According to a new report entitled Worldwide Semiannual Big Data and Analytics Spending Guide developed by the International Data Corporation, worldwide revenues from Big Data and Business Analytics spending is expected to reach a whopping $203 billion by the year 2020. To put that in some perspective, the IDC reports that global revenues in this market sector for 2016 will be $130.1 billion. The largest drivers of growth in this segment will come from the banking, manufacturing, governmental and professional services industries, who, according to the report, will make up nearly 50 percent of the investment through the end of the survey period.
Though the banking industry is expected to see the largest uptick in spending on Big Data and Business Analytics solutions, telecommunications, utilities, insurance, and transportation will also be heavily involved. In fact, 16 of the 18 industries covered in the report are projected to experience double-digit CAGRs for spending on these solutions through 2020.
Dan Vesset, Group Vice President, Analytics and Information Management at IDC discusses the new findings: “The availability of data, a new generation of technology, and a cultural shift toward data-driven decision making continue to drive demand for big data and analytics technology and services. This market is forecast to grow 11.3% in 2016 after revenues reached $122 billion worldwide in 2015 and is expected to continue at a compound annual growth rate (CAGR) of 11.7% through 2020.”
IDC has found that large and very large vendors will be the primary driver of the Big Data and Business Analytics revenue spike. However, small and medium sized organizations will also have a notable impact, contributing nearly a quarter of worldwide revenues during the forecast period. Technology investments will be led by IT departments and business services, accounting for more than half of all revenue by 2020. Big Data and analytics services spending will grow at the fastest rate, according to IDC, while investment in analytics software will be worth more than $60 billion in 2020. Specific technologies that are under the microscope include line-of-business user query capabilities, reporting and data analysis, and data warehouse management.
More than half of all investment in Big Data and analytics will come out of the United States, by 2020 reaching $95 billion. Western Europe and the Asia-Pacific region will follow suite. However, Latin America, the Middle East, and Africa will see the fastest growth over the five-year period, representing new and emerging technology markets where analytics can begin to gain a foothold.