Worldwide revenues for big data and business analytics will grow from nearly US$122 billion in 2015 to more than US$187 billion in 2019, according to a new IDC study.
The Worldwide Semiannual Big Data and Analytics Spending Guide predicts that the services-related opportunity will account for more than half of all big data and business analytics revenue for most of the forecast period, with IT services generating more than three times the annual revenues of business services. Software will generate more than US$55 billion in revenues, almost half of which will come from purchases of tools for end-user queries, reporting, analysis and data warehouse management. Hardware spending will hit US$28 billion.
IDC expects the largest revenue opportunities will be in discrete manufacturing (US$22.8 billion), banking (US$22.1 billion), and process manufacturing (US$16.4 billion). Meanwhile, federal/central government, professional services, telecommunications and retail will generate revenues of more than US$10 billion in 2019. The industries experiencing the fastest revenue growth will be utilities, resource industries, healthcare and banking.
"There is little question that big data and analytics can have a considerable impact on just about every industry,” said Jessica Goepfert, programme director of Customer Insights and Analysis at IDC. "Its promise speaks to the pressure to improve margins and performance while simultaneously enhancing responsiveness and delighting customers and prospects. Forward-thinking organisations turn to this technology for better and faster data-driven decisions."
Revenue growth will primarily be driven by large and very large companies (those with more than 500 employees), which will generate revenues of more than US$140 billion. However, small and medium businesses will account for nearly a quarter of the worldwide revenues.
"Organisations able to take advantage of the new generation of business analytics solutions can leverage digital transformation to adapt to disruptive changes and to create competitive differentiation in their markets," said Dan Vesset, group vice president of Analytics and Information Management at IDC. "These organisations don't just automate existing processes, they treat data and information as they would any valued asset by using a focused approach to extracting and developing the value and utility of information."
More than half of all big data and business analytics revenues will come from the US, which will experience revenues in excess of US$98 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 and Africa.
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