IDC Predicts a US$639 Million BI and BPM Market in Asia/Pacific (excluding Japan) by 2010
IDC tracker research on the Business Intelligence (BI) and Business Performance Management/Financial Analytics (BPM) market estimated that the Asia/Pacific excluding Japan (APEJ) size for 2005 was nearly US$340 million. This represented a healthy annual growth rate of 22.5%. The market is expected to remain on the fast growth track with a 5-year CAGR of 13.5%, reaching US$639 million by 2010.
“The early adopters of BI and BPM software were those with the largest amounts of data, have a relatively mature deployment of enterprise applications, and require increasingly real-time insight on their business operations. The need for industry compliance, as well as increased global competition, also pressured such companies to invest in software that provides better insight into a company operations, and that supports decision making,” says Sharon Tan, Senior Market Analyst, Asia/Pacific Application Tools Software Research, IDC Asia/Pacific.
In 2005, the Singapore BI and BPM market was valued at US$19.54 million and is anticipated to enjoy a 5-year CAGR of 12.7%. On the other hand, the Hong Kong market was estimated at US$16.43 million in 2005 and predicted to breach the US$25 million dollar mark before the end of the decade.
IDC has found many key vendors that have continued to build their presence in various Asia/Pacific countries, through expansion of channel partners, establishing local offices and increasing local headcounts. These include vendors such as MicroStrategy, Business Objects, SAS Institute and Hyperion. Beside that, there are vendors, such as Oracle and IBM, that are also increasing their footprint and mindshare in the market via acquisitions and new product introductions. The region has seen a steady growth of enterprise applications that has led to the accumulation of a vast amount of transactional data. BI and BPM software has generally moved beyond information delivery, to being able to support business processes. They are seen as critical tools to deliver the extraction of data into meaningful analysis that help companies to extend their business advantages effectively. These software are very useful and in demand by large organizations. IDC expects product bundling and affordable price points to fuel adoption within the mid-market segment.
“The three largest industry adopters in the APEJ region currently are the banking, communications and media, and the government sectors. IDC’s BI and BPM tracker research indicates that in 2005, these industries contributed more than US$135 million worth of BI and BPM software in the region, “ Sharon further reveals. The figure below depicts the proportion of revenue size adoption in these three industries, broken down by country.