Product Analytics Market Research, 2031
The global product analytics market share was valued at $10.2 billion in 2021, and is projected to reach $76.7 billion by 2031, growing at a CAGR of 22.7% from 2022 to 2031.
Product analytics is the process used to understand how customers engage with digital products. It is a framework for putting customers at the core of a business by analyzing behavioral data, identifying opportunities for conversion, and creating impactful digital experiences that bring about high customer lifetime value. The aim of a product analytics is to manage marketing activities more efficiently, thus providing lucrative opportunities for market growth. Furthermore, all industries with a digital platform can leverage product analytics to generate insights into the customer experience. Industries including B2B, consumer tech, e-commerce, fintech, media, and more are adopting product analytics software and services to work to grow their companies, thus provide the significant opportunities for the market growth in the upcoming years.
The most important factor, which drives global product analytics market growth is cost effectiveness. The other factor includes all the functional capabilities that boost up the business performance of the organizations. In addition, surge in demand for cloud-based product analytics solution across enterprises boosts the growth of the market. Moreover, substantial increase in the number of small and medium enterprises is expected to lead to increased adoption of product analytics in such regions. On the contrary, the developing economies are expected to adopt the cloud-based technology, due to cost benefits, which offer growth opportunities for the product analytics market forecast.
The product analytics market is segmented into Component, Deployment Mode, Application, End User and Industry Vertical.
Segment Review
The product analytics market is segmented on the basis of component, deployment mode, application, end-user, industry vertical, and region. By component, it is bifurcated into software and services. By deployment mode, it is divided into on-premise, and cloud. On the basis of application, it is categorized into design and manufacturing, sales and marketing and consumer engagement. By end user, the market is segregated into small & medium-sized enterprises and large enterprises. By industry vertical, the market is classified into IT and telecommunication, BFSI, manufacturing, consumer goods and retail, media and entertainment, healthcare, energy and utility and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of deployment mode, the on-premise segment captured the largest market share in 2021 and is expected to continue this trend throughout the forecast period. This is attributed due to the numerous advantages offered by the on-premise deployment such as a high level of data security and safety. Industries prefer on-premise model owing to high data security and less data breach as compared to cloud based deployment models, which further drive the demand for on-premise deployment model within the sectors. However, cloud segment is expected to exhibit highest growth during the forecast period. Factor such as rise in the adoption of cloud-based product analytics solution due to low cost and easier maintenance drives the growth of the product analytics industry.
By region, North America dominated the market share in 2021 for the product analytics market. The increase in usage of product analytics in BFSI, retail, healthcare, and other sectors to improve businesses and the customer experience are anticipated to provide lucrative growth opportunities for the product analytics market in North America. However, Asia-Pacific is expected to exhibit highest growth during the forecast period. This is attributed to increase in penetration of advanced technology and higher adoption of cloud-based solution and services that propel the growth of the market in this region.
COVID-19 Impact Analysis
The current estimation of 2031 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has considerably boosted growth of the product analytics market due to accelerating demand for the cloud to support several crucial digital solutions such as e-commerce and remote work, as well as entertainment platforms such as online gaming and video streaming. The COVID-19 pandemic accelerated a transition already underway: customers looking to the digital experience as their primary point of contact with a business. Now, customers have elevated expectations for product experience. They expect companies to deliver high-value features at a rapid pace, and if the digital product or service fails to meet their needs, they will look elsewhere. Further, product analytics is the epicenter of how digital-first companies figure out customer needs and measure the impact of their products. It provides companies with real-time insights into how users are interacting with their product, so they’re able to respond to any upsets with agility. Such benefits provides lucrative opportunities for the market growth in the forthcoming.
On the contrary, the pandemic has led governments to across regions to implement product analytics and advanced technology such as AI, ML and others for managing uncertainty in real time. This has helped the market to grow rapidly during the pandemic. With the help of product analytics, enterprises can able to engage with customers through digital channels, manage complex and fragile supply chains and support employees through disruption to their lives and works. Such enhancement is anticipated to create numerous opportunities for the market growth during the forecast period..
Top Impacting Factors
Increase in adoption of product analytics across enterprises:
Last few decades have shown a tremendous rise in entrepreneurs with their small and medium organizations. Upsurge in demand for product analytics services due to the advantages offered such as cost cutting, and business flexibility proves to be a boon to the startup businesses. The need for product analytics solution & services services is rising due to increasing demand of customers. Furthermore, today evolving landscape, product analytics has become an essential element in every business. As the volume of data is increasing exponentially, data analytics platforms are progressively adopted to help companies derive deep customer insights and make informed decisions from mountains of data. For instance, noticing the surge in demand for this field, KMS Solutions has cooperated with Mixpanel to better support organizations in improving their product experiences. Through this partnership, KMS Solutions and Mixpanel strive to provide valuable user insights for clients across industries via this collaboration. Such enhancement drive the growth of the market.
On the contrary, due to the advantage of product analytics solution other companies also joined hand with other vendor to enhance experiences. For instance, October 2021, RudderStack partnered with the Amplitude to enable organizations to get deeper product insights, faster. Amplitude, the pioneer in digital optimization, helps businesses close the loop between product data, insight, and action with a comprehensive Digital Optimization System. The system gives businesses everything they need to understand customer behavior, predict valuable outcomes, and optimize digital product experiences for maximum impact. RudderStack, the customer data platform for developers, provides plug-and-play data pipelines that make it easy for businesses to stream real-time behavioral data directly to Amplitude from every website and application.
Rapid changes in business model software due to geographical expansion of the businesses:
Business is going through rapid change due to changing demand of customers, strict regulations, and economical changes. To study changing demands of customers, it is essential for a company to constantly interact with customers, which is possible through implementation of product analytics. Businesses are now engaged in the enhancement of productivity and different business operations. Thus, providing companies with ample growth opportunity to cater to the changing business models. Organizations are expanding their geographical presence through acquisition and partnership. Integration and collaboration of business is possible through implementation of product analytics, which enable them to centralize their business operations. Synchronization & collaboration of business documents and their rapid sharing is possible by the use of marketing cloud-based technology. Geographical expansion of companies propels the growth the product analytics market during the forecast period.
KEY BENEFITS FOR STAKEHOLDERS
- The study provides an in-depth product analytics market analysis along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the product analytics market size is provided in the report.
- The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the product analytics industry.
- The quantitative analysis of the global product analytics market for the period 2021–2031 is provided to determine the product analytics market potential.
Product Analytics Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 76.7 billion |
 Growth Rate | CAGR of 22.7% |
 Forecast period | 2021 - 2031 |
 Report Pages | 292 |
 By Component |
|
 By Deployment Mode |
|
 By Application |
|
 By End User |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | Mixpanel, Adobe Inc., Amplitude, Inc., Salesforce, Inc., Alphabet Inc., LatentView Analytics, IBM Corporation, Oracle Corporation, Medallia Inc., Pendo.io Inc. |
Analyst Review
According to the CXOs of leading companies, the product analytics market is going through enormous transformation and growth as customer demand and expectations are evolving with rapid pace of digitalization. This has compelled industries to adopt emerging technological change in its operating environment. Cloud has evolved to be the dominant technology in the race of technological changes. Hence, increase in adoption of cloud-based solution is expected to boost the global market at an exponentially high rate in the coming years.
On the contrary, business leaders must adopt a digital-first approach to maintain a competitive advantage and attract and retain customers. This mindset is a shift from simply getting customers in the door and instead focuses on creating a digital experience that will bring value to the customer. Product analytics helps to create that digital experience without any guesswork. It provides customers and businesses with concrete information to optimize conversions, grow retention, and maximize revenue.
For instance, as per to G2 analysis, product analytics software provides companies with visibility into their users’ interactions with their product, including visits, events, and interaction. It gives access to not only customer data but also dashboards and reports for analyzing this information. Such benefits provide lucrative opportunities for the market growth during the forecast period. The CXOs further added that the product analytics market is competitive and comprises number of regional and global vendors competing based on factors such as cost of solution & services, reliability, and support services. The growth of the market is impacted by rapid advances in the product analytics offerings, whereas the vendor performance is impacted by COVID-19 conditions and industry development. Owing to the competition, vendors operating in the market are offering advanced product analytics solution and services to improve the experience of their customers. Such enhancement provides lucrative opportunities for market growth in the coming years.
Global Product Analytics Market Expected to Reach $76,654.34 Million by 2031.
Factors such as a shift to algorithm-based analysis for more advanced analytics, and the emergence of opinionated analytics, thus drives the growth of the market.
The North America is the largest market for the Product Analytics Market.
The key growth strategies for Product Analytics include product portfolio expansion, acquisition, partnership, merger, and collaboration.
Adobe Inc., Alphabet Inc., Amplitude, Inc., IBM Corporation, Oracle Corporation, Salesforce, Inc. and others.
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