Data Engineering Roadmap for Businesses 2025

Data engineering is becoming increasingly important as data-driven decision-making becomes a key aspect of modern organizations. With the rise of big data and the growing demand for real-time data processing, data engineers are tasked with designing and building systems that can handle the scale and complexity of this data. Data engineering solutions include designing data pipelines for the ingestion, processing, and storing of data and developing systems for data analytics and machine learning.

The impact of data engineering extends beyond just improving the efficiency and accuracy of data processing. By enabling organizations to collect and analyze data at scale, data engineering is shaping the future in numerous ways. For example, it is driving innovation in various industries, such as healthcare, finance, and e-commerce, by allowing companies to gain insights into customer behavior and improve the quality of their products and services. Additionally, data engineering solutions are helping organizations make more informed decisions, reduce costs, and improve the overall efficiency of their operations. This blog will guide you through the future roadmap of data engineering in 2023.

Did You Know?

A report by Forrester Research found that organizations that invest in data engineering are able to achieve a return on investment of up to 10x within the first year.
Also, according to a report by IDC, the amount of data generated globally is expected to reach 175 zettabytes by 2025, up from 33 zettabytes in 2018.

What is Data Engineering?

Data engineering is a critical aspect of modern data-driven organizations, as it enables the collection, processing, and storage of large and complex data sets. With the increasing amount of data being generated and the growing importance of data-driven decision-making, data engineering has become a key investment area for companies in various industries.

Why is Data Engineering in Demand?

Here are the reasons behind the popularity of data engineering.

1.Scale and Complexity

Modern organizations generate vast amounts of data from various sources, and data engineers must design and build systems that can handle this scale and complexity. This requires a deep understanding of data storage and processing technologies and the ability to design scalable and efficient data pipelines.

Facts

• Companies that invest in data engineering solutions see an average return on investment of over 20%.
• Companies that use data engineering to analyze customer behavior have seen an average increase in customer satisfaction of 15%.

2. Real-time Processing

With the rise of real-time data processing, data engineers must design and implement systems that can handle the high volume, velocity, and variety of data generated by modern organizations. This requires using technologies such as Apache Spark, Apache Flink, and Apache Kafka and developing algorithms for real-time data processing.

3. Data Quality

Data engineers must ensure that the data processed and stored in their systems is accurate and of high quality. This requires a deep understanding of data cleaning, transformation, and aggregation algorithms, as well as the development of systems for data validation and quality control.

4. Data Security and Privacy

With the increasing importance of data privacy and security, data engineers must design and implement systems that protect sensitive data. This involves developing systems for the classification and protection of sensitive data and ensuring data compliance with regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

5. Integration with Multiple Systems

Data engineers must often work with multiple systems, such as databases, APIs, and sensors. It must design and implement data pipelines that can effectively integrate these systems. This requires a deep understanding of data formats and protocols and the ability todevelop data integration solutions that can handle the scale and complexity of modern data architectures.

6. Continuous Learning and Innovation

The field of data engineering is rapidly evolving, and data engineers must continuously learnand stay up-to-date with new technologies and best practices to remain relevant. This requires continuous learning and adapting to new technologies and trends in the field.

A Comprehensive Data Engineering Roadmap for 2023

1. Cloud Computing Adoption

Cloud computing has revolutionized how organizations store and process data. In 2023, we will see an even greater focus on cloud computing as companies continue to move their data infrastructure to the cloud to take advantage of scalability, cost-effectiveness, and security benefits.

​According to a Gartner report, most organizations are expected to adopt a cloud-first strategy for data management and analytics by 2023, with 80% of data engineering projects expected to take place in the cloud.

The trend towards cloud computing will also drive the adoption of cloud-based data warehousing as companies seek to leverage the massive storage capacity and processing power of cloud platforms like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). Additionally, the use of server less computing for data processing will continue to grow as companies look to reduce the operational costs of running their data infrastructure.

Key Measures to Consider Before Cloud Computing Adoption

• Match the security requirements of the organization with the security capabilities of the cloud service provider

• Analyze the security policies of the cloud service provider along with the history of transparency and security-related practices

2. Machine Learning and AI

Machine learning and AI have become increasingly important in various industries as they enable organizations to extract insights from large and complex data sets. In 2023, data engineers will play a critical role in developing and deploying machine learning models using popular technologies such as Tens or Flow and PyTorch. We will see a shift towards more automation in the model development process, with an increased focus on transfer learning to speed up the time to market new models. Additionally, data engineers will be responsible for designing and implementing data pipelines that enable the training and deployment of machine learning models and for monitoring and maintaining these models in production.

3. Real-time Data Processing

Real-time data processing has become increasingly important in finance, healthcare, and e-commerce, as they require the ability to process large amounts of data quickly and make

4. Decisions in Real-Time.

In 2023, data engineers will need to design and implement systems that can handle high-volume, low-latency data processing and use streaming technologies such as Apache Kafkaand Apache Flink. This will involve designing real-time data pipelines that can handle the ingestion and processing of large amounts of data and designing systems for real-time data analytics that can provide insights and inform decision-making.

5. Data Governance

Data governance has become increasingly important in recent years as companies seek to ensure their data's accuracy, security, and privacy. In 2023, we will see an even greater focus on data governance, especially with the growing importance of data privacy regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

Data engineers will need to design and implement systems that ensure data compliance with these regulations and systems for the classification and protection of sensitive data. Additionally, data engineers will need to work closely with data governance teams to ensure the effective management of data throughout its lifecycle, from ingestion to archival.

6. Big Data Technologies

Big data technologies such as Apache Hadoop, Apache Spark, and Apache Cassandra have enabled organizations to process and store large and complex data sets. In 2023, we will see a continued evolution of these technologies, with an increased emphasis on real-time data processing and analytics. Data engineers will need to have a solid understanding of these technologies and be able to design and implement data pipelines that can handle the processing and storage of big data.

7. Data Visualization and Dashboarding

Data visualization and dashboarding will continue to be important aspects of data engineering solutions as companies strive to make data accessible and understandable to a wider audience. In 2023, we will see an increase in the use of interactive dashboards, real-time data visualization, and augmented and virtual reality for data visualization.

Mobile devices are rapidly becoming the primary devices for consuming data visualizations, with over 50% of users accessing visualizations on mobile devices.

8. Automated Data Pipelines

Data engineers will continue automating more aspects of the data pipeline, from data ingestion to data processing and storage. In 2023, we will see more automated machine learning pipelines and automated data pipeline management tools for delivering data engineering solutions.

9. Collaboration and Data Ops

Collaboration between data engineers, data scientists, and business stakeholders will continue to be important in 2023. Data Ops, a set of practices and tools for collaboration and communication between data engineering and data science teams, will become increasingly important as companies strive to increase the speed and efficiency of their data processing and analysis.

Conclusion

Data engineering is a rapidly evolving field that will continue to play a critical role in shaping the future. As organizations continue to generate more data and the importance of data-driven decision-making grows, data engineers will be at the forefront of developing the infrastructure and systems that allow for the effective storage, processing, and analysis of this data. Data engineering in 2023 will be amazingly bright and offer exciting opportunities to companies seeking growth and advancement in their success graph by leveraging the technology. Are you planning to implement data engineering solutions in your business? Contact Phygital Insights now to implement data engineering and revolutionize your business.