The business intelligence (BI) software market in the Asia/Pacific excluding Japan (APEJ) region returned to positive growth in 2H 2009, reversing the downward trend that started in 2H 2008, finds IDC's latest Asia/Pacific Semiannual Information Management and Analytics Software Tracker. IDC forecasts the region’s BI software market to grow by 20.5% in 2010 on the back of a modest 3.0% growth in 2009.
“The economic crisis brought home the point that many of the existing information systems were simply not capable of providing sufficient reliable and accurate information for urgent decision making purposes. BI software adoption surged in 2H 2009 as decision makers’ confidence on the global economic recovery strengthened, and demand for greater visibility into operations grew,” comments Sharon Tan, research manager of Asia/Pacific Information Management & Analytics Software, Domain Research Group at IDC.
APEJ’s organizations, across different geographies and industries, are at different stages of maturity in terms of IT adoption and their understanding of the benefits that BI can bring. Growth of BI software market during the next few years would be driven by a wide range of trends which include expanding data volumes, tighter compliance and regulatory reporting requirements, and demand for solutions with predictive capabilities to improve business performance, be it through cost optimization or detecting revenue-generating opportunities.
Pervasive BI is also expected to be a trend of growing importance during the forecast period. IDC’s end-user survey results in 2009 have indicated that decision makers in the key APEJ countries are already planning to make BI more pervasively available in their organizations. Such intentions are often driven by increased awareness of the business benefits that BI can bring, the adoption of a performance management methodology, and the availability of more user friendly interfaces and visualisation technology.
“There is a growing trend for predictive BI and pervasive BI appears to be gaining deeper interest in some countries. Given the current economic climate, price remains a top consideration factor and any new investments will be closely scrutinized. Moving forward, IDC expects the APEJ BI software market to grow at a 5-year compound annual growth rate (CAGR) of 12.9% and would be influenced by 3Ps : Predictability , Pervasiveness and Price,” says Sharon Tan.
The study also finds that Australia, Korea and the PRC were the three largest countries with combined BI software markets, estimated to be worth 64.3% of the APEJ region’s in 2009. India, Vietnam and the PRC are forecasted to have the highest growth potentials during the forecast period.
The banking sector remained the largest BI adopter and has increased advanced analytics investments to enable better risk management, fraud management and to support faster and fact based decision-making for customer related issues. SAP, IBM and SAS rounded off 2009 in a near neck-to-neck race as the top three vendors in the APEJ BI software market.