Business Analytics Software Market Statistics: 2030
The global business analytics software market size was valued at $61.10 billion in 2020, and is projected to reach $177.00 billion by 2030, growing at a CAGR of 11.2% from 2021 to 2030. Business analytics software aids in the interpretation and analysis of business data by allowing ongoing research and investigation of previous business performance in order to gain actionable insights for business strategy. It aids in the discovery of patterns and linkages among data streams, as well as the automation of tasks and processes for real-time decision-making. Owing to its low cost and ease of use, cloud-based business analytics software is in high demand among small and medium-sized businesses. Furthermore, demand for social media analytics, which is a subset of business analytics, has increased rapidly as the popularity of social media marketing grows, propelling the industry forward.
Rise in adoption of business analytics software by multiple organizations and surge in demand for cloud-based business analytics software among SMEs boost the growth of the business analytics software market. In addition, increase in awareness regarding numerous benefits provided by business analytics solutions and worldwide acceleration of digital transformation in enterprises due to COVID-19 outbreak fuel growth of the market. However, high implementation costs of business analytics software and lack of skilled workforce limit the growth of this market. Conversely, emerging trends such as social media analytics & text analytics and increase in need to gain insights for business planning are expected to provide numerous opportunities for the expansion of the market during the forecast period.
Depending on deployment model, the on-premise segment dominated the business analytics software market share in 2020. The growth of the segment is attributed to surge in on-premise deployment for business intelligence (BI) strategy among end users. Moreover, the on-premise deployment facilitates high degree of customization, which results in lower costs if there is addition of new resources. However, the cloud segment is expected to witness highest growth in the upcoming years, as the cloud allows organizations to focus on their major activities rather than managing their IT environment. Furthermore, the adoption of cloud-based business analytics software is considerably high among small & medium enterprises due to its cost-effectiveness, which notably contributes toward the growth of the global market.
Region wise, the business analytics software market was dominated by North America in 2020 and is expected to retain its position during the forecast period, owing to abundance of business analytics solutions vendors such as Microsoft Corporation, Oracle Corporation, Salesforce.com, Inc, and others, aiding the growth of the business analytics software market. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to enterprises in Asia-Pacific focusing on enhancing their management system and increasing their overall efficiency to stay competitive in the market.
The report focuses on growth prospects, restraints, and analysis of the global business analytics software market trend. 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 business analytics software market share.
The global business analytics software market is segmented into component, deployment model, application, organization size, end user, and region. Depending on component, the market is bifurcated into software and service. On the basis of deployment model, it is segregated into on-demand/cloud and on-premise. The applications covered in the study include customer analytics, supply chain analytics, marketing analytics, pricing analytics, risk & credit analytics, and others. By organization size, the market is fragmented into large enterprises and small- & medium-sized enterprises. As per end user, it is differentiated into IT & telecom, retail & E-commerce, BFSI, manufacturing, healthcare, government, education, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Software segment is projected as one of the most lucrative segments.
The global business analytics software market is dominated by key players such as Adobe, Fair Isaac Corporation, Google LLC., IBM Corporation, Microsoft Corporation, Oracle Corporation, Qlik, Salesforce.com, Inc., SAP SE, and SAS Institute Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
COVID-19 impact analysis
The market for business analytics software has grown significantly in recent years; however, due to the outbreak of the COVID-19 pandemic, the market experienced a sharp decline in 2020. This is due to governments implementing lockdown in the majority of countries and halting travel around the world to prevent the spread of the virus. Following the recovery from the COVID-19 pandemic, the business analytics software industry is expected to grow in the coming years. Various firms throughout the world have implemented a work-from-home culture for their staff, resulting in demand for cloud-based Big Data analytics to manage crucial information, presenting a potential market opportunity. Increase in volume of data generated by different industries and the need to manage this data are the key factors that drive the growth of the business analytics software market. In addition, governments of numerous countries have adopted Big Data analytics to update real-time data of coronavirus and to make actionable insights from the data. Furthermore, Big Data analytics has helped various researchers, healthcare workers, and scientists to aggregate and synthesize incident data on a regular and global scale.
By Industry Vertical
BFSI segment is projected as one of the most lucrative segments.
Top impacting factors
Surge in demand for cloud-based business analytics software among SMEs
Increased availability of large amounts of data and easy access to low-cost data center services provided by cloud vendors have resulted in lower upfront investment costs for small and medium-sized firms, lowering the market entry barrier. The demand for cloud-based business analytics software among small and medium-sized businesses has increased as a result (SMEs). SMEs are increasingly using business analytics to acquire greater insights into how they can run their company more efficiently. SMEs have invested in cloud-based business analytics software solutions for a variety of reasons, including increased competitive advantage and revenue growth. Moreover, organizations can keep all of their data in a single platform utilizing cloud-based business analytics, extending consistency of information to all devices while lowering the cost of investment in many sources for each device. This information can be used anywhere and at any time. Several end users, including banking, financial services, insurance (BFSI), retail, healthcare, manufacturing, telecommunications & IT, and media & entertainment have rapidly embraced cloud-based business analytics, which boost the market's global expansion.
Rise in awareness regarding numerous benefits provided by business analytics solutions
The ability of business analytics software to enable better and faster decision-making as well as a competitive edge by analyzing and acting on data in a timely manner has propelled the market forward. Furthermore, the demand for business analytics software has grown due to the advantages it provides, such as easy access to critical company indicators, helpful insight into customer behavior, greater revenue, and enhanced productivity. Furthermore, businesses utilize business analytics for real-time forecasting and monitoring of a variety of events that may impact an organization's performance. Furthermore, the ability of the solution to quickly mitigate risks by optimizing complicated judgments concerning unanticipated occurrences such as cyber-attacks and other crises drives the business analytics software industry forward.
Asia-Pacific would exhibit the highest CAGR of 12.9% during 2021-2030.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global business analytics software market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, opportunities, and their impact analysis on global business analytics software trend is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the market from 2021 to 2030 is provided to determine the market potential.
Business Analytics Software Market Report Highlights
By Deployment Mode
By Organization Size
By End User
By Key Market Players
The use of business analytics software has grown over time to help firms enhance their decision-making capabilities and get better business insights. Furthermore, the potential of business analytics software to provide business prospects and obtain fresh insights into how to manage a firm efficiently has grown its appeal among end users. In addition, several banking and industrial sectors have invested in business analytics & intelligence to improve security and eliminate compliance issues in their companies, which is expected to boost market growth.
Key providers of business analytics software market such as Adobe, IBM Corporation, and FICO account for a significant share in the market. With larger requirement from business analytics software, various companies have established partnerships to increase business analytics software capabilities. For instance, in September 2021, FICO, the international software analytics company, partnered with FinTecSystems (FTS) for the DACH region to optimize decisioning across the customer life cycle. The complementary product portfolio of both companies, lenders using open banking can combine transaction data from FTS with FICO advanced analytics and platform solutions to make optimal decisions, both for the consumer as well as for the lender. Seen in a RegTech context, this means minimizing fraud and optimizing credit scoring. The FICO® Platform provides ideal decisioning foundation needed to successfully achieve digital transformation. It provides unprecedented insight into customers’ immediate & future needs by eliminating data silos and enables interoperability between enterprise applications.
In addition, with increase in demand for business analytics software, various companies have expanded their current services to continue with rise in demand. For instance, in April 2021, Adobe and FedEx a new, multi-year collaborated to integrate ShopRunner, a leading e-commerce platform and subsidiary of FedEx Services, with Adobe Commerce. With the collaboration, brands and merchants can better tackle the strong increase in package volume by offering free two-day shipping and seamless checkout & returns. The integration is expected to give Adobe merchants access to FedEx post-purchase logistics intelligence, which is anticipated to help them drive demand, reduce cost, and gain customer insights.
Moreover, market players have expanded their business operations and customers by increasing their acquisition. For instance, in October 2021, Qlik acquired Big Squid to add automated machine learning capabilities to its platform. In addition, the analytics vendor recently unveiled a new automated workflow tool. The acquisition is projected to make it easier for users without coding knowledge to build machine learning models and derive insights based on those predictive capabilities.