Hadoop Market to hit $50 Billion by 2020
Sales of Hadoop-related software, hardware and services are forecast to tip $50.2B by 2020 worldwide, according to Allied Market Research (AMR).
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Sales of Hadoop-related software, hardware and services are forecast to tip $50.2 billion by 2020 worldwide, according to analyst firm Allied Market Research (AMR).
Apache Hadoop is an open-source software development framework for data analytics and distributed computing. Expanding demand for the processing and analysis of diverse data sets, incorporating raw unstructured and structured data, is driving related projects and adoption.
AMR's Lita Person has produced a report entitled Hadoop Market (Hardware, Software, Services and HaaS, End Use Application, and Geography) - Industry Growth Trends and Forecasts Through 2020, that estimates the market will expand from $2.0 billion in 2013 to $50.2 billion by 2020.
"The global Hadoop market is expected to grow at a CAGR of 58.2 percent between 2013 and 2020," the analyst said. "Increase in demand for big-data analytics is the major driver for this market."
Hadoop can facilitate cheaper, faster data processing and analyzing, compared with traditional systems such as relational database management. However, issues exist with distributed computing and the security of the Hadoop platform itself which may hamper the market initially.
Services based on Hadoop are the lion's share of the market currently, accounting for about 50 percent worldwide. This is segmented into consulting, training and outsourcing, integration and deployment, and middleware and support services.
"Consulting, and training and outsourcing, segments together accounted for maximum revenue in 2013, whereas the integration and deployment category is the fastest growing [in services]," according to AMR.
That said, Hadoop software is projected to be the fastest growing category overall through the period, enjoying a CAGR of 62.9 percent 2013-2020.
"Increasing venture capital investments lead to an additional number of Hadoop distributors, which is the major reason for growth in the Hadoop software market, further segmented into application software, management software, packaged software and performance monitoring software," AMR continued.
"In 2013, application software generated the highest revenue of the overall global Hadoop software market. The main reason for this is the use of application software by developers to build applications for data analysis."
Leading organisations such as MapR Technologies, Hortonworks and Cloudera mostly deal in Hadoop packaged software, which may be used to ease the deployment of Hadoop clusters and smooth the integration of MapReduce, Hive, and other Hadoop projects.
Storage was the leading segment in the hardware category in revenue terms. Other hardware sales boosted by Hadoop projects and implementations include servers and network equipment. AMR links the expansion in storage demand to the popularity of social networking sites including Facebook, Twitter and LinkedIn, each of which adds Terabytes of data every day.
Top verticals for Hadoop technology include the public sector, banking and financial services, and IT itself - with government leading in terms of revenue from Hadoop end user applications at the moment but financial services expected to take the lead by 2020.
Geographically, North America is the top region - mainly because it hosts a large number of Hadoop distribution companies, not just because Hadoop technology is being adopted widely.
The Asia-Pacific, however, is expected to be the fastest growing regional market 2013-2020, with a CAGR of 59.2 percent.
Key players in the Hadoop market include Amazon Web Services Inc; Cisco Systems Inc; Cloudera Inc; Datameer Inc; Hortonworks Inc; Karmasphere Inc; MapR Technologies; Pentaho Corporation; Teradata Corporation; and MarkLogic.