The compound annual growth rate (CAGR) expected for the Brazilian Big Data and Analytics market solutions will be 31.7% per year, by 2018! This is what shows in a recent study published by Frost & Sullivan.
If we consider the 31.7% CAGR, the Brazilian market will be a $423 million market size by 2015, and F&S expected this market will more than double its size by the end of 2018!
The consultancy also pointed out that the main "drivers", that will drive the growth of this market will be:
However, since 2012, Brazilian companies have faced traction problems to adapt to the new world of Big Data, IoT and Analytics. The sudden increase in the volume of data and new technologies coupled with lack of corporate maturity and planning, and the gap of adopting efficient systems and data analysis processes resulted in huge investments in long-term projects with low or no immediate financial return (ROI) for the company.
The study also pointed out the main restrictions of companies to start a Big Data or Analytics project:
In this scenario, where it is hard to prove a good ROI on Big Data and Analytics projects, some vendors adopted a strategy we call "Eating Hot Soup" and started eating the soup by the edges, slicing major projects, layered and delivering the deliverables for shares to dilute investments.
A confusing, complex, expensive and endless project which still requires the client to hire high caliber professionals with specific skills and wages above the market average, thus worsening the financial returns for the company and damaging the evolution of the project.
Many companies end up stopping the project in the middle, and adopting spreadsheets and internal systems to deliver faster and cheaper results, or simply abandon the project and curse Big Data and Analytics as an "endless expensive dream".
In addition to the annual growth of 31.7% through 2018, the Brazilian market for Big Data and Analytics will get through a major transformation.
According to the consultancy, 57.5% of the income of the Brazilian market for Big Data and Analytics is concentrated in five major players. The study projects that this scenario will change by 2018 with a better distribution of market share due to fierce market competition and the entry of new players. As we will see below, the world market is already on this path, where approximately 30% of market share is held by companies with less than 3-4% of this market.
Banks, financial services and telecommunications companies are the industries that will present greater growth and demand more of analytical solutions, followed by retail and government. Solutions to reduce churn (customer loyalty) and detect and prevent fraud, will lead this growth.
The market for medium-sized enterprises will gain importance and suppliers are creating offerings to meet this market.
According to IDC, the worldwide market for BI software solutions and Analytics will have an annual growth of 9.4% until 2018. What draws attention in this study is the high de-concentration of income and market share, where 29.7% of the market is held by companies with less than 3-4% of the world market share.
What we can conclude is that the worldwide market for BI tools and analytics is highly attractive, with low entry barriers. New entrants are presenting innovative solutions, outdoing major players, gaining market share, and being acquired by large sharks (SAP, IBM, Microsoft, SAS, Oracle).
Customers should be aware of this new entrants. New entrants may be small, but often their solutions are innovative, meet business requirements, are easy to implement and operate, and especially, are price affordable with high return on investment.
In a new, large space for technological innovation market, often being a small company is actually a competitive advantage. Smaller companies are agile and more flexible in meeting client demands and expectations. Processes are un-bureaucratic and business decisions are made in hours, not days or weeks.
So my recommendation for companies that are studying to implement Big Data and Analytics solutions that will demand data integration and aggregation, fraud prevention, market intelligence, credit and collections, risk management, among others, involving advanced analytics is: Look at the new players. Search and listen to what these companies have to offer you that is disruptive and innovative compared to the traditional big vendor solutions.