Despite the pandemic, revenues for Big Data and Analytics (BDA) solutions grew 12% in the Asia Pacific last year to reach US$22.6 billion.
This is mainly due to decision-makers increasing confidence that investments in data and analytics will be necessary in achieving digital and business resiliency amid the pandemic, says IDC.
IDC expects big data technology and service-related revenues to grow with a five-year CAGR of 15.6% over the forecast period of 2019-24.
“Approximately 74% of enterprises intend to keep investments in BDA solutions at the same level or to increase next year. This is because analytics solutions are an essential business need to enable digital trust and resiliency during the COVID-19 crisis,” says Ritika Srivastava, Associate Market Analyst at IDC Asia/Pacific.
While COVID-19 has led to a drop ICT investments, IDC says that technology resiliency has helped businesses in combating the impact of the pandemic by obtaining valuable insights, enhancing business productivity, fulfilling client promises, identifying fraud, and minimising costs.
Investments moving toward the cloud
To optimise the BDA investments, enterprises are moving towards public cloud deployments which are experiencing a growth of 32% during the forecast period (2019-2024).
Banking is a top vertical of the overall BDA market in 2020 and is expected to grow at a CAGR of 15.6% from 2019 to 2024. The banking sector manifest various prospects to capitalise on the financial, transactional, and customer data.
The second largest vertical that reaps substantial benefits from data analytics is Telecommunications – specifically in the context of discovering critical insights related to customers, sales, and marketing. Both industries contribute to nearly one third of the BDA spend, amounting to US$ 6.1 billion in 2020.
State/Local Government and Healthcare Providers are the industries which are expected to register the highest CAGR, with 18.8% and 17.7% respectively over the forecast period (2019-2024).