The Event Stream Processing (ESP) market is anticipated to witness a CAGR of 20.6% over the forecast period 2021-2026. The increasing adoption of the internet of things (IoT) and smart devices, increasing need to analyze large volumes of data from diverse sources are some of the major factors influencing the growth of event stream processing market while concerns associated with data security and privacy is expected to hinder the growth of the market.
- Event stream processing, also known as complex event processing, real-time analytics, real-time streaming analytics, or event processing, is basically a technology that can query a continuous data stream (within a period from few milliseconds to minutes), using mathematical algorithms. Event visualization, event-driven middleware, event databases, among others are some of the functionalities under ESP.
- Owing to its ability to capture, analyze, and respond to a continuous flow of data, this processing technology is widely being used to analyze massive amount of real-time data. Such capabilities have enabled the growth of the market among various industry verticals.
- For example, event stream processing technology can be utilized to query or analyze the data streams coming from a temperature sensor and the designated user is alerted when the temperature reaches the threshold.
- The anticipated growth of adoption of temperature sensors across the consumer electronics segment over the forecast period could positively affect the market. Consumer Technology Association (CTA) estimated that Consumer Electronics Shipments in the U.S. could contribute to USD 301 billion of wholesale revenue, for the year 2019.
- The breakout of the COVID-19 pandemic is expected to have a significant impact on the market in the short term, owing to a decrease in business activity across various end-user verticals that the market is catering to. This has resulted in many enterprises setting aggressive cost cutting targets and reducing capex, which is likely to impact the growth of the market.
- However, with enterprises hoping that their business would bounce back by second quarter of 2021, they are forced to embrace new technologies and discover their benefits,in the long term. Such optimistic scenario therefore provides significant scope for the market over the forecast period.
Key Market Trends
Growing Demand for ESP Solutions in BFSI Vertical
- With various financial institutions and banks focusing on unlocking value from the insights gained from a large pool of data generated from multiple transactions, BFSI vertical is expected to account for the largest market size during the forecast period.
- BFSI vertical has applications where ESP solutions can prove beneficial, such as internet banking, mobile banking. Owing to this, enterprises operating in this space are looking to achieve a competitive advantage by deploying ESP solutions that could analyze real-time streaming data to perform various activities.
- The technological penetration, coupled with the growth of digital channels, has triggered a slew of transactions resulting from various activities such as making a payment, withdrawing cash or trade a stock, etc. Online banking is becoming the preferred choice of customers for banking services. According to Eurostat, the statistics pertaining to online banking indicated that about 58% of the EU population used internet banking in 2019.
- There is a greater need for banks to leverage advanced monitoring and access control processes. The drive to digitize and enable financial inclusion by the developing economies have led to the industry emerging as an attractive target for key players in the market studied.
- Further, Mifid II, an EU regulatory reform for the financial industry, requires that these enterprises report trading activity within a minute of execution. This regulation has led to banks taking the trouble to install real-time event streaming.
North America is Expected to Hold a Large Share of the Market
- North America is expected to hold the largest market size and dominate the ESP market during the forecast period. The presence of a number of ESP vendors in the region is attributed to the early adoption of emerging technologies and high adoption & investments in R&D enhance their event-based offerings.
- The high concentration of large multinational companies in the region such as IBM Corporation, Microsoft, etc. also would help consolidate the majority of revenues from this region and largely contribute to the growth of the market.
- Further, the adoption of cloud technology in the region provides significant scope for the market over the forecast period. Statistics from The Information Technology Association of America (ITAA) indicate that the adoption of cloud technology among mid-market companies, in the US, ranges between 15% and 44% for various business functions, with the adoption among BFSI vertical being the highest.
The Event Stream Processing Market is a highly competitive market and is currently dominated by a few players in the US, followed by those in Europe and Asia, with their technological expertise. The major players with a prominent share in the market are focusing on expanding their customer base across foreign countries by leveraging strategic collaborative initiatives to increase their market share and their profitability. IBM Corporation, Microsoft Corporation, Google Inc., Oracle Corporation, Amazon Web Services Inc., Salesforce, Redhat, SAS, SAP SE, TIBCO, Informatica, Hitachi Vantara, and Software AG are some of the major players present in the current market.
- July 2020 - Hazelcast, an open-source in-memory computing platform, announced the latest version of Hazelcast Jet which includes new application development features to its stream processing architecture. This new release enables existing infrastructure to gracefully extend to an event-driven architecture, enabling new functionality with real-time and in-memory processing.
- July 2020 - With an aim to build the next- generation event streaming platform, Confluent, Inc., a real-time data platform built around Apache Kafka, announced the next stage of its Project Metamorphosis initiative. The new Infinite release boasts of a new capability in Confluent Cloud capable of creating a centralized platform with limitless storage and retention, for all current and historic event streams.
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