Analytics as a Service Market Outlook: 2026
The global analytics as a service market was valued at $9.62 billion in 2018, and is projected to reach $126.48 billion by 2026, registering a CAGR of 38.1% from 2019 to 2026. The automation across all the industry verticals is producing huge amount of data every day. Organizations then collect such data and analyze the pattern to predict future occurrences. Moreover, with the analytics, organizations are enhancing the performance of their internal assets, which further help increase their profit margin. In addition, with predictive analytics and historical data analysis, manufacturers can plan predictive maintenance for their assets or machines, which further allows them to save cost by avoiding any unexpected breakdown or downtime.
In terms of industry vertical, the BFSI segment is expected to contribute the highest analytics as a service market share in the coming years. The growth of this segment is mainly attributed to increase in need to utilize the capabilities of Analytics-as-a-Service to better understand their customers and their needs to update their services. However, the others segment is expected to exhibit highest analytics as a service market growth throughout the forecast period.
North America is expected to experience rapid growth in the global market. It is expected to witness a higher revenue during the Analytics as a Service market forecast period, owing to surge in demand for analytics platform and presence of major market players in this region.
The report focuses on the growth prospects, restraints, and trends of the analytics as a service market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global market.
Segment review
The global analytics as a service market is segmented on the basis of component, analytics type, deployment type, industry vertical, and region. Based on component, the market is bifurcated into solutions and services. Based on analytics type, the market is divided into predictive analytics, prescriptive analytics, diagnostic analytics, and descriptive analytics. Based on deployment type, the market is classified into private cloud, public cloud, and hybrid cloud. Depending on industry vertical, the market is segmented into BFSI, retail, government, IT & telecommunication, transportation & logistics, manufacturing, and others. Based on region, the analytics as a service market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Component
Service would exhibit the highest CAGR of 40.3% during 2019-2026.
The market is dominated by the global analytics as a service industry players such as Amazon Web Services (AWS), Accenture, Atos SE, Google, Inc., Hewlett Packard Enterprise Development LP, Hitachi Solutions, Ltd., International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, and SAS Institute Inc.
By Analytics Type
Predictive Analytics would exhibit the highest CAGR of 44.3% during 2019-2026.
Top impacting factors
Current and future enterprise analytics as a service market trends are outlined to determine the overall attractiveness of the market. Top impacting factors highlight the Analytics as a Service (AaaS) market opportunities during the forecast period. Factors such as rise in adoption of social media applications and continuous increase in demand for advanced technologies to process high workload through cloud, fuel the growth of the analytics-as-a-service market. In addition, lower cost of ownership associated with analytics services is also one of the major factors that drives the growth of the analytics as a service market size. However, surge in data security and privacy concerns are expected to hamper the market growth. Moreover, increase in usage of machine-generated data across numerous industry verticals is expected to provide opportunities for the growth of the analytics as a service market in the upcoming years.
By Deployment Type
Hybrid cloud would exhibit the highest CAGR of 43.0% during 2019-2026.
Increase in adoption of social media applications
Emergence of social media applications and advanced technologies are one of the major factors impacting the analytics services currently. Social media applications such as, Facebook, Twitter, Instagram, YouTube and others, are creating enormous amount of data every second. For instance, according to a survey, on an average 50 million tweets are sent every day, 20 hours of videos get uploaded on YouTube every minute, and approximately 2.9 million mails are sent every second. Thus, such huge data is majorly driving the market for analytics services. Moreover, increase in need among businesses to analyze social media information for their own specific goals is also one of the factor driving the market growth. For example, using Twitter data IBM offers social merchandising and market insights for industries such as, retail, and media & entertainment.
By Industry Vertical
BFSI exhibited the highest revenue of $2583 million during 2018 and would exhibit the highest CAGR of 32.8% during 2019-2026.
Increase in usage of machine generated data
The growing adoption of IoT devices and high penetration of smartphones are generating huge amount of data every millisecond. Simultaneously, the data generated by these devices is complex and comprises useful as well as sensitive information and content. Moreover, network-based service providers such as broadcast networks, mobile providers, and utility companies, are capturing, analyzing, and storing machine-generated data to help them in providing proactive support, prevent & predict service outages, measure & enhance customer experience, and determine impactful product roadmaps. For example, for mobile providers, call detail records (CDRs) comprise the details of every event or call, which passes through a switch. Thus, these factors provide numerous opportunities for the market growth.
Furthermore, growing business needs to better understand system operation and actions & behavior of the customers is also one of the key factors forcing companies to capture machine-generated data. Thus, these factors are anticipated to be opportunistic for the analytics as a service market in upcoming years.
By Region
Asia-Pacific would exhibit the highest CAGR of 44.4% during 2019-2026.
Key Benefits for Analytics as a Service Market:
- This study presents the analytical depiction of the global analytics as a service market trends and future estimations to determine the imminent investment pockets.
- A detailed analysis of the segments measures the potential of the market. These segments outline the favorable conditions for the market.
- The report presents information related to key drivers, restraints, and opportunities.
- The current market is quantitatively analyzed from 2018 to 2026 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the industry.
Analytics as a Service (AaaS) Market Report Highlights
| Aspects | Details |
 By Component |
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 By Analytics Type |
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 By Deployment Type |
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 By Industry Vertical |
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 By Region |
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 Key Market Players | Hewlett Packard Enterprise Development LP, GoodData Corporation, Oracle Corporation, Microsoft Corporation, Google LLC, International Business Machines Corporation, SAP SE, Amazon Web Services, Inc., TIBCO Software Inc., SAS Institute Inc. |
Analyst Review
According to the insights of the CXOs of leading companies, the global Analytics as a Service (AaaS) market indicates a promising picture for the analytics service industry. The present business state has witnessed an increase in the adoption of AaaS services, particularly in the developing regions. The companies have been implementing innovative techniques to provide advanced and innovated product and service offerings to the customers. Moreover, the evolution of industry 4.0 and its adoption across all sectors is encouraging organizations to move to the cloud.
Data Science and analytics has been a trending subject since the past decade. However, initially these technologies existed theoretically. Moreover, the assessment of large data sets cannot be measured and evaluated by people on their own. However, development and application of operative machine learning systems and algorithms, enable businesses to realize data science and analytics practically.
Furthermore, the Analytics as a Service (AaaS) market is a consolidated market as players such as Amazon Web Services (AWS), GoodData Corporation, Google, Inc., Hewlett Packard Enterprise Development LP, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, and others, which account for a major share globally. However, the market is expected to become fragmented in near future, as many players in the developing countries are evolving in this area and are coming up with enhanced and innovative analytics services and strategies.
The key players operating in the global Analytics as a Service (AaaS) market include Amazon Web Services (AWS), GoodData Corporation, Google, Inc., Hewlett Packard Enterprise Development LP, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, SAP, SAS Institute Inc., TIBCO Software Inc. The key players have adopted various growth strategies to enhance and develop their product portfolio, strengthen their Analytics as a Service (AaaS) market share, and to increase their market penetration. For instance, in October 2019 Amazon Redshift, a cloud data warehouse of Amazon Web Services (AWS) collaborated with GoodData, a leading end-to-end analytics solutions provider. With this collaboration, Amazon Redshift is trying to overcome the challenges related to delivery of analytics solutions to their users.
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