Worldwide revenues for big data and business analytics will increase more than 50 per cent to more than US$187 billion in 2019 from nearly US$122 billion in 2015, according to the new Worldwide Semiannual Big Data and Analytics Spending Guide from International Data Corporation (IDC).
Services-related opportunities will represent more than half of all big data and business analytics revenue for most of the next five years, with IT services generating more than three times the annual revenues of business services.
Software is forecast to reap the second highest revenues in 2019, generating more than US $55 billion. Nearly half of these revenues will come from purchases of end-user query, reporting, and analysis tools and data warehouse management tools. At the same time, hardware revenues will grow to nearly US$28 billion.
Industries with the largest revenue opportunities in 2019 are forecast to be discrete manufacturing (US$22.8 billion), banking (US$22.1 billion) and process manufacturing (US$16.4 billion). Four other industries will generate revenues of more than $10 billion in 2019: federal/central government, professional services, telecommunications and retail.
Fastest revenue growth industries are forecast to be utilities, resource industries, healthcare and banking. Almost all of the industries profiled in the new Spending Guide will see gains of more than 50 per cent over the five-year forecast period.
Although large and very large companies are forecast to generate revenues of more than US$140 billion in 2019, small and medium businesses will account for nearly 25 per cent of revenues.
More than half of all big data and business analytics revenues will come from the United States, with revenues of more than US$98 billion by 2019. IDC is forecasting the second largest geographic region to be Western Europe, followed by Asia/Pacific (excluding Japan) and Latin America. The two regions with the fastest growth are forecast to be Latin America and the Middle East and Africa.
“Organisations able to take advantage of the new generation of business analytics solutions can leverage digital transformation to adapt to disruptive changes and to create competitive differentiation in their markets,” said Dan Vesset, group vice president, analytics and information management, IDC.
“These organisations don’t just automate existing processes – they treat data and information as they would any valued asset by using a focused approach to extracting and developing the value and utility of information.”
“There is little question that big data and analytics can have a considerable impact on just about every industry,” said Jessica Goepfert, program director, customer insights and analysis, IDC.
“Its promise speaks to the pressure to improve margins and performance while simultaneously enhancing responsiveness and delighting customers and prospects. Forward-thinking organisations turn to this technology for better and faster data-driven decisions,” she said.