Analytics Market | Contrive Datum Insights

The global analytics market is expected to grow at a compound annual growth rate (CAGR) of 18.1% from 2022 to 2030. The market is expected to reach a value of $132.9 billion by 2030, up from $36.2 billion in 2022.
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The global analytics market refers to the market for software, tools, and services used for analyzing and interpreting large amounts of data in order to derive insights and make data-driven decisions. This market is driven by the increasing demand for data-driven decision-making across various industries, including finance, healthcare, retail, and others.

The market is segmented into various types of analytics, including descriptive analytics, diagnostic analytics, predictive analytics, and prescriptive analytics. It is also segmented by deployment model, including on-premise and cloud-based, and by industry vertical, including healthcare, retail, banking and financial services, and others.

The key players in the global analytics market include IBM Corporation, SAP SE, Oracle Corporation, Microsoft Corporation, SAS Institute Inc., Tableau Software, Teradata Corporation, and others. These players are investing heavily in research and development to offer innovative analytics solutions and maintain their competitive position in the market.

Market Dynamics

Driving Factors

There are several driving factors behind the growth of the global analytics market, including:

Increasing adoption of IoT: The adoption of the Internet of Things (IoT) is generating a massive amount of data that needs to be analyzed to gain insights.

Emphasis on customer experience: The focus on customer experience is driving the need for analytics to gain insights into customer behavior and preferences.

Regulatory compliance: Regulatory compliance requirements are driving the adoption of analytics in industries such as healthcare and finance, where data privacy and security are critical.

Restraining Factors

While the global analytics market is growing rapidly, there are several factors that could restrain its growth, including:

Lack of standardization: The lack of standardization in the analytics industry can make it difficult for organizations to compare and evaluate different solutions.

Complexity of analytics solutions: Analytics solutions can be complex and require a high level of technical expertise to use effectively. This could be a barrier to adoption for some organizations.

Limited scalability: Some analytics solutions may not be scalable enough to handle large volumes of data, which could limit their usefulness for certain organizations.

Challenges Factors

The global analytics market faces several challenges, including:

Identifying relevant data sources: With the increasing amount of data being generated, it can be challenging to identify relevant data sources for analysis. Organizations must have a clear understanding of their data sources and which data is most relevant to their business.

Ensuring effective communication: Communicating analytics insights to stakeholders can be a challenge. It is important to ensure that insights are communicated effectively and in a way that is understandable to non-technical stakeholders.

Ensuring scalability and flexibility: Analytics solutions must be scalable and flexible enough to handle large volumes of data and adapt to changing business needs. Organizations must ensure that their analytics solutions can grow and evolve with their business.

Opportunity Factors

The global analytics market offers several opportunities for growth and development, including:

Cloud-based analytics: The adoption of cloud-based analytics is expected to continue to grow, providing organizations with more flexibility and scalability in their analytics solutions.

Healthcare analytics: Healthcare is an industry with significant growth potential for analytics solutions, with the increasing adoption of electronic health records and the need for data-driven decision-making.

Internet of Things (IoT) analytics: The growth of the IoT is generating massive amounts of data, providing opportunities for the development of new analytics solutions that can provide insights into connected devices and systems.

Social media analytics: Social media analytics provides organizations with insights into customer behavior and preferences, offering opportunities for targeted marketing and improved customer engagement.

Analytics for cybersecurity: The increasing prevalence of cyber attacks is driving the need for analytics solutions that can identify and mitigate potential threats in real-time.

Segmentation Analysis

Deployment Outlook

On-premises deployment involves the installation and use of analytics software on local servers, typically managed by an organization's IT department. This deployment model offers organizations complete control over their data and allows for greater customization of the analytics solution. However, it can be more costly and requires a higher level of technical expertise.

Cloud-based deployment involves the use of analytics software that is hosted on cloud servers and accessed via the internet. This deployment model offers organizations greater scalability, flexibility, and cost-effectiveness. Additionally, cloud-based analytics solutions are typically easier to deploy and manage. However, organizations must trust the cloud provider to handle their data securely and comply with data privacy regulations.

End Use Outlook

Healthcare organizations are increasingly adopting analytics solutions to improve patient outcomes, optimize operations, and reduce costs. Healthcare analytics includes medical imaging analysis, clinical decision support systems, patient monitoring, and population health management.

Retail and consumer goods companies are using analytics to gain insights into customer behavior, preferences, and purchase patterns. This information is used to optimize marketing campaigns, personalize customer experiences, and improve inventory management.

The BFSI industry relies heavily on analytics for fraud detection, risk management, and customer engagement. Analytics solutions are used to identify potential fraudulent transactions, predict credit risk, and improve customer satisfaction.

Manufacturing companies use analytics to optimize production processes, reduce downtime, and improve product quality. Analytics solutions are used to monitor equipment performance, identify production inefficiencies, and predict maintenance needs.

Telecommunications companies are using analytics to gain insights into customer behavior, improve network performance, and reduce churn. Analytics solutions are used to monitor network performance, predict network congestion, and improve customer satisfaction.

Regional Analysis

North America is the largest market for analytics solutions, with the United States being the dominant country in the region. The region's market growth is driven by the high adoption of analytics solutions by industries such as healthcare, BFSI, and retail.

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Europe is the second-largest market for analytics solutions, with countries such as the United Kingdom, Germany, and France being the dominant players in the region. The growth of the market is driven by the increasing demand for data-driven decision-making in various industries, including healthcare and retail.

Asia Pacific is the fastest-growing market for analytics solutions, with countries such as China, India, and Japan being the dominant players in the region. The growth of the market is driven by the increasing adoption of analytics solutions by various industries, including manufacturing, BFSI, and telecommunications.

Scope Of Report:

The Global Analytics Market has been segmented into:

By Type

• Big Data Analytics
• Business Analytics
• Customer Analytics
• Risk Analytics
• Statistical Analysis
• Others (Predictive Analytics, Text Analytics, and Prescriptive Analytics)

By Deployment

• On-premise
• Cloud

By Enterprise Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

By End-use

• BFSI
• Government
• Healthcare
• IT & Telecom
• Military & Defense
• Others

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Market Players 

The global analytics market is highly competitive and fragmented, with numerous players vying for market share. Some of the key companies in the market are:

• Altair Engineering, Inc.
• Fair Isaac Corporation (FICO)
• International Business Machines Corporation
• KNIME
• Microsoft Corporation
• Oracle Corporation
• RapidMiner, Inc.
• SAP SE
• SAS Institute Inc.
• Trianz

IBM Corporation is a leading player in the analytics market, offering various solutions such as IBM Watson Analytics, IBM Cognos Analytics, and IBM SPSS Statistics. SAP SE is a leading provider of enterprise software solutions, including analytics solutions such as SAP Analytics Cloud and SAP BusinessObjects. Microsoft Corporation offers various analytics solutions such as Microsoft Power BI, Microsoft Azure Machine Learning, and Microsoft Dynamics 365 Business Central.

Strategic Developments

In March 2021, IBM announced its plan to acquire the software company, Turbonomic, to enhance its AI-powered automation capabilities for hybrid cloud environments.

In February 2021, Alteryx announced the acquisition of the analytics company, Feature Labs, to expand its machine learning capabilities.

In February 2021, TIBCO Software announced the acquisition of Information Builders, Inc., to enhance its analytics and data management offerings.

In January 2021, Microsoft acquired the AI-powered analytics company, XOXCO, to enhance its conversational AI capabilities.

In December 2020, SAS announced a $1 billion investment in AI to drive innovation in its analytics software and solutions.

In November 2020, QlikTech International announced the acquisition of the data integration and analytics company, Blendr.io, to enhance its data integration capabilities.

In October 2020, Tableau Software announced the acquisition of the AI-powered data management company, HyPer, to enhance its data management capabilities.

In September 2020, MicroStrategy Incorporated announced a $650 million investment in Bitcoin, making it the first publicly traded company to invest in Bitcoin as part of its capital allocation strategy.

In August 2020, Oracle Corporation announced the acquisition of the customer data platform, CrowdTwist, to enhance its customer data management capabilities.