COPENHAGEN, July 22, 2002 - Europe's business intelligence tools market is showing signs of recovery. According to IDC, year-on-year growth is expected to accelerate over the next five years, from 2% in 2001 to 19% by the end of the forecast period in 2006.
IDC forecasts a 2001 to 2006 CAGR of 14.9% for the Western European BI tools market, resulting in $2.5 billion in market revenue by the end of the period. "Business intelligence software is taking on an increasingly strategic role in the enterprise. As companies focus on becoming more efficient and on optimizing processes and performance, greater attention is being paid to the possibilities that business intelligence software represents," said Christina Steensboe, Program Manager with IDC's European Software Group.
Increased interest in BI at the strategic level in organizations, combined with new ways of accessing the software, such as Web interfaces and mobile devices, will cause the growth to pick up - especially in the packaged data mart/warehouse and end-user query and reporting tools markets.
The Western European BI tools market reached $1.2 billion in revenues in 2001, representing a growth rate of 1.8% from 2000 to 2001, a growth rate significantly lower than the 17.1% of the preceding year. The market slow down was primarily caused by the depressed world economy. Other factors impacting the market downturn include the trend towards smaller BI contract sizes and longer sales cycles as decisions are moved higher up the corporate ladder. "Evidence shows that the demand for BI remains strong and IDC expects market growth to pick up again in the second half of 2002 and beyond," Steensboe continued.
Important market drivers:
· BI software taking on an increasingly strategic role.
· Integrated suites of BI tools continuously provided, with improved functionality. · Market consolidation to continue, with large players acquiring smaller specialized vendors. · Increased demand for analytic applications will spur demand for underlying BI tools. · Database vendors entering the BI market.
"We believe that partnerships and acquisitions will become increasingly important both as a way to penetrate markets and as a means for vendors to offer complete solutions, thus enabling customers to deal with fewer suppliers, " Steensboe concluded.
The IDC study: Western European Business Intelligence Tools Forecast and Analysis, 2002-2006 (IDC# LT24J) examines the Western European business intelligence market. It provides detailed historical vendor revenue and market shares, as well as market revenue forecasts for the 2002-2006 period. It also contains a discussion on drivers and inhibitors for the Western European BI tools market. The data and analysis provide valuable input into the strategic and tactical planning processes of software vendors competing in the BI markets.
To purchase this document, call your local IDC office or visit us at www.idc.com.
About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
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For more information, contact:
Lotta Hållén-Kragh
+45 39 16 22 42
lhallen@idc.com
Christina Steensboe
+45 39 16 22 40
csteensboe@idc.com
Explore new economic landscapes, technology solutions, and strategies for IT investments at IDC's European IT Forum.
Date: September 16-17, 2002
Location: Grimaldi Forum, Monaco
For more information, visit http://www.idc.com/itforum02.