Data & Analytics (D&A) Market Among Fastest Growing in Services Industry, Clocking Nearly 20% Growth | Press Release
By 2022 more than 70% of enterprises expect to be using AI to automatically generate business recommendations—Everest Group.
The global Data & Analytics (D&A) market is one of the fastest-growing markets in the services industry. Everest Group predicts double-digit growth (17-19%) for the D&A market with annual services revenues expected to cross the US$100 billion mark by 2022. Further, in an Everest Group survey of 200 global enterprises across multiple industries and geographies, more than 70% said they are either currently using AI systems to automatically generate business decision recommendations or expect to be doing so by 2022.
“Enterprises across all industries and geographies are dealing with an explosion of data—data that is made available by digital transformation, cloud and IoT and made useful by analytics, artificial intelligence and machine learning,” said Vishal Gupta, practice director at Everest Group. “One of the most exciting shifts we are seeing among leading enterprises today is recognition of the need to democratize all of this data to build a data-driven, decision-making culture.”
More specifically, key drivers for growth of the D&A market include the following trends:
- Enterprises are exhibiting a strong demand for migration from legacy systems and increased adoption of cloud-based services.
- Data has become the central theme in CXO-level discussions across enterprises in all verticals.
- New regulations such as GDPR and the California Act are driving demand for data security, privacy and governance.
- Next-generation technologies are transforming the asset-heavy industries by showcasing the value of data captured by Internet of Things (IoT) sensors across devices.
- Enterprises are expressing increasing need for data orchestration, data democratization, and quick insight generation to make real-time impactful business decisions.
These findings and more are discussed in Everest Group’s new report, “Data & Analytics (D&A) – State of the Market Report 2020.” This research provides comprehensive coverage of the D&A market, including a market overview and an in-depth look at adoption trends across industries and geographies, key factors driving adoption, the deal landscape, the service provider landscape, and key emerging themes in D&A services.
- The D&A market is growing at a healthy rate. The global D&A market witnessed a robust growth of 18-20% in 2018, touching the US$57-US$62 billion mark in annual revenue. The demand for D&A services remained strong from traditionally leading markets of North America and EMEA, as well as from the emerging APAC market.
- Banking, Financial Services and Insurance (BFSI) and retail, distribution, and CPG are the most mature industries from an adoption standpoint and together account for almost 45% of the market. Industries such as healthcare & life sciences and hi-tech & telecom showed high momentum caused by regulatory requirements and service providers’ increased focus on developing verticalized solutions beyond mature industries.
- India continues to be the most preferred location for D&A delivery, given significant talent availability and low-cost advantage. Beyond the tier-1 cities, service providers have started to leverage tier-2/3 cities to further enhance their talent pool and manage costs.
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com