Businesses are increasingly turning to big data and business analytics (BDA) solutions to support their digital transformation, according to new research from IDC.
The market intelligence and advisory firm forecasts steady growth in the market over the next few years, thanks to investment across a wide range of industries.
“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,” said Dan Vesset, group vice president for analytics and information management at IDC.
“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.”
Worldwide revenues for BDA solutions will rise to an estimated $189.1bn (£144.4bn) this year, up 12.0% from 2018. Growing at a compound annual rate of 13.2% between 2018 and 2022, revenues are forecast to reach $274.3bn (£209.5bn) at the end of the forecast period.
Five industries – banking, discrete manufacturing, professional services, process manufacturing, and federal/central government – are expected to account for nearly half ($91.4bn or £69.8bn) of worldwide BDA revenues this year. Meanwhile, securities & investment services and retail are anticipated to show the fastest growth.
Although more than 70% of BDA software revenues will go toward on-premises solutions this year, IDC believes that by 2022 BDA software delivered via the public cloud will account for at least 44% of the total spend.
“Big data technologies can be difficult to deploy and manage in a traditional, on premise environment,” explained Jessica Goepfert, programme vice president for customer insights and analysis at IDC. “Add to that the exponential growth of data and the complexity and cost of scaling these solutions, and one can envision the organisational challenges and headaches.”
Cloud can help mitigate some of these hurdles, Goepfert said: “Cloud’s promise of agility, scale, and flexibility combined with the incredible insights powered by BDA delivers a one-two punch of business benefits, which are helping to accelerate BDA adoption.”
Writing in our Next-generation connectivity report, Osborne Clarke partner John Buyers points out that connectivity is vital to the operation of networked devices that gather and process big data, and in turn power the analytics of AI. Download your copy of the report to read more!