IDC Sees Big Data and Analytics Spend at $215.7B in 2021
August 17, 2021
spending on big data and business analytics (BDA) solutions is forecast to reach
$215.7 billion this year, an increase of 10.1% over 2020, according to a new
update to the Worldwide Big Data and Analytics Spending Guide from International
Data Corporation (IDC). The forecast also shows that BDA spending will gain
strength over the next five years as the global economy recovers from the
COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA
spending over the 2021-2025 forecast period will be 12.8%.
"As executives seek solutions to enable better, faster decisions, we're seeing
relatively healthy BDA spending across all industries. Leveraging data for
insights into everything from internal business operations to the customer
journey is top of mind and of strategic importance," said
program vice president, Customer Insights and Analysis. "Firms in the
professional services industry, for instance, are utilizing Big Data and
analytics to support their 360-degree customer and client management efforts, as
well as advanced project management initiatives. Banks are using BDA solutions
to improve customer onboarding while simultaneously automating business
operations and detecting and preventing fraud. Even slower moving industries
like construction have started to fuel investments in extended supply chain
planning and interconnected and collaborative workspaces."
The industries currently making the largest investments in big data and
analytics solutions are banking, discrete manufacturing, and professional
services. Combined, these three industries will account for one third of all BDA
spending in 2021. The next three industries – process manufacturing,
telecommunications, and federal/central government – will together deliver
nearly $47 billion in spending this year. While the telecommunications industry
will see the fastest growth in BDA spending over the five-year forecast, all but
one of the 19 industries covered in the Spending Guide are expected to deliver
Over half of all BDA spending in 2021 will go toward services with IT services
accounting for more than $85 billion of the total and business services making
up the remainder. The second largest segment of BDA spending this year will be
software, which will see investments totaling $82 billion. Almost half of this
total will go to three types of applications – End-User Query, Reporting, and
Analysis Tools, Relational Data Warehouses, and Nonrelational Analytic Data
Stores – with the remainder spread across the 13 remaining software categories.
Software will also be the fastest growing segment of BDA spending with a
five-year CAGR of 15.1%.
Stronger, fit-for-purpose software that
supports both on-premise and cloud infrastructures will also continue to grow
with the market, according to
IRI Voracity data management platform SVP David Friedland.
"BDA architects expect depth and breadth in data processing, protection,
prototyping and presentation capabilities, and they want to perform those
activities in combination." Data task optimization and consolidation are the
raison d'ętre for production analytic platforms like Voracity. "The upshot is
faster and more disparate, governed, and robust outcomes for business users, and
more affordable options for enterprise CFOs," he added.
"Unlike many other areas of the IT services market, big data and analytics
services continued to grow in 2020 as organizations relied on data insights and
intelligent automation solutions to survive the COVID-19 pandemic," said
Jennifer Hamel, research manager, Analytics and Intelligent Automation Services.
"The next phase of digital resiliency will spur increased investment in services
to address both lingering and new challenges related to enterprise intelligence
On a geographic basis, the United States is the largest market with more than
$110 billion in BDA spending this year. Japan and China are the next two largest
markets with BDA spending forecast to reach $12.4 billion and $11.9 billion,
respectively. The United Kingdom is the only other country expected to surpass
$10 billion in BDA spending this year. Argentina is forecast to see the fastest
growth in BDA spending over the forecast period with a five-year CAGR of 21.2%.
China's CAGR of 20.1% will enable it to become the second largest market by the
end of the forecast.
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