According to IDC, W. European Big Data and business analytics (BDA) revenues will reach $34.1 billion in 2017-- a 10.4% increase over 2016, before reaching over $43bn by 2020 with a CAGR of 9.2%.
"Digital disruption is forcing many organizations to reevaluate their information needs, as the ability to react with greater speed and efficiency becomes critical for competitive businesses," the analyst says. "European organisations currently active in Big Data programs are now focusing on scaling up these efforts and propagating use as they seek to learn and internalize best practices. The shift toward cloud deployments, greater levels of automation, and lower-cost storage and data processing platforms are helping to reduce the barriers to driving value and impact from Big Data at scale."
The biggest investors in BDA solutions over the forecast period are banking, discrete manufacturing and process manufacturing, accounting for over 30% of total IT spending on BDA solutions by 2020. The financial sector and manufacturing take the biggest slice of the spending pie, with finance accounting for 21.5% while manufacturing takes 21.2%. However the industries showing the highest growth over the forecast period are professional services, telecommunications, utilities and retail.
"The investments in the finance sector-- banking, insurance, and securities and investment services-- apply across a wide range of use cases within the industry," IDC adds. "Examples include optimizing and enhancing the customer journey for these institutions, together with fraud detection and risk management, and these use cases drive investment in the industry. However, the strong manufacturing base in W. Europe will also invest in Big Data and analytics solutions for more effective logistics management and enhanced analysis of operations related data, both of which contribute significantly to improved cost management, and hence profitability."
Very large businesses (1000+ employees) account for over 60% of all BDA spending throughout the forecast, and IDC expects such companies to pass the $25bn level by 2020. Spending on BDA by companies with fewer than 10 employees will be less than 1% of the total, even if such companies account for over 90% of all companies in W. Europeans. IDC says such companies need "expertise and time" to evaluate and adopt Big Data solutions, marking an opportunity for solution providers to guide them throughout the implementation of such technology.