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The analytics market size is forecast to increase by USD 286.5 billion, at a CAGR of 15.06% between 2023 and 2028. Market expansion hinges on several pivotal factors, chief among them being the growing availability and complexity of data sets, driving the need for cloud analytics. As businesses accumulate vast troves of information, the imperative to harness this data for actionable insights becomes paramount. Concurrently, the drive to enhance operational efficiency propels organizations to adopt advanced solutions capable of distilling meaning from the deluge. The growing reliance on internet-based operations further underscores the importance of robust management and such tools to ensure seamless and secure digital workflows. These converging trends underscore a compelling narrative for market growth, as businesses seek to leverage driven insights to drive innovation, streamline processes, and gain a competitive edge in an increasingly digitized landscape. Stakeholders must remain vigilant, embracing agile and adaptive strategies and adopting predictive analytics to capitalize on emerging opportunities and navigate the evolving complexities of the market.
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The market share growth of the services segment will be significant during the forecast period. There is an increasing need for industry-specific, consumer group-specific, and region-specific analysis, which requires professional services from service providers due to intense competition and innovation in the market. Industries use analytics such as financial and social media analytics for different purposes and the companies in the market are always challenged by these different requirements. Vendors are offerings customized services, as well as offerings, to different end-users to gain a competitive edge and establish their brands. As it has various tools and applications, it has become necessary to provide such on-demand and value-added services.
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The services segment was valued at USD 114.00 billion in 2018. End-user industries such as retail, healthcare, manufacturing, and hospitality are moving toward service-oriented architecture (SOA) due to the requirement for highly accurate and low-cost results. The high requirement for risk, consumer, and location analytics drives the segment during the forecast period.
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North America is projected to account for 30% of the global market share. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America has a high adoption rate when it comes to advanced analytics software and risk analytics and is also one of the biggest innovators of many new and advanced technologies introduced. Hence, the region is an attractive region for market vendors. The flourishing retail sector, the growing healthcare sector, and increasing manufacturing output are factors driving the adoption of analytics solutions in the region. The healthcare sector is expected to witness strong growth during the forecast period owing to the adoption of advanced medical devices by healthcare systems.
Further, the manufacturing and retail sectors are also expected to contribute to growth, with the region having a full-fledged and technologically mature industrial sector. The presence of numerous vendors in the region will augment the growth of the market. Further, the easing of lockdowns and large-scale vaccination drives in various countries such as the US, Canada, and Mexico in North America, coupled with increased funding for the development of software infrastructure, led to the growth in demand for such solutions, which, in turn, will lead to market growth in North America during the forecast period.
In the realm of analytics, data reigns supreme. With data analytics and big data leading the charge, businesses harness the power of information to drive corporate growth and uncover valuable insights. From statistical strategy to text analytics, companies delve into diverse methodologies to optimize decision-making. Social media platforms serve as treasure troves for social media analytics, enabling targeted social media advertising and informed business prospects. Meanwhile, automation streamlines processes, enhancing efficiency across sectors. As data security becomes paramount, businesses rely on robust solutions like BI software and Database Management to safeguard sensitive information while maximizing the potential of business analytics software and Enterprise Resource Planning systems. In today's digital landscape, social networking platforms serve as fertile ground for data harvesting, informing targeted online shopping experiences and optimized Google Ads and email campaigns. Leveraging text, machine learning, and artificial intelligence (AI), businesses unlock deeper insights, driving strategic decisions and enhancing automation. As the volume of data surges, ensuring robust data security becomes imperative. Companies turn to advanced business analytics software, BI software, and Enterprise Resource Planning solutions to navigate the complexities of the market and stay ahead of the curve.
The growing availability and complexity of data are notably driving the growth of the market. The availability of a large volume of data and rapidly growing data complexity in organizations are the major drivers for the development of various intelligence-based data analysis techniques. Intelligent techniques involving technologies such as ML and AI can help companies retrieve a huge amount of complex in a useful manner and use to enhance their services and business processes. This, in turn, is expected to drive the market for analytics.
Further, from the enterprises' perspective, a huge amount of data is available in companies' vast trove of documents and knowledge base. Moreover, data formats are complicated as the type can range from product support, bills, the latest regulations relating to contracts, and the implications of other events discovered. The analysis of such data is tedious as well as a complex task for a simple computer program or human being. Hence, companies rely on analytics for performing such tasks.
Growing advances in NLP, ML, and AI technologies are the key trend in the market. Advances in natural processing speed (NLP) and machine learning (ML) models are the major technologies that are embedded in analytics tools and platforms. Artificial intelligence (AI), also known as machine intelligence, is a technology that has grown significantly over the past decade and is now capable of developing systems that can explain data contextually to provide requested information, provide analysis, or trigger activities based on findings.
Additionally, with the advancement in these technologies, the market is expected to be positively impacted. Advances in AI approaches have led to the development of applications that are built with AI/ML algorithms that aim at finding meaningful insights easily for analysts and users. These applications include natural-language-based search interfaces, automated suggestions, and automated model building. Organizations are using these technologies in numerous ways. With such developments, the analytics platforms and software will become even more relevant and advanced, and companies in different industries will continue to deploy these to increase business efficiency.
System integration and interoperability issues are the major challenges impeding market growth. System integration is required when software or infrastructure solutions are deployed on the legacy IT infrastructure of organizations. Technical issues arise during the implementation and execution phases due to differences in the software versions. This is because cloud service providers do not evaluate the existing IT architecture of their customers and try to integrate cloud-based solutions into existing IT architecture.
Moreover, for the smooth functioning of analytics platforms, proper integration of all data-generating sources is required, which creates a significant amount of difficulties during the deployment progress. Where there are multiple data sources, it is possible for discrepancies to occur, especially during abnormal operating conditions, and the data may only get updated from one source and not accurately reflected in others. To avoid such errors, standard protocols are required, which are currently unavailable in the market. This poses challenges in integrating analytics into operational and back-office systems.
The analytics market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the analytics market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
SAP SE - The company offers analytics solutions such as Fusion, Fusion CX, and Fusion CRP under the analytics segment as its key offerings.
The market forecast report also includes detailed analyses of the competitive landscape of the market and information about 17 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
Advertising campaigns and product promotions are increasingly driven by client demands and business opportunities in today's digital landscape, where mobile devices and Internet-connected devices play a pivotal role. The Internet of Things (IoT), powered by machine learning algorithms, presents immense potential but also raises security issues such as real-time security and privacy of client data. Concerns over network security and data loss incidents are exacerbated by the threat of cyberattacks. Meanwhile, advancements in mobile technology and mobile networks, including Wi-Fi, facilitate the diversity and velocity of data, leading to a surge in unstructured data and the need for sophisticated analytical tools like edge computing and SaaS-based data analytics. Industries such as IT and telecom, agriculture, and banking leverage predictive analytics, customer analytics, and business intelligence software to optimize operations and enhance customer experience management.
Further, the market is experiencing a transformative shift with the rise of Industrial IoT and the demand for seamless omnichannel experience across the web and other platforms. However, this digital evolution brings challenges, such as combating theft and fraud, which has prompted the development of specialized security intelligence solutions. The cloud segment plays a pivotal role, especially with the integration of IoT and cloud computing, driving the adoption of cloud analytics tools across industries, including the SME sector. Advanced dashboards and big data analytics tools empower IT and telecom sectors to leverage insights for strategic decision-making. Meanwhile, AI and machine learning technologies enable smart applications and predictive analytics, enhancing customer experience management and supply chain management for sectors like telecom industries and e-commerce.
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Industry Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 15.06% |
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Market growth 2024-2028 |
USD 286.5 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
13.27 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 30% |
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Key countries |
US, China, UK, Germany, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture Plc, Alphabet Inc., Amazon.com Inc., Dell Technologies Inc., Infor Inc., Informatica Inc., Infosys Ltd., International Business Machines Corp., Open Text Corporation, Microsoft Corp., MicroStrategy Inc., Oracle Corp., QlikTech international AB, Salesforce Inc., SAP SE, SAS Institute Inc., TIBCO Software Inc., Wipro Ltd., and WNS Holdings Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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