The latest IDC report has revealed the spending on big data and business analytics solutions by enterprises.
Revenues for big data and business analytics solutions are forecast to grow at 12 percent to $189.1 billion this year, and will reach $274.3 billion by 2022.
“Digital transformation is a key driver of big data and business analytics spending with executive-level initiatives resulting in deep assessments of current business practices and demands for access to data and related analytics and insights,” said Dan Vesset, group vice president, Analytics and Information Management at IDC.
Banking, discrete manufacturing, professional services, process manufacturing, and federal / central government are currently making the largest investments in big data and business analytics solutions globally.
Five industries — banking, manufacturing, professional services, process manufacturing, and federal / central government — will account for $91.4 billion of big data and business analytics revenue this year.
Securities and investment services (15.3 percent CAGR) and retail (15.2 percent CAGR) will deliver the fastest growth in big data and business analytics market. Retail’s strong growth will enable it to move ahead of federal/central government as the fifth largest industry in 2022.
United States will be spending nearly $100 billion in big data and business analytics solutions this year.
Japan and the UK will generate big data and business analytics revenues of $9.6 billion and $9.2 billion respectively this year, followed by China ($8.6 billion) and Germany ($7.9 billion).
The global big data and business analytics market will achieve a five-year compound annual growth rate (CAGR) of 13.2 percent throughout the 2018-2022 forecast.
IT services will be the largest category of the BDA market in 2019 ($77.5 billion), followed by hardware purchases ($23.7 billion), and business services ($20.7 billion). Together, IT and business services will account for more than half of all big data and business analytics revenues.
BDA-related software revenues will be $67.2 billion in 2019, with end-user query, reporting, and analysis tools ($13.6 billion) and relational data warehouse management tools ($12.1 billion) being the two largest software categories.
More than 70 percent of big data and business analytics software revenues in 2019 will go toward on-premises solutions. Revenue for big data and business analytics software delivered via the public cloud will experience 32.3 percent CAGR over the five-year forecast and will represent more than 44 percent of the total BDA software opportunity in 2022.
Professional services, personal and consumer services, and media will be spending heavily on big data and business analytics solutions on cloud.