According to IDC, global big data and business analytics (BDA) solution revenues will reach $260 billion in 2020 with a CAGR of 11.9% over the 2017-2022 period. Revenues for 2018 should total $166bn, an 11.7% increase over 2017.
The industries driving such revenues are banking, discrete manufacturing, process manufacturing, professional services and federal/central government. Combined, these 5 industries account for nearly 50% ($81bn) of global 2018 BDA revenues. The 5 industries are also the largest BDA opportunity in 2022, with a total investment reaching $129bn. The industries with the fastest BDA revenue growth are retail (13.5% CAGR), banking (13.2% CAGR) and professional services (12.9% CAGR).
"At a high level, organisations are turning to BDA solutions to navigate the convergence of their physical and digital worlds," IDC says. "This transformation takes a different shape depending on the industry. For instance, within banking and retail-- two of the fastest growth areas for Big Data BDA-– investments are all about managing and reinvigorating the customer experience. Whereas in manufacturing, firms are reinventing themselves to essentially be high tech companies, using their products as a platform to enable and deliver digital services."
Over 50% of BDA revenues should go to IT and business services over the forecast period. Service-related revenues will be among the fastest growing areas of opportunity, with a combined CAGR of 13.2%. Software investments will reach $90bn in 2022, thanks to purcheases of End-User Query, Reporting, and Analysis Tools and Relational Data Warehouse Management Tools. The two fastest growing BDA technology categories are Cognitive/AI Software Platforms (36.5% CAGR) and Non-relational Analytic Data Stores (30.3% CAGR). BDA-related acquisitions of servers and storage are to grow at a 7.3% CAGR, reaching $27bn in 2022.
W. Europe is the 2nd largest geographc market, with 2018 revenues reaching $35bn. The biggest is, of course, the US, with BDA revenues worth $88bn. In 3rd place is Asia/Pacific with $32bn. Japan is the 2nd bigest country for BDA investments in 2018, followed by the UK, Germany and China.
In terms of company size, very large businesses (oer 1000 employees) make over 66% of the BDA opportunity throughout the forecast, surpassing $100bn in 2018. SMBs are also a significant contributor, with nearly 25% of global revenues coming from companies with less than 500 employees.
