IDC Reports Says Business Intelligence Market Grew 12.1% Globally

By: Jeff Myhre, Chief Editor (7/14/2008)

IDC has issued its “Worldwide Business Intelligence Tools 2007 Vendor Shares” which says the business intelligence tools market grew 12.1% worldwide in 2007 to reach $7.05 billion in software revenue.  The advanced analytics segment was up 13.1%, while the query, reporting and analysis segment rose 11.9% in 2007. 

Looking at the market by geographic region, IDC says that the Americas remain in the lead as a percent of the global revenue in BI, but dipped below 50% to around 49%; in 2005 and 2006 the Americas accounted for just over half of all BI revenue.  Europe, the Middle East and Africa taken together accounted for approximately 40% of the global BI revenues in 2007, up from the high 30s in 2005 and 2006.  Asia and the Pacific have remained more or less constant since 2005, at around 10-11%. 

By vendor, Business Objects remains the biggest at just over $1 billion, growing 9% in 2007.  SAS reached $791.4 million as a result of a 16.6% growth rate.  Cognos was just shy of $715 million growing by 10.8%.  Oracle’s 10.6% growth brought it $564.6 million total.  Microsoft rounded out the Top Five with $554.8 million and 15.6% growth.  Combined, these five account for 51.4% of all BI software revenue

Looking into IDC’s crystal ball, the report says, “In the long-term context, the BI tools market is still in the early stages of what IDC believes is the third major 15-year cycle for this software market.  Barring a prolonged worldwide recession, the demand for BI tools is expected to continue to grow in the 10-12% range.”  Furthermore, “Although the worldwide economy is experiencing a slowdown affecting overall IT spending, IDC does not expect a slowdown in the BI tools market similar to that of 2001-2003.” 

Finally, the trends “point toward growing evidence that BI tools are finally entering a mass market – a prelude to the next market cycle that will lead to what IDC calls pervasive business intelligence.”

The report can be found here:

http://www.idc.com/getdoc.jsp?containerId=212921

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