Worldwide revenues for big data and business analytics (BDA) will reach $150.8 billion in 2017, that's an increase of 12.4 percent over 2016, according to the latest market study by International Data Corporation (IDC).
Commercial purchases of BDA-related hardware, software, and related services are expected to maintain a compound annual growth rate (CAGR) of 11.9 percent through 2020 when revenues will be more than $210 billion.
Big Data and Business Analytics Market Development
"After years of traversing the adoption S-curve, big data and business analytics solutions have finally reached the mainstream," said Dan Vesset, group vice president at IDC. "BDA as an enabler of decision support and decision automation is now firmly 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 globally."
According to the IDC assessment, the industries that will be making the largest investments in big data and business analytics solutions in 2017 are banking, discrete manufacturing, process manufacturing, federal or central government, and professional services.
Combined, these five industries will spend $72.4 billion on BDA solutions this year. They will also be the largest spenders in 2020 when their total investment will be $101.5 billion.
The industries that will experience the fastest growth in BDA spending are banking (13.3 percent CAGR) and healthcare, insurance, securities and investment services, and telecommunications, each with a CAGR of 12.8 percent.
BDA technology investments will be led by IT and business services, which together will account for more than half of all 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 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.
Outlook for Big Data and Business Analytics Growth
From a company size perspective, very large businesses will be responsible for more than 60 percent of all BDA spending throughout the forecast and IDC expects this group of companies to pass the $100 billion level in 2018. Small and medium businesses will also be a significant contributor to BDA spending with nearly a quarter of the worldwide revenues coming from companies with fewer than 500 employees.
On a geographic basis, the 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, followed by Asia-Pacific (excluding Japan) at $13.6 billion. Latin America and APeJ will experience the fastest growth in BDA spending with five-year CAGRs of 16.2 and 14.4 percent respectively.