Demand for big data and business analytics (BDA) solutions is on the rise in Asia Pacific region, excluding Japan.
According to IDC, the revenues for BDA solutions are expected to hit $27 billion mark by 2022, witnessing a CAGR of 15.1% during the forecast period (2017-2022). Further, the BDA revenues will reach $15.3 billion this year, up 14.3% from 2017.
The growth is driven by demand for BDA solutions in a number of industries including banking, telecom, discrete manufacturing, federal/central government and professional services.
IDC said that these five industries will account for more than 56% market share of total big data and business analytics spend in 2018. Further, these industries are expected to invest around half of BDA revenues ($8.5 billion) this year, which will reach $15.1 billion by 2022.
Whereas, the state/local government and resource industries will register an accelerated growth during the forecast period.
“Asia Pacific (excluding Japan) has seen an exponential growth of data and analytical complexity which has pushed businesses with larger economies at scale like Banking, Telecommunication, Retail, among others to invest in big data & analytics,” said Swati Chaturvedi, Senior Market Analyst at IDC.
“This has resulted in gaining valuable insights, improved business performance, detect fraud, fulfilling customer expectations and saving costs at the end of the day. For all enterprises, adoption of analyzing data is the first step to maintain competitive edge in today’s global economy.”
Non-relational Analytic Data Stores and Cognitive/AI Software Platforms will be the fastest growing BDA technology categories, growing at CAGR of 35.4% and 32.4%, respectively.
The revenues of BDA-related purchases of servers and storage will reach $6.1 billion in 2022, witnessing a CAGR of 12.9%.
By company size, the very large enterprises will account for nearly half of the BDA spend during the forecast period. Whereas, small and medium enterprises will account for 20.8% spending of the total BDA spending in 2018.
In APAC, China is expected to be the biggest market for big data and business analytics solutions, holding 37.5% market share in 2018. Australia will stand second to China with 18.4% market share in 2018. Vietnam and Philippines are expected to grow the fastest during the forecast period, with a CAGR of 19.8% and 19.5%, respectively.
“IDC predicted that by 2021, 10% of enterprise applications spending will be for new task-level applications that incorporate software, data, and algorithms. These new applications will become the driving force of business process automation and productivity upgrade,” said Jessie Cai, Senior Research Manager at IDC Asia/Pacific.
“Before that happens, companies need to have adequate big data management tools in place to address data ingestion, federation, governance, quality and model generation.”
Image source: IDC