APAC Big Data and Analytics Spending to Grow 19% in 2022

Asia Pacific spending on big data and analytics (BDA) solutions will grow by 19% in 2022 and rise 1.6 times to USD53.3 billion by 2025, says analyst firm IDC. The prediction was made in the latest version of IDC’s Worldwide Big Data and Analytics Spending Guide, consisting of global spending mapped over 19 industries.

According to the analyst firm, investments are driven by the evolving needs of enterprises to gain operational efficiency and operational resilience. Businesses are increasing their operational resilience with the ability to provide a real-time response to external market disruptions such as the pandemic, supply chain vulnerabilities, or rapidly evolving customer needs.

Extracting value from data

Organizations need to have a clear strategy to extract value from their data asset and enable evidence-based decision making, data science explorations, and actionable insight delivery at scale, says IDC associate research director Jessie Danqing Cai.

Some key findings include:

  • Banking will continue to be the largest investor in big data analytics solutions at 15.3% of BDA spending in 2022. This is focused on fraud detection and improved customer experience for increased customer loyalty.
  • Telecommunication 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.
  • The top four industries of banking, telecommunication, government, and professional services make up nearly 46% of the total spending share in 2022.
  • Within the software technology group, content analytics tools, continuous analytics tools, and nonrelational analytics tools are the major technology categories driving spending growth.

It is worth noting that while on-premises deployments captured a maximum revenue share of $6.0 billion in 2022, this is expected to change in the future. Specifically, public cloud services are expected to capture a lion’s share of the spending at 52.6% in 2025 at USD9.17 billion.

“Organizations’ priority area for investment in data and analytics varies by industry,” says Abhik Sarkar, a market analyst at IDC.

“Finance and government sectors prioritize automation and cybersecurity, while retail and wholesale focus more on customer experience, and manufacturing focuses on worker productivity/quality. Hence, it is imperative that vendors target outcomes of their solutions by industries,” said Sarkar.

The full report can be accessed here (Paid subscription).

Image credit: iStockphoto/marchmeena29