Big data, analytics to see double digit revenue growth through 2020
Worldwide revenues for big data and business analytics will reach $150.8 billion in 2017, an increase of 12 percent over 2016, according to a report from International Data Corp.
Commercial purchases of big data and analytics-related hardware, software and services are expected to maintain a compound annual growth rate of 12 percent through 2020, when revenues will be more than $210 billion, IDC said.
"After years of traversing the adoption S-curve, big data and business analytics solutions have finally hit mainstream," said Dan Vesset, group vice president, analytic and information management. "BDA as an enabler of decision support and decision automation is now firmly on the radar of top executives. This category of solutions is also one of the key pillars of enabling digital transformation efforts across industries and business processes globally."
The industries that will be making the largest investments in big data and business analytics products in 2017 are banking, discrete manufacturing, process manufacturing, federal/central government and professional services. Combined, these five industries will spend $72.4 billion on these solutions this year. They will also be the largest spenders in 2020, when their total investment will be $101.5 billion.
The industries that will experience the fastest growth in big data and business analytics spending are banking, healthcare, insurance, securities and investment services, and telecommunications, each with a compound annual growth rate of 13 percent.
Big data and business analytics technology investments will be led by IT and business services, which together will account for more than half of all big data and business analytics revenue in 2017 and throughout the forecast period.
Services-related spending will also experience the strongest growth with a five-year compound annual growth rate of 14 percent. Software investments will grow to more than $70 billion in 2020, led by purchases of end-user query, reporting and analysis tools and data warehouse management tools, IDC predicts.