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Banking, manufacturing industries will fuel demand for big data products: IDC

The banking industry spent nearly $17 billion on big data and analytics products this year alone.

Worldwide spending for big data and analytics products will grow to more than $203 billion by 2020, according to the latest forecast from IDC. The research firm claims that much of the growth in the segment will come from the banking and manufacturing industries.

The banking industry spent nearly $17 billion on big data and analytics products this year alone, and IDC expects the financial sector to remain the fastest growing segment going forward.

Most of the spending will go toward risk management, fraud prevention, and compliance related products. Telecommunications, utilities, insurance, and transportation will follow banking as the industries with the largest growth rates over the forecast period.

In terms of size, obviously it's the larger enterprises that will spend the most on big data software and services, but small businesses will get in on the action, too: IDC expects SMBs to contribute nearly a quarter of worldwide revenues.

IDC says IT and business services will account for more than half of all big data and business analytics revenue for most of the forecast period. Software, end-user query, reporting and analysis tools, and data warehouse management tools will also be sought after, as well as content analytics tools and CRM apps.

The US will account for more than half of all big data and business analytics revenues come 2020, while Western Europe, Asia/Pacific (excluding Japan), and Latin America will follow.

IDC's revenue prediction comes just days after IBM announced it was buying compliance consulting firm Promontory Financial Group to add more financial regulatory expertise to Watson's cognitive computing platform. Big Blue is also using the deal to create a new subsidiary called Watson Financial Services, which will build cognitive tools for things things like tracking regulatory obligations, financial risk modeling, surveillance, and anti-money laundering detection systems.