Revenues for big data and business analytics (BDA) will grow to more than $203 billion in 2020 from $130.1 billion in 2016, said IDC.
Growth drivers for the global big data and analytics technology market will be the availability of data, a new generation of technology, and a cultural shift toward data-driven decision making among CXOs of enterprises.
This big data and analytics market is forecast to grow 11.3 percent 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 percent through 2020.
Banking, discrete manufacturing, process manufacturing, federal / central government, and professional services will drive the growth. Together, these five industries will account for nearly 50 percent of big data and business analytics investments in 2016 and will remain the top five industries through 2020.
IDC said that banking will be making nearly $17 billion investment in big data and business analytics solutions. Telecommunications, utilities, insurance, and transportation will join banking as the industries with the largest CAGRs over the 5-year forecast period. 16 of the 18 industries covered in IDC’s spending guide will experience double-digit CAGRs from 2015-2020.
“This year and over the life of the forecast, we’re expecting to see healthy growth in spending on big data and analytics technologies from nearly all industries, including banking and telecommunications,” said Jessica Goepfert, program director, Customer Insights and Analysis at IDC.
Large and very large companies (with more than 500 employees) will be the primary driver of the big data and business analytics opportunity, generating revenues of more than $154 billion in 2020. SMBs will remain a significant contributor with nearly a quarter of the revenues coming from companies with fewer than 500 employees.
Technology investments will be led by IT and business services, which together will account for more than half of all big data and business analytics revenue for most of the forecast period.
Services-related spending will also experience the strongest growth throughout the forecast, with a five-year CAGR of 14.9 percent. Software investments will grow to more than $60 billion in 2020, led by purchases of End-User Query, Reporting and Analysis Tools and Data Warehouse Management Tools.
Content Analytics Tools and CRM Analytic Applications will see above-average growth (CAGRs of 18.5 percent and 10.4 percent respectively) as companies expand their big data and analytic activities. Hardware investments will grow at a CAGR of 8.7 percent, reaching $29.9 billion in 2020.
By 2020, IDC forecasts that the U.S. market for big data and business analytics solutions will reach more than $95 billion. The second largest geographic region will be Western Europe, followed by Asia/Pacific (excluding Japan) and Latin America. The two regions with the fastest growth over the five-year forecast period will be Latin America and the Middle East & Africa.