Big data and business analytics (BDA) revenue will grow 12.4 percent to $150.8 billion in 2017, said IDC.
Commercial purchases of BDA-related hardware, software, and services are expected to grow 11.9 percent CAGR through 2020 with revenues reaching more than $210 billion.
“BDA as an enabler of decision support and decision automation is on the radar of top executives. This category of solutions is also one of the key pillars of enabling digital transformation efforts across industries and business processes,” said Dan Vesset, group vice president, Analytics and Information Management at IDC.
Banking, discrete manufacturing, process manufacturing, federal / central government, and professional services will be making the largest investments in big data and business analytics solutions in 2017.
These five industries will spend $72.4 billion on BDA solutions this year. They will also be the largest spenders in 2020 with total investment of $101.5 billion. Banking (13.3 percent CAGR) and healthcare (12.8 percent CAGR), insurance (12.8 percent CAGR), securities and investment services (12.8 percent CAGR), and telecommunications (12.8 percent CAGR) will be the other top spenders.
Banking, insurance, and securities and investment services show great promise for future spending on big data and business analytics. This technology can be applied across key use cases throughout these financial institutions from fraud detection and risk management to enhancing and optimizing the customer’s journey.
Telecommunications companies will use big data and analytics to help retain and gain customers as well as for network capacity planning and optimization.
Media industry will use big data and analytics to monitor their readers’ habits, preferences, and sentiment.
IT and business services together will account for more than half of big data and business analytics revenue in 2017 and throughout the forecast.
Services-related spending will also experience the strongest growth with a five-year CAGR of 14.4 percent. Software investments will grow to more than $70 billion in 2020, led by purchases of End-User Query, Reporting and Analysis Tools and Data Warehouse Management Tools.
Non-relational Analytic Data Store and Cognitive Software Platform will experience strong growth (CAGRs of 38.6 percent and 23.3 percent respectively) as companies expand their big data and analytic activities. BDA-related purchases of servers and storage will grow at a CAGR of 9.0 percent, reaching $29.6 billion in 2020.
United States will be the largest market for big data and business analytics solutions with spending forecast to reach $78.8 billion in 2017. The second largest region will be Western Europe with spending of $34.1 billion this year. Asia Pacific excluding Japan will be spending $13.6 billion. Latin America and APeJ will experience the fastest growth in BDA spending with five-year CAGRs of 16.2 percent and 14.4 percent respectively.