The rapid development of technologies such as artificial intelligence (AI) and the Internet of Things (IoT) has significantly increased the volume and complexity of data sets, driving the growth of the big data and business analytics market.
According to data presented by Stock Apps, the global big data and business analytics (BDA) market was valued at $215.7bn in 2021. This figure is projected to grow by 27% to over $274bn by the end of the next year.
Digitalisation driving changes
Digitalisation has completely changed the economy, society, and people over the past few years, and COVID-19 has only speeded up the entire process. According to Statista, there are more than 21 billion interconnected devices globally, and their number is set to explode in the following years as internet consumption rises and new gadgets and machinery hit the market.
"Organisations are realising just how important this notion of data and analytics and business intelligence and performance management are, especially during a very disruptive event like a pandemic," Dresner Advisory Services said.
Worldwide spending on data and analytics
According to IDC’s Worldwide Semiannual Big Data and Analytics Spending Guide, the global big data and business analytics (BDA) market had seen impressive growth even before the pandemic, with revenues rising from $122bn in 2015 to nearly $169bn in 2018.
By the end of 2019, total spending on these technologies and solutions jumped to over $189bn. As the COVID-19 continues driving the global shift to digital solutions, total BTA spending is expected to jump above $215bn in 2021. More than half of BDA spending will go towards services. IT services are projected to make up around $85bn, and business services will cover the remainder.
By the end of 2022, global BDA spending is projected to jump by almost $60bn, showing the most significant annual increase so far.
The IDC survey also showed the United States is the leading big data and business analytics market, with a 51% market share in 2021. Japan ranked as the second-largest BDA market with a 5.7% share this year. China, the United Kingdom and Germany follow, with 5.5%, 5.1%, and 4.4% market share.
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