“Data is the new oil”. International Data Corporation (IDC) recently published the Worldwide Semi-Annual Big Data and Analytics Spending Guide by forecasting the revenues in big data and analytics Industry. It is estimated that revenues from big data and analytics in the Asia-Pacific (excluding Japan) region will reach US$14.7 billion with an increase of nearly 15% from 2017. Revenues from the commercial purchase of big data and analytics related hardware, software and services are likely to reach US$22.2 billion by 2021, with a compounded annual growth rate (CAGR) of 15% for the time period of 2016-2021.
The adoption of big data and analytics will bring a different ball game for enterprises and government but most of them are incorporating it as an added advantage. However, only a few enterprises achieved full-scale implementation. The financial sector witnessed the highest spend for the overall forecast period (2016-2021) but other industries are also adopting big data and analytics platforms for customer acquisition, strategy planning, and resource optimization.
There are several industries which will make a colossal investment in big data and analytics by the end of 2018. Some of them include the federal government, banking, telecommunications, discrete manufacturing and professional services. These five industries will spend around US$8.3 billion on big data and analytics this year, adding to that they will be the largest spender in 2021 with a total investment of US$12.6 billion. Professional service, healthcare, and resource industries will grow at a higher pace with a five-year CAGR of 16.9%, 16.1% and 15.5% respectively.
Investments are likely to be driven by IT and business services representing more than half of big data and analytics revenues throughout the forecast period. The figures will be primarily owing to the procurement of data warehouse management tools, end-user query, reporting, analysis tools and predictive analysis software tools. The service-related spending is expected to experience the strongest growth with a five-year CAGR of 17.2% to reach US$11.1 billion by 2021.
Investment in non-relational analytical data stores, cognitive software platforms and CRM applications will showcase strong growth during the forecast period as most of the companies are interested in the expansion of big data and analytics capabilities. Big data and analytics related servers and storage is another revenue source which will reach US$4.8 billion by 2021.
In terms of company size, very large businesses will be responsible for more than 47.3% of big data and analytics spending in 2017 whereas small and medium businesses will also be a major contributor accounting to 21.2% share in overall big data and analytics spending in 2017.
China will be the biggest market in Asia-Pacific (excluding Japan) for big data and analytics market with a spending of US$ 5.5 billion in 2018. In China, big data and analytics related purchases will be mainly driven by telecommunications and banking industries (14.6%) followed by professional services (11.9%) in 2018. Australia will be the second largest contributor accounting for 18.2% of the revenues followed by Indonesia (19.7%), Philippines (19%) and Thailand (18.2%).
The world is now driven by data and companies have recognized the importance of big data and analytics. Industries are integrating their businesses with big data and analytics solutions and platforms to generate insights that can be used efficiently for the business processes. Big data and analytics is a booming market where more and more companies are progressing towards higher stages of technological advancement, and it provides a great platform for the provider to deliver their solutions.