10 Charts That Will Change Your Perspective Of Big Data’s Growth
- Worldwide Big Data market revenues for software and services are projected to increase from $42B in 2018 to $103B in 2027, attaining a Compound Annual Growth Rate (CAGR) of 10.48% according to Wikibon.
- Forrester predicts the global Big Data software market will be worth $31B this year, growing 14% from the previous year. The entire global software market is forecast to be worth $628B in revenue, with $302B from applications.
- According to an Accenture study, 79% of enterprise executives agree that companies that do not embrace Big Data will lose their competitive position and could face extinction. Even more, 83%, have pursued Big Data projects to seize a competitive edge.
- 59% of executives say Big Data at their company would be improved through the use of AI according to PwC.
Sales and Marketing, Research & Development (R&D), Supply Chain Management (SCM) including distribution, Workplace Management and Operations are where advanced analytics including Big Data are making the greatest contributions to revenue growth today. McKinsey Analytics’ study Analytics Comes of Age, published in January 2018 (PDF, 100 pp., no opt-in) is a comprehensive overview of how analytics technologies and Big Data are enabling entirely new ecosystems, serving as a foundational technology for Artificial Intelligence (AI). McKinsey finds that analytics and Big Data are making the most valuable contributions in the Basic Materials and High Tech industries. The first chart in the following series of ten is from the McKinsey Analytics study, highlighting how analytics and Big Data are revolutionizing many of the foundational business processes of Sales and Marketing.
The following ten charts provide insights into Big Data’s growth:
- Nearly 50% of respondents to a recent McKinsey Analytics survey say analytics and Big Data have fundamentally changed business practices in their sales and marketing functions. Also, more than 30% say the same about R&D across industries, with respondents in High Tech and Basic Materials & Energy report the greatest number of functions being transformed by analytics and Big Data. Source: Analytics Comes of Age, published in January 2018 (PDF, 100 pp., no opt-in).
- Worldwide Big Data market revenues for software and services are projected to increase from $42B in 2018 to $103B in 2027, attaining a Compound Annual Growth Rate (CAGR) of 10.48%. As part of this forecast, Wikibon estimates the worldwide Big Data market is growing at an 11.4% CAGR between 2017 and 2027, growing from $35B to $103B. Source: Wikibon and reported by Statista.
- According to NewVantage Venture Partners, Big Data is delivering the most value to enterprises by decreasing expenses (49.2%) and creating new avenues for innovation and disruption (44.3%). Discovering new opportunities to reduce costs by combining advanced analytics and Big Data delivers the most measurable results, further leading to this category being the most prevalent in the study. 69.4% have started using Big Data to create a data-driven culture, with 27.9% reporting results. Source: NewVantage Venture Partners, Big Data Executive Survey 2017 (PDF, 16 pp.)
- The Hadoop and Big Data Market are projected to grow from $17.1B in 2017 to $99.31B in 2022 attaining a 28.5% CAGR. The greatest period of projected growth is in 2021 and 2022 when the market is projected to jump $30B in value in one year. Source: StrategyMRC and reported by Statista.
- Big Data applications and analytics is projected to grow from $5.3B in 2018 to $19.4B in 2026, attaining a CAGR of 15.49%. Big Data market worldwide includes Professional Services is projected to grow from $16.5B in 2018 to $21.3B in 2026. Source: Wikibon and reported by Statista.
- Comparing the worldwide demand for advanced analytics and Big Data-related hardware, services and software, the latter category’s dominance becomes clear. The software segment is projected to increase the fastest of all categories, increasing from $14B in 2018 to $46B in 2027 attaining a CAGR of 12.6%. Sources: Wikibon; SiliconANGLE; Statista estimates and reported by Statista.
- Advanced analytics and Big Data revenue in China are projected to be worth ¥57.8B ($9B) by 2020. The Chinese market is predicted to be one of the fastest growing globally, growing at a CAGR of 31.72% in the forecast period. Sources: Social Sciences Academic Press (China) and Statista.
- Non-relational analytic data stores are projected to be the fastest growing technology category in Big Data, growing at a CAGR of 38.6% between 2015 and 2020. Cognitive software platforms (23.3% CAGR) and Content Analytics (17.3%) round out the top three fastest growing technologies between 2015 and 2020. Source: Statista.
- A decentralized general-merchandise retailer that used Big Data to create performance group clusters saw sales grow 3% to 4%. Big Data is the catalyst of a retailing industry makeover, bringing greater precision to localization than has been possible before. Big Data is being used today to increase the ROI of endcap promotions, optimize planograms, help to improve upsell and cross-sell sales performance and optimize prices on items that drive the greatest amount of foot traffic. Source: Use Big Data to Give Local Shoppers What They Want, Boston Consulting Group, February 8, 2018.
- 84% of enterprises have launched advanced analytics and Big Data initiatives to bring greater accuracy and accelerate their decision-making Big Data initiatives focused on this area also have the greatest success rate (69%) according to the most recent NewVantage Venture Partners Survey. Over a third of enterprises, 36%, say this area is their top priority for advanced analytics and Big Data investment. Sources: NewVantage Venture Partners Survey and Statista.
Additional Big Data Information Sources:
4 Pain Points of Big Data and how to solve them, Digital McKinsey via Medium, November 10, 2017
53% Of Companies Are Adopting Big Data Analytics, Forbes, December 24, 2017
6 Predictions For The $203 Billion Big Data Analytics Market, Forbes, Gil Press, January 20, 2017
Analytics Comes of Age, McKinsey Analytics, January 2018 (PDF, 100 pp.)
Big Data & Analytics Is The Most Wanted Expertise By 75% Of IoT Providers, Forbes, August 21, 2017
Big Data 2017 – Market Statistics, Use Cases, and Trends, Calsoft (36 pp., PDF)
Big Data and Business Analytics Revenues Forecast to Reach $150.8 Billion This Year, Led by Banking and Manufacturing Investments, According to IDC, March 14, 2017
Big Data Executive Survey 2018, Data and Innovation – How Big Data and AI are Driving Business Innovation, NewVantage Venture Partners, January 2018 (PDF, 18 pp.)
Big Data Tech Hadoop and Spark Get Slow Start in Enterprise, Information Week, March 20, 2018
Big Success With Big Data, Accenture (PDF, 12 pp.)
Gartner Survey Shows Organizations Are Slow to Advance in Data and Analytics, Gartner, February 5, 2018
How Big Data and AI Are Driving Business Innovation in 2018, MIT Sloan Management Review, February 5, 2018
IDC forecasts big growth for Big Data, Analytics Magazine. April 2018
IDC Worldwide Big Data Technology and Services 2012 – 2015 Forecast, Courtesy of EC Europa (PDF, 34 pp.)
Midyear Global Tech Market Outlook For 2017 To 2018, Forrester, September 25, 2017 (client access reqd.)
Oracle Industry Analyst Reports – Data-rich website of industry analyst reports
Ten Ways Big Data Is Revolutionizing Marketing And Sales, Forbes, May 9, 2016
The Big Data Payoff: Turning Big Data into Business Value, CAP Gemini & Informatica Study, (PDF, 12 pp.)
The Forrester Wave™: Enterprise BI Platforms With Majority Cloud Deployments, Q3 2017 courtesy of Oracle