Publication date: 03 Apr 2023
Big Data and Analytics Spending in Asia/Pacific* to Reach $42.2 Billion in 2023, $70.7 Billion by 2026
Contact
For more information, contact:- Vinay Gupta Email: vgupta@idc.com
- Miguel Carreon Email: mcarreon@idc.com
- Michael De La Cruz Email: mdelacruz@idc.com
Reduced Institutional Reaction Time and Subsequent First Mover Advantage are Promoting Big Data and Analytics Adoption in Asia/Pacific
SINGAPORE, April 4, 2023 – According to the latest release of IDC's Worldwide B ig Data and A nalytics (BDA) Spending Guide, Asia/Pacific* spending on BDA solutions will reach $42.2 billion in 2023, thus growing by 19.6% from 2022. Investment in enterprise intelligence solutions has witnessed significant growth from the previous year. It is expected to stay the same owing to the incremental demand of organizations to engage in data-driven decision-making, improve customer experience, speed up business innovation activities, and capitalize on cost-saving opportunities.
“Data-driven everything is increasingly an overarching theme to drive Asia/Pacific companies’ DX initiatives, especially for those with higher DX maturity stages. More of them need to modernize their organization’s data platform, to centrally address trust, adaptability, and agility issues associated with highly disparate and diverse data sources and sinks,” said Jessie Cai Danqing, Associate Research Director, Big Data & Analytics, IDC Asia Pacific.
Banking, Telecommunications, and Professional Services are the primary industries contributing to more than 35% revenue share in the BDA market in 2023. They will continue to dominate the market over the forecast period. The ability to churn real-time insights from customer data and enhanced risk management are some use cases driving spending in the banking industry. Spending by Telecommunications industry will grow to $4.6 billion in 2023. The sector is predicted to experience significant disruption owing to the increasing adoption of "cloud first" with organizations' "wireless first" multi-access network model and rising emphasis on connectivity resilience. The deployment of BDA solutions offers faster provisioning, network visibility, and traffic analytics. Professional services captured a market share of 10.3% in 2023, which is expected to increase to 10.6% by 2026. 360 degree customer and client management, intelligent building energy management, and asset performance management are the primary use cases driving the adoption of BDA solutions in the region.
"Access to better enterprise intelligence to support business operations is promoting the adoption of BDA solutions," says Abhik Sarkar, Market Analyst, IT Spending Guides, IDC Asia/Pacific. "External headwinds such as the pandemic, cyber threats, economic instability, supply-chain irregularities, and the need to mitigate these risks; coupled with the rapid influx of digital businesses and changing workforce dynamics act as key drivers for the technology, " he adds.
Data sovereignty is emerging as an essential factor contributing to the growth of BDA market in Asia/Pacific*. This can be credited to the rising need amongst organizations to improve privacy measures & implementation, closely work with ICT suppliers to mitigate 3rd party risk, and enhance the risk management process. Additionally, business disruptions due to geopolitical conflicts and global pandemics have established the need to adopt data sovereignty practices to ensure operational and business resilience.
In terms of revenue share, services will capture the largest share at 41.1% in 2023, and will grow at the CAGR of 17.9% (2021-2026) to $28.4 billion. IT services contributes to nearly 79% of the entire BDA services spending in the region. Services is followed by software which will register a spending of $13.8 billion in 2023 and is expected to grow by more than 23% in 2024. This can be attributed to the incremental use of AI software platforms, end-user query, reporting, and analysis tools, and relational data warehouses. Software also is the fastest-growing technology group with a CAGR of 22.8%. Hardware segment will capture spending of $11.1 billion in 2023. Nearly 75% of spending in hardware will be captured by servers in 2023.
The Worldwide 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 20 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 opportunities today and over the next five years.
For more information about IDC's Spending Guides, please contact Vinay Gupta at vgupta@idc.com. For media queries, please contact Michael De La Cruz at mdelacruz@idc.com or Miguel Carreon mcarreon@idc.com.
*Asia/Pacific excluding Japan
-Ends-
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.
Click here to learn about IDC's full suite of data products and how you can leverage them to grow your business.
About IDC
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 1,300 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 International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.