BI and analytics market to hit $18bn in 2017
Gartner predicts BI and analytics market to reach $22.8bn by 2020, driven by demand for new capabilities
The global market for business intelligence and analytics software will reach $18.3bn this year, according to forecasts from Gartner, up 7.3% from the year before.
The analyst company says that the latest generation of BI and analytics solutions are leading spending, as organisations look to provision more flexible and agile analytics solutions that are deployed by business units not IT.
BI and analytics spending will hit $22.8bn by 2020, Gartner predicts, but the growth in sales of modern analytics solutions will slow from 63.6% growth in 2015 to a projected 19% by 2020. Gartner believes this reflects data and analytics becoming mainstream. The market is growing in terms of seat expansion, but revenue will be dampened by pricing pressure.
"Purchasing decisions continue to be influenced heavily by business executives and users who want more agility and the option for small personal and departmental deployments to prove success," said Rita Sallam, research vice president at Gartner. "Enterprise-friendly buying models have become more critical to successful deployments."
"Organisations will benefit from the many new and innovative vendors continuing to emerge, as well as significant investment in innovation from large vendors and venture capital-funded startups," said Sallam. "They do, however, need to be careful to limit their technical debt that can occur when multiple stand-alone solutions that demonstrate business value quickly, turn into production deployments without adequate attention being paid to design, implementation and support."
Gartner says that there are seven dynamics affecting the BI and analytics market, namely modern BI is dominating new buying as users look for accessible and agile solutions that they can use themselves; new vendors will disrupt the market with solutions such as smart data discovery capabilities, machine learning and automation of the entire analytics workflow; complex datasets are driving demand for solutions to automate the preparation, cleaning and discovery of data; extensible and embedded analytics tools are driving pervasive adoption; support for real-time and streaming data is in demand to enable users to make faster decisions; cloud adoption is increasing and BI and analytics marketplaces are encouraging exchange of analytic applications, aggregated data sources, custom visualizations and algorithms.