Published on November 8, 2023, 11:03 pm

IDC Forecasts Asia/Pacific Spending on Big Data and Analytics (BDA) to Reach $42.2 Billion in 2023

According to IDC, spending on big data and analytics (BDA) in Asia/Pacific excluding Japan (APeJ) is expected to reach $42.2 billion in 2023, experiencing a 19.6% growth from the previous year. This substantial increase can be attributed to the investment in enterprise intelligence solutions, which have witnessed significant growth. As organizations continue to prioritize data-driven decision-making, improve customer experience, accelerate business innovation, and capitalize on cost-saving opportunities, the demand for these solutions is expected to remain high.

The primary industries driving the revenue share in the BDA market are banking, telecommunications, and professional services. These sectors are projected to contribute to over 35% of the market revenue share in 2023 and will continue dominating the market throughout the forecast period. The banking industry’s spending is driven by the ability to derive real-time insights from customer data and enhanced risk management. On the other hand, the telecom industry’s growth is fueled by its increasing adoption of a “cloud-first” approach and emphasis on connectivity resilience.

Moreover, IDC identifies that professional services capture a significant market share of 10.3% in 2023, which is expected to increase to 10.6% by 2026. The primary use cases driving adoption within this sector include 360-degree customer and client management, intelligent building energy management, and asset performance management.

A contributing factor behind this increased spending on BDA solutions is organizations’ need for better enterprise intelligence to support their business operations. Factors such as external headwinds like the pandemic, cyber threats, economic instability, supply-chain irregularities as well as the rapid influx of digital businesses and changing workforce dynamics also play a critical role in driving BDA technology adoption.

Data sovereignty has emerged as a crucial factor contributing to the market’s growth in APeJ. Organizations are increasingly focused on implementing privacy measures, mitigating third-party risk, and enhancing risk management processes by closely working with ICT suppliers. The need for data sovereignty practices has been further emphasized by business disruptions resulting from geopolitical conflicts and global pandemics, highlighting the importance of operational and business resilience.

In terms of investments, services are expected to capture the largest revenue share at 41.1% in 2023, with a projected growth rate of 17.9% (2021-2026) amounting to $28.4 billion. IT services contribute significantly to BDA services spending in the region, accounting for almost 79% of the total. Software follows closely behind with a projected spending of $13.8 billion in 2023 and an estimated growth rate of over 23% in 2024. This growth can be attributed to the increased use of AI software platforms, end-user query tools, reporting and analysis tools, and relational data warehouses. Additionally, software is the fastest-growing technology group within BDA with a compound annual growth rate (CAGR) of 22.8%. Hardware segment spending is forecasted at $11.1 billion in 2023, with servers capturing nearly 75% of hardware spending.

The IDC report highlights the significant growth potential for big data and analytics in the Asia/Pacific region as organizations continue to recognize its value in driving business outcomes. With increasing investments in enterprise intelligence solutions and a focus on data-driven decision-making, organizations are poised to reap substantial benefits from generative AI technologies that enable them to derive insights, enhance customer experiences, innovate quickly, and optimize cost-saving opportunities.

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