Technology Providers Capable of Offering Solutions for Real-Time Analysis and Industry-Oriented Solutions Will Seize Growth Opportunities in the BDA Market
Frost & Sullivan‘s latest analysis, Latin American Big Data and Analytics (BDA) market, finds that the industry generated revenues of $2.9 billion in 2017 and is expected to reach $8.5 billion by 2023, with a compound annual growth rate (CAGR) of 19.2%.
Today, Brazil leads the race, accounting for 46.7% of the overall sales,
along with Mexico (26.7%), followed by Colombia (7.9%), Chile (6.9%),
Argentina (5.6%) and Peru (2.4%).
A maturing mindset about data-driven organizations increased productivity, customer loyalty and Internet of Things (IoT) are key factors spurring the regional business. Companies that invest in building and expanding BDA assets while balancing security and privacy regulations will be able to capitalize on opportunities now to ensure success in the future.
“IoT will play a crucial role in the adoption of BDA. With a variety of information generated by connected devices and sensors, an engine that can mine the extremely large datasets to extract relevant information for analysis in real time and generate insights, as well as improve customer experience, will constitute a key competitive advantage,” said Mauricio Chede, IT Services & Applications Senior Industry Analyst at Frost & Sullivan.
The study reveals growth opportunities, drivers and challenges, and market revenues and forecasts by verticals and countries.
Five ways to leverage growth opportunities in the Latin American BDA market:
- Hadoop-friendly solutions: Adopt or develop new solutions on the Hadoop framework to reduce final costs and enhance performance during data processing activities.
- Real-time analytics solutions: The regional evolution with regard to social network usage, smartphone penetration and eCommerce has increased the need for dynamic analysis of data. Focus on creating knowledge and awareness on how to take advantage of it.
- Non-technical solutions: Solutions that do not need extensive skills to deploy, install and handle data are being highly requested. Rethink the tools to create user-friendly solutions, which provide capabilities to easily report, visualize, and create some analysis from raw data.
- Industry-oriented approach: Develop solutions focused on servicing specific industry verticals that adopt and utilize advanced analytics in different ways. Key verticals, in terms of BDA investments, include financial services, retail, and telecommunications.
- Advisory and educational approach: Educate the market regarding benefits, risk, and return on investment when implementing BDA solutions.
“Several factors are curbing market growth, including legacy infrastructure, restrained IT budgets and lack of specialized BDA professionals,” noted Chede, adding, “To address the urgent need for more specialized professionals, companies have invested in training their employees and developing extension courses.”
Latin American Big Data and Analytics Market, Forecast to 2023 is part of Frost & Sullivan’s IT Services & Applications Growth Partnership Service program.