Despite the ongoing pandemic, this year companies around the world will spend a record amount of over 41 billion USD on digital information, according to an analysis by Cloud Technologies. The Warsaw-based Big Data company has published the third edition of the Global Data Market Size 2017-2021 report, the only one on the market that analyzes the size of global data sales.
Clive Humby of the Kellogg School of Management announced at the ANA association conference in November 2006 that data is the new oil. Marketers fell in love with this phrase and for 14 years it was repeated like a mantra. It turns out that it took many years for the vision championed by Humby to finally come true and become something more than a catchy slogan.

Digitalization Polish Style

Polish Spending on Data

From the latest Global Data Market Size report, prepared by the Warsaw-based new technology company Cloud Technologies, we learn that although the health and economic crises are still ongoing, the Vistula-based data market will record a record valuation. Polish spending on digital information will amount to as much as 32.1 million USD in 2020, which means an increase of 17.5% year-on-year.

Compared to other European countries, this result places us in the middle of the pack, between extremely restrained economies such as Romania (4.0 million USD), Bulgaria (0.2 million USD), or Hungary (0.9 million USD), and information pioneers, which include our western neighbors, Germany (826.3 million USD), the United Kingdom (3,064.2 million USD), or France (912.5 million USD). - It cannot be denied that involvement in new technologies in business, especially those aimed at supporting sales, is related to the purchasing potential of a given society. According to the latest GfK Purchasing Power Europe 2020 report, which compares the purchasing power of given economies, the purchasing power index in Poland is 3 times lower than in Germany. At the same time, it is higher than in Hungary or Romania. - explains Piotr Prajsnar, CEO of Cloud Technologies.

The Impact of the Pandemic on Business

As the report prepared by the Warsaw-based company indicates, the ongoing pandemic and its unpredictability motivated Vistula-based businesses to invest. It is estimated that next year's value of the data market will amount to nearly 40 million USD, which means an increase of over 22% compared to the current year. This result will allow us to reduce the distance to much wealthier nations than us: the Swiss (64.8 million USD), the Dutch (70.3 million USD), or the Spanish (72.3 million USD).

Pandemic Complications

40 billion USD - that is the value of Tunisia's GDP, i.e. the summed value of all goods and services produced in a given economy. What does this have to do with the data market? The Warsaw-based company Cloud Technologies values the global value of the world data market in 2020 at almost the same amount. That is nearly 20% more than a year earlier, before anyone could have known about the coronavirus.
Analysts of the Polish company operating in the Big Data area predict that this is not the end of good news for this sector. Already next year we should expect growth at the level of 26%, which will result in a total valuation of the data market at the level of 52.3 billion USD in 2021. Everything indicates that the near future is written not in the stars, but in bits.

- The data-driven trend has been reinforced by the transformation of consumer habits. Research conducted by BGC shows that the lives of most people (70%) are different than yesterday, and they themselves believe that the pandemic has changed the way they will live tomorrow and forever (50%) - notes Piotr Prajsnar of Cloud Technologies, and then adds: - That is why interest is growing in large data sets that will help adapt business models to new consumer behaviors. This is perfectly visible in the example of our report. This year's increase in the value of the data market will be nearly 20%, and the upcoming 2021 will record an even greater increase. This confirms that the trend of using digital data is strong worldwide.

Artificial Intelligence on Guard

Record Programmatic Market

Today, the most popular way to use behavioral data, i.e. data that characterizes the behavior of an internet user online, is the distribution of advertising content on the internet. - They are used to build new strategies, create products, or predict trends, but today their main application is communication. That is why we took into account the condition of the programmatic advertising market. This solution is today the most popular form of buying display space online. - notes Maciej Sawa, CEO of OnAudience.com, a company belonging to the Cloud Technologies group, and adds: - In the period we are analyzing, i.e. 2017-2021, the value of the programmatic market is growing dynamically year by year. Since 2018, it has been increasing at a double-digit pace. In the world's largest advertising market, the United States, already 8 out of 10 ads are sold in an automated model.
As estimated by the report's authors, despite the ongoing pandemic and contrary to the "belt-tightening" policy applied in many organizations, the value of the programmatic market will increase compared to the previous year by over 14% and will amount to 129.1 billion USD in 2020.

- It has long been known that the economy is a system of connected vessels. Therefore, the increase in spending on programmatic is closely related to the condition of the digital advertising sector. As reported by eMarketer, despite the fact that global advertising spending will decline, breaking it down into individual forms of promotion, we will notice that spending on digital advertising is the only one that will increase this year. Admittedly, we are talking about 2.4%, but this will contribute to generating a total amount of 332.84 billion USD in 2020 - notes Piotr Prajsnar of Cloud Technologies.

Record Spending on Big Data During the Pandemic

The upcoming 2021 is to be record-breaking in terms of the valuation of the programmatic market, which will amount to 155 billion USD. That is 20% more than in the ongoing 2020. It took only 4 years for the value of this sector to increase by nearly 87 billion USD (base value, 68 billion USD in 2017).

European Shortness of Breath

Europe versus China

Taking into account the value of the data market in individual regions, the Old Continent with a result of 6.3 billion USD only slightly beats China (5.4 billion USD). The Americans confirm their dominance for another year. The United States will be in 2020 the world's largest local data market - 24.7 billion USD is nearly 4 times more than the projected European result.

- The balance of power may soon be reshuffled - notes Piotr Prajsnar, CEO of Cloud Technologies. - While the leader's position seems unchallenged, observing the dynamics with which the Chinese market is developing, we should expect that in just a year, the results achieved by Beijing will equal those of Europe. - adds the expert.

Analysts of the Warsaw-based company predict that already in 2021 the difference between the European and Chinese markets will become symbolic and amount to only 0.3 billion USD in favor of the Old Continent (7.6 billion to 7.3 billion USD). China will be able to boast a 35% growth dynamics in the coming year. That is 13 percentage points more than the European result.

World of Knowledge

According to recent research by the International Data Corporation (IDC), the global economy is focused on digital transformation. Over the next 3 years, IT spending will amount to 6.8 trillion USD. The impact of the Covid-19 pandemic is omnipresent and drives changes for which business has not been sufficiently motivated until now.
Today, the acclaimed mathematician and data analyst Clive Humby may feel confused - on the one hand, his bold vision from 14 years ago is finally beginning to take real shape, on the other hand, the coronavirus and the global lockdown resulting from the pandemic have contributed significantly to this. However, regardless of the circumstances, one thing is certain - the pandemic has sharpened the appetite for technology, and business is increasingly boldly flirting with new solutions.

Summary

According to the Cloud Technologies report, the global data market in 2020 will reach a value of 40 billion USD, growing by 20% year-on-year, and in 2021 it is to exceed 52 billion USD. Polish spending on digital information will reach 32.1 million USD this year, which means an increase of 17.5% and a place in the middle of the European pack. The pandemic turned out to be a catalyst for change, forcing companies to invest more in Big Data.

Interestingly, the programmatic advertising market is growing in the pandemic year by over 14%, to 129.1 billion USD, and already in 2021 it is to reach 155 billion USD. Meanwhile, China with a dynamics of 35% is catching up with Europe, and the leader remains the United States with a market worth 24.7 billion USD.