Welcome to 2023!
It’s the start of a new year and we’re seeing the BI and Data tools market experiencing unexpected rapid growth, with a projected compound annual growth rate (CAGR) of 12.5% between 2022 and 2027. This growth is driven by a variety of factors, including digital transformation, business executives' willingness to invest in analytics, cloud adoption, and data generation.
So… investment looks good and that should flow through to the job market for skilled and talented data professionals. Looking beyond this, it is helpful to understand what is causing this potentially unexpected growth at a time when other markets are contracting.
One of the key growth drivers is the increasing adoption of cloud computing and big data analytics. Cloud platforms serve as a repository for structured and unstructured data, while big data tools analyse vast amounts of data to deliver actionable insights. Additionally, advanced analytics capabilities, such as machine learning, artificial intelligence, IoT, and predictive analytics, are gaining increased traction and facilitating the adoption of BI software. Some of this can be attributed anecdotally to feedback from clients suggesting that they are pressing ahead with initiatives in these areas to ensure they can become more efficient and reduce their cost base without having to reduce headcount.
However, feedback and our observations suggest there are also factors that can hinder the adoption of data solutions, such as cost and the ongoing shortage of professionals who can make sense of large amounts of data. The advent of self-service analytics and cloud computing can mitigate these challenges by making data solutions more affordable and accessible but our readership should take this as a positive that their skills are much in demand. The potential shortage here appears to be driven by talent ‘hunkering’ down rather than risking jumping ‘out of the frying pan into the fire’!
Diving into market sentiment, one segment that is expected to see significant growth is the solution segment, which includes advanced analytics capabilities like artificial intelligence and machine learning, robust reporting and visualisation, ETL and data integration, and augmented analytics. Are these your skill areas? Maybe this is a sign of what’s to come this year and an indicator of subject matter to feature in your CPD plan.
The banking, financial services, and insurance sector is also expected to be a major contributor to the data market, driven by the need for financial institutions to analyse customer data and drive actionable insights to improve products and services.
Mobile deployment of data solutions is another area to watch. Growth here is driven by the increasing use of mobile devices for business intelligence, as well as the rise of social data exploitation, which leverages social media channels to gather insights and feedback from customers.
Overall, the data market is expected to continue its growth trajectory throughout 2023, driven by advances in technology, increased investment, and growing demand for data-driven insights. However, companies must also overcome challenges such as cost, talent shortage, and security and compliance risks in order to fully realise the value of data investments.
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