The global business analytics market was valued at $76.5 billion in 2021 and is forecast to reach $122.5 billion by 2027, growing at a compound annual growth rate (CAGR) of 8.1%.
Business analytics is the systematic study of organizational data via statistical and operational analysis using data aggregation and visualization, data and text mining, data association, and sequence identification. Companies use these tools for tasks such as predictive analysis, query reporting, location intelligence, content analysis, data warehousing, and enterprise performance management. Business analytics tools are also used to understand intricate data sets and fundamental patterns and to further micro-segment data. Additionally, they apply the principles of information systems, deep learning, and artificial intelligence (AI) for accurate analysis. Using these predictions, creative solutions to business problems can be formulated to help companies make decisions more easily, extract valuable insights, and gain a competitive edge.
Every day, there is a staggering amount of data being generated by organizations. This is driving the global demand for business analytics. Companies want to better understand their consumers’ behaviors so they can tailor their services and products to them. With such demand, investment in business analytics is expected to increase, creating growth opportunities for the market.
Sales and marketing teams are tracking their customers using customer relationship management solutions that gather data from social media and other sources. Social media plays a key role in market growth, as companies must react to feedback and design campaigns using business analytics.
The growing emergence of technologies powered by the Internet of Things (IoT), together with the growing adoption of cloud computing by organizations, are driving the growth of the market. Also, finance-based security agencies are turning to business analytics to monitor and prevent fraud on a large scale. Additional factors playing into the business analytics market growth include banking and finance services and growing retail and e-commerce services.
Currently, the sectors with the maximum adoption of business analytics solutions are retail, banking, financial services and insurance (BFSI), and IT and telecom. Healthcare and media & entertainment are also offering great opportunities to vendors. As far as deployment types go, the cloud remains the fastest-growing segment.
Cloud Business Analytics
Business analytics software is increasingly being deployed and managed on cloud infrastructure. This benefits small and medium-sized businesses by significantly reducing the capital expenditure involved in building the needed infrastructure on their premises. Cloud-based business analytics tools allow for real-time analysis of data with better cost and time efficiency. Small and medium-sized businesses are also fueling this demand and growth by choosing advanced analytics tools over conventional spreadsheet modeling and manual computing. On-demand software allows consumers to subscribe to software tools based on a pay-as-you-go model, and it removes the need to employ staff to manage hardware, as on-demand analytics tools can be accessed from anywhere.
Retail Business Analytics
The global retail analytics market was valued at $6.1 billion in 2021 and is forecast to reach $18.2 billion by 2027. That’s a CAGR of 19.98%.
Retail analytics studies data regarding inventory levels, sales, consumer demand, and supply chain movement. It helps retailers identify customer insights, such as changing trends and preferences, by taking data from different areas and studying methods of improvement. Retail business analytics has become one of the most powerful tools in maintaining procurement levels and enabling quick and effective decision-making processes.
SaaS-based Business Analytics
The software-as-a-service (SaaS) business analytics sector is expected to grow by $10.7 billion between 2022 and 2026, at a CAGR of 14%. The sector is growing due to the rising demand for data integration and visual analytics, as well as the increasing adoption of mobile-based business analytical tools and the emergence of advanced analytical tools.
The global web analytics market was valued at $4.1 billion in 2021 and is forecast to reach $11.2 billion by 2027, growing at a CAGR of 18.23%.
Web analytics is the collection, reporting, and analysis of data from websites and e-commerce platforms. It uses quantitative and qualitative data to identify and understand patterns and trends. Web analytic solutions are used to measure visitors, keyword searches, time spent on the site, and links clicked. It organizes huge pockets of unorganized data and allows companies to make decisions based on real-time user data.
These tools are also used for market research, online advertising, online fraud detection, targeting, digital rights management, and personalization. Both on-site and off-site software platforms are used to create objectives and identify key performance indicators (KPIs). As rapid digitization, marketing automation, and social media continue to grow globally, the web analytics market is poised to grow further.
Predictive analytics and search engine optimization (SEO) are also being used to automate and track performance, which is also contributing to market growth. This is in addition to other factors, such as major growth in the IT sector and increasing penetration of the Internet in developing economies.
When you include the big data sector as part of the business analytics market, the numbers surge even higher. The big global data and business analytics market size was valued at $198.08 billion in 2020 and is forecast to reach $684.12 billion by 2030, growing at a CAGR of 13.5% from 2021 to 2030.
Increasing digitalization and the presence of major players in the United States are driving growth in the business analytics market in North America. Europe, Latin America, the Middle East, Africa, and the Asia-Pacific region are also seeing high demand for business analytics. The Asia-Pacific region is expected to grow significantly in the coming years due to rapid industrialization.
The major players in the business analytics market are Amazon Web Services, FICO, HP Enterprise Development LP, IBM, Microsoft, Oracle, SAP SE, SAS Institute, TIBCO Software, and Teradata.
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Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com
Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com
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