The latest Big Data technology and services study from International Data Corporation (IDC) forecasts that the Western European Big Data market will grow by a compound annual growth rate (CAGR) of 24.6% between now and 2018.
The study says Western European organizations are catching up rapidly with their North American peers in terms of analytical maturity despite later adoption due to smaller datasets, a challenging economy, skills shortages, and greater privacy concerns.
IDC expects the Big Data technology and services market in Western Europe to grow from $2.3 billion in 2013 to $2.9 billion by the end of 2014 and $6.8 billion in 2018.
“Big Data is no longer just a buzzword, but is considered a serious challenge by European organizations in terms of dealing with ever rising data volumes and extracting value from a range of sources such as sensor inputs, product faults, and customer tweets in real time, while avoiding administration and energy costs spiraling out of control,” said Andreas Olah, research analyst, IDC EMEA Enterprise Server Group.
The Big Data market comprises three primary segments — Big Data infrastructure (including servers, storage, and networking), software, and services. The storage segment accounts for the largest part on the infrastructure side with a market size of $536 million in 2013 in Western Europe, followed by the server segment ($314 million). However, the largest overall segment that is included in IDC’s Big Data market sizing is the software side ($698 million), while services also play a significant role ($593 million).
Growth in individual market segments within Big Data varies from storage at a CAGR of 30.5% to software and services (both at 21.9%). From a country perspective, CAGRs range between 22.3% and 32.2%, and adoption rates depend on a range of factors including existing maturity of analytics, the macroeconomic situation, and the presence of larger organizations, particularly in the retail and financial sectors. The U.K., Benelux, and Nordics tend to show higher initial adoption, though Germany and France are catching up rapidly, while southern Europe still lags behind.
IDC expects technology and business process innovation across the software, infrastructure, and services segments to continue as vendors learn from their leading-edge customers how best to articulate value gained from their Big Data projects.