Global revenue in the business intelligence (BI) and analytics software market will reach $18.3 billion in 2017, an increase of 7.3% from 2016, according to the latest forecast from Gartner Inc.
By the end of 2020, the market is forecast to grow to $22.8 billion. Modern BI and analytics continues to expand more rapidly than the overall market, which is offsetting declines in traditional BI spending, Gartner said.
The modern BI and analytics platform emerged in the last few years to meet new requirements for accessibility, agility and deeper analytical insight, the firm said, shifting the market from IT-led, system-of-record reporting to business-led, agile analytics including self-service.
Gartner said the modern BI and analytics market is expected to decelerate, from 63.6% growth in 2015 to a projected 19% by 2020. The firm said this reflects data and analytics becoming mainstream.
"Purchasing decisions continue to be influenced heavily by business executives and users who want more agility and the option for small personal and departmental deployments to prove success," said Rita Sallam, research vice president at Gartner. "Enterprise-friendly buying models have become more critical to successful deployments."
Organizations will benefit from the many new and innovative vendors continuing to emerge, as well as significant investment in innovation from large vendors and venture capital-funded startups, Sallam said.
"They do, however, need to be careful to limit their technical debt that can occur when multiple stand-alone solutions that demonstrate business value quickly, turn into production deployments without adequate attention being paid to design, implementation and support," she said.
