Guest blog post by Ankit Jain
Since its inception in the year 2008, the global Hadoop market has observed growth at a tremendous pace. This market, valued US$1.5 billion in 2012, is estimated to grow at a CAGR of 54.7% from 2012 to 2018. By the end of 2018, this market could amass a net worth of US$20.9 billion. With the massive amount of data generated every day across major industries, the global Hadoop market is anticipated to observe significant growth in the future as well.
Quite naturally, the mounting scales of unstructured data generated every single day from data-intensive industries such as telecommunication, banking and finance, social media, research, healthcare, and defence has led to the rising adoption of Hadoop solutions.
The major factors driving the need to adopt Hadoop are its cost-sensitive and scalable methodologies of data handling. Hadoop has taken the big data market by storm, levelling all other data management technologies that ruled the market before its inception in 2008.
Some might ask: Why switch to Hadoop when RDBMS can serve the purpose? There are multiple answers but three major ones make this technology stand apart – massive data storage, faster processing, and cost-effectiveness.
Hadoop can effectively run on commodity hardware and process data at a much faster pace. Where data handling charges for one terabyte of data can take anywhere around 10 to 14 thousand U.S. dollars with a RDBMS solution, the same requires anywhere near 4,000 U.S. dollars with a Hadoop solution. Hourly operational cost of Hadoop is nearly 32 U.S. dollar, whereas that with RDBMS is nearly 98 U.S. dollars. The Data Warehousing Institute was able to process only 10% of its sales data in a week’s time by applying traditional data handling solutions in 2012. Now, with Hadoop-based solutions, it can handle all its sales data in just one day.
The telecommunication industry is the major driving industry of the Hadoop market. Due to its enormous networks and the propagation of smart devices in the market, this industry has the natural tendency of producing huge volumes of data. For handling data of such massive volumes, no other technology can prove of more effect than Hadoop. The sector of government agencies is also shifting from legacy systems to Hadoop based solutions for effective data management. Due to the vast data analyzed by the retail industry, for studying consumer preferences, the retail industry also presents huge growth opportunities for the global Hadoop market.
Regional players of the global Hadoop market
From a geographic perspective, North America represents the leading regional market for Hadoop solutions, followed by Europe. North America is home to Internet technology and social media giants such as Google, Yahoo, and Facebook. Along with these Internet-based market palyers, the retail sector in this region also proposes myriad growth opportunities for the Hadoop market. Government agencies such as U.S. Department of Defense, U.S. Intelligence Agencies, and Obama Administration Big Data Initiative also use Hadoop solutions for handling and analyzing the huge amount of data generated from the entire country.
With the data in every industry growing so rapidly, and the production of unstructured data forming nearly 90% of the data today, enterprises need to re-evaluate the methods they used for storing, managing and analyzing data. Traditional systems will remain important for handling specific low- to high-volume workloads in the future as well. But they will work in a way to compliment the use of Hadoop and optimize the data management structure in organizations. The scalability, cost-effectiveness, and streamlined nature of Hadoop will make the data more and more useful. In fact, the need for Hadoop in today’s tech-forward world is no longer a question. The only question is how to best exploit it.
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