As the advertising industry reels from the effects of Covid-19, the data sector continues to not only weather the storm but to use the pandemic to thrive, with the global big data market forecast to grow from $138.9bn (£110bn) this year to $229.4bn (£182bn) by 2025.
Not that long ago, cynics were calling “big data” a flash in the pan, but according to a new report from Research & Markets, the sector is not only here to stay it is set to witness a compound annual growth rate (CAGR) of 10.6% over the next five years.
“The Big Data Market Global Forecast to 2025” shows major growth factors include the increasing awareness of Internet of Things (IoT) devices among businesses, the soaring availability of data across organisations to gain deeper insights to remain competitive, and rising government investments in various regions for enhancing digital technologies.
The market is segmented into solutions and services. The services segment, which includes managed and professional services, is expected to grow at a rapid pace during the forecast period, driven by the increasing deployment of big data solutions, which leads to the increasing demand for pre- and post-deployment services.
When it comes to industry verticals, healthcare and life sciences are predicted to see the most growth, although they are followed closely by manufacturing which is are increasingly adopting big data solutions for risk management, operations and supply chain optimisation, after-sales support, and predictive, and preventive maintenance.
The Asia Pacific region is expected to grow at the highest rate during the forecast period. The report reveals that businesses in the region have started deploying data visualisation solutions that will help them generate statistical data and make faster business decisions.
Countries such as China, India, South Korea, and Japan are focusing on the enhanced management of data to enable data-based business decisions and enhance business processes. Growing digitalisation, increasing adoption of big data technologies, such as Hadoop and Apache by vendors in the region, and government regulations and initiatives are expected to drive the growth of the market in APAC.
The report follows similar positive predictions for cloud-based subscription data analytics services, which are forecast to increase in value from $9.7bn (£7.7bn) in 2018 to $126.5bn (£101bn) by 2026, while business analytics is set to grow from $171.4bn (£135.7bn) in 2018 to $512bn (£405bn) by 2026.
However, the trump card remains digital transformation. Last week, a report from cloud platform Twilio claimed that the coronavirus has been the digital accelerant of the decade, with UK firms reporting that the pandemic has accelerated their programmes by over five years.
This was reinforced by a separate report from IDC, which claimed that spending on technologies and services that enable so-called “DX” will to soar to $7.4 trillion (£5.7tn) in three years, driven by data intelligence and analytics.~
This is in stark contrast to the advertising market. Last week also saw the publication of the latest IPA Bellwether Report which revealed that marketing budgets had been slashed and burned across the board during Q2.
The net balance of firms that cut marketing budgets fell to -50.7% in Q2, down from -6.1% in Q1, with almost 64% of panel members having registered a decrease in spending compared to the first quarter, while only 13% posted an increase.
And, although the Bellwether anticipated a “robust recovery” in macroeconomic conditions during 2021 it said it could be at least 2024 before the market returns to pre-Covid growth levels.
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