Mumbai: Indian business intelligence (BI) software revenue is forecast to grow 16 percent to reach USD 113 million in 2013, research firm Gartner on Monday said.
BI revenues, which includes revenue from BI platforms, analytic applications and corporate performance management (CPM) software, stood at USD 98.1 million in 2012, Gartner said in a report launched here Monday.
The market is expected to grow further to USD 171.2 million by 2016, the report added.
Business intelligence software are tools designed to retrieve, analyse and report data. These tools help identify and develop new opportunities, providing companies competitive market advantage and long-term stability.
"Pressures from consumers, environmental policies, government and industry regulations, international standards of quality, and internal operational efficiency are forcing enterprises to improve their operations and processes to become both agile and efficient in a volatile marketplace," Gartner Research Director Bhavish Sood said.
These internal and external pressures are driving increased adoption of analytics solutions across the country, he added.
BI platforms is expected to comprise the largest chunk of the market at USD 74.1 million in 2013, growing over 13 percent from USD 65.3 million in 2012. This segment is forecast to touch USD 107.4 million by 2016.
Analytic Applications and Performance Management segment is expected to see the fastest growth at close to 19 percent to touch USD 16.8 million in 2013 from USD 14.2 million in 2012.
The segment's revenues are forecast to grow to USD 27.8 million by 2016.
CPM Suites revenues are expected to grow from USD 18.6 million in 2012 to USD 22 million in 2013 and further to USD 36.1 million by 2016.
"We see signs of the emerging importance of BI in India as senior executives are increasingly exploring the different styles of analytics to resolve their business imperatives," Gartner Managing Vice President Ian Bertram said.
There is an increased emphasis on the metrics management and growing use of performance management and software and service providers are increasing marketing spend on BI, thus leading to higher visibility, he added.
"In many industries, especially the regulated ones, such as telecom and financial services, clients are setting up dedicated competency centres focused on the use of information," Bertram said.
However, a general lack of talent across all fields of information management in organisations will continue to be the critical barrier to successful adoption of business analytics initiatives.