BI market set to touch $143 billion by 2016
The global market for business intelligence (BI), in software and services, is worth an estimated $79.0bn in 2012, growing at 16% to reach $143.3bn in 2016. This was revealed in a new research from Pringle & Company, a technology market research firm.
Investment in analytics tools, the most advanced component of BI employing a blend of technology, analytical technique and industry-specific IP, is the fastest growing component of BI with growth rates of 18.8% in software and 20.9% in the services employed to adopt it. This will lead to the analytics market being worth more than $18 billion in 2016.
“As data volume and variety grows ever bigger, the necessary investment in technology and services to understand and successfully exploit its value will have to rise. Such high levels reflect not only growing understanding of the real-world business value of data-driven insights, but also demonstrate the substantial range and depth of skills required to adopt the necessary systems to successfully discover and act on them,” said Tom Pringle, founder and principal analyst, Pringle & Company.
“Our research adds further authority to the assertion that BI is as applicable in times of cost-conscious economic uncertainty as growth-seeking periods of confidence,” he added.
For every dollar spent on BI software over two more spent on services
The report underscores the indispensable role of services in the development of BI capabilities provided by management consultancies through technical, deployment and maintenance providers. The market for services provided by business and technology consultancies to develop and implement the systems and processes required to generate data insights is growing at 15.3%. Services represent over two thirds of the overall market for BI in 2012 and in spite of pricing pressure from commoditisation will remain so through to 2016. The global market for these services will grow from an estimated $54.5 billion in 2012 to $96.9 billion in 2016.
“Services are the often over-looked majority of BI spending and viewed by many as essential to the successful acquisition, adoption and use of BI,” said Pringle.
Financial services, BI’s biggest market
Financial institutions are the largest customer of BI with some 25% of the market. “Sustained high demand for BI tools from the financial services industry is driven by more stringent and demanding regulatory environments, persistent focus on fraud detection and prevention and the continuing automation of banking activities,” he said.
Growth across other industries is led by healthcare and travel. Managing the data challenge of electronic patient records and use of data analysis for improving health outcomes are helping boost demand in the health sector. The travel sector is looking to BI to help manage the complexity of extended operations and as a means to meet the challenge of intense competition through analytical advantage.
Major opportunity for industry-specific business services
“Addressing the technology challenge of adopting BI is only part of the equation; understanding the relevance and relationships within industry data is critical. Without industry context and an appreciation of what truly represents a key performance indicator, the technology will be limited. Business services providers, such as management consultancies, with their broad portfolios of capability and experience, are well-placed to make valuable contributions to organisations looking to accelerate the process of converting data to insight,” averred Pringle.
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