The data analytics market is set for a major surge over the next five years as more and more companies embrace digital transformation, with revenues for big data and business analytics solutions predicted to reach $260bn (£200bn) by 2022 with a compound annual growth rate of 11.9%.
So says the latest worldwide market study by International Data Corporation (IDC), which shows that this growth will be driven by banking, manufacturing, professional services, and national and local government.
Combined, these industries will account for nearly half of the $166bn (£128bn) worldwide data analytics revenues this year alone.
They will also be the industries with the largest opportunity in 2022 when their total investment is forecast to reach $129bn (£98bn). The industries that will deliver the fastest revenue growth are retail (13.5%), banking (13.2%), and professional services (12.9%).
IDC program vice president Jessica Goepfert said: “At a high level, organizations are turning to big data and analytics solutions to navigate the convergence of their physical and digital worlds.”
According to IDC, within the banking and retail sector investments are about managing and reinvigorating the customer experience, whereas in manufacturing, they are 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 growth rate of 13.2%.
Software investments will grow to more than $90bn (£69bn) in 2022, led by purchases of reporting and analysis tools and relational data warehouse management tools. Meanwhile, the fastest growing technology category will be artificial intelligence software platforms (36.5%)
The US market will lead the way, delivering nearly $88bn (£67bn) in 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 $35bn (£27bn), followed by the Asia-Pacific region with $23.9bn (£18bn).
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