The problem with the Data Scientist market is that Data Scientist is a fuzzy definition. It's pretty clear what skillset makes a good software engineer, but nearly anyone can call themselves a Data Scientist, even if they just clicking around in Excel. This has resulted in these bootcamps and certifications that "make you a Data Scientist in 14 days" - now everyone with minimal qualifications can apply for Data Scientist roles. That's why the market appears so crowded, and it is. People thought it's an easy and quick way to a high paying job, resulting in a flood of low-quality applicants for these positions.

There is still a lot of room for people who have strong engineering AND data engineering/ML/math/statistics skills. But then don't call yourself Data Scientist because that puts you into the same low-barrier camp as all the others. From my own experience it's a clear resume red flag: Almost anyone that market themselves as primarily a "Data Scientist" has little technical skills.