Analytics solutions are an essential business need to enable digital trust and resiliency during the COVID-19 crisis.
Revenues for Big Data and Analytics (BDA) solutions to reach US$22.6 billion in 2020, with a year on year (YoY) growth of 12.0 per cent over 2019 in Asia/Pacific.
The recently released IDC Worldwide Big Data and Analytics Spending Guide Forecasts showed this was mainly due to decision-makers increasing confidence that investments in data and analytics will be necessary in achieving digital and business resiliency amid the pandemic.
IDC expects big data technology and service-related revenues to grow with a five-year CAGR of 15.6 per cent over the forecast period of 2019-24, said Ritika Srivastava, associate market analyst at IDC Asia Pacific.
“According to the latest COVID-19 survey, approximately 74 per cent of enterprises intend to keep investments in BDA solutions at the same level or to increase next year,” she said. “This is because analytics solutions are an essential business need to enable digital trust and resiliency during the COVID-19 crisis.”
The pandemic has led to a drop in a number of ICT investments. However, technology resiliency has helped businesses in combating the impact of the virus by obtaining valuable insights, enhancing business productivity, fulfilling client promises, identifying fraud, and minimising costs. Enterprises should then have a data strategy in place to remain competitive in Asia Pacific.
To optimise the BDA investments, enterprises are moving towards public cloud deployments which are experiencing a growth of 32 per cent during the forecast period (2019-2024).
Banking is a top vertical of the overall BDA market in 2020 and is expected to grow at a CAGR of 15.6 per cent from 2019 to 2024.
The banking sector manifest various prospects to capitalise on the financial, transactional, and customer data. The second largest vertical that reaps substantial benefits from data analytics is Telecommunications – specifically in the context of discovering critical insights related to customers, sales, and marketing.
Both industries contribute to nearly one third of the BDA spend, amounting to US$6.1 billion in 2020.
Government (at state and local level), and healthcare providers are the industries which are expected to register the highest CAGR, with 18.8 per cent and 17.7 per cent respectively over the forecast period (2019-2024).