Business analytics software market to grow at 9.7% CAGR through 2017: IDC

The business analytics software market is expected to grow at a 9.7 percent compound annual growth rate (CAGR) through 2017, according to IDC.

Demand for business analytics solutions will continue to be driven by the promise of better and faster decision-making and competitive advantage that results from the ability to analyze and act upon information in a timely manner.

In 2012, the business analytics software market grew 8.7 percent year over year to $34.9 billion. This was significantly lower than the 15 percent year-over-year growth experienced in 2011.

The growth in 2012 was attributable to the macroeconomic issues and the weak performance of European markets.

Despite slower growth, business analytics software market outperformed the overall software market, which grew 3.6 percent in 2012.

Geographical growth

The emerging regions of Asia/Pacific (excluding Japan) and Latin America increased 13.4 percent each.

The business analytics software market in North America increased 12.1 percent. Latin America is forecast to have the highest growth rate through 2017 – a 12.4 percent CAGR – followed by North America with 10.9 percent and Asia/Pacific (excluding Japan) with 10.5 percent.

Of the three primary segments of the business analytics software market, the data warehousing platform software segment experienced the fastest growth in 2012, growing 10.8 percent over the previous year.

IDC says the business intelligence and analytic tools segment and the performance management and analytic applications segment each grew 7.7 percent year over year in 2012.

Main business analytics software vendors

In this diverse and highly competitive market, the six largest vendors – Oracle, SAP, IBM, Microsoft, SAS, Teradata – accounted for 64 percent of worldwide revenues in 2012.

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