According to a recent report published by Allied Market Research, titled, “Business Analytics Software Market by Component, Deployment Model, Application, Organization Size, Industry Vertical, and Region: Opportunity Analysis and Industry Forecast, 2020-2027,” The global market size was valued at $53.68 billion in 2019, and is projected to reach at $120.27 billion by 2027, growing at a CAGR of 10.5% from 2020 to 2027.
The growth of the global business analytics software market is driven by factors such as increase in adoption of business analytics software by multiple organizations, surge in demand for cloud-based business analytics software among SMEs, and numerous benefits provided by business analytics solutions. In addition, ability of business analytics software to deliver enhanced & faster decision-making and to provide competitive advantage by analyzing and acting upon information in a timely manner propel the growth of the market. Furthermore, worldwide acceleration of digital transformation in enterprises due to the COVID-19 outbreak fuels business analytics software market growth. However, budget constraints in small & medium size businesses to provide effective data warehousing 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.
In 2019, the global business analytics software market share was dominated by the software segment and is expected to maintain this trend during the forecast period, as the most of the organizations have started adopting business analytics software to manage the massive volume of data being generated for meaningful insights and better-informed decisions. However, the services segment is expected to witness the highest growth, due to the increase in the adoption of business analytics & intelligence software is boosting the demand for different services. Growth has been witnessed in the adoption of consulting services among organizations to create and manage high-performing and resilient supply chains.
On the basis of deployment mode, the on-premise segment exhibited the highest growth in the software-defined networking market in 2019, and is expected to maintain its dominance in the upcoming years, as it can be used to gather, display, and organize important business data using company’s own IT infrastructure, which allows them to keep the data secure. Most of the enterprises prefer these on-premise deployment due to its high data transfer speed and security, which acts as a major driving force. However, the cloud segment is expected to witness highest growth during the forecast period, as it does not involve capital cost as well as is low on maintenance requirements, and hence can be most preferred by mid-sized institutions.
By application, the global business analytics software market share was dominated by the customer analytics segment in 2019 and is expected to maintain its dominance in the upcoming years, owing to increasing focus on customer analytics by various industries to get better insights about consumer demand and preferences. In addition, increase in competition among the enterprises to provide better customer satisfaction and personalized experience fuels the adoption of customer analytics software. However, the risk & credit analytics segment is expected to witness highest growth during the forecast period, as it helps enterprises to manage risk-related issues using several techniques and technologies. Increase in complexities in business process and rise in need for business process automation fuel the adoption of risk analytics solutions.
Post COVID-19, the size of the global business analytics software market is estimated to grow from $59.80 billion in 2020, and will reach $120.27 billion by 2027, at a CAGR of 10.5%. The market is expected to recover from mid-2022 and will be struggling with a slow growth rate, however, it is expected to recover in the upcoming years, owing to rise in adoption of work-from-home culture across the globe. The business analytics software market has witnessed significant growth in past few years; however, due to the outbreak of the COVID-19 pandemic, the market is projected to witness a sudden downfall in 2020. This is attributed to implementation of lockdown by governments in majority of the countries and the shutdown of travel across the world to prevent the transmission of virus. However, various organizations across the globe have initiated work-from-home culture for their employees, which is creating demand for the cloud-based Big Data analytics to manage critical information of organizations, thus creating lucrative opportunity for the market.
Key Findings Of The Study
- By component, in 2019 the software segment dominated the business analytics software market size. However, the services segment is expected to exhibit significant growth during the forecast period.
- On the basis of deployment mode, the on-premise segment accounted for the highest revenue in 2019, however, the cloud segment is expected to witness highest growth rate in the forecasted period.
- Depending on application, the customer analytics generated the highest revenue in 2019. However, the risk & credit analytics segment is expected to witness highest growth rate in the near future.
- On the basis of organization size, the large enterprises segment accounted for the highest revenue in 2019, however, the small and medium enterprises segment is expected to witness highest growth rate in the forecasted period.
- On the basis of industry vertical, the BFSI segment accounted for the highest revenue in 2019, however, the retail & e-commerce segment is expected to witness highest growth rate in the forecasted period.
- Region wise, the business analytics software market was dominated by North America region. However, Asia-Pacific is expected to witness significant growth in the upcoming years.
Some of the key business analytics software industry players profiled in the report include IBM Corporation, Fair Isaac Corporation, SAP SE, Microsoft Corporation, Oracle Corporation, Salesforce.com, Inc., SAS Institute Inc., Adobe, Qlik, and Google LLC. This study includes market trends, business analytics software market analysis, and future estimations to determine the imminent investment pockets.