04 April 2017
Dubai – Revenues for big data and analytics (BDA) in the Middle East and Africa (MEA) totaled $1.98 billion in 2016, according to the latest Worldwide Semiannual Big Data and Analytics Spending Guide from International Data Corporation (IDC). The global ICT research and consulting services firm expects the region to see year-on-year growth of 11.0% in 2017 to reach $2.20 billion. The growth is expected to continue over the coming years to reach approximately $3.20 billion in 2020, which represents a compound annual growth rate (CAGR) of 10.0% over the 2016-20 period.
When it comes to the technologies used in BDA implementations, a large portion of investment is focused on IT and business services followed by software. Indeed, IT and business services alone accounted for 55.1% of overall spending.
"This highlights that organizations in the region clearly face challenges in finding skills to support big data and analytics deployments, and rely heavily on partners to support them until the solution goes into production," says Megha Kumar, research director for software at IDC MEA. "Spending on software in the BDA space is focused on solutions for end-user query and reporting and databases."
"Organizations in the region acknowledge the need to leverage data for taking strategic decisions," continues Kumar. "There is a lot of focus around customer analytics and operational analytics to gain insights on customers and improve overall performance. While there is uptake around advanced and predictive workloads, it is very clear that many industries are still struggling to understand the use cases they can leverage within their sector."
In terms of industries, the government sector (both state and federal/local government) was the largest spender on BDA solutions in MEA in 2016, accounting for 20.4% of spending. It was followed by the financial sector (19.2%) and telecommunications (13.3%). Other industries with longer-term potential include manufacturing (both discrete and processed manufacturing), healthcare provider, resource industries, utilities, and transportation.
Industries that have shown very little BDA spending include construction, personal and consumer services, and media. The finance, healthcare, and government are the fastest growing sectors, with all three expected to grow at CAGRs of around 12% over the course of the forecast period.
From a geographical perspective, more than 24% of the MEA regions BDA investment in 2016 was generated in Saudi Arabia, followed by South Africa and the UAE, with shares of 22.7% and 17.2%, respectively. Turkey accounted for 15.6% share, with the remainder split between the rest of MEA countries.
"As alluded to earlier, BDA adoption in the region is rising with organizations seeking embedded analytics within applications," says Kumar. "Advanced and predictive workloads will give rise to demand for skills such as data scientists."
IDC's Worldwide Semiannual IT Spending Guide is designed to address the needs of organizations assessing the big data and business analytics opportunity by geography, industry, and company size. The Spending Guide provides subscribers with revenue projections for 15 technology and service categories across 19 industries, five company size bands, and 53 countries. Unlike any other research in the industry, the comprehensive Spending Guide was designed to help IT decision makers to clearly understand the industry-specific scope and direction of big data and business analytics opportunity today and over the next five years.
For more information, please contact Megha Kumar at mkumar@idc.com.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.
IDC in the Middle East, Africa, and Turkey
For the Middle East, Africa, and Turkey region, IDC retains a coordinated network of offices in Riyadh, Casablanca, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai. Our coverage couples local insight with an international perspective to provide a comprehensive understanding of markets in these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, and accuracy. IDC Middle East, Africa, and Turkey currently fields over 130 analysts, consultants, and conference associates across the region. To learn more about IDC MEA, please visit www.idc-cema.com . You can follow IDC MEA on Twitter at @IDCMEA.
Dubai – Revenues for big data and analytics (BDA) in the Middle East and Africa (MEA) totaled $1.98 billion in 2016, according to the latest Worldwide Semiannual Big Data and Analytics Spending Guide from International Data Corporation (IDC). The global ICT research and consulting services firm expects the region to see year-on-year growth of 11.0% in 2017 to reach $2.20 billion. The growth is expected to continue over the coming years to reach approximately $3.20 billion in 2020, which represents a compound annual growth rate (CAGR) of 10.0% over the 2016-20 period.
When it comes to the technologies used in BDA implementations, a large portion of investment is focused on IT and business services followed by software. Indeed, IT and business services alone accounted for 55.1% of overall spending.
"This highlights that organizations in the region clearly face challenges in finding skills to support big data and analytics deployments, and rely heavily on partners to support them until the solution goes into production," says Megha Kumar, research director for software at IDC MEA. "Spending on software in the BDA space is focused on solutions for end-user query and reporting and databases."
"Organizations in the region acknowledge the need to leverage data for taking strategic decisions," continues Kumar. "There is a lot of focus around customer analytics and operational analytics to gain insights on customers and improve overall performance. While there is uptake around advanced and predictive workloads, it is very clear that many industries are still struggling to understand the use cases they can leverage within their sector."
In terms of industries, the government sector (both state and federal/local government) was the largest spender on BDA solutions in MEA in 2016, accounting for 20.4% of spending. It was followed by the financial sector (19.2%) and telecommunications (13.3%). Other industries with longer-term potential include manufacturing (both discrete and processed manufacturing), healthcare provider, resource industries, utilities, and transportation.
Industries that have shown very little BDA spending include construction, personal and consumer services, and media. The finance, healthcare, and government are the fastest growing sectors, with all three expected to grow at CAGRs of around 12% over the course of the forecast period.
From a geographical perspective, more than 24% of the MEA regions BDA investment in 2016 was generated in Saudi Arabia, followed by South Africa and the UAE, with shares of 22.7% and 17.2%, respectively. Turkey accounted for 15.6% share, with the remainder split between the rest of MEA countries.
"As alluded to earlier, BDA adoption in the region is rising with organizations seeking embedded analytics within applications," says Kumar. "Advanced and predictive workloads will give rise to demand for skills such as data scientists."
IDC's Worldwide Semiannual IT Spending Guide is designed to address the needs of organizations assessing the big data and business analytics opportunity by geography, industry, and company size. The Spending Guide provides subscribers with revenue projections for 15 technology and service categories across 19 industries, five company size bands, and 53 countries. Unlike any other research in the industry, the comprehensive Spending Guide was designed to help IT decision makers to clearly understand the industry-specific scope and direction of big data and business analytics opportunity today and over the next five years.
For more information, please contact Megha Kumar at mkumar@idc.com.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.
IDC in the Middle East, Africa, and Turkey
For the Middle East, Africa, and Turkey region, IDC retains a coordinated network of offices in Riyadh, Casablanca, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai. Our coverage couples local insight with an international perspective to provide a comprehensive understanding of markets in these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, and accuracy. IDC Middle East, Africa, and Turkey currently fields over 130 analysts, consultants, and conference associates across the region. To learn more about IDC MEA, please visit www.idc-cema.com . You can follow IDC MEA on Twitter at @IDCMEA.
© Press Release 2017
