Revenue for Big Data and Analytics (BDA) solutions in Asia Pacific is forecast to increase 12 percent to $22.6 billion in 2020, according to IDC.
This is mainly due to decision-makers increasing confidence that investments in data and analytics will be necessary in achieving digital and business resiliency amid the pandemic. IDC expects big data technology and service-related revenues to grow with a five-year CAGR of 15.6 percent over the forecast period of 2019-24.
Approximately 74 percent of enterprises intend to keep investments in Big Data and Analytics solutions at the same level or to increase next year. This is because analytics solutions are an essential business need to enable digital trust and resiliency during the COVID-19 crisis,” says Ritika Srivastava, associate market analyst at IDC Asia Pacific.
To optimize the Big Data and Analytics investments, enterprises are moving towards public cloud deployments which are experiencing a growth of 32 percent during the forecast period (2019-2024).
Banking is a top vertical of the Big Data and Analytics market in 2020 and is expected to grow at a CAGR of 15.6 percent from 2019 to 2024.
Telecommunications is the second largest vertical that reaps substantial benefits from data analytics – specifically in the context of discovering critical insights related to customers, sales, and marketing.
Both banking and telecommunications industries contribute to nearly one third of the BDA spend, amounting to $6.1 billion in 2020.
State/Local Government and Healthcare Providers are the industries which are expected to register the highest CAGR, with 18.8 percent and 17.7 percent respectively over the forecast period (2019-2024).
China continues to be the biggest market in the Asia Pacific for Big Data and Analytics solutions in 2020. Banking and State and local government are the two leading drivers of Chinese market for BDA related purchases – accounts for one fourth of the market in 2020.
Moreover, countries like Vietnam and Malaysia that are in the nascent stage of adoption are expected to grow fastest in excess of 15 percent CAGR due to increased BDA investments by many startups and businesses.
“Many of the operational changes triggered by the pandemic will stay and create a bigger demand for data and analytics technologies in the coming years for countries and industries to compete in the digital economy,” says Jessie Danqing Cai, senior research manager for Big Data and Analytics Research at IDC Asia Pacific.