Big Data, Data Analytics, Data Science, Predictive Analytics, Machine Learning or Artificial Intelligence are just a few of the buzzwords of 2018 surrounding the vast world of Analytics.
Companies around the world are realizing the importance of data and start investing more than ever before, to be the ones leading the digital transformation and to mark themselves as data-driven organizations.
There is a plethora of offline data waiting to be transposed into the digital world, and petabytes eager to be elevated to the rank of insights.
Companies that allocate increased budgets to their analytics departments rapidly see real returns on investment, optimizations, revenue boost and changes in areas they never would have imagined before.
And, the phenomenon is ‘contagious’ across multiple industries: banking, health, retail, e-commerce, education, media, telecom and many more.
Opportunities And Challenges For The Analytics Industry
A market study conducted annually over the course of 6 years revealed that the companies’ urgency of adopting analytics solutions increased each year, even if the technological needs evolved and changed over the course of the same period. If 6-7 years ago the main hype was about big data, which was still a relatively new topic, last year the main focus was artificial intelligence.
Machine learning represents one of the greatest opportunities. The semantic difference between Big Data and AI projects is rapidly fading, as people seem to link the two together. Especially since ML techniques are extremely popular for handling vast volumes of fast-moving data.
“An important and continuing issue is the slow speed with which established firms make the shift to a data-driven culture. Virtually all respondents (99%) say their firms are trying to move in that direction, but only about one-third have succeeded at this objective. This gap appears every year in the surveys, and the level of success hasn’t improved much over time. Clearly, firms need more-concerted programs to achieve data-related cultural change. Many startups have created data-driven cultures from their beginning, which is a key reason why large, established firms fear disruption from them”, according to the same study.
An opportunity can also be found in cloud advancement. RedHat’s acquisition by IBM is a relevant indicator.
Last year, IBM, one of the leading technology companies in the world, acquired Raleigh-based Red Hat for $34 billion, in a surprise move that might be a game changer for the cloud business, and the way companies relate to data and digital transformation.
Today, the digital race revolves around merging data from different environments under a unified view. According to IBM, there’s a $1 trillion opportunity in the hybrid cloud by 2020.
More than 80% of enterprise workload has yet to migrate to the cloud, held back by the proprietary nature of today’s cloud market, indicating there are massive amounts of data waiting to be processed.
The amplitude of this acquisition demonstrates the growth potential in our industry. It provides both a monumental opportunity for companies in the analytics world, but could also potentially create a new major player ‘on the block’.
One of the main challenges we face today is that, even though companies adopt digital analytics and big data solutions, many still lack a data-driven culture.
This is in equal measure a challenge and an opportunity. It means that we, as analysts, must change the mindset of entire industries, to help people understand and unlock the full potential of data. However, it also means that there is a lot of room to grow, a lot of opportunities still waiting to surface.
Artificial Intelligence and Machine Learning
Machine Learning and AI are undoubtedly two of the biggest trends of the past few years. Besides constantly redefining our experience with products across all ecosystems, they became the ‘Holy Grail’ for companies, marketers, analysts, and programmers around the world.
Nowadays, the business world is heavily reliant on data, which has become one of the most important assets of an organization and the most valuable currency in the world.
People have aspired since ancient times to reach Artificial Intelligence, but the tremendous progress it’s made in recent years is mainly due to the exponential increase of computing power and data available.
Even if we don’t realize it, we’re constantly using machine learning in our daily lives, which is fueling the development of AI. From browsing social media to seeing an ad or checking the price of a product, we’re surrounded by algorithms designed to know us better and to give us a more targeted experience.
It only takes a glance at the data around the market forecast for AI to realize the impact of the relatively new technology. If the adoption was slow at first, and the difference between 2016 and 2017 is that not massive, we can definitely spot the exponential increase starting from 2018 onwards.
This year, the AI market worldwide is estimated to rise to 11.2 billion dollars.
Data analytics market forecast
Forecast of Big Data market size, based on revenue, from 2011 to 2027 (in billion U.S. dollars)
With the exception of a small detour in 2014, the trends and forecasts for global analytics are heading towards an impressive surge. In 2019, forecasts predict that the global analytics market will reach 49 billion dollars worldwide, more than double the value four years ago.
Every industry is starting to see the benefits of adopting data analytics solutions. Check the infographics below to see the share of big data market for specific industries:
Share of big data and business analytics revenues worldwide in 2018, by industry*
We see incredible growth and results across a variety of segments. For example, According to a market study, the global big data in healthcare market was valued at $16.87 billion in 2017 and is expected to attain $67.82 billion by 2025, registering a CAGR of 19.1% during the forecast period.
A different report shows that the global service analytics market was valued USD 438 million in 2017 and is expected to reach around USD 1,202 million by 2024, at a CAGR approximately 13.70% from 2018 to 2024.
To showcase one more example, according to a new report by Allied Market Research, the global financial analytics market was valued at $5,244 million in 2016 and is projected to reach $10,383 million by 2023, growing at a CAGR of 10.1% from 2017 to 2023.
Fastest growing categories of big data and business analytics market between 2015 and 2020, by technology category*