Connect with us


Indonesia big data and analytics software market grew by 14.7%

Indonesia’s Big Data Analytic software market grew 14.7% year-over-year (YoY) in the first half of 2022 (1H22), accelerating from 12.5% YoY in the second half of 2021 (2H21), according to International Data Corporation (IDC) Worldwide Semiannual Big Data and Analytics Software Tracker. Indonesian organizations have increased their investment in Big Data and Analytics (BDA) for better business decision-making to keep up with the changing market environment.

“We continue to observe the widespread adoption of Big Data and Analytics software across industries in Indonesia. Strong demand from Indonesian organizations is driven by businesses in Indonesia prioritizing cost optimization, improving efficiency, and tapping into new markets or product lines,” says Sandika Putra, Associate Market Analyst at IDC Indonesia.

IDC defines the BDA software market as a collection of software tools and applications for data extraction, integration, governance, movement, curation, analysis, and visualization deployed to support or automate a broad range of strategic, operational, and tactical decision-making.

Data enables businesses to take advantage of shifting market dynamics and better understand their consumers, competitors, and markets. According to an IDC 2022 Software Survey, providing data-based decision-making is one of the top two software innovations that many organizations in Indonesia are building now and in 2023. As internet use becomes more widespread in Indonesia, structured and unstructured data collected from multiple sources have significantly increased in the past few years. Aligning to that trend, Nonrelational Analytic Data Stores is the fastest growing submarket with a 64.4% YoY growth rate. This submarket is expected to continue to grow in line with the increasing number of internet users and Internet of Things (IoT) adoption in Indonesia. Based on IDC’s Worldwide Internet of Things Spending Guide, Indonesian IoT spending will grow at a 10.8% CAGR by 2026, which will increase data creation.

Continuous Analytics Tools is the second fastest-growing submarket in the BDA market, with a 48.5% YoY growth rate. IDC defines continuous analytics as software that is used for real-time and near-real-time decision support and decision automation. Continuous Analytics Tools is expected to continue its growth momentum, as an IDC 2022 Software Survey found that Data and Analytics software were among the top three investment priorities for Indonesian organizations looking to shift to the cloud through 2023. This suggested that firms in Indonesia are becoming more data-driven and relying on data in the coming years. In fact, as applications, devices, sensors, clickstreams, and social media feeds are the input source for continuous analytics, the increase in these data inputs will further drive analytics adoption.

As more data becomes available, it opens the potential for AI use cases. In 1H22, AI Software Platforms is the third fast-growing submarket, growing 45.3% YoY. In Indonesia, the adoption of AI technology is widely used in the banking sector. Most of the use of AI is for virtual assistants (CS robots), fraud detection tools, and real-time risk monitoring. As companies continue to push for efficiency and automation, AI use cases are expected to expand, and AI Software Platform adoption will continue to increase.

Supply Chain and Product Analytic Applications also saw a strong growth of 31.2% YoY in the BDA market. Indonesia’s supply chain is challenged by underutilized transportation capacity and long domestic delivery delays due to disconnected infrastructure. The Indonesian government has been expanding logistics and supply chain infrastructure, including roads and toll roads. Other than that, to minimize logistics operating costs, the government is creating a National Logistics Ecosystem (NLE) to simplify the flow of goods and international documents from carrier arrival to storage. With logistics flow improving and as Indonesia integrates with the world economy, supply chain management becomes an important investment area. In addition, sustainability is also an issue that is starting to rise; Supply Chain and Product analytics with the ability to trace back helps the company to be able to calculate its carbon footprint. Supply chain and product analytics are anticipated to grow in line with government initiatives in infrastructure and organizations in Indonesia seeking to modernize supply chain management through technology.

CT Bureau

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2023 Communications Today

error: Content is protected !!