Big Data Analytics Market- Future Scope in India

Tomoyasu Nishimura, Senior VP, NEC CorporationThe Indian economy is witnessing a sea of transformational changes when it comes to technology and its adoption. The Prime Minister’s visionary projects such as Digital India, e-governance and Smart cities among several others are destined to make India a technology centric economy of the future. With this as the background, it is needless to say that Internet of Things (IoT) and Big Data will play an extremely crucial role in paving the next level of growth.

The Big Data Analytics market in India is currently valued at $2 Billion and is expected to grow at a CAGR of 26 percent reaching approximately $16 Billion by 2025, making India’s share approximately 32 percent in the overall global market. The IoT market shows a similar growth trajectory and is fore casted to reach $15 Billion by 2020 accounting for roughly five percent of the global market. This nearly eight fold jump in the Indian Big Data market is a lucrative opportunity and should be tapped. India is currently among the top 10 countries in Big Data analytics market and already has around 600 data analytics firms with this number only expected to grow in future.

Amongst the several factors driving this exponential rise of the Indian analytics industry is the growing data generation at an individual level. India with its burgeoning population of more than a Billion, Internet users in excess of 400 million and Smartphone user base of around 300 million is deemed to generate massive data, making each click an important information point that can be processed using Big Data tools to reveal user behavior and come up with useful and profitable decisions. The growth in the Internet enabled devices and thereby data generation is only expected to grow in future given its easy accessibility, low-cost, ease of use and overall economic growth of the country. An example of this is the recent 4G data wave that was created with the entrance of low cost telecom carriers. It enabled the low income Indian population to join the digital bandwagon, allowing a larger chunk of data to be captured,giving a better understanding of customers to businesses and government programs.
Another major driving force is the Governments push towards digitization with initiatives initiatives like Digital India that aims to transform the country into a digitally empowered society and the National Optical Fiber Network (NOFN) initiative that aims to connect villages with optical fiber and provide high speed internet connectivity. With the length & breadth of the country being digitally connected potentially gives rise to phenomenal data consumption and provides a major impetus to the Big Data analytics industry. The recent Demonetization in India has brought about an attitudinal shift in the minds of the Indian people with more individuals now migrating towards digital payment mediums and this increasing digitization of transactions is a positively correlating factor for the Big Data Analytics demand in the country. In addition, there is also the government’s unique identification project which aims to provide a unique digital identity- an AADHAR number to each of its citizen for efficient delivery of services. Linking of the AADHAR to various services like finance, healthcare etc. is expected to create a gigantic pool of data which would require Big Data analytics to convert the raw data into meaningful information and facilitate analysis.

Big Data analytics would synthesize into a booming market, providing abundant opportunities to firms and investors wanting to explore this space

Processing of this Big Data is critical to businesses for developing new competitive strategies, optimize their functioning and provide differentiated services. As India’s economy becomes more global, and with more firms focused on providing world class services and products, Big Data analytics would become an integral part of corporate strategy for obtaining significant insights and using it to intensify sales, target the customers effectively, and eventually get a competitive edge. Driven by the increased demand for cloud based solutions and predictive analytics capabilities, Big Data has been prevalent in various industries such as Telecom, BFSI, e-commerce & Healthcare. With the adoption and maturity of data analysis increasing every day it is expected to penetrate other industries as well. Some roadblocks in the India Big Data analytics market is the high investment cost and lack of awareness on the return of investments analytics has to be provide.

In conclusion, with India being amongst the top 5 social media and mobile consumers in the world, generation of vast amount of data is indispensable. In the light of approx. 2.9 zeta bytes of data generation by the year 2020, Big Data analytics would synthesize into a booming market providing abundant opportunities to firms and investors wanting to explore this space.

In response to the globally increasing demand for Big Data analytics, NEC Corporation and NEC Technologies India recently launched the Center of Excellence for Analytics Platform & Solutions in India, with a plan to organize a team of 100 professionals within the first few years. The new organization will act as a ‘one stop shop’ for customers who want to utilize Big Data analytics as well as simplify their digital transformation journey, enabling them to make well-informed decisions at the right time.