Big Data to Drive Business Analytics Market

by CXOtoday News Desk    Jul 12, 2012

Business Analytics to growThe business analytics software market is projected to grow to $50.7 billion in 2016, revealed IDC in its recent report “Worldwide Business Analytics Software 2012–2016 Forecast”. The research firm noted that the business analytics software market grew by 14.1 percent in 2011 and will continue to grow at a 9.8 percent annual rate, driven by big data.

The research revealed that the growth of non-relational data management technology is forcing analytics providers to accelerate their R&D efforts and acquisitions thereby focusing on new tools and applications and the integration of new and existing technologies.

“Driven by the attention-grabbing headlines for big data, and more than three decades of evolutionary and revolutionary developments in technology and best practices, the business analytics software market has crossed the chasm into the mainstream mass market,” said Dan Vesset, Program Vice President for IDC’s Business Analytics Solutions unit. He added that the demand for business analytics solutions is exposing the previously minor issue of the shortage of highly skilled IT and analytics staff.

Of the three primary segments of the worldwide business analytics software market, the data warehousing platform software segment grew the fastest in 2011 at 15.2 percent year-over-year, followed by the analytic applications segment, which grew at 13.3 percent, and the business intelligence and analytic tools segment, which grew at 13.2 percent.

IDC researchers believe that as more enterprises are becoming interested in this technology, vendors and CIOs will have to devote more resources to business analytics services. At the same time, the research noted that a growing emphasis on industry and business-specific analytic applications will take hold over the forecast period. This will be a long-term trend that is likely to accelerate merger and acquisition activity in the business analytics market, predicts IDC business analytics, as vendors will have to execute go-to-market strategies depending on ever finer segmentation of target audiences by industry, region and organisation size, the research firm said.

IDC also noted that growth in appliances, software as a service (SaaS), and outsourcing deals for business analytics technology will likely mean that enterprises will pay increasingly less attention to specific technology components, instead focusing on the business value arguments and overall functionality.