05 Sep 2018
Big Data and Business Analytics Solutions Revenues in Asia/Pacific (excluding Japan) Forecast to Value at USD 27 Billion in 2022, According to Latest IDC Spending Guide
SINGAPORE, September 6th, 2018 – A new update of the IDC Worldwide Semiannual Big Data and Analytics Spending Guide forecasts revenues for big data and business analytics (BDA) solutions to reach $27.0 billion in 2022 in Asia/Pacific (excluding Japan) (APeJ) with a compound annual growth rate (CAGR) of 15.1% over the forecast period 2017-22. BDA revenues are estimated to reach $15.3 billion this year, an increase of 14.3% against 2017.
"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 & analytics. 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 analyzing data is the first step to maintain competitive edge in today's global economy," said Swati Chaturvedi, Senior Market Analyst at IDC.
Banking, Telecommunications, Discrete Manufacturing, Federal/Central Government and Professional Services are the leading industries in 2018, shaping Big Data and Analytics solutions with more than 56% share of overall BDA spend. Altogether, these five industries will invest nearly half ($8.5 billion) of APeJ BDA revenues this year and anticipated to reach $15.1 billion by 2022. However, State/Local Government and Resource Industries are on a way to register fast paced growth over the forecast (2017-22) respectively.
Services will dominate BDA solutions spending with more than 44% share, equivalent to $6.8 billion in 2018, where more than half of all BDA revenues will go to IT services throughout the forecast. The trend is likely to perpetuate with double-digit five-year CAGR of 17.8% during (2017-22). Of the overall BDA spend in 2018, Software-related and Hardware-related revenues accounts for 31.0% and 24.2% in APeJ. Relational Data Warehouse Management Tools and End-User Query, Reporting Analysis Tools are the two technology categories with 45.1% share, driving Software investments in 2018. Two of the fastest growing BDA technology categories will be Non-relational Analytic Data Stores (35.4% CAGR) and Cognitive/AI Software Platforms (32.4% CAGR). BDA-related purchases of servers and storage will grow at a CAGR of 12.9%, reaching nearly $6.1 billion in 2022.
“IDC predicted that by 2021, 10% of enterprise applications spending will be for new task-level applications that incorporate software, data, and algorithms. These new applications will become the driving force of business process automation and productivity upgrade,” said Jessie Cai, Senior Research Manager at IDC Asia/Pacific. “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% of BDA spend in 2018 and throughout the forecast. Furthermore, IDC estimates, spending in this group of companies will leapfrog to $12.8 billion level by 2022. Small and medium businesses (SMBs/ fewer than 500 employees) will also be a major contributor, accounts for 20.8% share to the overall BDA spending in 2018.
On a geographic perspective, China will be the biggest market in the Asia/Pacific (excluding Japan) for big data and analytics solutions with 37.5% share in 2018. Banking and Telecommunication are the two leading drivers of Chinese market for BDA related purchases with 14.6% and 14.4% share of the overall spending in 2018. While, Australia is the second contributor with 18.4% market share in 2018 in APeJ. However, Vietnam and Philippines are the countries that will see the fastest growth in BDA spending with CAGRs of 19.8% and 19.5%, respectively.
The Worldwide Semiannual Big Data and Analytics Spending Guide is designed to address the needs of organizations assessing the big data and business analytics opportunity by geography, industry, and company size. The Spending Guide provides subscribers with revenue projections for 19 technology and service categories across 19 industries, five company size bands, and 53 countries. Unlike any other research in the industry, the comprehensive Spending Guide was designed to help IT decision makers to clearly understand the industry-specific scope and direction of big data and business analytics opportunity today and over the next five years.
About IDC Spending Guides
IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of IDG, the world's leading technology media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.