Big Data and Analytics Software Market to Record Strong Growth

The Semiannual Big Data and Analytics Software Tracker published by IDC expects current geopolitical developments to have a mild impact on market growth, with a positive outlook for the future. The trend of companies relying on data manipulation to analyze, predict, and swiftly adapt to changing market conditions is here to stay, being fueled by ongoing supply chain and demand shift challenges.

The BDA market has suffered moderately due to the Russia-Ukraine war, as well as to the euro weakening against the dollar, but this has largely been limited to Europe, the Middle East, and Africa (EMEA) region. In the first half of 2022, the EMEA BDA market posted year-on-year revenue growth of 10% in U.S. dollars, while growth in constant currency reached 19.5%. On the other hand, the Americas market grew 21% in both U.S. dollars and constant currency, representing slight growth compared to the second half of 2021. The BDA market in the Asia/Pacific region, including Japan (APJ), saw a 16% growth in US dollars and a 23.3% growth in constant currency for this period.

“As was the case during the COVID pandemic, the first half of 2022 showed that the most transformative technologies — such as popular analytics applications, AI software platforms, and data integration and integrity tools — are less impacted by market challenges. They are, in fact, central to strategies to seek out new opportunities and mitigate risk,“ says Thomas Vavra, IDC Associate Vice President of European Software Data & Analytics.

According to IDC’s BDA software forecast, EMEA spending is expected to improve in 2023, with 15.2% growth year on year. It will gradually catch up with the Americas and APJ, which means increasing by 2% and 4.5%, respectively. In terms of compound annual growth rate (CAGR) over the 2022-2026 period, EMEA is likely to reach 19.1%, which is a bit stronger than the Americas, but 1.4% weaker than APJ. Within the overall BDA market, business intelligence and analytics tools and platforms will record a CAGR of 23.6% over the forecast period. Three key factors are affecting the expansion of the big data and analytics market: the increasing importance of data in the modern enterprise, the ongoing shift to the public cloud, and the rise of artificial intelligence and machine learning within enterprise applications.