Tuesday, October 4, 2016

Big data, business analytics to hit $203 billion by 2020, says IDC report

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By   | October 3, 2016, 9:41 AM PST
A spending guide by IDC forecasts that the big data market will grow at a compound annual growth rate of 11.7% though 2020, led by five distinct industries.




The big data and business analytics (BDA) market is predicted to hit $203 billion in the year 2020, up from $130.1 billion in 2016, according to research firm IDC. The findings, released Monday, come from IDC's Worldwide Semiannual Big Data and Analytics Spending Guide.
"The availability of data, a new generation of technology, and a cultural shift toward data-driven decision making continue to drive demand for big data and analytics technology and services," said Dan Vesset, group vice president of analytics and information management at IDC, in a press release.
One of the most interesting takeaways from the report were the
industries that are driving the growth of the market. According to the report, almost 50% of the development is currently being driven by banking, discrete manufacturing, process manufacturing, federal/central government, and professional services. And these industries will continue to drive market growth until 2020, the report said.
SEE: The Power of IoT and Big Data (Tech Pro Research)
Individually, banking took the top spot in terms of BDA investment, putting almost $17 billion into the technologies in 2016. IDC's report also projected that banking will see the fastest growth in its BDA spending as well. The report looked at 18 industries, and 16 of those are predicted to "experience double-digit CAGRs from 2015-2020," it said.
"In our end-user research, respondents from organizations in these industries are placing a high priority on BDA initiatives over other technology investments. Within banking, many of these efforts are focused on risk management, fraud prevention and compliance related activities," Jessica Goepfert, program director for customer insights and analysis, said in a press release.
In terms of company size, large organizations with more than 500 employees will be driving the growth of the market as well. IDC's report forecasted that these businesses will bring revenues greater than $154 billion in 2020. Although, it did note that SMBs will play an important role as well.
Companies in the US will account for more than half of the BDA revenues. IDC also projected that the market for these solutions in the US alone will reach $95 billion by 2020, followed by Western Europe and then by the Asia-Pacific region.
Spending on services will experience the highest growth, according to the report, and software investments will see strong growth as well. IDC's guide projects software investments to get up to $60 billion in 2020, while hardware investments will hit $29.9 billion at the same time.
The rise in big data is pushing the demand for NoSQL databases as well, as noted in a recent report from Forrester Research.

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