Big Data benefits are well documented especially for organizations looking to create more personal and impactful customer experiences. International Data Corporation (IDC) on the other hand predicts that by 2019, the spending on technology and services related to Big Data will touch $50 billion mark.
The forecast from IDC suggests that big data technology and services market is growing at a compound annual growth rate of 23.1% over 2014-2019 forecast periods with annual spending reaching $49.6 billion in 2019. The spending is said to be on big data solutions in greater detail across 19 vertical industries and eight big data technologies.
Investment increase in big data industry stream, in said period, will be largely influenced by the every increasing appetite of businesses to embrace emerging big data related software and infrastructure technologies, keeping the implementation costs low. This will automatically create a business tributary for a rich ecosystem of new and incumbent suppliers.
Infrastructure, software, and services, which are credited as major big data sub markets– are expected to grow over the next five years.
- Infrastructure, which consists of computing, networking, storage infrastructure, and other datacenter infrastructure-like security – will grow at a 21.7% CAGR.
- Software, which consists of information management, discovery and analytics, and applications software – will grow at a CAGR of 26.2%.
- And services, which includes professional and support services for infrastructure and software, will grow at a CAGR of 22.7%.
- Note-Infrastructure spending will account for roughly one half of all spending throughout the forecast period.
IDC also expects a larger business share for big data analytics, as big data matures. But the bad news is that big data market growth year-over-year will diminish gradually. The reduction in overall growth will be largely caused by increased price pressures for infrastructure and higher rates of commercialization of open source software. The availability and skill level of big data IT and analytics talent will also have a direct impact on the market.
International Data Corporation suggests that the business drivers, barriers and potential benefits from deploying big data initiatives will vary from industry to industry. Customer experience, product support, service innovation will play a vital role in perpetuating the investments further upstream. While Security and privacy are termed to be large concerns for big data adoption, challenges faced in collecting, using, managing personal data are derived as negative substitutes.
From a vertical industry perspective, the largest industries for big data spending include discrete manufacturing –$2.1 billion in 2014; banking–$1.8 billion in 2014; and process manufacturing –$1.5 billion in 2014.
The industries with the fastest growth rates include securities and investment services growing at 26% CAGR, banking at 26% CAGR, and media at 25% CAGR.