Spending on business intelligence (BI) and analytics software in the United Arab Emirates (UAE) is set to reach $42.24 million this year, reflecting strong year-on-year growth of 7.7%. That’s according to a newly published report from International Data Corporation (IDC), ‘The UAE Business Intelligence and Analytics Software Market 2018-2022 Forecast and Trends’, which tips the country’s BI and analytics market to expand at a compound annual growth rate (CAGR) of 5.3% over the 2018-2022 forecast period.
IDC expects spending on end-user query, reporting, and analysis software to account for around 53% of the market’s value this year, with advanced and predictive analytics software accounting for the remainder. The finance and government sectors will continue to be the biggest spenders, although healthcare, utilities, and retail will be among the fastest growing vertical markets over the forecast period.
“Business intelligence and analytics solutions are of paramount importance to organizations in the UAE, ” says Manish Ranjan, IDC’s program manager for software in the Middle East, Turkey, and Africa. “As competition intensifies, organizations are increasingly looking to leverage analytical insights to help them make better business decisions, improve their understanding of customer preferences, and deliver enhanced customer experiences. These competitive demands, together with efforts to reduce customer churn and an increasing acceptance of cloud-based applications, will be key drivers of the UAE BI and analytics market’s growth over the coming years.”
IDC’s research shows that the UAE BI and analytics market reached a value of $39.24 million in 2017, with the growth of cloud-based BI and analytics solutions far outpacing the growth of on-premise deployments. IDC expects to see a continuation of this trend over the course of the forecast period as digital transformation initiatives continue to proliferate across the country.
“Cloud-based deployments of enterprise application solutions have steadily risen across the UAE market in recent years due to the flexibility, scalability, and cost benefits they offer,” says Ranjan. “While most of the market’s revenue is currently generated from on-premise software, cloud deployments are growing at a much faster pace. Given the strong demand for software as a service (SaaS) and cloud-based BI solutions that are not only easy to use but also simple to acquire, install, and maintain, vendors should look to invest in expanding the functionality of their product offerings.”
IDC’s report ‘The UAE Business Intelligence and Analytics Software Market 2018-2022 Forecast and Trends’ provides a detailed overview of the UAE market for BI and analytics solutions. It also gives a vertical view of the total BI and analytics market for the UAE and highlights all the major developments.