The future of data streaming - five key predictions for 2025
- Summary:
- 2025 will be the time for data streaming platforms (DSPs) to become a widely adopted driver of growth and competitive differentiation. Richard Timperlake of Confluent sets out the potential for use cases, and the pitfalls to look out for.
2024 was a year of cutting-edge technology going mainstream. OpenAI became a household name, Apple’s Vision Pro landed on the high street, and quantum computing came a step closer to real-world application when space simulator Frontier performed more than an exaflop of calculations per second — that’s as many as 100,000 laptops working simultaneously.
One common thread runs through these milestones: speed. From intelligent chatbots and immersive mixed-reality experiences to cosmic computing breakthroughs, technology is advancing in ways we could barely imagine just a few years ago.
In 2025, this momentum will only grow. At the nexus of this evolution? Data streaming. While adoption is accelerating, data streaming platforms (DSPs) are poised to become indispensable as businesses across industries recognize their crucial role in enabling real-time insights and action.
1. The increased certainty of 2025 will create a more favorable environment for investment in the tech sector
With economic recovery improving in EMEA following key elections, businesses are cautiously optimistic about investing in next-generation infrastructure. I foresee a more bullish outlook for 2025 as companies expand budgets for digital transformation, driven by the urgent need to streamline operations and enhance profitability. If anything, the economic uncertainty of recent years has only underscored the critical importance of real-time data streaming, as businesses adapt to a competitive environment operating at hyper speed.
2025 will become the tipping point when data streaming transitions from a leading-edge technology to a widely adopted driver of growth and competitive differentiation. This shift will be fueled by a growing number of compelling use cases demonstrating the ROI of DSPs. In fact, Confluent's 2024 Data Streaming Report revealed that 64% of businesses where data streaming is a foundational integration are either achieving or anticipating up to ten-times return on their investment — clear evidence of its transformative potential across industries.
2. ‘Old guard’ culture could continue to hinder broader adoption of DSPs
While 2024 witnessed a growing awareness of data streaming’s potential, its adoption remains uneven. Proof-of-concept projects in DSPs have gained traction, but we’re only seeing full-scale implementations in certain sectors. Skepticism persists, with some questioning the need to disrupt workflows that have worked for decades. They’re asking: “Why change what isn’t broken?”
For some organizations, batch processing models continue to dominate, as DSPs are often viewed as a costly technical upgrade rather than a catalyst for lucrative business transformation. This perception can overshadow the strategic value DSPs bring, from democratizing data to enabling AI applications, to unlocking new growth opportunities.
Of course, the challenge isn’t just technical — it’s cultural. Long-established workflows and a lack of expertise in implementing DSPs create significant barriers to adoption, underscoring the importance of robust change management to accelerate the transition.
3. Organizations will continue to focus on cost, profit or customer experience
In 2025, businesses will continue to navigate three core strategic priorities: increased cost efficiency, growth and profitability, and enhancing the customer experience. However, the accelerating pace of technological change and market demands is reshaping how these goals are pursued, with real-time data streaming emerging as a critical enabler across all three.
Organizations focused on reducing expenses are increasingly scrutinizing legacy systems and infrastructure. By leveraging data streaming, they can optimize processes, eliminate inefficiencies, and uncover cost-saving opportunities that static batch processing simply cannot deliver.
If profitability is the first priority, success often hinges on timely, accurate insights into customer behavior. The same can be said for customer experience, which is arguably a universal focus point for businesses hoping to thrive going forward. Real-time data — like website interactions or social media engagement — empowers businesses to create the kind of seamless, personalized journeys that not only meet but anticipate customer needs — building loyalty, deepening engagement, and driving long-term success.
4. Data streaming will become a competitive imperative as gen AI transforms how businesses operate
The evolution of DSPs reminds me of the early days of CRM systems. Back then, customer relationship management was a tough sell — many businesses questioned its value, and adoption was sluggish. Yet today, it’s nearly impossible to imagine a successful company operating without a CRM at its core. I believe DSPs are on a similar trajectory.
As generative AI gains further momentum and organizations race to integrate it in myriad ways, the need for clean, robust and accurate data becomes critical. This is where DSPs are vital: they are the ‘blood’ that ensures the AI ‘brain’ is fed with the high-quality data necessary to deliver real value. Just as CRM systems became indispensable for customer management, DSPs are destined to become the foundation of successful AI strategies.
However, some organizations still grapple with fragmented data trapped in siloed systems, accessible only through complex, code-heavy processes. These inefficiencies not only slow innovation — especially around AI — but also limit the ability to respond to real-time opportunities. In 2025, DSP implementation will be at the forefront of breaking down these barriers, enabling businesses to seamlessly integrate and act on their data. This shift will redefine how organizations operate — elevating data streaming from a technical upgrade into what more and more companies now recognize as a cornerstone of competitive advantage.
5. Leadership will have to rely more on data-driven decision-making
Businesses are operating within ever-tighter financial margins, where success depends on delivering the right data to the right person at the right time. While gut instincts still play a role, decisions are increasingly guided by data-driven insights.
Yet, many companies struggle to make their data accessible and actionable. Siloed systems and disjointed processes often prevent decision-makers from leveraging timely information. According to a recent Confluent study, 90% of executives now need to make decisions “in real time,” yet 52% say data is already outdated by the time it reaches the C-suite. More than half (58%) of C-level leaders are forced to rely on gut instinct — rather than data — due to the difficulty of accessing reliable insights.
These challenges underscore the urgent need for real-time data streaming platforms, which can bridge the gap between inaccessible data and actionable insights, empowering leadership to respond faster and more effectively in today’s high-stakes environment.
Operate at the speed of real-time data streaming
As businesses continue to unlock the transformative potential of data streaming — expanding beyond initial use cases to drive deeper innovation — adoption will accelerate. More and more organizations will begin to sit up and take notice of DSPs, recognizing their role as a foundational component of successful business today, tomorrow — and beyond.