Big data and analytics software poised for strong growth

Big data and analytics (BDA) is helping enterprises in shaping their businesses and decision making. IDC expects the trend of companies relying on data manipulation to analyse, predict, and swiftly adapt to changing market conditions to stay, being fueled by ongoing supply chain and demand shift challenges.

The research firm predicts that the BDA software market in Europe, the Middle East, and Africa (EMEA) is expected to improve in 2023, with 15.2 percent growth year on year. It will gradually catch up with the Americas and Asia/Pacific including Japan (APJ), which means increasing by 2 percent and 4.5 percent, respectively.

In terms of compound annual growth rate (CAGR) over the 2022-2026 period, EMEA is likely to reach 19.1 percent, which is a bit stronger than the Americas, but 1.4 percent weaker than APJ. Within the overall BDA market, business intelligence and analytics tools and platforms will record a CAGR of 23.6 percent over the forecast period.

The BDA market suffered moderately last year due to the Russia-Ukraine war, as well as to the euro weakening against the US dollar, but this has largely been largely limited to EMEA.

In the first half of 2022, the EMEA BDA market posted year-on-year revenue growth of 10 percent in US dollars, while growth in constant currency reached 19.5 percent. On the other hand, the Americas market grew 21 percent in both US dollars and constant currency, representing slight growth compared to the second half of 2021.

The BDA market in APJ enjoyed 16 percent growth in US dollars and 23.3 percent growth in constant currency for this period.

“As was the case during the COVID pandemic, the first half of 2022 showed that the most transformative technologies — such as popular analytics applications, AI software platforms, and data integration and integrity tools — are less impacted by market challenges. They are, in fact, central to strategies to seek out new opportunities and mitigate risk,” said Thomas Vavra, Associate Vice President of European Software Data & Analytics at IDC.

Photo: PhotoMIX Company

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