Big Data and Business Analytics Solutions: The Growing Revenues
Big data has grown significantly in recent years, reflecting the willingness of companies and governments to own this type of infrastructure. According to IDC forecasts, the annual revenues for Big Data and Business Analytics solutions (BDA) will reach $189.1 billion in 2019, an increase of approximately 12% over This double-digit annual revenue growth in this area is expected to continue until 2022.
According to some, these figures show that even though these technologies may be difficult to deploy for the protagonists, the exponential growth of data does not other choices than investing in solutions that can enable mass storage and data analysis.
Big data technologies can be difficult to deploy and manage in a traditional on-premise environment. However, the agility and flexibility of the cloud combined with the incredible information provided by Big Data and Business Analytics solutions offer a double business advantage that helps accelerate their adoption.
As IDC’s forecasts have shown in 2018, the sectors that will make the largest investments in Big Data and business analysis solutions are banks, discrete manufacturing, professional services, process manufacturing, and federal and central government. Together, these five industries will account for nearly half ($91.4 billion) of this year’s global BDA revenues. The fastest growing sectors in BDA solutions are securities and investment services (15.3%) and retail (15.2%). The strong growth in retail trade will allow it to outpace the federal / central government as the fifth sector in 2022.
In terms of deployment, more than 70% of BDA software revenues in 2019 will go to on-site solutions. However, revenues from BDA software delivered via the public cloud will experience a very strong growth compared to the five-year forecasts (2017-2022) with 32.3% of the compound annual growth rate (CAGR) and will represent more than 44% of the total.
For all of the opportunities offered by BDA software in 2022, digital transformation is a key factor in BDA spend. Branch-level initiatives provide a thorough assessment of current business practices and demand for better, faster and more complete access to data and their analyzes and perspectives. Companies are reorganizing themselves to meet these demands and investing in modern technologies that will enable them to innovate and stay competitive. BDA solutions are at the heart of many of these investments.
IT services will account for a large portion of the BDA market in 2019 with approximately $ 77.5 billion. Computer hardware purchases will follow for $ 23.7 billion and business services for $ 20.7 billion. Together, IT and business services will account for more than half of BDA’s revenues throughout the forecast period and will be among the fastest growing categories.
BDA-related software revenue will reach $ 67.2 billion by 2019. End-user query, reporting, and analysis tools will grow to $ 13.6 billion and relational database management tools will reach $ 13 billion.
According to these forecasts, IDC estimates that the United States, like last year, will be by far the largest country market with revenues of about 100 billion US dollars. Japan and the United Kingdom will generate revenues of $ 9.6 billion and $ 9.2 billion, respectively, followed by China ($ 8.6 billion) and Germany ($ 7.9 billion). That said, the fastest growth in the BDA market will be in Argentina and Vietnam with a CAGR over the study period (2017-2022) of 23.1% and 19.4%, respectively. China will post the third fastest growth rate with a CAGR of 19.2%, which will enable it to become the second largest in the world in terms of revenue from the BDA market by the year 2022.
In terms of company size, very large companies (those with more than 1,000 employees) will account for nearly two-thirds of all BDA revenues throughout the forecast. Small and medium-sized enterprises (SMEs) will also make a significant contribution to BDA’s revenues with almost a quarter of global revenues coming from companies with less than 500 employees.
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Good post! Thanks!