Big data, analytics to grow by US$41.9bn by 2024
Revenues for big data and analytics (BDA) are forecast to have reached US$22.6 billion in 2020, with a YoY growth of 12% over 2019 in the Asia–Pacific.
IDC believes this is mainly due to decision-makers’ increasing confidence that investments in data and analytics will be necessary to achieve digital and business resiliency amid the pandemic. The company predicts that big data technology and service-related revenues will grow with a five-year CAGR of 15.6% from 2019–24.
Ritika Srivastava, Associate Market Analyst at IDC Asia/Pacific, said the latest COVID-19 survey revealed that 74% of enterprises intend to keep investments in BDA solutions at the same level or to increase next year.
“This is because analytics solutions are an essential business need to enable digital trust and resiliency during the COVID-19 crisis,” said Srivastava.
Although COVID-19 has led to a drop in ICT investments, technology resilience has helped businesses fight the impact of the pandemic by obtaining valuable insights, enhancing business productivity, fulfilling client promises, identifying fraud and minimising costs. To optimise BDA investments, enterprises are moving towards public cloud deployments, which are experiencing a growth of 32% during the forecast period (2019–2024).
China continues to be the biggest market in the Asia–Pacific for BDA solutions in 2020, with banking and state and local government the two leading drivers of the market for BDA-related purchases. Countries like Vietnam and Malaysia that are in the nascent stage of adoption are expected to grow fastest, in excess of 15% CAGR, due to increased BDA investments by start-ups and businesses.
Banking is a top vertical of the overall BDA market in 2020, and is expected to grow at a CAGR of 15.6% from 2019–2024. The second largest vertical of the BDA market is telecommunications, specifically in the context of discovering critical insights related to customers, sales and marketing. Both industries contribute to nearly one-third of the BDA spend, reaching US$6.1 billion in 2020. State/local government and healthcare providers are the industries which are expected to register the highest CAGR, with 18.8% and 17.7% respectively from 2019–2024.
From a technology standpoint, services will lead BDA solution spending, with US$10 billion spend in 2020, led by IT services throughout the forecast time period, with a CAGR of 17.2%. Services spend is followed by software-related spent in APeJ (Asia–Pacific excluding Japan). End-user query, reporting and analysis tools, along with recreational data warehouse management tools, are the two largest categories in terms of share that are driving software investments in 2020, while servers continue to lead the hardware segment.
AI software platforms and non-relational analytic data stores are the two fastest growing technologies, driven by the construction and resource industry. These industries are now focusing on better decision-making by utilising data on budgets, drawings, schedules and data generated in the fields.
“The pandemic has created more urgency for organisations to have data-driven means to support operational resilience and revenue generation. IDC predicts many of the operational changes triggered by the pandemic will stay and create a bigger demand for data and analytics technologies in the coming years for countries and industries to compete in the digital economy,” said Jessie Danqing Cai, Senior Research Manager for Big Data and Analytics Research at IDC Asia/Pacific.
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