Skip to main content

Big Data and Analytics Revenues will Reach $260 Billion

Enterprise data lakes are an essential component of many digital transformation projects. Numerous insights about customers, partners and other stakeholders are extracted from these significant commercial assets. Given the benefits, IT infrastructure and associated software investment will increase to support new use cases.

According to the latest worldwide market study by International Data Corporation (IDC), revenues for big data and business analytics (BDA) solutions will reach $260 billion in 2022 with a compound annual growth rate (CAGR) of 11.9 percent over the 2017-2022 forecast period.

BDA revenues are expected to total $166 billion in 2018 -- that's an increase of 11.7 percent over 2017.

Big Data and Analytics Market Development

The industries making the largest investments in big data and business analytics solutions throughout the forecast are banking, discrete manufacturing, process manufacturing, professional services, and federal or central government. Combined, these five industries will account for nearly half ($81 billion) of worldwide BDA revenues this year.

They will also be the industries with the largest BDA opportunity in 2022 when their total investment is forecast to reach $129 billion. The industries that will deliver the fastest BDA revenue growth are retail (13.5 percent CAGR), banking (13.2 percent CAGR), and professional services (12.9 percent CAGR).

"At a high level, organizations are turning to Big Data and analytics solutions to navigate the convergence of their physical and digital worlds," said Jessica Goepfert, program vice president at IDC.


According to the IDC assessment, the transformation takes a different shape depending on the industry. For instance, within the banking and retail sector investments are about managing and reinvigorating the customer experience. Whereas in manufacturing, they're reinventing themselves to become more high-tech.

Furthermore, over half of all BDA revenues will go to IT and business services during the course of the forecast. Services-related revenues will also be among the fastest growing areas of opportunity with a combined CAGR of 13.2 percent.

Software investments will grow to more than $90 billion in 2022, led by purchases of End-User Query, Reporting, and Analysis Tools and Relational Data Warehouse Management Tools.

Two of the fastest growing BDA technology categories will be Cognitive or AI Software Platforms (36.5 percent CAGR) and Non-relational Analytic Data Stores (30.3 percent CAGR). BDA-related purchases of servers and storage will grow at a CAGR of 7.3 percent, reaching nearly $27 billion in 2022.

Outlook for Regional Market Growth

The U.S. market is the largest by far, delivering nearly $88 billion in BDA revenues this year and more than half of the worldwide total throughout the five-year forecast. Western Europe is the second largest market with 2018 revenues expected to reach $35 billion, followed by the Asia-Pacific region with $23.9 billion.

Japan will be the second largest country for BDA investments in 2018, followed by the United Kingdom, Germany, and China. The countries with the fastest growth in BDA solutions are Argentina (20.8 percent CAGR), Vietnam (19.8 percent CAGR), Philippines (19.5 percent CAGR), and Indonesia (19.4 percent CAGR).

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Securing Fintech via Mobile User Authentication

The global COVID-19 pandemic accelerated the development and adoption of online digital services, including mobile user authentication services. This led to more Fintech solutions growth at a rapid rate from 2020 to 2022, as companies started to adopt one-touch verification. These services enable CIOs and CTOs to increase the level of security offered to customers who are concerned about online financial transactions. However, there are numerous other industry use cases that require increased security measures to protect sensitive data. According to the latest worldwide market study by Juniper Research, mobile network operators will generate $27 billion from the termination of Short Message Service (SMS) related to multi-factor authentication in 2022 -- that's an increase from $25 billion in 2021. Commercial SMS Apps Market Development Juniper analysts predict this 5 percent growth will be driven by increased pressure on digital service providers to offer highly secure user authent