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The analytics market market size is projected to reach a value of USD 221.33 billion with a CAGR of 13.5% between 2022 and 2027. The growth of the market depends on several factors, including the growing availability and complexity of data, the growing need to improve business efficiency, and increased dependency on the internet for critical operations.
This analytics 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 historic market data from 2017 to 2021.
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The growing availability and complexity of data are notably driving the market growth, although factors such as system integration and interoperability issues may impede the market growth. 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.
The growing availability and complexity of data are notably driving the growth of the analytics market share. 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 data in a useful manner and use that data to enhance their services and business processes. This, in turn, is expected to drive the market for analytics.
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 of data 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 analytics 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.
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 analytics 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.
Technical glitches hamper the business continuity process of organizations, which can also lead to monetary damage. 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.
Key Analytics 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Analytics Market Customer Landscape
Vendors 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 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Based on components, the market is segmented into services, software, and hardware. 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 data 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 vendors in the analytics industry 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-add services.
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The services segment was valued at USD 103.30 billion in 2017 and continued to grow until 2021. 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 analytics results. The high requirement for risk analytics, consumer analytics, and location analytics drives the segment during the forecast period.
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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. 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.
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 analytics solutions, which, in turn, will lead to market growth in North America during the forecast period.
The reports categorize the global analytics market as a part of the global application software market. The parent global IT software market covers companies that are engaged in developing and producing application and system software. It also includes companies offering database management software. The global application software market covers companies that are engaged in developing and producing software designed for specialized applications for the business or consumer market. It includes enterprise and technical software, as well as cloud-based software. It excludes companies classified in the interactive home entertainment sub-industry and companies producing systems or database management software classified in the systems software sub-industry. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by component, end-user, and region.
Analytics 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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