IDC forecasts 12.4% year-over-year growth and over $150 billion.
Investments in banking and manufacturing sectors drive market growth and lead digital transformation

The global big data and analytics market is projected to grow by 12.4% year-on-year this year, reaching $150.8 billion.

According to a recent research report by IDC (www.idc.com), this market is also projected to reach $210 billion in 2020, with an expected compound annual growth rate (CAGR) of 11.9% through 2020. This includes BDA-related hardware, software, and services.

Dan Vesset, Vice President and Head of the Analytics and Information Management Research Group at IDC, explained, “By enabling decision support and automation, big data and analytics solutions have captured the attention of senior executives and established themselves in the mainstream,” adding that this field is one of the key drivers leading digital transformation regardless of industry or business processes.

The industries expected to account for a high proportion of investment in big data and analytics solutions in 2017 are banking, assembly manufacturing, process manufacturing, federal/central government, and professional services. These five sectors are projected to invest a total of 72.4 billion rubles in big data and analytics solutions this year, with the total expected to reach 101.5 billion rubles by 2020. The industry expected to show the fastest growth is the banking sector, with an estimated average annual growth rate of 13.3%. Next, the healthcare, insurance, securities and capital investment brokerage, and telecommunications sectors are expected to grow at an average annual rate of 12.8%.

Jessica Goepfert, Program Director leading Customer Insights and Analysis research at IDC, stated, “The three industries comprising the financial services sector—banking, insurance, and securities and investment services—demonstrate great potential for future investments in big data and analytics,” adding that “this technology can be applied to various key use cases for financial institutions, ranging from detecting accounting fraud and risk management to improving and optimizing customer management.”

He added, “There are notable opportunities in several other industries besides financial services,” stating that, for example, in the telecommunications market, big data and analytics are being applied to retain existing customers, attract new ones, and enable the planning and optimization of network capacity. He added that while the media industry has faced a very difficult situation in recent years due to the digitalization of content and large-scale consumption, big data and analysis have made it possible to understand and monitor readers' habits, preferences, and emotional aspects.

IT and business services account for more than half of the total market

Investments in big data and analytics technologies are expected to be driven by IT and business services, which are projected to account for more than half of the total big data and analytics market during the forecast period starting from 2017. Investments related to services are expected to show the strongest growth, expanding at a compound annual growth rate (CAGR) of 14.4% over the next five years. Investments in the software sector are expected to exceed $70 billion in 2020, driven by the adoption of end-user queries, reporting and analytics tools, and data warehouse management tools. Non-relational analytics data stores and cognitive software platforms are projected to show high growth rates (CAGRs of 38.6% and 23.3%, respectively) as companies expand their big data and analytics activities. Purchases of servers and storage related to big data and analytics are expected to reach $29.6 billion in 2020, with a CAGR of 9.0%.

In terms of company size, large enterprises (with 1,000 or more employees) are expected to account for more than 60% of the total big data and analytics market during the forecast period, with the market projected to surpass $100 billion in 2018. Additionally, small and medium-sized enterprises (with 500 or fewer employees) are also expected to contribute significantly to the growth of this market, accounting for approximately one-quarter of total revenue.

Looking at the regional breakdown, the United States will be the largest market for big data and analytics solutions with an investment of $78.8 billion in 2017. The second largest market is Western Europe, with an expected investment of $34.1 billion this year, followed by the Asia-Pacific region (excluding Japan) with an investment of $13.6 billion. Latin America and the Asia-Pacific region (excluding Japan) are expected to show the fastest growth, with average annual growth rates of 16.2% and 14.4%, respectively.

The domestic Big Data and Analytics (BDA) market grew 9.9% year-on-year.

Meanwhile, the domestic big data and analytics market is projected to grow by 9.9% year-on-year this year, reaching 1.3116 trillion won. Furthermore, the market is expected to reach 1.7619 trillion won by 2020, growing at a compound annual growth rate (CAGR) of 9.4%.

"Do Sang-hyeok, a senior research analyst at IDC Korea, said, 'The domestic big data and analytics market is also expected to see continuous growth.' He added, 'Industries expected to have a high proportion of investment domestically are banking, assembly and process manufacturing, telecommunications, and the public sector. The total investment in big data and analytics solutions by these industries is expected to reach 724.6 billion won this year and 968 billion won in 2020.'"