Worldwide revenues for big data and business analytics will grow from nearly $122 billion in 2015 to more than $187 billion in 2019, an increase of more than 50 percent over the five-year forecast period.
According to IDC findings, the services-related opportunity will account for more than half of all big data and business analytics revenue for most of the forecast period, with IT Services generating more than three times the annual revenues of Business Services.
Software will be the second largest category, generating more than $55 billion in revenues in 2019.
Furthermore, nearly half of these revenues will come from purchases of End-User Query, Reporting, and Analysis Tools and Data Warehouse Management Tools while Hardware spending will grow to nearly $28 billion in 2019.
“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,” says 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.”
IDC claims the industries that present the largest revenue opportunities are Discrete Manufacturing ($22.8 billion in 2019), Banking ($22.1 billion), and Process Manufacturing ($16.4 billion).
Meanwhile, four other industries - Federal/Central Government, Professional Services, Telecommunications, and Retail - will generate revenues of more than $10 billion in 2019.
Going forward, the industries experiencing the fastest revenue growth will be Utilities, Resource Industries, Healthcare, and Banking, although nearly all of the industries profiled in the new Spending Guide will see gains of more than 50 percent over the five year forecast period.
Consequently, large and very large companies (those with more than 500 employees) will be the primary driver of the big data and business analytics opportunity, generating revenues of more than $140 billion in 2019.
However, small and medium businesses (SMBs) will remain a significant contributor with nearly a quarter of the worldwide revenues coming from companies with fewer than 500 employees.
“There is little question that big data and analytics can have a considerable impact on just about every industry,” adds 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.”