IDC forecasts spending on big data and analytics (BDA) in Asia/Pacific excluding Japan (APeJ) to reach US$42.2 billion in 2023, up 19.6% from 2022.
The analyst attributes the growth to investment in enterprise intelligence solutions which has witnessed significant growth from the previous year. IDC expects this to stay the same owing to the incremental demand of organisations to engage in data-driven decision-making, improve customer experience, speed up business innovation activities, and capitalise on cost-saving opportunities.
“Data-driven everything is increasingly an overarching theme to drive Asia/Pacific companies’ DX initiatives, especially for those with higher DX maturity stages. More of them need to modernize their organisation’s data platform, to centrally address trust, adaptability, and agility issues associated with highly disparate and diverse data sources and sinks,” said Jessie Cai Danqing, associate research director for Big Data & Analytics at IDC Asia Pacific.
Industry activity
Banking, Telecommunications, and Professional Services are the primary industries contributing to more than 35% revenue share in the BDA market in 2023. They will continue to dominate the market over the forecast period. The ability to churn real-time insights from customer data and enhanced risk management are some use cases driving spending in the banking industry.
Spending by the Telecommunications industry will grow to $4.6 billion in 2023. The sector is predicted to experience significant disruption owing to the increasing adoption of "cloud first" with organisations' "wireless first" multi-access network model and rising emphasis on connectivity resilience.
The deployment of BDA solutions offers faster provisioning, network visibility, and traffic analytics. Professional services captured a market share of 10.3% in 2023, which is expected to increase to 10.6% by 2026. 360-degree customer and client management, intelligent building energy management, and asset performance management are the primary use cases driving the adoption of BDA solutions in the region.
Drivers of BDA spending
"Access to better enterprise intelligence to support business operations is promoting the adoption of BDA solutions," says Abhik Sarkar, a market analyst covering IT spending guides with IDC Asia/Pacific.
He added that external headwinds such as the pandemic, cyber threats, economic instability, supply-chain irregularities, and the need to mitigate these risks; coupled with the rapid influx of digital businesses and changing workforce dynamics act as key drivers for the technology.
Data sovereignty is emerging as an essential factor contributing to the growth of BDA market in APeJ. This can be credited to the rising need amongst organisations to improve privacy measures & implementation, closely work with ICT suppliers to mitigate 3rd party risk and enhance the risk management process.
Also, business disruptions due to geopolitical conflicts and global pandemics have established the need to adopt data sovereignty practices to ensure operational and business resilience.
Where investments are most popular
In terms of revenue share, services will capture the largest share at 41.1% in 2023 and will grow at the CAGR of 17.9% (2021-2026) to $28.4 billion. IT services contributes to nearly 79% of the entire BDA services spending in the region.
Services is followed by software which will register spending of $13.8 billion in 2023 and is expected to grow by more than 23% in 2024. This can be attributed to the incremental use of AI software platforms, end-user query, reporting, and analysis tools, and relational data warehouses. Software also is the fastest-growing technology group with a CAGR of 22.8%. Hardware segment will capture spending of $11.1 billion in 2023. Nearly 75% of spending on hardware will be captured by servers in 2023.
