Whilst capioIT and others repeat it ad nauseam, a view that considers that the countries of the Asia Pacific market to be generic and require a single strategy is making the most fatal mistake of all in terms of understanding the market.
Analysis of the market opportunity for the Asia Pacific BI and Analytics Platforms highlights this. The overall market opportunity highlights the diversity in growth through 2017. Some key points:
- The total Asia Pacific BI and Analytics Platform/Software market will grow from US$1.8B in 2013 to US$3.3B. This represents a Compound Annual Growth Rate of 16.4%.
- In the period from 2012-2017, Vietnam will be the fastest growing market, Taiwan will be the slowest growing market.
- China and Australia represent both the growth engine and the installed base opportunity
- In 2014, growth in China in dollar terms will exceed that of a combined ASEAN, Taiwan and Hong Kong.
To highlight the diversity of the Asia Pacific BI and Analytics market opportunity, capioIT has prepared a “Heat Map” for this market. This analytical tool highlights the the strongest market opportunities based upon a combination of supply and demand. This is measured by two axes. The first is Vendor capability. This scores the aggregated vendor capability to meet customer requirements and overall investment in a market. Market Velocity is the second variable. This measures customer demand and investment in a geographic market through application of capioIT forecast.
Whilst this analysis is only for the Platform or software component, clearly it is an indicator of the opportunity of the services/solution downstream.
Clearly Australia and the PRC remain the most attractive markets. Further vendor investment is required in India and Korea in order to allow these highly localised markets to meet their potential. In markets such as Singapore and Hong Kong, the vendor capability is strong, but the opportunity needs to be accelerated by key ecosystem providers to meet this capability. Whilst having strong growth, the small base of markets such as Vietnam, Indonesia and Thailand result in these markets being far from mature. The key for the maturity in those markets is going to be localised vendor capability either directly, or more likely, through partnerships.
Focus Point
There are considerable opportunities and expectations of growth in the Asia Pacific BI and Analytics marketplace. However, anyone who takes a generic single strategy for the Asia Pacific marketplace is quickly doomed to fail.