Big Data and analytics spending in Asia/Pacific

Data-driven everything is increasingly an overarching theme

Asia/Pacific spending on BDA solutions will reach $US42.2 billion in 2023, thus growing by 19.6 per cent from 2022. Investment in enterprise intelligence solutions has witnessed significant growth from the previous year. It is expected to stay the same owing to the incremental demand of organizations to engage in data-driven decision-making, improve customer experience, speed up business innovation activities, and capitalize on cost-saving opportunities.

“Data-driven everything is increasingly an overarching theme to drive Asia/Pacific companies’ DX initiatives, especially for those with higher DX maturity stages. More of them need to modernize their organization’s data platform, to centrally address trust, adaptability, and agility issues associated with highly disparate and diverse data sources and sinks,” said Jessie Cai Danqing, Associate Research Director, Big Data & Analytics, IDC Asia Pacific.

Banking, Telecommunications, and Professional Services are the primary industries contributing to more than 35 per cent revenue share in the BDA market in 2023. They will continue to dominate the market over the forecast period. The ability to churn real-time insights from customer data and enhanced risk management are some use cases driving spending in the banking industry. Spending by Telecommunications industry will grow to $US4.6 billion in 2023. The sector is predicted to experience significant disruption owing to the increasing adoption of “cloud first” with organizations’ “wireless first” multi-access network model and rising emphasis on connectivity resilience. The deployment of BDA solutions offers faster provisioning, network visibility, and traffic analytics. Professional services captured a market share of 10.3 per cent in 2023, which is expected to increase to 10.6 per cent by 2026. 360-degree customer and client management, intelligent building energy management, and asset performance management are the primary use cases driving the adoption of BDA solutions in the region.

“Access to better enterprise intelligence to support business operations is promoting the adoption of BDA solutions,” says Abhik Sarkar, Market Analyst, IT Spending Guides, IDC Asia/Pacific. “External headwinds such as the pandemic, cyber threats, economic instability, supply-chain irregularities, and the need to mitigate these risks; coupled with the rapid influx of digital businesses and changing workforce dynamics act as key drivers for the technology, ” he adds.

Data sovereignty is emerging as an essential factor contributing to the growth of BDA market in Asia/Pacific. This can be credited to the rising need amongst organizations to improve privacy measures & implementation, closely work with ICT suppliers to mitigate 3rd party risk and enhance the risk management process. Additionally, business disruptions due to geopolitical conflicts and global pandemics have established the need to adopt data sovereignty practices to ensure operational and business resilience.

In terms of revenue share, services will capture the largest share at 41.1 per cent in 2023 and will grow at the CAGR of 17.9 per cent (2021-2026) to $US28.4 billion. IT services contributes to nearly 79 per cent of the entire BDA services spending in the region. Services is followed by software which will register a spending of $US13.8 billion in 2023 and is expected to grow by more than 23 per cent in 2024. This can be attributed to the incremental use of AI software platforms, end-user query, reporting, and analysis tools, and relational data warehouses. Software also is the fastest-growing technology group with a CAGR of 22.8 per cent. Hardware segment will capture spending of $US11.1 billion in 2023. Nearly 75 per cent of spending in hardware will be captured by servers in 2023.

The Worldwide Big Data and Analytics Spending Guide is designed to address the needs of organizations assessing the big data and business analytics opportunity by geography, industry, and company size. The Spending Guide provides subscribers with revenue projections for 20 technology and service categories across 19 industries, five company size bands, and 53 countries. Unlike any other research in the industry, the comprehensive Spending Guide was designed to help IT decision-makers to clearly understand the industry-specific scope and direction of big data and business analytics opportunities today and over the next five years.



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