Big data and analytics revenues in APAC to reach $14.7b in 2018

DATA is the lifeblood of today’s organizations and holds the key to transforming them into tomorrow’s global powerhouses – but only for companies that know how to analyze that data.

According to forecasts from IDC, revenues for big data and analytics (BDA) in the Asia Pacific (excluding Japan) region will reach US$14.7 billion in 2018, an increase of 14.4 percent over 2017.

New revenue opportunities through commercial purchases of BDA-related hardware, software, and services are likely to accelerate in the upcoming years to reach approximately US$22.2 billion by 2021, which represents a five-year compound annual growth rate (CAGR) of 14.4 percent over the 2016-21 period.

Research Manager for IDC Asia Pacific Ashutosh Bisht said:

Big data will be a game changer for enterprises and governments around APeJ, enterprise across the region are adopting to Big Data and analytics for an added advantage but most are yet to take-off with full scale implementation and the vast majority are currently taking an ad-hoc and opportunistic approach.

Banking, telecommunications, discrete manufacturing, federal/central government, and professional services are the five potential and leading industries which will make the largest investments in big data and analytics solutions in 2018.

Combined, these five industries will spend around US$8.3 billion on BDA solutions this year, accounting for more than 55 percent of the total spending. They will also be the largest spenders in 2021 when their total investment will be US$12.6 billion.

However, over the forecast period (2016-21), professional services, healthcare providers, and resource industries will grow at the highest pace – at a five-year CAGR of 16.9 percent, 16.1 percent and 15.5 percent.

Services-related spending accounts for 45.2 percent share of the total spending in 2017 and is further expected to experience the strongest growth with a five-year CAGR of 17.2 percent to reach US$11.1 billion by 2021.

Investments are likely to be driven by IT and business services, represents more than half of all big data and business analytics revenue throughout the forecast period (2016-21).

Software-related spending are the second largest and expected to grow at a five-year CAGR of 11.2 percent to reach US$6.2 billion by 2021. This is mainly led by the procurements of data warehouse management tools, end-user query, reporting, and analysis tools, and advanced and predictive analytics software tools.

However, spending on non-relational analytic data store, cognitive software platforms, and CRM analytic applications will showcase strong growth – CAGRs of 34.4 percent, 27.8 percent and 20.1 percent respectively over the forecast period (2016-21) as companies continue to invest in enhancing their big data and analytics capabilities.

BDA-related purchases of servers and storage is another revenue generator which will grow at a CAGR of 12.9 percent, reaching US$4.8 billion in 2021.

Who’s spending what and where?

On a geography perspective, China will be the biggest market in Asia Pacific (excluding Japan) for big data and business analytics solutions, with spending forecast to reach US$5.5 billion in 2018 with 37.3 percent share.

The Chinese market for BDA-related purchases will be dominated by telecommunications and banking with a 14.6 percent share each of the overall spending followed by professional services (11.9 percent) in 2018. Australia will be the second largest contributor, accounting for 18.2 percent in 2018.

However, the countries that will see the fastest growth in BDA spending over the five-year forecast period will be Indonesia (19.7 percent CAGR), Philippines (19.0 percent CAGR) and Thailand (18.2 percent CAGR).

“Many organizations of APeJ have come to realize the importance of having big data solutions seamlessly integrated with business processes, so that insight generated can be readily consumed by business users and drive structural behavioral changes,” IDC Asia Pacific Cognitive Computing/Artificial Intelligence Senior Research Manager Jessie Cai said.

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