Roundup Of Analytics, Big Data & BI Forecasts And Market Estimates, 2016
- Big Data & business analytics software worldwide revenues will grow from nearly $122B in 2015 to more than $187B in 2019, an increase of more than 50% over the five-year forecast period.
- The market for prescriptive analytics software is estimated to grow from approximately $415M in 2014 to $1.1B in 2019, attaining a 22% CAGR.
- By 2020, predictive and prescriptive analytics will attract 40% of enterprises’ net new investment in business intelligence and analytics.
Making enterprises more customer-centric, sharpening focus on key initiatives that lead to entering new markets and creating new business models, and improving operational performance are three dominant factors driving analytics, Big Data, and business intelligence (BI) investments today. Unleashing the insights hidden in unstructured data is providing enterprises with the potential to compete and improve in areas they had limited visibility into before. Examples of these areas include the complexity of B2B selling and service relationships, healthcare services, and maintenance, repair, and overhaul (MRO) of complex machinery. All organizations face the daunting task of integrating systems together to enable greater process visibility. enosiX is taking a leadership role in this area, offering real-time integration between SAP and Salesforce systems, giving enterprises the opportunity to be more responsive to suppliers, resellers, partners and most importantly, customers.
Presented below are a roundup of recent analytics and big data forecasts and market estimates:
- Global revenue in the business intelligence (BI) and analytics market is forecast to reach $16.9B in 2016, an increase of 5.2% from 2015. Gartner predicts that the BI and analytics market is in the final stages of a multiyear shift from IT-led, system-of-record reporting to business-led, self-service analytics. Source: Gartner Says Worldwide Business Intelligence and Analytics Market to Reach $16.9 Billion in 2016.
- Big data and business analytics worldwide revenues will grow from nearly $122B in 2015 to more than $187B in 2019, an increase of more than 50% over the five-year forecast period. The industries that present the largest revenue opportunities are Discrete Manufacturing ($22.8B in 2019), Banking ($22.1B), and Process Manufacturing ($16.4B). Source: Worldwide Big Data and Business Analytics Revenues Forecast to Reach $187 Billion in 2019, According to IDC.
- The global big data market will grow from $18.3B in 2014 to $92.2B by 2026, representing a compound annual growth rate of 14.4 percent. Wikibon predicts significant growth in all four sub-segments of big data software through 2026. Data management (14% CAGR), core technologies such as Hadoop, Spark and streaming analytics (24% CAGR), databases (18% CAGR) and big data applications, analytics and tools (23% CAGR) are the four fastest growing sub-segments according to Wikibon. Source: Wikibon forecasts Big Data market to hit $92.2B by 2026.
- In 2015, the Global Analytics and Business Intelligence applications market grew 4% to approach nearly $11.6B in license, maintenance and subscription revenues with SAP maintaining market leadership. SAP led the marketing with 10% market share and $1.2B in Analytics and Business Intelligence (BI) product revenues, riding on a 23% jump in license, maintenance, and subscription revenues. SAS Institute was No. 2 achieving 9% share; IBM was the third at 8%, and Oracle and Microsoft were fourth and fifth place with 7% and 5%, respectively. Source: Apps Run The World: Top 10 Analytics and BI Software Vendors and Market Forecast 2015-2020. For a useful comparison of Tableau vs QlikView vs Microsoft Power BI, please see the recent analysis from SelectHub here.
- Through 2020, Spending on Cloud-Based Big Data and Analytics (BDA) Technology Will Grow 4.5x Faster Than Spending for On-Premises Solutions. IDC’s FutureScape: Worldwide Big Data and Analytics 2016 Predictions (PDF, 13 , no opt-in, courtesy of Cloudera) define ten predictions that define the future of big data and analytics (BDA). IDC also predicts that by 2020, 50% of all business analytics software will incorporate prescriptive analytics built on cognitive computing functionality. The Source: IDC FutureScape: Worldwide Big Data and Analytics 2016 Predictions courtesy of Cloudera
- The Total Data market is expected to nearly double in size, growing from $69.6B in revenue in 2015 to $132.3B in 2020. The specific market segments included in 451 Research’s analysis are operational databases, analytic databases, reporting and analytics, data management, performance management, event/stream processing, distributed data grid/cache, Hadoop, and search-based data platforms and analytics. Source: Total Data market expected to reach $132bn by 2020; 451 Research, June 14, 2016.
- U.S. and International Operations (29%) and Enterprises (27%) lead the adoption of Big Data globally. Midmarket firms have the fastest growth rate of Big Data initiatives and programs in their organizations between 2014 and 2015. Source: International Institute For Analytics. Advanced Analytics and Big Data Adoption Report, 2016.(free, opt-in reqd.)
- Improving customer relationships (55%) and making the business more data-focused (53%) are the top two business goals or objectives driving investments in data-driven initiatives today. 78% of enterprises agree that collection and analysis of Big Data have the potential to change fundamentally the way they do business over the next 1 to 3 years. Source: IDG Enterprise 2016 Data & Analytics Research, July 5, 2016.
- Venture capital (VC) investment in Big Data accelerated quickly at the beginning of the year with DataDog ($94M), BloomReach ($56M), Qubole ($30M), PlaceIQ ($25M) and others receiving funding. Big Data startups received $6.64B in venture capital investment in 2015, 11% of total tech VC. M&A activity has remained moderate (FirstMark noted 35 acquisitions since their latest landscape was published last year). Source: Matt Turck’s blog post, Is Big Data Still a Thing? (The 2016 Big Data Landscape).
- Oracle (16.4%), SAP (13.1%), IBM (10.3%), Microsoft (9.1%) and SAS (6.1%) are the market share leaders in business analytics through 2015. During the last year, IDC also found the on-premises portion of the overall market contracted by 1.4%, while the public cloud services revenue grew 26.5%. Public cloud portion of the market now represents 17% of the market. Source: IDC, Worldwide Business Analytics Software Market Shares, 2015: Healthy Demand Despite Currency Exchange Rate Headwinds (PDF, free, courtesy of SAS).
- IDC forecasts global spending on cognitive systems will reach nearly $31.3 billion in 2019 with a five-year compound annual growth rate (CAGR) of 55%. More than 40% of all cognitive systems spending throughout the forecast will go to software, which includes both cognitive applications (i.e., text and rich media analytics, tagging, searching, machine learning, categorization, clustering, hypothesis generation, question answering, visualization, filtering, alerting, and navigation). Also included in the forecasts are cognitive software platforms, which enable the development of intelligent, advisory, and cognitively enabled solutions. Source: Worldwide Spending on Cognitive Systems Forecast to Soar to More Than $31 Billion in 2019, According to a New IDC Spending Guide.
- The market for prescriptive analytics software is estimated to grow from approximately $415M in 2014 to $1.1B in 2019, attaining a 22% CAGR. 10% of organizations currently have some form of prescriptive analytics. The portion of organizations adopting prescriptive analytics is forecasted to grow to 35% by 2020, and the bulk of new adoption will be from large organizations in mature economies. Source: Gartner Forecast Snapshot: Prescriptive Analytics, Worldwide, 2016; 5 February 2016 (client access reqd).
- The global business intelligence and analytics software market is expected to increase from $17.9B in 2014 to $26.78B in 2019, attaining a CAGR of 8.4%. Banking, financial services, insurance, retail, IT, and telecom will account for the largest percentage of the analytics and BI market. Source: Blog post on Marketresearch.com, The Business Intelligence and Analytics Software Market.
- By 2020, predictive and prescriptive analytics will attract 40% of enterprises’ net new investment in business intelligence and analytics. By 2020, only 50% of chief analytics officers will have successfully created a narrative that links financial objectives to business intelligence and analytics initiatives and investments. Source: Gartner, 100 Data and Analytics Predictions Through 2020 Published: 24 March 2016 ID: G00301430 Analyst(s): Douglas Laney | Ankush Jain (client access reqd).
- Big Data Analytics & Hadoop Market accounted for $8.48B in 2015 and is expected to reach $99.31B by 2022 growing at a CAGR of 42.1% from 2015 to 2022. The rise of big data analytics and rapid growth in consumer data capture and taxonomy techniques are a few of the many factors fueling market growth. Source: Stratistics Market Research Consulting (PDF, opt-in, payment reqd).
Additional sources of market information:
Analytics Trends 2016 The Next Evolution, Deloitte.
Big data analytics, Ericsson White Paper Uen 288 23-3211 Rev B | October 2015
Big Data and the Intelligence Economy in Canada Big Data: Big Opportunities to Create Business Value, EMC.
The Forrester Wave™: Big Data Hadoop Distributions, Q1 2016
The Forrester Wave™: Big Data Hadoop Cloud Solutions, Q2 2016
The Forrester Wave™: Big Data Text Analytics Platforms, Q2 2016
The Forrester Wave™: Big Data Streaming Analytics, Q1 2016
The Forrester Wave™: Customer Analytics Solutions, Q1 2016
From Big Data to Better Decisions: The ultimate guide to business intelligence today (Domo)
Gartner Hype Cycle for Business Intelligence and Analytics, 2015
IBM: Extracting business value from the 4 V’s of big data
IDC Worldwide Big Data Technology and Services 2012 – 2015 Forecast
Opportunities in Telecom Sector: Arising from Big Data. Deloitte, November 2015