Hadoop is a Java-based open-source programming network endorsed by the Apache Software Foundation that allows the processing of large datasets in a distributed computing environment. Hadoop has two main subprojects namely HDFS and MapReduce. MapReduce is a framework that assigns work to the clusters in a node, whereas HDFS is a file system used for data storage in a Hadoop cluster. Hadoop is typically used in manufacturing, BFSI, consumer goods, IT& Telecommunications, government & defense, healthcare, retail, energy, transportation, and retail sectors.
The global hadoop market is estimated to account for US$ 404.4 Bn in terms of value by the end of 2028, exhibiting a CAGR of 37.9% during the forecast period (2021-2028).
Market Dynamics- Drivers
Hadoop is faster and more cost-effective as compared to the relational database management system (RDBMS) that was used previously. For instance, Hadoop costs around US$ 4,000 for one terabyte of data while RDBMS may cost around US$ 10,000 to US$ 14,000 for the same amount of data. Besides, the maintenance cost also varies between Hadoop and RDBMS. Therefore, demand for Hadoop has been increasing tremendously among almost all application sectors where a huge amount of data is generated on a daily basis. Hence, these factors are expected to drive growth of the global Hadoop market during the forecast period.
The demand for big data analytics is expected to increase in the near future, owing to increasing popularity of big data in different sectors. Large tech companies such as Intel and IBM Corporation and other companies developing their own version of Hadoop, thereby raising the popularity of Hadoop in the market. More companies than ever before are turning towards Hadoop for their big data needs. Along with a wide range of usability and applications, Hadoop architecture is a cost-effective solution and thus gaining popularity in the big data market. Hence, these factors are expected to propel the global Hadoop market growth over the forecast period.
|Base Year:||2019||Market Size in 2020:||US$ 34.7 Bn|
|Historical Data for:||2016 to 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||37.9%||2028 Value Projection:||US$ 404.4 Bn|
Cisco Systems, Inc., Cloudera Inc., EMC – Greenplum, Horton Works, HStreaming LLC, IBM Corporation, Karmasphere Inc., MapR Technologies Inc., Pentaho, Teradata Corp.
|Restraints & Challenges:||
North America region held dominant position in the global hadoop market in 2020, accounting for 34.8% share in terms of value, followed by Asia Pacific, Europe, Middle East & Africa (MEA), and Latin America respectively.
Figure 1: Global Hadoop Market Share (%), By Region, 2020
Market Dynamics- Restraints
Hadoop architecture is still in the nascent stage and thus, it results in lower adoption among various organizations. Currently, only about one-third of organizations that are using it are really benefitting from the Hadoop solution. Besides the manual coding challenge, the cost of training and services associated with Hadoop are also some of the major factors resulting in slower adoption of the architecture. Hadoop is open-source software available on the internet but the complexities associated with architecture thereafter are restraining its adoption. Thus, these factors are expected to restrain growth of the global Hadoop market during the forecast period.
Lack of adequately qualified and experienced work professionals is a major factor hindering growth of the market. There are complexities associated with handling this architecture. Currently, there are several certifications and courses run by different organizations to train people on Hadoop. For instance, Cloudera University and Hortonworks University are providing Apache Hadoop training and certification. Although the number of professionals is expected to increase in the near future, it still remains a major restraining factor for now. Hence, these factors are expected to hinder the global Hadoop market growth over the forecast period.
Key companies are focused on merger and acquisition activities, in order to gain a competitive edge in the market. For instance, in December 2012, IBM Corporation acquired Kenexa, a provider for recruiting and talent management solutions. Furthermore, in April 2013, Pentaho acquired Webdetails, a Portugal-based consulting company.
Europe is expected to see fastest growth in the Hadoop market during the estimated period. This is due to increasing adoption of Hadoop across several application segments such as the government sector, retail, and BFSI among others. Asia Pacific is also expected to witness robust growth during the forecasted period, as the region is expected to adopt Hadoop on a large scale in the coming six years. Key players such as Cloudera, Inc., MapR, and Hortonworks are focusing on the European and Asia Pacific markets.
Figure 2: Global Hadoop Market Value (US$ Bn), 2017 – 2028
The global hadoop market was valued at US$ 34.9 Bn in 2020 and is forecast to reach a value of US$ 404.4 Mn by 2027 at a CAGR of 37.9% between 2021 and 2028.
There is growing demand for a Hadoop-based big data analytics tool to manage a massive amount of data generated. Thus, the tremendous increase in the amount of data generated through different sources is fuelling the growth of Hadoop. Most organizations including the BFSI sector are concerned about safety issues related to their big data. However, in the coming few years, Hadoop is likely to provide a more secure platform to its users.
Hadoop cloud services are the most lucrative market as it is a cost-effective solution compared to installing hardware systems in existing data centers. Current development in cloud-based services such as Hadoop-as-a-Service (HaaS) represents a remarkable opportunity for Hadoop service providers to cater to a large number of organizations including SMEs which are looking for an affordable and efficient tool to effectively handle their big data.
Global Hadoop Market - Impact of Coronavirus (Covid-19) Pandemic
Coronavirus (COVID-19) Pandemic has significantly disrupted almost all the industries including manufacturing, retail and eCommerce, telecommunications and IT, and others. To combat COVID-19 pandemic, most of the countries had implemented lockdown and are now easing it phase-wise and industry wise.
During Coronavirus (COVID-19) Pandemic, Hadoop is playing a significant role for modern healthcare system. Moreover, the hadoop is utilized for processing the data gathered. The input data is processed using MapReduce and the result is loaded into the Hadoop Distributed File System (HDFS). The detailed analysis with help of hadoop work has predicted several possible susceptible cases which can help to reduce the number of fatalities and save human lives. Owing to all these factors, the demand for hadoop market is expected to increase over the forecast period (2021-2028).
Major companies operating in the global Hadoop market are Cisco Systems, Inc., Cloudera Inc., EMC – Greenplum, Horton Works, HStreaming LLC, IBM Corporation, Karmasphere Inc., MapR Technologies Inc., Pentaho, Teradata Corp.