The global Hadoop-as-a-service market size was valued at USD 14.3 billion in 2021 and is estimated to reach an expected value of USD 285 billion by 2030, registering a CAGR of 39.4% during the forecast period (2022-2030). A Big Data analytics framework called Hadoop-as-a-service (HaaS), commonly referred to as Hadoop in the cloud, uses Hadoop to store and analyze data. Because the technology is supplied and managed by a third-party vendor, users do not need to invest in or install new infrastructure on their premises to use it. A software framework called Hadoop is utilized in clustered systems to manage data and storage for big data applications. It enables users to gather, handle, and examine data. Despite Hadoop being the market leader, not all businesses have the resources to set up and manage an internal Hadoop ecosystem. They can now concentrate on their leading enterprises thanks to this. Users of Hadoop-as-a-service on the cloud are intended to have a similar experience. Medium and large-scale enterprises that lack the infrastructure or capacity to host Hadoop on-site are increasingly adopting HaaS. The global adoption of the Internet of Things (IoT), the rise in demand for affordable Big Data management solutions, and the widespread acceptance of Hadoop-as-a-service (HaaS) across a variety of industry verticals, including IT, banking, manufacturing, and telecommunication, all contribute to the market's expansion.
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The Rise in the Adoption of Cloud and Virtualization
Cloud is growing exponentially, with many organizations already using cloud or planning to do so. It has been seen that while startups or small companies are quicker to adopt the cloud, large enterprises have been more cautious about migrating to the cloud. Data security is one of the biggest concerns hindering enterprises from adopting the cloud. The concern is even more significant with public clouds, as these share resources between different users and rely heavily on virtualization, creating additional security concerns around the access to data on the virtual machine. Most organizations fear their data is not as safe as it would be in their private data centers.
Furthermore, the adoption of the cloud is increasing quickly due to the apparent benefits of flexibility and the costs it offers over legacy systems. This increased adoption is expected to drive the demand for encryption. By safeguarding the data at rest and in transit, encryption can enable enterprises to leverage the benefits of the cloud and simultaneously ensure data privacy. It can also aid in regaining control over the data even when it has left the organization’s premises. This can be done by retaining control over the encryption keys. In case a copy of the virtual machine is made by the service provider, only the encrypted data is copied, giving the power to the organization to decide when to deliver or revoke the keys.
Flexibility and Agility for Businesses Provided by HaaS
Customers have access to a range of pricing alternatives from HaaS providers. The user of Amazon EMR can make hourly payments for each instance hour used. The customer may, for instance, pay by the hour (e.g., a 10-node cluster running for 10 hours costs the same as a 100-node cluster running for 1 hour). The employed instance type determines the hourly rate. In addition to the EC2 fees, hourly rates of $0.011/hour to $0.27/hour are also incurred. Therefore, HaaS offers a chance to expand consumer needs and payments. Depending on the type of instance and factors such as a high CPU, high RAM, and high storage, a different hourly rate will be imposed. The scalability features of HaaS make it a cutting-edge service and give it an upper hand over traditional Hadoop. The user needs to pay per usage for Hadoop on the cloud (HAAS), as it is highly scalable. Users can increase or decrease the capacity of their clusters. In addition, users can scale up and scale down anytime with a click of a button. These numerous benefits provided by HaaS, such as flexibility and agility, are expected to drive the market's growth in recent years.
The Dearth of Awareness about the Benefits of this Technology
Unfamiliarity with the Hadoop architecture or lack of awareness about HaaS technology is expected to impact the market's growth negatively. In addition, several enterprises that adopt Hadoop lack know-how about how an ideal Hadoop architecture design should be and how a Hadoop cluster works in production. This lack of knowledge leads to designing a Hadoop cluster, which is more complex than is necessary for a particular Big Data application, making it a pricey implementation. Thus, being a complex and costly option, enterprises avoid the implementation of Hadoop architecture within organizations, which significantly restrains the growth of the global market.
Ongoing Partnership and Funding in Hadoop Market
Companies are entering into partnerships to offer HaaS to their customers. Cloud storage providers and analytics software developers are the key companies forming partnerships to provide a complete HaaS service to their customers. For instance, in January 2019, Hortonworks and Cloudera, two giants in the Hadoop Big Data market, announced their merger. Under this merger, both companies are expected to provide customers with a comprehensive solution set to bring the right data analytics from any data.
The primary objective behind various partnerships formed by companies was either expanding in new territories or introducing new technologies and products in the market with the help of collaborations. In addition, capital funding has played an enormous role in developing the Hadoop market. Start-ups such as Hortonworks and Datameer have attained considerable success with the help of funding. All these factors collectively offer lucrative opportunities for the HaaS market growth during the forecast period.
The global Hadoop-as-a-service (HaaS) market is segmented into deployment type, organization size, end user, and region.
Based on deployment type, the global HaaS market is bifurcated into run-it-yourself (RIY) and pure play (PP). The run-it-yourself (RIY) segment was the highest contributor to the market share and is estimated to grow at a CAGR of 38.4% during the forecast period. The run-it-yourself (RIY) dominates the global Hadoop-as-a-service market, as a third-party service provider manages the software's installation, configuration, and regular updates. However, technical expertise is required to manage the clusters, as Hadoop provides a scalability feature, which enables the user to scale up and down the size of the cluster as per needs and workloads. For instance, Amazon Web Services (AWS) provides Elastic MapReduce (EMR) as RIY HaaS. As its name suggests, it is a service by AWS that offers elasticity in scaling storage and computing needs. It runs at the top of the AWS infrastructure. The interconnection complexity in Hadoop clusters makes scaling time-consuming and poses the risk of interruptions in ongoing Hadoop tasks. Haas AWS is one of the leading providers of cloud storage and offers computing and analysis services based on Hadoop. Furthermore, several key players in the market provide Hadoop-as-a-service based on this model, which fuels the market growth.
By organization size, the global HaaS market is categorized into small & medium-sized enterprises and large enterprises. The large enterprise segment was the highest contributor to the market and is estimated to grow at a CAGR of 37.6% during the forecast period. The rise in internet penetration, along with an increase in social media platforms across various industry verticals, has led to the generation of massive volumes of data. In addition, the surge in popularity of e-commerce websites and the rise in consumer understanding of online discussions & social media have necessitated gathering data from online resources and evaluating it to obtain business visions. Furthermore, the Hadoop-as-a-service solutions offer organizations a platform to evaluate raw data from a wide range of resources and attain valuable visions & knowledge, which lead to successful decisions. The adoption of Hadoop-as-a-service is expected to increase by SMEs during the forecast period due to the rise in the number of SMEs in developing economies and enhancing awareness about the benefits of HaaS. In addition, ongoing advancements in HaaS facilitate businesses or organizations to perform the analytics process with minimum capital investment, which is anticipated to offer lucrative opportunities to expand the market. Hence, such market trends worldwide are showing interest in enrolling HaaS solutions, thereby propelling the growth of the global market.
Depending on the end-user, the global HaaS market is segregated into manufacturing, BFSI, retail & consumer goods, healthcare & life sciences, government & defense, media & entertainment, education, IT & telecommunication, and others. The IT & telecommunication segment was the highest contributor to the market and is estimated to grow at a CAGR of 33.9% during the forecast period. According to traditional methods, collecting and analyzing customer information through different systems was extremely difficult. Thus, leading telecommunication organizations have opted to deploy Big Data systems to enable large-scale data analysis and processing. This enabled them to handle customer issues as they occur and to achieve customer satisfaction, which, in turn, drive the adoption of Hadoop-as-a-service in this industry.
Furthermore, numerous interaction opportunities and websites are visited by a customer before purchasing. Adapting customer experience to match customer behavior patterns and creating data segments across various platforms are expected to create a massive volume of data. Thus, Hadoop technology deployment will help in data analysis and conversion rate.
Region-wise, the global Hadoop-as-a-service (HaaS) market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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North America was the highest revenue contributor and is estimated to grow at a CAGR of 35.8%. North America dominated the global Hadoop-as-a-service market in 2018 and is expected to retain its position in the next few years. This is attributed to the presence of key players, such as Microsoft Corporation, IBM Corporation, and Amazon Web Services. Moreover, the rise in the adoption of Big Data technologies among organizations to enhance consumer target marketing and risk management abilities is expected to boost the market's growth. The adoption of Big Data analytics has increased in each stage of the retail process to predict market demands, understand customer behavior, and optimize pricing. In addition, deploying Big Data solutions in retail helps increase conversion rates through predictive analytics and targeted promotions. Factors such as the development of the e-commerce industry and the rise in government funding to support Big Data projects in the U.S. drive the growth of the Hadoop-as-a-service market in the region.
Europe is the second largest region. It is estimated to reach an expected value of USD 75 billion by 2030, registering a CAGR of 39%. Large companies and small & medium enterprises in Europe have realized the potential of Big Data for disruptive change in markets and business models. They are beginning to explore the opportunities such as enhancing the organizational return on investment (ROI) by utilizing Big Data analytics. However, Europe is still in the early stage of adopting Big Data technologies and services and is lagging behind North American companies. The adoption of Big Data technology across the European region is expected to provide significant opportunities for adopting Hadoop in the upcoming years. The growth of the European Hadoop-as-a-service market is further driven by the significant development of the consumer and machine data market. Factors such as the high adoption of cloud computing and the surge in penetration of smartphones have led to the generation of a massive volume of data due to rapid technological advancements and improved connectivity. Furthermore, several initiatives by the European Government to enhance the adoption of Big Data and related technologies are expected to provide numerous opportunities for the market.
Asia-Pacific is the third largest region. Asia-Pacific comprises developing countries such as India, China, South Korea, and others. As these countries are emerging as global players, they generate massive volumes of data daily. The data generated from various unstructured sources such as video, audio, email, and social networking platform require proper analysis. These data are adequate to build up industry insights and forecasts per the current business environment. Hadoop-based applications are widely adopted in the Asia-Pacific region for real-time analytics and web-based business processes, which drive the market's growth.
Moreover, the Asia-Pacific region is expected to present lucrative market growth opportunities due to an increase in internet penetration in the region, technologically & digitally improving industrial infrastructures and an exponential rise in mobile device users. Furthermore, the increase in the need for extracting valuable insights from a massive volume of data is a crucial factor driving organizations to adopt technologically advanced solutions. Moreover, the rise in the need for modernization of industries along with the infrastructure is increasing the demand for data management, which, in turn, is expected to propel the HaaS market growth in the country.
List of top key Hadoop-as-a-service market companies