Revenues for big data and business analytics (BDA) solutions are expected to reach $27 billion in Asia Pacific by 2022, as customers seek advantage in the Information Age.
According to IDC findings, BDA revenues are estimated to reach $15.3 billion this year, an increase of 14.3 per cent against 2017.
From a channel perspective, services will dominate BDA solutions spending with more than 44 per cent share, equivalent to US$6.8 billion in 2018, where more than half of all BDA revenues will go to IT services throughout the forecast.
Such a trend is likely to perpetuate with double-digit five-year growth of 17.8 per cent during the next five years.
Specific to technology, and of the overall BDA spend in 2018, software-related and hardware-related revenues accounts for 31 per cent and 24.2 per cent in APeJ.
Meanwhile, relational data warehouse management tools and end-user query, reporting analysis tools are the two technology categories with 45.1 per cent share, driving software investments in 2018.
Delving deeper, two of the fastest growing BDA technology categories will be analytic data stores (35.4 per cent) and cognitive/artificial intelligence software platforms (32.4 per cent) - BDA-related purchases of servers and storage will grow 12.9 per cent, reaching nearly US$6.1 billion in 2022.
“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,” said Swati Chaturvedi, senior market analyst at IDC.
“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 analysing data is the first step to maintain competitive edge in today's global economy.”
Leading industries include banking, telecommunications, discrete manufacturing, federal and central government and professional services, shaping big data and analytics solutions with more than 56 per cent share of overall spend.
Altogether, these five industries will invest nearly half (US$8.5 billion) of APeJ BDA revenues this year and anticipated to reach US$15.1 billion by 2022.
However, state and local government and resource industries are on a way to register fast paced growth over the forecast (2017-22) respectively, as outlined by IDC.
“IDC predicted that by 2021, 10 per cent of enterprise applications spending will be for new task-level applications that incorporate software, data, and algorithms,” said Jessie Cai, senior research manager of Asia Pacific at IDC. “These new applications will become the driving force of business process automation and productivity upgrade.
“Before that happens, companies need to have adequate big data management tools in place to address data ingestion, federation, governance, quality and model generation.”
Based on company size, very large businesses (more than 1,000 employees) will be responsible for more than 47.7 per cent of BDA spend in 2018 and throughout the forecast.
Furthermore, IDC estimates, spending in this group of companies will leapfrog to US$12.8 billion level by 2022.
Small and medium businesses (SMBs/ fewer than 500 employees) will also be a major contributor, accounting for 20.8 per cent share to the overall BDA spending in 2018.