The need to adopt a data-driven culture propels data analytics spending to US$21B.
Decision-makers in Indian enterprises are investing in big data analytics to base decisions on real-time data during these turbulent times. Digitally determined enterprises demonstrate a forward-looking approach towards adopting these solutions, reflecting in spending growth of 11.5 per cent in 2021 on Big Data and Analytics (BDA) as per the recent release of the IDC worldwide big data and analytics spending guide. International Data Corporation (IDC) expects big data technology and service-related spending to grow with a five-year CAGR of 14.6 per cent over the forecast period of 2020-25.
From an industry standpoint, banking has the largest share of spending in 2021, with an expected CAGR of 13.7 per cent during the forecast period till 2025. The banking industry has gained in-depth cognizance in numerous facets of operations – from data being an asset for the unpredictable environment, customer satisfaction, enhancing productivity and performance. The banking industry is now making decisions much faster than the traditional ways by leveraging analytics in the Indian market.
Telecommunication is the second leading industry in adopting big data analytics solutions to understand customers, business, and overall operations. Some of the local Indian telecom players partner with other enterprise analytics providers to enhance customer experience backed by Big Data. Both industries contribute to more than 30 per cent of the BDA spend in 2021. Spending by public sector organizations has also grown during this period as data plays a significant role in decision-making to control the spread of the pandemic.
Enterprises across the industry have realized the potential of intelligence technologies (such as big data analytics, AI/ML) and are focused on building new decision environments based on data-driven insights. The current covid-19 crisis has further accelerated the demand for intelligence technologies to enable new ways of working.
As per IDC’s Future Enterprise Resiliency and Spending Survey (Wave 5), more than 50 per cent of the Indian enterprises will increase their investments in analytics applications in the next 12 months to achieve cost optimization and retain business resiliency,” said Sharad Kotagi, Market Analyst at IDC Asia/Pacific.
Services will be the most significant technology group with more than 50 per cent market share in 2021 and the fastest growing technology category with a five-year CAGR of 17.5 per cent, Software will be the second largest technology group in 2021, primarily driven by relational data warehouse management tools, and end-user query, reporting, and analysis tools categories. Hardware spending is led by servers and continue to dominate the segment throughout the forecast.
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 opportunity today and over the next five years.