Global revenue in the Business intelligence (BI) and analytics software market is forecast to reach $18.3 billion in 2017, an increase of 7.3% from 2016, according Gartner. By the end of 2020, the market is forecast to grow to $22.8 billion.
Modern BI and analytics continues to expand more rapidly than the overall market, which is offsetting declines in traditional BI spending.
The modern BI and analytics platform emerged in the last few years to meet new organisational requirements for accessibility, agility and deeper analytical insight – shifting the market from IT-led, system-of-record reporting to business-led, agile analytics including self-service.
The modern BI and analytics market is expected to decelerate, however, from 63.6% growth in 2015 to a projected 19% by 2020. Gartner said this reflects data and analytics becoming mainstream. The market is growing in terms of seat expansion, but revenue will be dampened by pricing pressure.
“Purchasing decisions continue to be influenced heavily by business executives and users who want more agility and the option for small personal and departmental deployments to prove success,” said Rita Sallam, research VP at Gartner. “Enterprise-friendly buying models have become more critical to successful deployments.”
According to Gartner, the rapidly evolving modern BI and analytics market is being influenced by the following seven dynamics.
1. Modern BI at scale will dominate new buying
While business users initially flocked to new modern tools because they could be used without IT assistance, the increased need for governance will serve as the catalyst for renewed IT engagement. Modern BI tools that support greater accessibility, agility and analytical insight at the enterprise level will dominate new purchases.
2. New innovative and established vendors will drive the next wave of market disruption
The emergence of smart data discovery capabilities, machine learning and automation of the entire analytics workflow will drive a new flurry of buying because of its potential value to reduce time to insights from advanced analytics and deliver them to a broader set of people across the enterprise.
