Hadoop Market to Grow 25x by 2020, Report Says
The global market for Hadoop along with related hardware, software, and services is expected to reach $50.2 billion by 2020, driven by the unrelenting expansion of raw, unstructured, and structured data, a market watcher forecasts.
Allied Market Research said the global Hadoop market accounted for about $2 billion in revenues in 2013, and is slated to increase by $48.2 billion over the next seven years. That corresponds to a 58.2 percent compound annual growth rate (CAGR) for Hadoop through 2020.
Allied Research’s methodology divided the Hadoop market into software, hardware, and services segments. It found that Hadoop services currently account for 50 percent of the global market. The services market is being driven by the need for data analysis, the forecaster said.
The service segment includes consulting, training and outsourcing along with middleware and support. Consulting along with training and outsourcing accounted for most of the services revenue in 2013, the market analyst found.
Through 2020, the Hadoop software segment is projected to show the greatest annual growth. Indeed, the survey found, venture capitalists have been investing heavily in Hadoop software distributors, a trend that is expected to boost software sales over the next seven years.
Hadoop application software generated the most revenue in 2013. Meanwhile, the forecaster said the Hadoop packaged software market is expected to surge nearly 63 percent annually through 2020. One reason is that packaged software eases deployments of Hadoop clusters while speeding integration of projects.
The researchers divvied up the Hadoop hardware market into server, storage, and network equipment segments. Storage led the way in 2013 in terms of revenue as social media sites like Facebook, Twitter, and LinkedIn added terabytes of data each day.
That storage trend is expected to expand for the foreseeable future. Indeed, Allied Research projects that the Hadoop server market will expand at a 60-percent annual clip through 2020. That projection takes into consideration “the volume and velocity at which raw data is expanding,” the analyst said.
While the rise of social media explains much of Hadoop’s growth, the market researcher found that the government sector is the fastest growing revenue generator in terms of end-user applications.
Another area where Hadoop and its MapReduce framework could emerge is government-run supercomputer centers. But Hadoop adoption by the HPC community has been hindered by fundamental disconnects that have so far slowed its move into the HPC mainstream.
Despite the bullish Hadoop forecast, the market researcher cautioned that “distributed computing and Hadoop platform security issues are hindering the growth of this market. However, with continuous technological growth these issues can be addressed. Moreover, gradual lowering operating costs to provide data management solutions will add to the growth of this market.”
The survey also predicted that North America would remain the leading market for Hadoop software, hardware and services in terms of revenue. A strong distribution network was cited as the main reason. The Asia-Pacific region is expected to emerge over the next seven years, with compound annual growth for the region pegged at 52.9 percent. Much of that growth is expected to come from the emerging Chinese data analytics market.