Generative AI and ESG will reshape European big data and analytics software market - IDC

The researcher claims “uninhibited” growth of data analytics and AI solutions will drive demand for business intelligence and analytics tools and platforms

Emerging agendas revolving around generative AI and ESG are expected to transform data utilisation approaches in the coming years.

That is according to IDC, which predicts a "quite limited" effect of the current economic developments on the growth of the European big data and analytics software market.

The research firm's Semiannual Big Data and Analytics Software Tracker found that the ongoing Russia-Ukraine war and inflation in Europe have mildly affected the markets in Western Europe.

Results showed the region posted an 18.7 per cent year-on-year rise in constant currency (US dollars) in the second half of 2022, compared to the 21.5 per cent growth in H1.

On the other hand, Central and Eastern Europe has suffered a more severe slowdown, growing by just 0.5 per cent year-on-year.

Meanwhile, according to IDC's Big Data and Analytics Software Forecast, the European outlook is predicted to improve.

An increase of 14 per cent in 2023 is anticipated followed by an upward trend in the coming years, resulting in a CAGR of 20.8 per cent for Western Europe and 19 per cent for Central and Eastern in the 2023-2027 period.

IDC claims "uninhibited" growth of data analytics and AI solutions will subsequently drive demand for business intelligence and analytics tools and platforms, thus leaving the other two markets significantly behind.

"One of the key drivers of growth will be the emergence of generative AI. All the biggest players in this market have already announced the addition of various generative AI solutions into their big data and analytics portfolio — including AWS Sagemaker, Salesforce Einstein, Azure Open AI Service, and Oracle Data Safe," said IDC European Software Data & Analytics senior research analyst, Veronika Paal.

However, IDC says generative AI is just one of the factors affecting the market.

According to Matija Misic, research analyst with IDC European Software Data & Analytics: "Vendors will be increasingly looking to improve their data analytics processes, especially in the ESG area, where the changing European regulations and upcoming sustainability reporting standards, such as ESRS, are causing companies to track new metrics and improve their performance."