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Friday, May 17, 2019

Big Data Analytics Revenue will Reach $274.3 Billion

Actionable insights from data help to fuel the Global Networked Economy, which drives demand for new technologies. Revenues for big data and business analytics (BDA) solutions are forecast to reach $189.1 billion in 2019 -- that's an increase of 12 percent over 2018.

According to the latest worldwide market study by International Data Corporation (IDC), BDA revenues will maintain this pace of growth throughout the 2018-2022 forecast period, with a five-year compound annual growth rate (CAGR) of 13.2 percent.

By 2022, IDC expects worldwide BDA revenue will be $274.3 billion.

Big Data Analytics Market Development

"Digital transformation is a key driver of BDA spending with executive-level initiatives resulting in deep assessments of current business practices and demands for better, faster, and more comprehensive access to data and related analytics and insights," said Dan Vesset, group vice president at IDC.

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 BDA revenues throughout the forecast and will be among the categories with the fastest growth.

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.

According to the IDC assessment, The BDA technology categories that will see the fastest revenue growth will be non-relational analytic data stores (34 percent CAGR) and cognitive or AI software platforms (31.4 percent CAGR).

In terms of deployment, more than 70 percent of BDA software revenues in 2019 will go toward on-premises solutions. However, revenue for BDA software delivered via the public cloud will experience strong growth over the five-year forecast (32.3 percent CAGR) and will represent more than 44 percent of the total BDA software opportunity in 2022.

The industries currently making the largest investments in big data and business analytics solutions are banking, discrete manufacturing, professional services, process manufacturing, and federal or central government.

Combined, these five industries will account for nearly half ($91.4 billion) of worldwide BDA revenues this year. The industries that will deliver the fastest BDA growth are securities and investment services (15.3 percent CAGR) and retail (15.2 percent CAGR). Retail's strong growth will enable it to move ahead of the federal or central government as the fifth largest industry in 2022.

Outlook for Big Data Analytics Applications Growth

On a geographic basis, the United States will be the largest country market by a wide margin with nearly $100 billion in BDA revenues this year. Japan and the UK will generate revenues of $9.6 billion and $9.2 billion respectively this year, followed by China ($8.6 billion) and Germany ($7.9 billion).

The fastest growth in the BDA market will be in Argentina and Vietnam with five-year CAGRs of 23.1 percent and 19.4 percent, respectively. China will have the third fastest growth rate with a 19.2 percent CAGR, which will enable it to become the second largest country for BDA revenues in 2022.

From a company size perspective, very large businesses will be responsible for nearly two-thirds of all BDA revenues throughout the forecast. Small and medium businesses will also be a significant contributor to BDA revenues, with nearly a quarter of the worldwide revenues coming from companies with fewer than 500 employees.