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2023 Predictions: What's Next for Data Engineering?

What's Next for Data Engineering

Published on Sep 08, 2023

Data engineering is changing, and 2023 promises even more transformation. This article will explore data engineering, its challenges, and Data Engineering Predictions for the future.    

As we look to the future of data engineering, it's important to take a step back and reflect on the quickly changing environment of this field. We'll look at and discuss some of the top forecasts for 2023 and beyond, including major trends, problems, and possibilities for data engineering teams. So, let's dig in and see what the future of data engineering holds!  

The Evolving Landscape of Data Engineering  

In today's environment, keeping current with new advancements can provide you with a competitive advantage when managing data-driven initiatives. You may have an advantage when it comes to managing initiatives that use data if you have a strong foundation in this area.  

Understanding Data Engineering  

All the data processes start with data engineering, where we do all the aspects in which data can be used in the business of collecting, organizing, transporting, and even analyzing.  

Key Components of Data Engineering  

  • Data Pipelines: A data pipeline is used for further process of Transportation of data from one location to another.  

  • ETL Processes: ETL stands for Extract, Transform, Load. Used for extraction or collection of data, transformation of data, and loading the data.  

  • Data Warehouses: Think of data warehouses as organized libraries for data. They keep data in neat order so we can find and use it.   

Read more: Crafting an Effective Data Management Strategy: An Ultimate Guide 

Data Engineering

Current Challenges in Data Engineering  

While data engineering is super important, it has some tricky parts. Here are some big problems data engineers are dealing with right now:  

  • Data Quality: Keeping data clean and correct is a tough job. So, performing any processes through the date that data should be clean.  

  • Scalability: When a company has lots and lots of data, its systems need to grow, too. We call this "scaling." It's a big challenge.  

  • Real-time Processing: Nowadays, we want to use data immediately, not later. This is called "real-time processing," and setting it up can be tricky.  

Read more: Building Data Trust: How Leaders are Nurturing and Measuring Stakeholder Trust for Growth 

Predictions Shaping Data Engineering  

  • More Specialization: In data teams, we'll see more specialized jobs. Some people will focus on making sure data is good (data reliability engineers), some will plan for the long term (data architects), and others will work on efficiency (DataOps developers). This is like how, in the past, software jobs specialized in things like DevOps and site reliability engineering.  

  • Data Lakes and Warehouses Mix: Data Lake Solutions and data warehouses used to be separate, but now they're getting closer in what they do. It'll be easier to use them together. For example, Google made it simpler to put data streams into BigQuery. Databricks also made it easier to organize data through Data Lake Services. Snowflake also reduced delays, so when data comes in, we can use it immediately.  

  • Faster Fixes for Data Problems: In 2022, a study found that data workers spent 40% of their time fixing data problems. That's a lot! But in 2023, we'll see more machine learning used to catch data issues quickly. This means we can fix problems faster and spend less time on them. It's like having a detective for data.  

Data Engineering Predictions

  • Watching Costs: As more data moves to the cloud, it costs more. Businesses are now looking closely at how much they spend on data. People who handle money will talk more with data teams. This means that watching costs will be a big part of data work.  

  • Data Mesh: Data mesh means almost every unit of the company will have control over the data, but each unit will abide by some set of rules in terms of using it. This makes the work of a central team easier to lead the other small units to instruct how to deal with the data in a more flexible way.   

Read more: Data as a Strategic Asset: How are Businesses Embracing the Mindset 


As we venture into 2023, data engineering is poised for exciting transformations. Embracing these data engineering predictions will be instrumental in enabling organizations to harness the full potential of their data resources. Adapting to evolving trends, fostering specialization, optimizing costs, and implementing data mesh principles will empower data engineering teams to remain competitive and agile in an ever-changing data landscape.  

So, brace yourself for the remainder of the year, when fascinating advances in data engineering will transform how we deal with data. The future of data engineering is overflowing with options, from cost optimization to specialized jobs, from data mesh to machine learning models, as well as from data contracts to blurred use cases. Accept the difficulties and possibilities that await us, and let's make 2023 the year of big data that is smaller, more controllable, and more effective than ever before!  

SG Analytics, recognized by the Financial Times as one of APAC's fastest-growing firms, is a prominent insights and analytics company specializing in data-centric research and contextual analytics. Operating globally across the US, UK, Poland, Switzerland, and India, we expertly guide data from inception to transform it into invaluable insights using our knowledge-driven ecosystem, results-focused solutions, and advanced technology platform. Our distinguished clientele, including Fortune 500 giants, attests to our mastery of harnessing data with purpose, merging content and context to overcome business challenges. With our Brand Promise of "Life's Possible," we consistently deliver enduring value, ensuring the utmost client delight.    

A leading enterprise in Data Analytics, SG Analytics focuses on leveraging data management, analytics, and data science to help businesses across industries discover new insights and craft tailored growth strategies. Contact us today to make critical data-driven decisions, prompting accelerated business expansion and breakthrough performance.  

Landscape of Data Engineering

About SG Analytics       

SG Analytics is an industry-leading global insights and analytics firm providing data-centric research and contextual analytics services to its clients, including Fortune 500 companies, across BFSI, Technology, Media and entertainment, and Healthcare sectors. Established in 2007, SG Analytics is a Great Place to Work® (GPTW) certified company and has a team of over 1100 employees and has presence across the U.S.A., the U.K., Switzerland, Canada, and India.      

Apart from being recognized by reputed firms such as Analytics India Magazine, Everest Group, and ISG, SG Analytics has been recently awarded as the top ESG consultancy of the year 2022 and Idea Awards 2023 by Entrepreneur India in the “Best Use of Data” category. 

Frequently Asked Questions (FAQs) 

  1. How does data engineering differ from data science?  

The initial estate from where the role of data stats is covered by data engineering, while the last step, in which decision-making is performed with the help of data, is taken care of by data science.  

  1. How can small businesses benefit from data engineering?  

Small businesses can use data engineering to organize and analyze their data efficiently for better results.  

  1. How can data engineering contribute to business growth?  

Data engineering can help businesses make sense of their data, leading to insights that drive growth strategies. It enables better customer targeting, process optimization, and product development.  

  1. What is the future of data engineering in AI and ML?  

Data engineering has become even more critical in the AI and ML era. It provides the data infrastructure for training and deploying machine learning models, making AI-driven insights and automation possible.