The Semiannual Big Data and Analytics Software Tracker published by International Data Corporation (IDC) predicts a quite limited effect of the current economic developments on the growth of the European big data and analytics software market. Among other factors, emerging agendas that revolve around generative AI and ESG is expected to transform data utilization approaches in the coming years.
The ongoing Russia-Ukraine war and inflation in Europe have mildly affected the big data and analytics markets in Western Europe (WE), which posted 18.7% year-on-year growth in constant currency (U.S. dollars) in the second half of 2022, compared to the 21.5% growth in H1. On the other hand, Central and Eastern Europe (CEE) has suffered a more severe slowdown, growing by just 0.5% in constant currency year on year.
According to IDC’s Big Data and Analytics (BDA) Software Forecast, the European outlook is predicted to improve, with 14% growth in 2023 (current currency) and an upward trend in the following years, resulting in a compound annual growth rate (CAGR) of 20.8% for WE and 19% for CEE in the 2023–2027 period. Uninhibited growth of data analytics and AI solutions will subsequently drive demand for business intelligence and analytics tools and platforms, thus leaving the other two markets significantly behind.
“One of the key drivers of growth will be the emergence of generative AI. All the biggest players in this market have already announced the addition of various generative AI solutions into their big data and analytics portfolio — including AWS Sagemaker, Salesforce Einstein, Azure Open AI Service, and Oracle Data Safe,” says Veronika Paal, senior research analyst with IDC European Software Data & Analytics.
However, generative AI is just one of the factors affecting the market. According to Matija Misic, research analyst with IDC European Software Data & Analytics: “Vendors will be increasingly looking to improve their data analytics processes, especially in the ESG area, where the changing European regulations and upcoming sustainability reporting standards, such as ESRS, are causing companies to track new metrics and improve their performance.”
