With the economic turmoil in North America and Europe, the Asia Pacific region is seen as a promising market. Unfortunately, it may not be the case for the business analytics (BA) software market.
According to a recent forecast by market analyst IDC, the BA market in the Asia Pacific region except Japan (APEJ) will experience a slowdown this year, but it will still grow. IDC, however, did not disclose the percentage growth and value expected for 2012. Recovery is expected by 2013.
The BA market in the region grew 20.1 percent in 2011 to reach US$2.4 billion, IDC said. For the next five years up to 2016, the expected compounded annual growth rate is 12.3 percent to reach US$4.4 billion.
Hong Kong experienced growth by 18.4 percent last year. IDC forecasted the market in Hong Kong to hit above US$100 million by 2012.
There are specific growth potentials for some types of business analytics applications, said IDC.
"Certain analytic applications such as supply chain analytics applications that can, for example, analyse historical data and identify demand signals to predict demand levels and assist in supply planning, are expected to have strong growth potentials driven by organisations that are seeking to focus on projects that can quickly bring results," said Sharon Tan, research manager, Asia/Pacific Information Management and Analytics Software Research Group, IDC.
"The use of in-memory technology will increasingly permeate business analytics software products over the forecast period to boost speed and performance capabilities," Tan added.
For markets that are already above the US$100 million in 2011, namely China and India, IDC is expecting these countries to hold on to their growth with a five-year CAGR of 17.1 percent and 16.5 percent, respectively.
Among the emerging countries in the region, IDC is expecting Australia to be the largest market in the region. By 2014, the BA market in Australia is expected to breech the US$1 billion mark.
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