FRAMINGHAM, Mass.--(EON: Enhanced Online News)--A new update to the Worldwide Semiannual Big Data and Analytics Spending Guide from International Data Corporation (IDC) forecasts worldwide revenues for big data and business analytics (BDA) will reach $150.8 billion in 2017, an increase of 12.4% over 2016. Commercial purchases of BDA-related hardware, software, and services are expected to maintain a compound annual growth rate (CAGR) of 11.9% through 2020 when revenues will be more than $210 billion.
“BDA as an enabler of decision support and decision automation is now firmly on the radar of top executives. This category of solutions is also one of the key pillars of enabling digital transformation efforts across industries and business processes globally.”
"After years of traversing the adoption S-curve, big data and business analytics solutions have finally hit mainstream," said Dan Vesset, group vice president, Analytics and Information Management. "BDA as an enabler of decision support and decision automation is now firmly on the radar of top executives. This category of solutions is also one of the key pillars of enabling digital transformation efforts across industries and business processes globally."
The industries that will be making the largest investments in big data and business analytics solutions in 2017 are banking, discrete manufacturing, process manufacturing, federal/central government, and professional services. Combined, these five industries will spend $72.4 billion on BDA solutions this year. They will also be the largest spenders in 2020 when their total investment will be $101.5 billion. The industries that will experience the fastest growth in BDA spending are banking (13.3% CAGR) and healthcare, insurance, securities and investment services, and telecommunications, each with a CAGR of 12.8%. It should be noted, however, that all but two of the industries covered in IDC's BDA Spending Guide will experience double-digit CAGRs from 2015-2020.
"The three industries that comprise the financial services sector – banking, insurance, and securities and investment services – all show great promise for future spending on big data and business analytics. This technology can be applied across key use cases throughout these financial institutions from fraud detection and risk management to enhancing and optimizing the customer's journey," said Jessica Goepfert, program director, Customer Insights and Analysis.
"Outside of financial services, several other industries present compelling opportunities," Goepfert added. "Within telecommunications, for instance, big data and analytics are applied to help retain and gain new customers as well as for network capacity planning and optimization. Meanwhile, the media industry has been plagued by massive disruption in recent years thanks to the digitization and massive consumption of content. Here, big data and analytics can help firms make sense of and monitor their readers' habits, preferences, and sentiment. Vendors targeting the big data and analytics opportunity would be well-served to craft their messages around these industry priorities, pain points, and use cases."
BDA technology investments will be led by IT and business services, which together will account for more than half of all big data and business analytics revenue in 2017 and throughout the forecast. Services-related spending will also experience the strongest growth with a five-year CAGR of 14.4%. Software investments will grow to more than $70 billion in 2020, led by purchases of End-User Query, Reporting and Analysis Tools and Data Warehouse Management Tools. Non-relational Analytic Data Store and Cognitive Software Platform will experience strong growth (CAGRs of 38.6% and 23.3% respectively) as companies expand their big data and analytic activities. BDA-related purchases of servers and storage will grow at a CAGR of 9.0%, reaching $29.6 billion in 2020.
From a company size perspective, very large businesses (those with more than 1,000 employees) will be responsible for more than 60% of all BDA spending throughout the forecast and IDC expects this group of companies to pass the $100 billion level in 2018. Small and medium businesses (SMBs) will also be a significant contributor to BDA spending with nearly a quarter of the worldwide revenues coming from companies with fewer than 500 employees.
On a geographic basis, the United States will be the largest market for big data and business analytics solutions with spending forecast to reach $78.8 billion in 2017. The second largest region will be Western Europe with spending of $34.1 billion this year, followed by Asia/Pacific (excluding Japan) at $13.6 billion. Latin America and APeJ will experience the fastest growth in BDA spending with five-year CAGRs of 16.2% and 14.4% respectively.
The Worldwide Semiannual Big Data and Analytics Spending Guide is designed to address the needs of organizations assessing the big data and business analytics opportunity by geography, industry, and company size. The Spending Guide provides subscribers with revenue projections for 19 technology and service categories across 19 industries, five company size bands, and 53 countries. Unlike any other research in the industry, the comprehensive Spending Guide was designed to help IT decision makers to clearly understand the industry-specific scope and direction of big data and business analytics opportunity today and over the next five years.
About IDC Spending Guides
IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.
For more information about IDC's Spending Guides, please contact Monika Kumar at firstname.lastname@example.org.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of IDG, the world's leading technology media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.