Global Big Data Technology and Services Market - Segmented by Delivery Mode (On-premise, Cloud), End-User Vertical (Telecom and IT, Energy and Power, BFSI, Retail, Manufacturing, Transportation and Logistics, Aerospace and Defense, Media and Entertainment, Engineering and Construction, Healthcare and Pharmaceuticals) and Region - Growth, Trends and Forecasts (2018 - 2023)
The global big data technology & service market was valued at USD 21.19 billion in 2017, and is expected to reach a value of USD 77.58 billion by 2023, at an estimated CAGR of 24.15%,over the forecast period (2018 - 2023). The scope of the report is limited to software solutions and services offered by various vendors in the market.
Across the world, every day billions of people take photos, videos, and send texts, and this flood of data is growing at an exponential rate. The total amount of data in the world was estimated at 4.4 zettabytes in 2013. That is expected to rise steeply to 44 zettabytes by 2020. Big data is a term that describes the large volume of data (both structured and unstructured). With the rapid growth in analytic capabilities on cloud platforms, users leveraged large cloud vendors more prominently for analytical software in 2017. It is expected that cloud-based deployments of these solutions will drive up to five times higher growth in spending, as compared to on-premises analytics solutions. Big Data initiatives were a high priority for 60% of the enterprises that planned to spend an average of USD 9 million on such initiatives in 2016.
The market is witnessing integration of big data solutions, like business analytics, along with advanced analytical solutions, like business intelligence solutions, which were usually deployed as a subset of a larger business intelligence solution.
Cloud Deployment of these Solutions is Driving the Adoption
The deployment of these solutions over cloud offers great convenience, as the service vendor is responsible for providing maximum uptime, data security, and periodic updates, thus decreasing the total cost of ownership. The current market trends, including delivery of these solutions on the pay-per-use models and SaaS models, wherein the service vendors also assume the responsibility of maintaining data and application information, are further driving the adoption of these solutions. Moreover, this mode has seen an increase in deployment in small-/medium-scale businesses, as it cuts down the capital expenditure involved in building the required infrastructure on their premises.
Increased Adoption of Data Visualization Tools by the BFSI Sector
The banks currently are growing in size and are expanding geographically. The number of branch network grew leaps and bounds, and thus, the volume of transactions is witnessing exponential growth. Manual operations became time-consuming and error-prone. As a result, real-time or near to real-time data integration, analysis, and visualization have become prevalent in the market. To cater to a load of operations from all bank branches spread across geographies, banks have started using advanced visualization tools to track their operations.
Integration of advanced capabilities, like machine learning, are further helping bankers to optimize their performance and reduce risks. It is reported that a large retail bank in the United Kingdom used machine learning algorithms to identify fraudulent transactions with more than 90% accuracy. Banks and other financial institutions currently are increasing their IT spending to leverage the benefits of the innovations in the market. However, with the increase in cyber terrorism, security of sensitive data, including personal banking details, commercial banking details, and confidential corporate information are at stake.
North America Is Expected To Dominate The Big Data Technology Market During The Forecast Period
North America is the largest producer of data in the world, and this can be attributed to their well-developed infrastructure and the large number of active internet users, which accounted to about 88.5% of the total population in 2017. This number indicates an increase of about 1.1%, as compared to 2016, according to World Bank statistics. This rise in data can be attributed to the rise in communication systems, majorly social media. About 89% of the population from the age group of 18-28 has been on social media, generating a significant amount of content. About 80% of people from the 30-49 age group and 64% of the people from 50-64 age group, are present in social media platforms
In Canada, which was relatively stable during the recession period, the gains are more visible. The industrial sector is experiencing steady growth, along with increasing influence of internet on sales of industrial goods, hence, the increased demand for business intelligence and analytics solutions. It was further reported by Dresner Advisory Services that North America was the global leader in adopting public cloud platforms for Cloud BI, with 60% of organizations either using or planning to use public cloud in 2017, followed by Asia-Pacific.
Key Developments in the Market