APAC big data, analytics spending to grow by 19% in 2022: IDC
By Digital News Asia April 28, 2022
- Banking sector remains the largest investor in BDA, capturing 15.3% in 2022
- BDA solutions to grow by 19% in 2022, to rise 1.6 times to US$53.3 bil by 2025
According to the latest release of IDC's Worldwide Big Data and Analytics (BDA) Spending Guide, Asia Pacific’s spending on big data analytics (BDA) solutions will grow by 19% in 2022 and will rise 1.6 times to US$53.3 billion (RM 232.4 billion) by 2025.
In a statement, the research firm said enterprises need to gain operational efficiency, therefore operational resilience is driving this investment.
It added that building operational resilience stems from providing a real-time response to external market disruptions such as the pandemic, supply chain vulnerabilities, or rapidly evolving customer needs.
“From Covid to the Russia-Ukraine war - the level of disruptions that we have experienced in the past two years have been unprecedented,’’ says Jessie Danqing Cai, associate research director at IDC Asia/Pacific, big data and analytics practice.
“Therefore, organisations need to have a clear strategy to extract value from their data asset, to enable evidence-based decision making, data science explorations, and actionable insight delivery at scale,” she added.
Over the next five years, IDC said banking will continue to be the largest investor in big data analytics solutions, capturing 15.3% in 2022.
IDC said the highest BDA spending focuses on fraud detection and improved customer experience to ensure increased customer loyalty
The report also stated that telecommunications will retain its position across the forecasted period ending in 2025.
At 12.6% in 2022, investments are directed toward infrastructure and networks to generate insight to improve the efficiency and effectiveness of network operations, improve throughput, and reduce downtime, it said
Both these industries will grow with a compound annual growth rate (CAGR) from 2020 to 2025 exceeding 17% over the forecast period, it added.
Additionally, the federal and central government's focus on critical infrastructure management and health and wellness monitoring will lead investment to grow by 16% until the end of the forecast period, it said.
IDC said the top four industries, namely banking, telecommunication, federal/central government, and professional services registered cumulative spending of US$15.0 billion (RM65.4 billion), nearly 46% of the total spending share in 2022 captured by the 19 industries mapped by the company.
According to Abhik Sarkar, market analyst at IDC Asia Pacific IT spending guides, customer insights and analysis, organisations’ priority area for investment in data and analytics varies by industry.
"Finance and government sectors prioritise automation and cybersecurity, while retail and wholesale focus more on customer experience, and manufacturing focuses on worker productivity and quality.
“Hence, it is imperative that vendors target outcomes of their solutions by industries," he said.
The report highlighted that the services technology group captured the highest spending share at 43.4% in 2022 followed by software, then hardware.
For the software technology group, content analytics tools, continuous analytics tools, and nonrelational analytics tools are the major technology categories driving spending growth, IDC said.
By deployment type, IDC said the on-premise deployment type captured a maximum revenue share of US$6.0 billion (RM26.1 billion) in 2022.
However, this trend is expected to change in the future with public cloud services capturing a lion’s share of the spending at 52.6% in 2025 at US$9.17 billion (RM39.9 billion), it said.
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