Analytics Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, India, UK, Germany - Size and Forecast 2023-2027

Analytics Market Size 2023-2027

The analytics market size is forecast to increase by USD 221.33 billion at a CAGR of 13.5% between 2022 and 2027. Market expansion hinges on several pivotal factors, chief among them being the burgeoning availability and complexity of data sets. 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. Moreover, the burgeoning 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 to capitalize on emerging opportunities and navigate the evolving complexities of the market.

 What will the Size of the Market be During the Forecast Period?

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Market Segmentation

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 analytics, 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.

This market forecast report extensively covers market segmentation by component (services, software, and hardware), end-user (BFSI, manufacturing, retail, healthcare, and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes a historic market from 2017 to 2021.

By Component 

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 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 analytics 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 103.30 billion in 2017. 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. 

By Region

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North America is projected to account for 31% of the global market share by 2023. 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 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. 

Market Dynamics and Customer Landscape

In the realm of analytics, data reigns supreme. With data analytics and big data analytics 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. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver 

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. 

Significant Market Trends

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.

Major Market Challenge

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. 

Market Customer Landscape 

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 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

Who are the Major Analytics Market Players?

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 report also includes detailed analyses of the competitive landscape of the market and information about 17 market companies, including:

• Amazon.com Inc.
• Dell Technologies Inc.
• Informatica Inc.
• International Business Machines Corp.
• Micro Focus International Plc
• Microsoft Corp.
• MicroStrategy Inc.
• Oracle Corp.
• QlikTech international AB
• SAS Institute Inc.
• TIBCO Software Inc.
• WNS Holdings Ltd.
• Wipro Ltd.
• Salesforce.com Inc.
• Infor Inc.
• Infosys Ltd.

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.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.

• Component Outlook 
  • Services
  • Software
  • Hardware

• End-user Outlook 
  • BSFI
  • Manufacturing
  • Retail
  • Healthcare
  • Others

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina
    • Chile

Market Analyst Overview:

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.

Market Scope
Report Coverage	Details
Page number	181
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 13.5%
Market growth 2023-2027	USD 221.23 billion
Market structure	Fragmented
YoY growth (%)	12.55
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 31%
Key countries	US, China, India, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Accenture Plc, Alphabet Inc., Amazon.com Inc., Dell Technologies Inc., Informatica Inc., International Business Machines Corp., Micro Focus International Plc, Microsoft Corp., MicroStrategy Inc., Oracle Corp., QlikTech international AB, SAP SE, SAS Institute Inc., TIBCO Software Inc., WNS Holdings Ltd., Wipro Ltd., Salesforce.com Inc., Infor Inc., and Infosys Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
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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What are the Key Data Covered in this Analytics Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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