According to IDC, global big data and business analytics (BDA) revenues will reach $189.1 billion in 2019-- a 12% increase over 2018, before revenues reach $274.3bn by 2022 with a CAGR of 13.2% for the 5-year forecast period.
"Digital transformation is a key driver of BDA spending with executive-level initiatives resulting in deep assessments of current business practices and demands for better, faster, and more comprehensive access to data and related analytics and insights," the analyst says. "Enterprises are rearchitecting to meet these demands and investing in modern technology that will enable them to innovate and remain competitive. BDA solutions are at the heart of many of these investments."
IT services are the largest BDA market category in 2019 with revenues of $77.5bn. Following are hardware purchases ($23.7bn) and business services ($20.7bn). Together IT and business services account for over 50% of BDA revenues throughout 2018-2022, and are among the categories with fastest growth. BDA-related software revenues total $67.2bn in 2019, with end-user query, reporting and analysis tools ($13.6bn) and relational data warehouse management tools ($12.1bn) as the two largest software categories. The BDA technology categories seeing the fastest revenue growth are non-relational analytic data stores (34% CAGR) and cognitive/AI software platforms (31.4% CAGR).
In terms of deployment, over 70% of 2019 BDA software revenues are going towards on-premises solutions. However, BDA software delivered via public cloud should see "very strong" CAGR of 32.3% over the 5-year forecast period, and will represent over 44% of the total BDA software opportunity in 2022. As IDC puts it, the cloud helps mitigate some of the hurdles involved with the deployment of BDA technologies, and professional services, personal and consumer services and media ripe for cloud-based BDA adoption.
The industries currently making the biggest investments in BDA are banking, discrete manufacturing, professional services, process manufacturing and federal/central government. Combined, the 5 industries make nearly 50% ($91.4bn) of global BDA revenues in 2019. The industries delivering the fastest BDA growth are securities and investment services (15.3% CAGR) and retail (15.2% CAGR), and such strong growth will push retail as the 5th largest industry in 2022.
From a company size perspective, very large businesses (with over 1000 employees) will make nearly 66% of all BDA revenues throughout the forecast. SMBs are also a significant contributor, with nearly 25% of global revenues coming from companies with less than 500 employees.
