Global Business Analytics Industry Report

The global business analytics market is valued at hundreds of billions of dollars and continues to expand rapidly, with a high compound annual growth rate (CAGR) across all subsectors.

Market Segmentation

The global business analytics industry is segmented by:

• Deployment Type
• On-Premises
• Cloud
• Analytics Type
• Predictive
• Descriptive
• Diagnostic
• Customer
• Other
• Solution
• Security Intelligence
• Data Mining
• Data Management
• Data Monitoring
• Supply Chain Management
• Enterprise Resource Planning
• Human Resources Management
• Software
• Enterprise Size
• Large Enterprises
• Small to Medium Sized Businesses
• Application
  • Banking, Financial Services, and Insurance (BFSI)
  • Education
  • Government
  • Retail
  • Healthcare
  • Media and Entertainment
  • Manufacturing and Telecom
  • IT

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Key Market Trends & Growth Factors

The area of business analytics continues to thrive through the systematic study of organizational data via statistical and operational analysis using:

• Data aggregation and visualization
• Data and text mining
• Data association
• Sequence identification

Companies are using these tools to execute tasks such as:

• Predictive analysis
• Query reporting
• Location intelligence
• Content analysis
• Data warehousing
• Enterprise performance management

Business analytics tools are also used to analyze intricate datasets and identify fundamental patterns, and to further micro-segment data. Additionally, they apply principles of information systems (IS), deep learning, and artificial intelligence (AI) to enable 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.

There is a staggering amount of data generated by companies daily, driving global demand for business analytics. Businesses are trying to better understand consumers’ behavior so they can tailor their products and services to them. With such demand, investment in business analytics continues 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 is playing a key role in market growth, as companies must react to feedback and design campaigns using business analytics.

The emergence of technologies powered by the Internet of Things (IoT), together with the growing adoption of cloud computing by organizations, is also driving market growth. Additionally, financial security agencies are turning to business analytics to monitor and prevent large-scale fraud. Other sectors with high adoption of business analytics solutions are retail, e-commerce, BFSI, and IT and telecom. Healthcare and media & entertainment are also offering great opportunities to vendors.

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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 required to build the necessary infrastructure on their premises. Cloud-based business analytics tools enable real-time analysis of data with greater efficiency in terms of cost and time. 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 on a pay-as-you-go basis, eliminating the need to employ staff to manage hardware, as on-demand analytics tools can be accessed from anywhere.

The global retail analytics market also continues to expand rapidly, monitoring data on inventory levels, sales, consumer demand, and supply chain movements. This helps retailers identify customer insights, such as changing trends and preferences, by combining data from different areas and studying improvement methods. Retail business analytics has become one of the most powerful tools for maintaining procurement levels and enabling quick, effective decision-making.

The software-as-a-service (SaaS) business analytics sector continues to grow by billions of dollars each year, with strong, sustained CAGRs. The sector is growing due to rising demand for data integration and visual analytics, the increasing adoption of mobile-based business analytical tools, and the emergence of advanced analytical tools.

The global web analytics market is also valued in the billions of dollars, continuing to demonstrate strong CAGRs year after year as the world becomes increasingly digitalized. Companies are using web analytics to obtain quantitative and qualitative data to identify and understand patterns and trends, and to organize massive amounts of data to enable decision-making 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 being used to automate and track performance, 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.

There is growing adoption of advanced analytics to:

• Identify fraudulent activity
• Optimize processes
• Address data risks

These factors are all driving growth in the sector. Business intelligence software is helping provide controlled access to customer databases, enhance transaction security, and improve customer experiences. Use of security intelligence is on the rise because it leverages risk-reduction strategies that integrate analysis of internal and external threats, security, and business intelligence across all areas of an organization.

When you include big data as part of the business analytics market, the growth and market value numbers surge even higher. The global big data and business analytics market size continues to be valued at a phenomenally high CAGR each year in the hundreds of billions of dollars.

M&A
The global business analytics industry is characterized by moderate fragmentation.
Competition in the market is being driven by the following objectives:

• Time-to-value
• Self-service tools and automation are lowering deployment from quarters down to weeks
• Unified governance
• Buyers demand that lineage, quality, and policy controls are deployed with data across all clouds
• Vertical depth
• Vendors are pre-packaging fraud models, patient-risk scores, and production-line templates

Start-ups are finding ways to stand out by using:

• Specialist AI agents
• Causal inference engines
• Privacy-preserving analytics

They often partner with larger firms for distribution.

M&A deals, investments, and product launches are intensifying competition to build end-to-end stacks. Firms are also forming multi-year alliances to co-engineer high-performance solutions for regulated sectors. It is expected that consolidation will continue, even as new entrants emerge.

More and more companies across multiple sectors are now using analytics in day-to-day workflows for various functions. This includes uncovering inefficiencies, improving customer engagement, and shortening decision cycles. The convergence of AI with established analytics stacks is changing how retrospective reporting and predictive intelligence are being used. The pervasiveness of the cloud is lowering barriers to entry for companies of all sizes. Competition will remain intense as long as the major enterprise software players continue to upgrade their portfolios to keep pace with cloud specialists and AI start-ups that offer faster deployment, better data visibility, superior analytics, and simplified, personalized user experiences.

Startups are also changing data management methods to automate data circulation and improve future research. M&A activity in the business analytics sector continues to be driven by changes in the corporate environment, the burgeoning use of big data, and a surging demand for customer analytics.

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