Publication date: 19 Jan 2024
European BDA Software Market Continues to Grow, Driven by Investments in AI Software Platforms
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For more information, contact:- Veronika Paal (vpaal) Email: vpaal@idc.com Phone number: +420 221 423 140
PRAGUE, January 19, 2024 – According to the Semiannual Big Data and Analytics Software Tracker published by International Data Corporation (IDC), the European BDA software market recorded double-digit growth during the first half of 2023, despite the macroeconomic and geopolitical disruptions. Out of the top 5 companies in the European big data and analytics software market, Microsoft, Amazon, and Salesforce outgrew the market average and increased their market shares. Although not among the 5 largest vendors in the BDA market Google and Snowflake also recorded outstanding year-on-year growth.
The need to automate processes and support data-driven decision-making continues to drive the demand for big data and analytics solutions. IDC forecasts the European BDA software market will post a compound annual growth rate (CAGR) of 19.80% over the 2023-2027 period. Over half (55.6%) of the market is expected to be deployed on public cloud in 2023, and this percentage will increase at a CAGR of 27.8% through 2027, compared to the CAGR of 6.7% for on-premises/other software deployment methods.
AI software platforms remain one of the fastest growing markets, hand in hand with content analytics tools and search systems. “Although generative AI technology is currently primarily focused on unstructured data (text, images, video), announcements have been made for BDA-related products, as well," says Veronika Paál, senior research analyst at IDC. "Companies have started investigating use cases where they can leverage this technology, and there is great potential. In the meantime, classic AI/ML features will continue to drive the growth of BDA software, and demand for data warehouses and data lake houses is also growing.”
However, unfavorable market conditions are impacting spending. The biggest growth inhibitor is still inflation and the overall economic slowdown, and many companies have implemented new measures for cost control and decreased their budgets for IT investments. Some markets can expect pricing pressure, which will further inhibit growth.
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