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What is Data Engineering?

January 12, 2025
8 Min

What do UPI payments, Netflix recommendations, and fraud detection systems have in common?

They run on fast, scalable data pipelines—built by data engineers, not analysts or scientists.

Data engineering is the backbone of every AI, analytics, and cloud system in 2025.

This post breaks down what data engineers actually do, the tools they use, and how you can become one.

Whether you're a fresher or switching from IT, you'll leave with clarity—and a path to follow.

Know More: Data Engineers vs Data Sceintists

What Does a Data Engineer Really Do?

If data is the new oil, data engineers are the ones laying the pipelines to extract, refine, and deliver it where it's needed.

But this isn’t just about moving data from Point A to Point B. A data engineer’s job is to build the infrastructure that ensures data is available, accurate, timely, and scalable across the entire organization.

Here’s what that looks like in real-world terms:

Core Responsibilities of a Data Engineer

  • Designing and building data pipelines: From ingesting raw data from APIs, logs, or transactional systems to loading it into a cloud warehouse.
  • Ensuring data quality and governance: Detecting duplicates, managing missing data, enforcing data validation rules.
  • Developing ETL/ELT workflows: Automating how data is extracted, transformed, and stored for use by analysts and data scientists.
  • Maintaining infrastructure: Managing cloud platforms, orchestrating workflows with tools like Airflow, and ensuring pipelines run efficiently.
  • Collaborating across teams: Working with analysts, ML engineers, product managers, and business teams to ensure the right data is delivered in the right format.

Real-World Data Engineering Example: Fraud Detection Pipeline

Let’s say you work at a fintech startup.

Your task is to build a fraud detection pipeline that monitors thousands of transactions in real time. Here’s what you’d typically do:

  • Stream transactions using Apache Kafka
  • Clean and enrich data using Apache Spark
  • Push it into a cloud warehouse like Snowflake
  • Trigger alerts via APIs when suspicious activity is detected

All of this happens in seconds and it’s the data engineer who makes it possible.

How Data Engineering Has Evolved Beyond ETL in 2025

Not anymore.

While ETL (Extract, Transform, Load) is still a core part of data engineering, the role has evolved far beyond running scheduled SQL jobs. In 2025, data engineers are expected to build scalable, real-time, cloud-native pipelines that go way beyond basic data movement.

What’s Changed?

  • From ETL to ELT: Transformations now happen inside cloud warehouses using tools like DBT.
  • From Batch to Real-Time: Event streaming with Kafka, Flink, and Spark Streaming is becoming the norm.
  • From Manual to Orchestrated: Workflows are managed with tools like Airflow and Dagster.
  • From Static to Dynamic: Modern data pipelines are version-controlled, tested, and deployed like software, think CI/CD for data.

Real-World Example

Building a fraud detection pipeline isn’t just running ETL, it’s streaming transactions in real-time, cleaning data on the fly, and triggering alerts in milliseconds.

What Tools Do Data Engineers Use in 2025?

Modern data engineers don’t just know how to code, they know how to assemble systems using the right tools across the stack. Here's a streamlined view of the most essential tools you’ll need in 2025:

Core Tool Categories

1. Programming & Querying

  • Python – Scripting, automation, APIs
  • SQL – Querying structured data
  • Git – Version control for pipeline code

2. Orchestration & Workflow Management

  • Apache Airflow, Dagster – Schedule and monitor complex pipelines

3. Data Processing & Modeling

  • Apache Spark – Big data processing
  • DBT – SQL-based data transformations
  • Pandas – Lightweight data wrangling

4. Real-Time Streaming

  • Apache Kafka, Flink – Event-driven pipelines

5. Cloud Platforms

  • Azure, GCP, AWS – Storage, compute, managed services
  • BigQuery, Redshift, Snowflake – Cloud data warehouses

6. Storage & Lakes

  • Delta Lake, S3, Parquet – Scalable storage formats for semi-structured data

Who Should Become a Data Engineer?

Data engineering isn’t just for computer science grads or backend developers. If you enjoy problem-solving, working with systems, and thinking about how data flows at scale, this career path might be a perfect fit.

Ideal for You If You:

  • Like writing clean, efficient code (Python, SQL)
  • Enjoy structuring messy, raw data into usable pipelines
  • Prefer infrastructure over visuals (dashboards aren’t your thing)
  • Want to work at the intersection of software engineering, data, and cloud

You Don’t Need:

  • A data science background
  • Advanced mathematics or machine learning expertise
  • A CS degree (though it helps) many data engineers come from IT, analytics, or even non-tech fields

Industries Hiring Data Engineers in 2025:

  • Fintech: real-time transaction tracking
  • Retail & eCommerce: inventory + recommendation engines
  • Healthcare: patient record pipelines
  • SaaS/Analytics: backend systems for AI products

Explore More: Data Engineer Roadmap

Do Data Engineers Need Coding, Math, or Excel?

Yes to Coding

You must know Python and SQL. These are the foundations of all data workflows, whether you're building ETL pipelines or managing data models.

Math? Just Enough

You don’t need advanced statistics or ML. What matters is logical thinking, understanding data types, and basic arithmetic operations for transformations.

Excel? Occasionally

While not a core tool, Excel can help with:

  • Prototyping transformations
  • Reviewing small datasets
  • Collaborating with non-technical teams

Data Engineering vs. Data Science vs. Data Analyst

These roles may overlap, but their focus, tools, and outcomes are very different.

Role What They Do Primary Tools End Output
Data Engineer Builds pipelines & infrastructure Airflow, Spark, Kafka, SQL, Python Clean, structured, scalable data
Data Scientist Builds models & predictions Python, ML libraries, Jupyter, SQL Predictive insights, models
Data Analyst Analyzes data & creates reports SQL, Excel, Power BI, Tableau Dashboards, business insights

In short:

  • Engineers build the foundation
  • Scientists build models on that foundation
  • Analysts translate data into decisions

Coming up next: “Is Data Engineering a Good Career in 2025?” Shall I proceed?

Is Data Engineering a Good Career in 2025?

Absolutely. Data engineering is one of the fastest-growing tech roles, driven by the explosion of cloud adoption, AI pipelines, and real-time analytics.

Why It’s in Demand:

  • Every company, whether in fintech, eCommerce, or healthcare needs clean, reliable data.
  • AI/ML can’t function without scalable, production-grade pipelines.
  • The rise of real-time data (Kafka, Flink) has made DE essential, not optional.

Salary Outlook (India):

  • Entry-level: ₹8–10 LPA
  • Mid-career: ₹15–24 LPA
  • Senior/Cloud DE roles: ₹25–35 LPA+

High-Growth Sectors Hiring Data Engineers:

  • Fintechs like Razorpay, Paytm
  • SaaS companies like Freshworks, Zoho
  • Consulting giants like TCS, Infosys, Accenture
  • Startups building AI or analytics products

Also Read: 10 Best Data Engineering Courses

How to Become a Data Engineer (Step-by-Step)

You don’t need to master everything at once. Follow this staged roadmap to become deployment-ready:

  1. Learn Python & SQL – Foundations of scripting and querying
  2. Understand Databases – Relational (PostgreSQL) + NoSQL basics
  3. Master ETL/ELT Tools – Airflow, DBT, Spark
  4. Get Cloud-Savvy – Pick one: Azure, GCP, or AWS
  5. Build Real Projects – GitHub portfolio is non-negotiable
  6. Get Certified & Apply – PG Diplomas, DP-203, or GCP certs

tl;dr – Quick Summary

  • Data engineering is about building the infrastructure that powers analytics and AI.
  • It's more than ETL. It includes real-time pipelines, orchestration, cloud integration, and data governance.
  • Must-have skills: Python, SQL, Airflow, Spark, Azure/GCP, DBT, Kafka.
  • Career-ready roadmap: Learn core tools → Build real projects → Get certified → Apply.
  • Ideal for: Coders, backend thinkers, system optimizers, not just data scientists.
  • High demand across industries like fintech, SaaS, healthcare, and eCommerce.
  • Programs like Futurense x IIT Jodhpur PGD/M.Tech offer the most structured, job-aligned entry into the field.
Share this post

What is Data Engineering?

January 12, 2025
8 Min

What do UPI payments, Netflix recommendations, and fraud detection systems have in common?

They run on fast, scalable data pipelines—built by data engineers, not analysts or scientists.

Data engineering is the backbone of every AI, analytics, and cloud system in 2025.

This post breaks down what data engineers actually do, the tools they use, and how you can become one.

Whether you're a fresher or switching from IT, you'll leave with clarity—and a path to follow.

Know More: Data Engineers vs Data Sceintists

What Does a Data Engineer Really Do?

If data is the new oil, data engineers are the ones laying the pipelines to extract, refine, and deliver it where it's needed.

But this isn’t just about moving data from Point A to Point B. A data engineer’s job is to build the infrastructure that ensures data is available, accurate, timely, and scalable across the entire organization.

Here’s what that looks like in real-world terms:

Core Responsibilities of a Data Engineer

  • Designing and building data pipelines: From ingesting raw data from APIs, logs, or transactional systems to loading it into a cloud warehouse.
  • Ensuring data quality and governance: Detecting duplicates, managing missing data, enforcing data validation rules.
  • Developing ETL/ELT workflows: Automating how data is extracted, transformed, and stored for use by analysts and data scientists.
  • Maintaining infrastructure: Managing cloud platforms, orchestrating workflows with tools like Airflow, and ensuring pipelines run efficiently.
  • Collaborating across teams: Working with analysts, ML engineers, product managers, and business teams to ensure the right data is delivered in the right format.

Real-World Data Engineering Example: Fraud Detection Pipeline

Let’s say you work at a fintech startup.

Your task is to build a fraud detection pipeline that monitors thousands of transactions in real time. Here’s what you’d typically do:

  • Stream transactions using Apache Kafka
  • Clean and enrich data using Apache Spark
  • Push it into a cloud warehouse like Snowflake
  • Trigger alerts via APIs when suspicious activity is detected

All of this happens in seconds and it’s the data engineer who makes it possible.

How Data Engineering Has Evolved Beyond ETL in 2025

Not anymore.

While ETL (Extract, Transform, Load) is still a core part of data engineering, the role has evolved far beyond running scheduled SQL jobs. In 2025, data engineers are expected to build scalable, real-time, cloud-native pipelines that go way beyond basic data movement.

What’s Changed?

  • From ETL to ELT: Transformations now happen inside cloud warehouses using tools like DBT.
  • From Batch to Real-Time: Event streaming with Kafka, Flink, and Spark Streaming is becoming the norm.
  • From Manual to Orchestrated: Workflows are managed with tools like Airflow and Dagster.
  • From Static to Dynamic: Modern data pipelines are version-controlled, tested, and deployed like software, think CI/CD for data.

Real-World Example

Building a fraud detection pipeline isn’t just running ETL, it’s streaming transactions in real-time, cleaning data on the fly, and triggering alerts in milliseconds.

What Tools Do Data Engineers Use in 2025?

Modern data engineers don’t just know how to code, they know how to assemble systems using the right tools across the stack. Here's a streamlined view of the most essential tools you’ll need in 2025:

Core Tool Categories

1. Programming & Querying

  • Python – Scripting, automation, APIs
  • SQL – Querying structured data
  • Git – Version control for pipeline code

2. Orchestration & Workflow Management

  • Apache Airflow, Dagster – Schedule and monitor complex pipelines

3. Data Processing & Modeling

  • Apache Spark – Big data processing
  • DBT – SQL-based data transformations
  • Pandas – Lightweight data wrangling

4. Real-Time Streaming

  • Apache Kafka, Flink – Event-driven pipelines

5. Cloud Platforms

  • Azure, GCP, AWS – Storage, compute, managed services
  • BigQuery, Redshift, Snowflake – Cloud data warehouses

6. Storage & Lakes

  • Delta Lake, S3, Parquet – Scalable storage formats for semi-structured data

Who Should Become a Data Engineer?

Data engineering isn’t just for computer science grads or backend developers. If you enjoy problem-solving, working with systems, and thinking about how data flows at scale, this career path might be a perfect fit.

Ideal for You If You:

  • Like writing clean, efficient code (Python, SQL)
  • Enjoy structuring messy, raw data into usable pipelines
  • Prefer infrastructure over visuals (dashboards aren’t your thing)
  • Want to work at the intersection of software engineering, data, and cloud

You Don’t Need:

  • A data science background
  • Advanced mathematics or machine learning expertise
  • A CS degree (though it helps) many data engineers come from IT, analytics, or even non-tech fields

Industries Hiring Data Engineers in 2025:

  • Fintech: real-time transaction tracking
  • Retail & eCommerce: inventory + recommendation engines
  • Healthcare: patient record pipelines
  • SaaS/Analytics: backend systems for AI products

Explore More: Data Engineer Roadmap

Do Data Engineers Need Coding, Math, or Excel?

Yes to Coding

You must know Python and SQL. These are the foundations of all data workflows, whether you're building ETL pipelines or managing data models.

Math? Just Enough

You don’t need advanced statistics or ML. What matters is logical thinking, understanding data types, and basic arithmetic operations for transformations.

Excel? Occasionally

While not a core tool, Excel can help with:

  • Prototyping transformations
  • Reviewing small datasets
  • Collaborating with non-technical teams

Data Engineering vs. Data Science vs. Data Analyst

These roles may overlap, but their focus, tools, and outcomes are very different.

Role What They Do Primary Tools End Output
Data Engineer Builds pipelines & infrastructure Airflow, Spark, Kafka, SQL, Python Clean, structured, scalable data
Data Scientist Builds models & predictions Python, ML libraries, Jupyter, SQL Predictive insights, models
Data Analyst Analyzes data & creates reports SQL, Excel, Power BI, Tableau Dashboards, business insights

In short:

  • Engineers build the foundation
  • Scientists build models on that foundation
  • Analysts translate data into decisions

Coming up next: “Is Data Engineering a Good Career in 2025?” Shall I proceed?

Is Data Engineering a Good Career in 2025?

Absolutely. Data engineering is one of the fastest-growing tech roles, driven by the explosion of cloud adoption, AI pipelines, and real-time analytics.

Why It’s in Demand:

  • Every company, whether in fintech, eCommerce, or healthcare needs clean, reliable data.
  • AI/ML can’t function without scalable, production-grade pipelines.
  • The rise of real-time data (Kafka, Flink) has made DE essential, not optional.

Salary Outlook (India):

  • Entry-level: ₹8–10 LPA
  • Mid-career: ₹15–24 LPA
  • Senior/Cloud DE roles: ₹25–35 LPA+

High-Growth Sectors Hiring Data Engineers:

  • Fintechs like Razorpay, Paytm
  • SaaS companies like Freshworks, Zoho
  • Consulting giants like TCS, Infosys, Accenture
  • Startups building AI or analytics products

Also Read: 10 Best Data Engineering Courses

How to Become a Data Engineer (Step-by-Step)

You don’t need to master everything at once. Follow this staged roadmap to become deployment-ready:

  1. Learn Python & SQL – Foundations of scripting and querying
  2. Understand Databases – Relational (PostgreSQL) + NoSQL basics
  3. Master ETL/ELT Tools – Airflow, DBT, Spark
  4. Get Cloud-Savvy – Pick one: Azure, GCP, or AWS
  5. Build Real Projects – GitHub portfolio is non-negotiable
  6. Get Certified & Apply – PG Diplomas, DP-203, or GCP certs

tl;dr – Quick Summary

  • Data engineering is about building the infrastructure that powers analytics and AI.
  • It's more than ETL. It includes real-time pipelines, orchestration, cloud integration, and data governance.
  • Must-have skills: Python, SQL, Airflow, Spark, Azure/GCP, DBT, Kafka.
  • Career-ready roadmap: Learn core tools → Build real projects → Get certified → Apply.
  • Ideal for: Coders, backend thinkers, system optimizers, not just data scientists.
  • High demand across industries like fintech, SaaS, healthcare, and eCommerce.
  • Programs like Futurense x IIT Jodhpur PGD/M.Tech offer the most structured, job-aligned entry into the field.
Share this post

FAQ's?

1. What is meant by data engineering?
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Data engineering is the process of designing, building, and maintaining systems that collect, clean, and deliver data for analytics, AI, and business use.

2. Is data engineering an IT job?
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Yes, it’s a core IT role, focused on backend data infrastructure, not end-user apps or visuals.

3. Can a fresher become a data engineer?
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Absolutely. With the right training in Python, SQL, and data tools, freshers can land junior roles, especially through programs like the Futurense x IIT Jodhpur PG Diploma.

4. Does data engineering require coding?
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Yes. Python and SQL are essential. Other scripting (like Bash) and version control (Git) are also useful.

5. What is the syllabus of data engineering?
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Core topics include:

  • Python & SQL
  • Data modeling
  • ETL/ELT pipelines
  • Orchestration (Airflow)
  • Cloud platforms (Azure, GCP, AWS)
  • Real-time streaming (Kafka)
6. Is Python required for data engineering?
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Yes, Python is a must for scripting, data transformations, and tool integration.

7. Is data engineering a good career?
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Yes. It offers high salaries, consistent demand, and relevance across industries especially in AI, cloud, and analytics-first companies.

8. What certification is best for data engineers?
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Top certifications in 2025 include:

  • Futurense x IIT Jodhpur PG Diploma/M.Tech
  • Microsoft DP-203 (Azure)
  • Google Cloud Data Engineer (GCP)
9. Is data engineering hard or easy?
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It’s challenging but learnable. With the right roadmap, many learners transition within 4–6 months.

10. Do companies need data engineers?
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Yes, more than ever. Every data-first business needs engineers to move, clean, and serve data reliably at scale.

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