capioIT forecasts that the Greater China BI and Analytics Software Market will exceed US$1billion by 2017


Leading emerging market technology and business advisory firm capioIT has forecast that the Greater China (PRC, Hong Kong and Taiwan) BI and Analytics software market will reach US$1.03 billion by 2017. In 2012, the market was estimated to be US$442 million. This represents a Compound Annual Growth Rate (CAGR) of 18.3% from 2012-2017.

The table below highlights the forecasts for China, Taiwan and Hong Kong across the period from 2012-2017.

 

Market (US$M) 2009 2010 2011  2012  2013  2014 2015 2016 2017
China 163.2 200.9 245.2 307.8 380.8 459.2 569.2 680.8 795.2
Hong Kong 48.3 53.8 59.5 67.9 78.2 86.4 96.0 106.0 118.0
Taiwan 47.5 52.9 59.7 66.6 73.8 82.9 91.4 100.5 112.1
Greater China Total  259.0 307.6 364.3 442.3 532.8 628.4 756.7 887.3 1,025.3

Not surprisingly, the PRC dominates. In 2012 it represented nearly 69% of the total market, with the remainder comparatively evenly shared between Hong Kong and Taiwan, is the most significant part of the market. By 2017 it is forecast to represent 78% of the total market. It highlights that as with most industries the PRC dominates the Greater China market.

Highlighting the ever changing market dynamics of the Asia Pacific technology market, by 2017, capioIT forecasts that China will overtake Australia to be the largest Asia Pacific market for BI and Analytics software.

In contrast to the Australian market, in the PRC SaaS, and hosted delivery models will take a longer period of time to become a dominant model. This is due to a range of factors that are both buy and sell side related.

From the sell side, there is a lack of investment towards in country data centres in China. Microsoft has invested and others will follow, but it lacks this important feature when compared to Japan, Singapore and Australia for MNC providers.

Additionally a lot of the emerging analytics providers are still at least 18 months away from a mature capability in China, many of the cloud based vendors are yet to even establish themselves.

From the technology buyer perspective, the uptake of cloud in China is slower than some other markets due to perceptions around security and data. This will take time to devolve.

One aspect of the market that is as critical in China as it is in any other market is that the proportion of the BI and analytics market procured by non-IT buyers will continue to rise. As in most markets in the Asia Pacific region and globally, by 2017, it is anticipated that the majority of BI and Analytics SW procurement will occur outside of the IT department in all three countries. Clearly this is not to say that IT is without a role in the deployment of BI and Analytics outcomes for the organisation.

The table below highlights the annual growth rate for each markets from 2012-2017. It is clear that Hong Kong and Taiwan have similar market characteristics, but are both overwhelmed by Chinese growth rates.  

 

Region Growth 2010-11 Growth 2011-12  Growth 2012-13  Growth 2013-14  Growth 2014-15  Growth 2015-16  Growth 2016-17 CAGR 2012-2017
China 23.1% 22.1% 25.6% 23.7% 20.6% 24.0% 19.6% 20.9%
Hong Kong 11.4% 10.5% 14.2% 15.1% 10.5% 11.2% 10.4% 11.7%
Taiwan 11.2% 12.9% 11.5% 10.9% 12.3% 10.3% 9.9% 11.0%
Greater China Total  18.7% 18.5% 21.4% 20.5% 17.9% 20.4% 17.3% 15.6%

Overall the Greater China market represents a massive growth market opportunity for those vendors who are able to localise their products to meet the specific requirements of China. If a vendor treats it as a generic market it will fail. It is as simple as that.

 If you require further information, please contact Phil Hassey, Founder capioIT. capioIT is an advisory firm focused on helping organisations to understand emerging technology in emerging markets. Phil may be contacted by email or phone below,

 phil@capioit.com

+61 (0) 422 231 793

About capioIT - Phil Hassey

capioIT is an advisory firm focused on helping organisations to understand emerging technology in emerging markets. CEO Phil Hassey established the company in 2010
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