2001 was a year of slow growth - 5.2% - for the data warehousing market with vendor growth rates ranging from triple digit positive growth to double-digit negative growth. As companies start implementing large-scale data warehouse projects again, growth will pick up especially in the warehouse access and ETL (extract, transform and load) market segments.
There is a gradual shift of revenue from warehouse generation and management to warehouse access as a result of the maturation of data warehousing. As buyers move from the initial stages of use to full deployment, spending priorities shift from capturing and storing the data toward delivering the information to a wider range of users.
IDC believes that solutions that help companies implement data warehouse projects faster will continue to be in high demand. The performance of vendors in the packaged data marts/warehouses and ETL markets underlines this. However, not all vendors can or should provide these types of products. Another option is for vendors to provide industry solutions that take the specific and unique needs across various industries into account. Vendors creating industry-specific data warehouse solutions will be able to provide greater value-add to customers and it is also a way to speed up implementation time.
Increasingly, end-users will demand data warehouse tools that combine the functionality of batch and real-time data integration processes. Vendors should aim at offering tools that will combine the capabilities of physically moving the data into central data warehouses or data marts as well as integrating this data with real-time feeds from operational databases to combine historical analysis with current trends and real-time alerts.
The Western European data warehousing tools market reached $2.0 billion in revenues in 2001, representing a growth rate of 5.2% from 2000. This is significantly lower than the growth rate of 14.0% achieved the previous year and is due to flat growth in the data warehouse generation segment and slow growth of 5% and 7% respectively in data warehouse management and data warehouse access. Like most other areas of the software industry, the data warehousing market was hit by the economic slowdown. However, there continues to be a demand for data warehousing software, but the trend toward smaller contract sizes witnessed by most vendors and the fact that decisions are being taken higher up the corporate ladder, thus increasing sales cycles - have caused the market growth to slow down.
IDC expects the relative slowdown in the data warehousing tools market observed in 2001 to continue into 2002, with growth picking up again in 2003 and then increasing over the next two years. As companies once again put budget money aside for implementing data warehouse projects to access and analyze data and get a complete view of the business, growth will pick up especially in the data warehouse access and extract, transform, load (ETL) segments of the market. The Western European data warehousing tools market is expected to reach $3.4 billion in revenue by 2006, for a 2001 to 2006 CAGR of 11.4%.
Market Drivers
The following are some of the market forces that will drive growth in the Western European data warehousing tools market over the next five years:
Different trends will result in continued growth for the data integration tools part of the warehouse generation market: Continued pressure to increase the capacity for storing business intelligence data will provide a vehicle for continued growth of warehouse management software. Increased intranet and extranet adoption brings data warehouse access tools to broader classes of users both within and outside the enterprise. The increased end-user population will come from all levels of the organization, and opportunities for data warehouse access tools therefore exist across all business functions. The requirement for faster implementations of data warehousing projects will support continued growth in the packaged data marts/warehouses segment of the warehouse access market. This is a unique market segment in the overall data warehousing market in that it spans all three segments of the market. By implementing packaged data mart/warehouse products, companies can increase implementation times and free up resources. There is continuing demand for tools that help companies understand and predict customer behavior and risk. This demand will fuel growth of data mining software used in data warehouse solutions.
The following are some of the factors that will inhibit market growth over the forecast period: Growth in low-cost data warehouse management solutions and data warehouse access tools on the Windows platform will cause downward price pressure, resulting in lower overall data warehousing revenue than would otherwise be the case. Mergers and acquisitions will continue as vendors build more complete suites of data warehousing tools or move to integrate such tools into analytic applications. As disruptive events, mergers and acquisitions may initially slow growth. The economic slowdown has not stopped investments, but it has delayed some purchase decisions, which are likely to be taken further up the corporate ladder, adding additional time to the approval process.
About this study
The IDC study Western European Data Warehousing Tools Forecast and Analysis, 2002-2006, #LT05J examines the Western European market for data warehousing tools. IDC divides the data warehousing tools market into three segments: Data warehouse generation, data warehouse management, and data warehouse access. The study provides detailed historical Western European revenues and market share of data warehousing tools vendors from 2000-2001. These revenues are further shown in six geographical regions within Western Europe for 2001, among them Germany. Market revenue forecasts for the data warehousing tools market are provided for a five-year period from 2002-2006 in each of 16 Western European countries, for each of three market segments, and on each of nine operating environments. The current market situation is analysed and a discussion is provided of market drivers and inhibitors based on IDC's most recent knowledge of the Western European data warehousing tools market and its major players. Finally, guidance is offered on appropriate strategies for leveraging the market opportunities.
Weitere Informationen (Umfang, Inhaltsverzeichnis, Preis etc.) zu dieser Marktstudie erhalten Sie von Katja Schmalen, IDC Central Europe GmbH, unter 069/90502-115 oder kschmalen@idc.com.