The Demand for Big Data is on the Rise in APAC
Revenue for big data and business analytics solutions to hit $27 billion mark in the next four years
Besides the increasing interest in artificial intelligence and machine learning, companies in the Asia-Pacific region are also investing large sums of money in big data and business analytics (BDA) solutions to improve business performance, detect fraud, and maintain a competitive edge in the global economy.
A report by technology research firm IDC says revenue for BDA solutions is likely to reach $27 billion mark by 2022, witnessing a CAGR of 15.1% during the forecast period (2017-2022). What’s more, the BDA revenue will hit $15.3 billion by the end of this year, up from last year’s 14.3%.
The figures are for markets in China, the Philippines, Australia, and Vietnam.
IDC says industries including banking, telecom, discrete manufacturing, professional services, and government are driving the growth of BDA and will account for more than 56% market share of total big data and business analytics spend in 2018. “These industries are expected to invest around half of BDA revenue ($8.5 billion) this year, which will reach $15.1 billion by 2022,” the report says.
“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 and analytics,” says Swati Chaturvedi, senior market analyst at IDC, in the press release.
“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.”
The report estimates that China will be the biggest market for big data and business analytics solutions, holding 37.5 per cent market share this year. It will be followed by Australia, 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, adds the report.
When it comes to the fastest growing BDA technology categories, non-relational analytic data stores and cognitive/AI software platforms will take the lead, with 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%.
In terms of company size, the report says the very large enterprises will account for nearly 50 per cent of the BDA spend during the forecast period, while small and medium enterprises will account for 20.8% spending of the total BDA spending in 2018.
“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,” says senior research manager at IDC Asia/Pacific Jessie Cai. “Before that happens, companies need to have adequate big data management tools in place to address data ingestion, federation, governance, quality and model generation.”
A stickler for details, Pooja Singh likes telling people stories. She has previously worked with Mint-Hindustan Times, Down To Earth and Asian News International-Reuters.