How much do you know about Big Data?
Big data statistics from across the globe indicate that data is the key to transforming any business. However, there are still a lot of companies out there not investing properly in analytics solutions. Though we’re constantly creating and discovering information, we’re not always leveraging it correctly. That could be about to change.
With more technology now appearing on the market to assist us in accessing big data, the market is growing at an astronomical rate, set to reach a value of $103 billion by 2027.
Let’s explore the realities of big data with some intriguing big data statistics
What is Big Data?
Big data is the term used to refer to enormous data sets collected from various sources. These data sets wouldn’t be possible to process manually, which is why so many databases and tools have emerged to assist with their evaluation.
Big data can cover both “structured” and “unstructured” information, and it’s often regarded as an important tool for gaining crucial insights into people, processes, and things.
Over the years, the volume of data available has grown, due to the increase of various data-driven and intelligent tools, like AI systems and IoT devices. The velocity of data is growing too, with experts saying we create about 2.5 quintillion bytes of data per day.
Before we explore some in-depth data statistics, here are some initial insights:
Key Big Data Statistics
- By 2025, experts indicate that over 463 exabytes of data will be created each day, the equivalent to around 212,765,957 DVDs.
- Poor data quality can cost the US economy as much as $3.1 trillion per year.
- The big data analytics market will reach a value of around $103 billion by 2027
- 97.2% of organizations say they’re now investing in AI and big data
- Around 95% of companies says their inability to understand and manage unstructured data is holding them back.
Big Data Statistics: General Statistics
1. Companies generate around 2,000,000,000,000,000,000 bytes of data a day
It sounds like an absurd number, but IT Chronicles notes that around 2,000,000,000,000,000,000 bytes of data are generated every day across all industries. This data will be worth around $77 billion by 2023, and it’s barely the beginning. Only around 26% of companies say they’ve achieved a data-driven culture, despite this massive amount of data creation.
2. 94% of enterprises say data is essential to business growth
A 2020 report by MicroStrategy found that around 94% of companies believe that data and analytics will be essential to the growth of their company, and their digital transformation. The company notes that the companies investing the most into data analytics currently are hospitality, telecoms, and retail industries. However, many verticals are planning on increasing their spending habits.
3. 63% of companies can’t gather insights from big data
According to Sigma Computing, the benefits of big data are clear to many companies, yet around 63% of employees say they can’t get insights from their solutions in the right timeframe. The biggest problem for many companies may be collecting data insights before they’re outdated.
Sigma went on to reveal that around 39% of business domain experts don’t know what it means to be data driven. And 76% of data experts say half of their time is spent making ad-hoc reports for teams.
4. 73% of data goes unused for analytics purposes
Forrester reports suggest that between 60 and 73% of all data is never used for analytical purposes. Despite more companies talking about big data today, many brands simply don’t have the technology available to access the right data insights.
5. The biggest issue with data access is IT budget constraints
A Capgemini report into big data found that the biggest reason organizations are failing to invest in Big data, is a lack of IT budget. The report also showed that many users are worried about data security challenges, integration, and even a lack of technical expertise. Only around 3% of the companies studied in total weren’t having challenges accessing big data.
6. 36% of companies rate Big Data as crucial to business operations
A Dresner Advisory services report found that 36% of companies see big data as crucial in their organizations. Around 29% said that big data was very important, 20% it was important while 12% rated it as “somewhat important”. This is a significant increase in data interest since 2018, when Dresner insights found only 60% of companies using data.
Big Data Statistics: Data Use Cases
7. Banking and manufacturing are the biggest industries for big data
An IDC worldwide spending report on Big Data found that banking 14% and discrete manufacturing 12% were the two biggest channels for big data investment, followed by process manufacturing, professional services, and the government.
The industries mentioned above made up around 50% of global revenue generation for big data investments in 2018. Since then, the demand for data has continued to grow.
8. The US is the biggest market for Big Data
Further IDC studies into global big data potential found that the US is the largest market for data and analytics. The revenues for big data analytics are expected to reach around $88 billion in 2018, with a growth of 13.2% on the horizon. Software investments alone are set to reach more than $90 billion in the US by the end of 2023.
Western Europe sis the second largest geographical market for big data investments, and the UK is the third largest, often accompanied by Japan.
9. Poor data costs the US $3.1 trillion a year
In 2016, IDC released a report exploring some of the costs of big data analytics, and the potential issues for not using it correctly. The company estimated that around $3.1 trillion is lost on poor data analytics each year.
External reports also suggest that poor data quality costs single businesses anywhere between $9.7 million and $14.2 million per year. Using the wrong data will lead to significantly reduced productivity, and mistrust between customers and brands.
10. Data warehouse automation is one of the top use cases for big data
Dresner Advisory services suggest that data warehouse optimization and forecasting are the top ranked use cases for big data analytics. These strategies were marked important by 80% of respondents. Additionally, customer and social analysis, fraud detection, and predictive analysis were marked as crucial by more than 70% of the respondents.
11. The big data analytics in healthcare market is growing
(Allied Markets Research)
Demand for big data insights is growing in virtually every industry. Allied Markets Research highlights healthcare as one of the most exciting sectors, projected to reach a value of around $62.82 billion by 2025. This gives healthcare big data solutions a growth rate of around 19.1% CAGR.
Demand for healthcare solutions is growing, particularly after the pandemic, where groups have discovered just how effective data can be at driving better outcomes.
Big Data Statistics: Benefits of Big Data
12. Data-driven companies are 23 times more likely to acquire customers
Big data generates big results. McKinsey reports demonstrate that data-driven organizations with insights into customers are 23 times more likely to collect new clients. They’re also 6 times more likely to maintain the customers they gain.
Data driven companies are also 19 times more likely to achieve and maintain a profitable status, compared to companies which don’t use data.
13. Data Delivers better decision making
A study by BARC indicates multiple benefits for using a big data initiative, including better strategic decision making (69%), improved control of operational processes (54%), and improved understandings of customers (52%).
Around 47% of customers also said that they had reduced process costs thanks to data analytics. Further benefits included increased sales, faster product innovation, reduced risk, and more efficient operations.
14. 79% of companies feel failure to use big data will cause bankruptcy
Accenture’s study into the success rates of big data found that almost 79% of people believe that companies who fail to embrace big data could risk bankruptcy.
The study also found that around 51% of companies strongly agree that big data will revolutionize the way they do business. Additionally, 39% strongly agreed that big data will dramatically change their operations in the future.
15. A 10% increase in data visibility could result in $65 million additional income
A Forrester report into the benefits of big data for Fortune 1000 companies revealed that even a small increase in data visibility could generate incredible outcomes.
Fortunate 1000 companies could earn more than $65 million in additional income if they only increased their data visibility by 10%. According to senior analyst Richard Joyce, currently only around 0.5% of all data is properly analyzed.
16. Companies embracing big data could increase operating margins by 60%
McKinsey’s studies on Big Data as the next frontier for innovation and competition found that businesses embracing big data analytics could increase operating margins by up to 60%. The ability to harness big data properly could significantly change the way we do business.
An additional McKinsey study found that exploiting data analytics in retail organizations could be enough to boost profits by more than 60%.
Big Data Statistics: Big Data Trends
17. Every human created about 1.7 mb of data per second in 2020
The amount of data available for analytics purposes is growing. On average, standard human beings generated about 1.7 megabytes of information per second. More than 3.7 billion humans are already using the internet, and every time we do, we’re generating more information.
18. The accumulated data in the world was expected to hit 44 zettabytes in 2020
(World Economic Forum)
The World Economic Forum examined how much data people generate on average in 2019 and revealed that the amount of information available is growing drastically. The entire digital universe is expected to contain around 44 zettabytes today, which is around 44 trillion gigabytes.
The digital transformation of the world, easy access to internet, and smartphones are all expected to contribute to the data we create.
19. It would take 181 million years to download all the data of the internet
According to Org, there’s so much data available online today, that it would take around 181 million years to download everything. You would also need a seriously huge hard drive. Fortunately for today’s businesses, you should only need to collect and leverage a tiny portion of the available data in the world to make a difference to your company.
20. 97.2% of organizations are now investing in AI and big data
(New Vantage Partners)
Although it’s taken a while for companies to fully understand and embrace the power of data, investment levels are growing. New Vantage Partners revealed in 2019 that around 97.2% of companies are investing in both big data, and artificial intelligence.
Investing in AI alongside big data is often a good idea, because AI has the capacity to collect, manage, and process data much faster.
21. IoT is driving data growth
There are quite a few things contributing to the development of the big data landscape at present. One particularly impressive area is the Internet of Things. IDC says that the number of IoT devices connected to the web could rise to 41.6 billion by 2025. Additionally, all over the world, 127 devices connect to the internet every second.
These connected devices produce around 5 quintillion bytes of data a day, which is a huge amount of information.
Big Data is Growing Bigger
It’s no secret that big data is a big deal in the current landscape, particularly in an age of digital transformation and development. As our technology continues to evolve and companies continue to look for ways to understand their customers, data will gain more popularity.
Right now, around 71% of business experts already say they’d like to improve their data literacy skills, and the number of data-focused jobs is growing all the time. If knowledge is power, then big data is the most powerful asset we have.
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Allied Markets Research
World Economic Forum
New Vantage Partners