IDC reports that the market for business intelligence tools will continue to grow by double digits after rising nearly 13 percent in 2010.
According to market research firm IDC
, the worldwide business intelligence tools market
generated more than $4 billion in revenue in the second half of 2010, marking
the first time the market has passed the $4 billion mark in a six-month period
and boding well for growth in 2011.
Moreover, IDC's Worldwide Semiannual Business Intelligence Tools Tracker
showed that for the full year of 2010, the BI tools market grew 12.7 percent
year over year, adding $893 million in global revenue over the previous year.
"2010 was a solid year for the BI tools market, and our models indicate
that growth will continue throughout the five-year forecast period," Dan
Vesset, program vice president for business analytics at IDC, said in a
statement. "Business analytics remains one of the top priorities for most
organizations, and BI tools are one of the key enabling technologies for more
pervasive business analytics. To continue growing in the BI tools market,
vendors need to align their technology packaging and pricing with the growing
preference among end-users for departmental and incremental projects and
subscription pricing. Although the latter still represents only a small portion
of the BI tools market, SaaS [software-as-a-service] or cloud BI offerings are
growing three times faster than the rest of the market."
Also according to IDC, for the full year of 2010, SAP and IBM were the top
two BI tools vendors, capturing more than $1 billion each in software revenue
over the year. SAP saw strong growth in a number of large country markets,
including Australia, Canada and Russia. IBM's performance was bolstered by
strong results in Australia, Canada, Japan and the United Kingdom. The top 10
vendors accounted for 72 percent of the overall market in 2010, with four
vendors-MicroStrategy, Oracle, Panorama Software and QlikTech-outperforming the
market in terms of year-over-year growth. A total of 58 vendors were included
in the IDC Q2 2010 market results, the company said.
The end-user query, reporting and analysis functional market enjoyed a
stronger growth rate for the year, up 13.7 percent over 2009. Russia delivered
strong performance in this functional market, with annual growth of more than
200 percent, IDC said. Australia, Canada, India, Korea and PRC also had growth
rates above the global average. In addition, Brazil and Russia broke through
the $100 million revenue mark in 2010, joining eight other major countries with
annual revenue over $100 million.
In comparison, the advanced analytics functional market grew 8.6 percent year
over year in 2010, with three large country markets-Australia, Brazil and India-growing
more than 30 percent year over year in 2010. IDC expects six large country
markets-Australia, Brazil, Canada, India, Korea and Russia-to achieve double-digit
growth rates in 2011, the company said.
IDC's Worldwide Semiannual Business Intelligence Tools Tracker provides
total market size and vendor share for the following functional markets: end
user, query, reporting and analysis; and advanced analytics software.
Measurement for this tracker is total software revenue, which includes license
plus maintenance plus SaaS and other subscription revenue. The tracker
covers six geographic regions with country-level data for 13 nations. Annual
five-year market forecasts for this tracker are updated semiannually and
include five-year annual market projections. Forecasts are available at
worldwide, regional and country levels, IDC said.