Strategy Analytics report offers bright outlook for IoT big data analytics software
A new report by Strategy Analytics predicts that Big Data Analytics software will experience strong growth over the next decade, fueled by predictive and prescriptive analytics, which Strategy Analytics said will be the “big differentiator” in IoT deployments. The report, titled “Big Data Analytics: The Internet of Things (IoT) Differentiator,” said the software, which can help businesses cut costs and drive top-line revenue, will help the IoT industry double its current global 2015 revenue of $36.2 billion to $73.77 billion by 2021 and reach $81 billion by 2022, a compound annual growth rate (CAGR) of 12 percent over the net seven years.
The increased use of analytics by corporations—particularly in IoT industry verticals like healthcare, financial, manufacturing—enables companies to “interpret the vast amounts of data they generate and respond to market dynamics in ways that benefit the corporation and its customers," Lauren DiDio, director in the IoT Strategies Service and author of the report, said in a statement.
Major findings from the report include:
- IBM, SAS and SAP are the current and traditional market leaders but there are many powerful challengers including: Bosch, Cisco, Dell, General Electric, Intel, Microsoft, Oracle and others who are coming on strong. And there is room for many competitors in this burgeoning market.
- The Big Data Analytics Healthcare vertical segment will grow from $7.964 billion in software revenue in 2015 to $17.031 billion in 2022, a CAGR of 11% worldwide.
- The Financial sector is the second largest Big Data Analytics vertical market. SA forecasts that 2015 worldwide revenue reached $6.87 billion and will double to $13.78 billion by 2022.
- Much of Big Data Analytics software will be open source, which is less expensive than proprietary software. It will also have the ability to run on commodity hardware, which OEM vendors are betting will help broaden its appeal to small and midsize (SMBs) and midsize enterprises (SMEs).
"Predictive analytics software can help businesses respond in a proactive way by dealing with issues before they occur," Andrew Brown, executive director of the Enterprise and IoT Research, said in the statement. “While, prescriptive analytics on data sources can suggest decision options that take advantage of the predictive elements and provide real differentiation and competitive advantage for companies leveraging these technologies."