The FINANCIAL — With greater use of big data technology in different industries, China’s business analytics services market will maintain accelerated growth, according to IDC’s latest “China Business Analytics Services Market Forecast and Analysis, 2015-2019”.
The study illuminates a strong demand for customized business analytics services from different industries, with financial services and telecommunications leading the way. IDC’s data show that China’s business analytics services market reached US$1.398 billion in 2014, up 16.4% from 2013. IDC forecasts that the market will grow at the CAGR of 16.7% in the coming five years to reach US$3.027 billion in 2019.
Nina Nie, Senior Market Analyst, Services Research, IDC China said, “as enterprises recognize the value of business analytics services in the face of changing management requirements and intensifying competition, business analytics has evolved to more intelligent applications. Precision marketing, risk management and corporate decision-making support are some examples. With the improvement of unstructured data mining and processing capabilities, the meshing of business analytics with big data has given rise to more sophisticated industry applications.” China’s current business analytics services market has taken on the following traits and development trends:
Smart City development and industry transformation promote robust growth of business analytics services. Clients in the financial industry and the telecommunications industry, the top industries of the business analytics services market, have shown a greater need for big data technology and data governance in addition to common services such as data warehouse, decision analysis, inquiry statistics and customer analysis. In industries including government, manufacturing, transportation, healthcare, retail and ecommerce, unique business analytics applications have taken shape. Driven by smart city development and industry transformation, business analytics services in these industries will see robust growth. Meanwhile, business analytics service providers are accelerating deployments to capture emerging application market shares.
Business analytics and Big Data are increasingly meshed. With the age of structured data, business analytics services will be increasingly meshed with big data technology. Big data technology enables mining of valuable information from massive and more complicated data for analytics and improved decision making. With the rise of cloud computing, cloud services related to data analytics have also surfaced. IDC forecasts that the marriage of big data and cloud computing will further drive the development of the business analytics services market.
The competitive landscape of China’s business analytics services market is taking shape. Compared to global markets, China’s business analytics services market is still in the early stage of development with huge growth potential. Competitors are mainly divided into three categories: 1) consulting service providers, 2) outsourcing service providers and 3) industry solution providers. Consulting service providers are mostly multinationals with established cross-field consulting capabilities. Outsourcing service providers are backed by strong service team resources and rich development and implementation experience. Industry solution providers have deep expertise in specific industries.
According to Ms. Nie, “Looking forward, within the policy framework of “security and controllability” in IT development, multinationals will have more cooperation with domestic service providers, especially in government-related fields. As industry applications deepen in the coming several years, the business analytics services market will undergo continuous changes, accompanied by the rise of more solution providers and service providers specializing in business analytics.”