AI & ESG to Transform Big Data Market: IDC Europe
The most recent edition of IDC's Semiannual Big Data and Analytics Software Tracker predicts that current economic developments will have little effect on the European big data and analytics software market.
The report highlights the emerging influence of generative AI and ESG agendas, which are expected to revolutionise data utilisation approaches in the near future.
While the ongoing Russia-Ukraine war and inflation in Europe have had a slight effect on the big data and analytics markets in Western Europe (WE), which experienced year-on-year growth of 18.7% in constant currency (U.S. dollars) in the second half of 2022 (compared to 21.5% in H1), Central and Eastern Europe (CEE) has faced a more significant slowdown, with only 0.5% growth in constant currency year on year.
The Big Data and Analytics (BDA) Software Forecast from IDC predicts that the European market will grow by 14% in 2023 (current currency), with an upward trend continuing in the years that follow.
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This will result in a compound annual growth rate (CAGR) of 20.8% for WE and 19% for CEE in the 2023–2027 period. The unrestricted expansion of data analytics and AI solutions will drive demand for business intelligence and analytics tools and platforms, leaving the other two markets significantly lagging behind.
Veronika Paal, senior research analyst with IDC European Software Data & Analytics, emphasises that the emergence of generative AI will be a key driver of this growth. Major market players, including AWS Sagemaker, Salesforce Einstein, Azure Open AI Service, and Oracle Data Safe, have already announced the integration of various generative AI solutions into their big data and analytics portfolios.
However, generative AI is just one factor shaping the market. Matija Misic, research analyst with IDC European Software Data & Analytics, explains that vendors will increasingly focus on enhancing their data analytics processes, particularly in the ESG domain. Changing European regulations and upcoming sustainability reporting standards, such as ESRS, are compelling companies to track new metrics and improve their performance in the realm of ESG.
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