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The Business Intelligence Market size is estimated to increase by USD 12.14 billion and grow at a CAGR of 8.49% between 2022 and 2027. The expansion of the market is influenced by various factors, such as mergers and acquisitions, product launches, and the increasing demand for business intelligence (BI) in the retail sector. However, challenges facing the market include heightened apprehension regarding data privacy, escalating issues related to connection and bandwidth limitations, and the difficulty in justifying the return on investment (ROI) of BI initiatives.
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This market report extensively covers market segmentation by end-user (BFSI, healthcare, ICT, government, and others), deployment (on-premise and cloud), and geography (North America, APAC, Europe, 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.
The market share growth by the BFSI segment will be significant during the forecast period. The banking, financial services, and insurance (BFSI) sector has evolved its capabilities due to the pace of digitization and adoption in recent years. Moreover, they are more competitive than ever and empowering our modern customers. In recent years, technology giants such as Google LLC, Amazon.com Inc., and Paytm have expanded into the financial sector by developing payment and banking apps for their customers. They entered FinTech by leveraging their active user base, partnering with banks, leveraging the ease of integrating API payments into their services and gaining a foothold in a highly competitive market.
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The BFSI segment was valued at USD 4.41 billion in 2017 and continued to grow until 2021. Technologies and tools like BI and data analytics have always helped banks and financial institutions stay competitive while complying with all required regulations and meeting the digital needs of today's customers. Various leading providers are focused on winning deals to expand their presence. Data analytics and BI solutions help financial institutions make smarter decisions in both financial and operational areas and are expected to drive market growth during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The rise of digitization in the United States has increased the demand for BI software and solutions. In addition, a US company is using cloud services to develop its IT industry. Nearly two-thirds of net new private sector jobs are held by small and medium enterprises (SMEs). The use of BI is increasing in smaller organizations as more employees use BI tools and analytics. In addition, it is expected that BI platforms and software will increase rapidly due to the expanded use of cloud systems. Many companies are expanding their cloud systems. North America is an important market for BI platforms, primarily because it is an early adopter of complex technologies. Additionally, the region is one of the world's leading providers and consumers of data. The large amount of data generated in this region is driving the growth of the market.
The market is experiencing a paradigm shift fueled by Big Data and advanced analytics techniques. Cloud-based business solutions are becoming increasingly vital for organizations, ensuring data scalability and accessibility. Sectors like the banking sector and financial institutions are leveraging BI and analytics tools to gain insights into consumer spending habits. Artificial Intelligence (AI) is revolutionizing BI with its predictive capabilities. A robust procedural framework and technical framework support the implementation of BI solutions across various end-use industries, including e-commerce. CRM and ERP applications play pivotal roles in managing customer relationships and enterprise resources. Furthermore, the integration of IoT and data analytics enables large organizations to harness real-time insights for strategic decision-making. 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 market is experiencing significant growth, fueled by the increasing demand for BI tools in retail. BI plays a crucial role in the retail industry, where vast amounts of data are generated daily from various sources like sales transactions, customer interactions, and inventory management. BI enables retailers to gain operational insights, optimize strategies, and improve performance. With advanced analytics techniques and data visualization tools, retailers can analyze sales data by product, location, customer segment, and more to identify trends and opportunities for growth. Additionally, BI allows retailers to understand customer behavior and preferences, personalize products, and enhance satisfaction. By optimizing inventory levels and monitoring competitor performance, BI empowers retailers to stay competitive in the dynamic market landscape. The integration of AI, ERP, and CRM applications further enhances BI capabilities, catering to the needs of large organizations and financial institutions operating in the retail sector. As consumer spending habits evolve, cloud-based BI solutions offer data scalability and complex event processing techniques, enabling retailers to adapt and thrive in the rapidly growing retail sector.
The rising adoption of smart connected devices is a key trend influencing the Market growth. The adoption of smart connected devices such as smartphones, tablets, wearables, and IoT devices is driving the growth of BI. Intelligently connected devices generate massive amounts of data that can be collected and analyzed by BI tools to generate valuable insights.
For example, a retailer can use data from her IoT sensors to monitor in-store foot traffic, track inventory levels, and optimize store layout. Similarly, manufacturers can use data from connected sensors to monitor device performance, identify maintenance needs, and optimize production processes. Around 21 billion smart gadgets are expected to be installed worldwide by 2025. As the need for machine-to-machine and machine-to-human interactions grows, it will become easier for end users to manage, monitor, and maintain their connected devices. Data from various technologies, such as radio frequency identification (RFID), sensors, barcodes, and global positioning systems, are used in business analytics.
Rising concern for data privacy is challenging the market growth. IT deployments that use corporate data as part of the value chain face significant data security and privacy barriers. Data security and data protection are one of the biggest issues facing the BI and analytics systems market worldwide. Large clusters of disparate systems and data silos within an organization are connected by business analytics solutions to collect data, use it for insightful analysis, and predict future trends. Predictive models pose a security risk because they have access to all your organization's sensitive information. Administrative errors can open security loopholes that hackers can use to undermine entire organizations. This can ultimately lead to lost brand loyalty, costly litigation, and costly insurance claims.
Additionally, these technical issues, bugs, and interoperability errors cannot be fixed, resulting in system downtime. In the modern world, system failure is not an option, as it can damage a company's brand value. As a result, data security and privacy concerns will pose a major challenge to the BI Market during the forecast period.
The 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 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.
Arbela Technologies Corp: The company's business intelligence and business analytics services are primarily action-focused. Their team of data engineers and analysts have extensive experience with Power BI, predictive analytics, IoT, and most data discovery tools and methods.
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.
The market 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 is rapidly evolving, driven by advancements in Artificial Intelligence (AI) and Machine Learning (ML). Analytical BI solutions are gaining dominance across diverse sectors like Banking, Healthcare, and Finance, optimizing workflows and enhancing corporate performance management (CPM) suites. Cloud-based deployments offer scalable access to BI platforms, enabling real-time analytics and data visualization tools for large organizations and SMEs alike. Digitalization fuels demand for cloud business intelligence solutions, integrating ERP applications and CRM systems to streamline operations. Biometrics and IoT technologies further enrich data sources, while consumer spending habits and internet usage patterns drive complex event processing techniques. Despite challenges like resistance to adoption, the BI market continues to expand, driven by technological innovations and a focus on user experience.
Moreover, the market is witnessing a profound transformation driven by advanced analytics techniques and cloud-based solutions. Application niches, particularly in the banking and healthcare sectors, showcase dominance. Automation and IoT integration optimize workflows, while CRM and ERP functionalities enhance end-use industries' operations. Hosted BI platforms facilitate cloud deployments, ensuring scalability and accessibility. Despite challenges like data proliferation and resistance to adoption, SMEs are leveraging BI software for optimized workflows and enhanced decision-making. Traditional data warehouses are evolving with the demand for data-oriented business models. Key performance indicators (KPIs) and dashboards offer insights, while social BI and mobile applications cater to diverse user needs. Trade regulations influence product approvals, shaping the technical framework of BI solutions in the market.
Additionally, the market is experiencing a paradigm shift with the rise of analytical business intelligence solutions. Various application niches, especially in the banking sector and healthcare sector, exhibit significant dominance. BI platforms are becoming indispensable, handling vast amounts of big data and facilitating cloud access through robust cloud platforms. Cloud-based business solutions are revolutionizing workflows, integrating CRM and ERP functionalities for enhanced performance. Dashboards and scorecards provide real-time insights, while data scalability ensures efficient operations even in the face of growing data volumes. Industries like e-commerce, media and entertainment, and IT and telecom are leveraging BI software for improved information and deployment. IoT integration and mobile business intelligence further extend BI capabilities, catering to the needs of SMEs and large enterprises alike. Despite resistance to BI adoption, businesses are recognizing the value of social business intelligence and traditional BI methodologies, shaping a dynamic procedural framework. Query reporting and search tools streamline data analysis, driving innovation and competitiveness in the BI market.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.49% |
Market growth 2023-2027 |
USD 12.14 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.19 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 34% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading vendors, market positioning of vendors, competitive strategies, and industry risks |
Key companies profiled |
Amazon.com Inc., Arbela Technologies Corp., Global Software LLC, Hitachi Ltd., Idera Inc., InetSoft Technology Corp., International Business Machines Corp., Microsoft Corp., MicroStrategy Inc., Oracle Corp., Palantir Technologies Inc., Panorama Software Inc., SAP SE, SAS Institute Inc., ScienceSoft USA Corp., Sisense Ltd., TARGIT AS, TIBCO Software Inc., QlikTech international AB, and Salesforce.com Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market forecast 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 End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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