Worldwide business intelligence (BI) software revenue will increase by 7% from last year to reach $13.8bn in 2013, Gartner has predicted.
According to the analyst firm, the market is now forecast to reach $17.1bn by 2016 and has grown to become the fourth-largest application software segment.
Dan Sommer, principal research analyst at Gartner, explained: “As more and more information is generated, business models need reinvention, and it's increasingly clear that mastering analytics on big data will be a key driver for the next economic cycle.”
BI software adoption has also been fuelled by more-tactical buying in business units for departmental and workgroup analysis, as well as for personal BI, said Gartner, which has been driven by the Nexus of Forces – Cloud, mobile, social and information.
However, the analyst house forecasted that growth will be hindered by sluggish macro indicators, as well as by slowing sales cycles of multimillion-dollar end-to-end BI deals. Compared with 2011’s growth of 16%, 2013 and the coming years are expected to be slower, with growth not expected to exceed single digits.
Significant growth is likely to come from the emerging data-as-a-service trend, said the analyst house. Organizations will increasingly subscribe to industry-specific data services that bundle a narrow set of data with BI and analytic capabilities embedded, and in time, most companies, regardless of their business model, will need to provide a data-as-a-service offering.
Kurt Schlegel, RVP at Gartner, said: “Although this is a mature market and has been a top CIO priority for years, there is still a lot of unmet demand. Every company has numerous subject areas — such as HR, marketing, social and so on — that have yet to even start with BI and analytics.
“The descriptive analytics have largely been completed for most large companies in traditional subject areas, such as finance and sales, but there is still a lot of growth expected for diagnostic, predictive and prescriptive deployments. Since many midsize enterprises have yet to even start their BI and analytic initiatives, we expect the market for BI and analytics platforms will remain one of the fastest-growing software markets.”