Big data, analytics revenues to reach $260bn by 2022

Worldwide revenues for Big Data and business analytics solutions will total $166 billion this year, an increase of 11.7% over 2017.

This is according to International Data Corporation's (IDC's) Worldwide Semiannual Big Data and analytics Spending Guide, which notes that global organisations are turning to high-level big data and analytics solutions to navigate the convergence of their physical and digital worlds.

Over the 2017-2022 forecast period, revenues for big data and business analytics solutions are expected to reach $260 billion in 2022, representing a compound annual growth rate (CAGR) of 12%, notes IDC.

"The industries making the largest investments in big data and business analytics solutions throughout the forecast are banking, discrete manufacturing, process manufacturing, professional services, and federal or central government.

"Combined, these five industries will account for nearly half ($81 billion) of global big data and analytics revenues this year. They will also be the industries with the largest big data and analytics opportunity in 2022, when their total investment will be $129 billion. The industries that will deliver the fastest revenue growth are retail (13.5% CAGR), banking (13.2% CAGR) and professional services (12.9% CAGR)," reveals IDC.

In terms of company size, the report found that very large businesses (those with more than 1 000 employees), will be responsible for nearly two thirds of the big data and analytics opportunity throughout the forecast period. Small and medium-sized businesses will also be significant contributors to big data and analytics revenues, with nearly a quarter of global revenues coming from companies with fewer than 500 employees, according to the report.

Jessica Goepfert, programme vice-president, customer insights and analysis at IDC, says big data is becoming less of an experimental endeavour and more of a practical pursuit within organisations.

"This transformation takes a different shape, depending on the industry. For instance, within banking and retail, two of the fastest growth areas for big data and analytics investments are all about managing and reinvigorating the customer experience.