segment Dominated the Market in 2024; Healthcare & Life Sciences is Expected to be the Fastest-Growing Segment over 2025-2032

The Retail segment dominated the clustering software market and accounted for the largest market share in 2024, owing to high consumer demand for customer segmentation, personalized marketing, and inventory optimization. Healthcare & Life Sciences is forecast to be the fastest growing vertical, as it provides actionable insights for patient segmentation, discovering disease patterns, and drug discovery globally.

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Regional Insights:

In 2024, North America held a 36% revenue share and dominated the clustering software industry. Key clustering software suppliers and early technology adoption across a range of industries, including retail and e-commerce, media and entertainment, and government and defense in North America, are the main drivers of the rise.

Due to the rapid digital transformation, expanding IT infrastructure, including telecommunications, and the increasing adoption of AI-driven analytics in various emerging economies, including China and India, the Asia Pacific region is anticipated to have the fastest compound annual growth rate (CAGR) during the projected period.

Key Players:

• Microsoft Corporation
• IBM Corporation
• Amazon Web Services (AWS)
• Google LLC
• Oracle Corporation
• SAS Institute Inc.
• SAP SE
• Cloudera Inc.
• Databricks Inc.,
• HPE (Hewlett-Packard Enterprise)

Clustering Software Market Report Scope:

Report Attributes	Details
Market Size in 2024	USD 5.8 Billion
Market Size by 2032	USD 14.3 Billion
CAGR	CAGR of 11.91% From 2025 to 2032
Base Year	2024
Forecast Period	2025-2032
Historical Data	2021-2023
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments	. By Type (Self-Service Clustering, Managed Clustering, Hybrid Clustering) . By Deployment (On-premise, Cloud) . By Enterprise Size (Large Enterprises, Small and Medium Enterprises (SMEs)) . By End-Use (Retail, BFSI, Healthcare & Life Sciences, Manufacturing, IT & Telecommunications, Others)
Customization Scope	Available upon request
Pricing	Available upon request

Recent Developments:

• In May 2025, at SAS Innovate 2025, SAS introduced significant enhancements to its Viya platform, including AI agents, improved digital twin simulations, and the hybrid use of quantum AI for complex manufacturing tasks. These advancements aim to bolster responsible AI deployment and decision intelligence across industries.
• In March 2025, SAP announced the integration of a Knowledge Graph Engine into SAP HANA Cloud, enabling sophisticated data modeling and querying using RDF and SPARQL. This enhancement facilitates advanced analytics and decision-making capabilities within the platform.

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Exclusive Sections of the Report (The USPs):

• Adoption Rates Of Clustering Algorithms By Industry Sector – helps you understand which industries (such as finance, healthcare, retail, cybersecurity, and manufacturing) are leading in clustering adoption and where untapped growth opportunities exist.
• Market Share Of Clustering Software Vendors (Global & Regional) – helps you evaluate the competitive dominance of key solution providers by region, enabling benchmarking based on capabilities, customer reach, and product innovation.
• Enterprise Size Trends (On-Premise Vs. Cloud) Over Time – helps you identify how deployment preferences are shifting across SMBs, mid-sized enterprises, and large organizations, supporting decisions on product positioning and go-to-market strategy.
• Regional Investment In Ai/Ml Tools With Clustering Capabilities – helps you track funding flows into clustering-driven analytics solutions across North America, Europe, Asia-Pacific, and emerging markets, highlighting zones of highest momentum.
• Technological Adoption Rate Of Advanced Clustering Models – helps you uncover how quickly enterprises are moving toward deep clustering, density-based clustering, and hybrid ML models to improve analytics accuracy and efficiency.

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