Data analytics revenue is predicted to grow from $130.1 billion in 2016 to more than $203 billion in 2020, according to an IDC report released this week.
The research firm’s report, Worldwide Semiannual Big Data and Analytics Spending Guide, analyzed 53 countries across eight regions to address the viable IT market for what the research firm refers to as "big data analytics."
The market was worth an estimated $112 billion in 2015 and is expected to grow at an annual compounded growth rate of 11.7% through 2020, according to the IDC.
Half of the expected market’s gains will derive from the manufacturing, banking, government and professional business service industries, but the telecommunications, insurance, transportation, and utilities industries are all also expected to increase their spending over the next handful of years. Banking is expected to see the largest jump in Big Data investment, with almost $17 billion being spent in 2016.
The IDC report discusses two major reasons why companies are increasing their investment in big data analytics. Some companies, such as financial service companies or government entities, are prioritizing security- and compliance-related issues. Others, like business services, are improving the customer experience by collecting insights on customer behavior and preferences.
Data analytics increases the overall return of investment for marketers by offering more personalized experiences to their customers through data-driven targeting.
More than 90% of marketers polled by VB Insight witness a positive impact in open and click-through rates in their email marketing campaigns.
Salesforce’s 2016 State of Marketing Research Report also illustrated how data distinguishes top performing marketing teams from their peers. Eighty-three percent of top performing teams used customer data to better segment or target digital ads according to the report. In addition, top-performing marketing teams were four times more likely to invest in predictive intelligence and data science.