It is predicted that by 2020 approximately 50 billion connected devices will be in use globally, creating 44 trillion gigabytes of data every year. Huge data sets known as Big Data are now used in various segments of the economy, from the consumer market and advertising to the oil and gas industry and the financial sector. The proliferation of Big Data technology requires special regulations to ensure that users are protected and businesses can pursue opportunities amid tighter global competition.
Big Data are the fuel of the new digital economy, as defined in the European Commission’s Horizon 2020 programme.
According to IDC, the global big data and analytics (BDA) market will reach USD 150.8 billion in 2017, 12.4% more than a year before.
The banking sector, the manufacturing and services industries, and government agencies are expected to invest over USD 72 billion in the BDA technology. With a planned investment of USD 78.8 billion the US is set as a major player in Big Data processing and analytics in 2017, followed by Western Europe (USD 34.1 billion) and the Asia-Pacific region excluding Japan (USD 13.6 billion). (IDC, March 2017).
The BSA estimates that Big Data could have a USD 15 trillion impact on the global GDP by 2030. According to McKinsey, the effect will be up to USD 5 trillion a year.
Big Data technology is broadly used by companies worldwide to reduce costs and increase business efficiency in a wide variety of areas:
UPS uses Bid Data to achieve an annual saving of ca. 8.5 million litres of fuel, optimise travel routes, and reduce the delivery time. Routes are configured in real time using map data, information about pick up and drop off times and points, and shipment sizes.
ThyssenKrupp Elevator ensures uninterrupted operation of its elevators, reduced downtime and lower cost of repairs with real-time monitoring of motor temperature sensors, cabin speed, door performance and other elevator metrics.
A Renault F1 car has about 200 sensors pouring out real-time data during the race and enabling the driver to adjust as appropriate.
General Electric estimates that in the next 20 years optimised equipment performance based on Big Data analysis will help save up to 30% of household income.
In November 2016, Sberbank launched its Open Data project intended as a source of information about the average amount and number of loan applications, average size and number of new deposits, and the growth of wages and pensions. Big Data will also be used to predict customer behaviour.
URALSIB Bank uses a system developed by Raxel Telematics to assess driving quality and then validate car insurance, thus achieving a 20–30% loss reduction.
Kaspersky Security Network collects data on threats and infection attempts around the world, processing hundreds of millions of events every day. In case of suspicious activity, it takes less than a minute to decide if the file is malicious or not.
Big Data are among the nine focus areas of the Digital Economy of the Russian Federation programme running until 2025.
In particular, Big Data are going to be used in healthcare starting in 2020. According to the Russian Minister of Healthcare Veronika Skvortsova, this will help automate selection of the best medical treatment for each patient, review the quality of medical care and improve the overall healthcare efficiency.
The rapid growth of Big Data requires special regulations to govern data sharing, also with foreign partners, and the level of its protection.
Late in March 2017, Aide to the Russian President Igor Shchegolev said that the relevant bill “on big user data” was already underway. Among other things, it implies the possibility for individuals to prohibit the use of their personal data by telecom operators and other players.
Business is concerned about over-regulation, which threatens to strip the economy of billions of dollars annually, and calls for a regulatory balance.