The Latin American market for big data and analytics (BDA) generated US$2.9 billion in revenue last year, with Brazil leading the race.
Brazil alone accounted for 46.7% of the overall sales, followed by Mexico (26.7%), Colombia (7.9%), Chile (6.9%), Argentina (5.6%), and Peru (2.4%).
Growing recognition for data-driven companies and the popularity of internet of things (IoT) are some of the factors driving the demand for data analytics services, says Frost & Sullivan in its latest report.
“IoT will play a crucial role in the adoption of BDA,” said Mauricio Chede, IT Services and Applications Senior Industry Analyst at Frost & Sullivan.
“With a variety of information generated by connected devices and sensors, an engine that can mine the extremely large data-sets to extract relevant information for analysis in real time and generate insights, as well as improve customer experience, will constitute a key competitive advantage.”
Thanks to the growing e-commerce, the widespread use of smartphones, and the huge popularity for social networking sites, Latin America offers huge potential for data analytics companies.
However, most of those capitalizing on this demand are international technology providers, including IBM, Oracle, and SAP.
Legacy infrastructure, restrained IT budgets and a lack of tech talent are some of the factors currently hampering the growth of the market. Despite these hurdles, the market for data analytics is expected to reach US$8.5 billion by 2023, says Frost.
“To address the urgent need for more specialized professionals, companies have invested in training their employees and developing extension courses,” Chede added. Service providers must also learn the art of scaling up operations while balancing security and privacy regulations, the research firm has suggested.