Analytics as a service Market Trends

Analytics as a Service Market Overview

Analytics as a Service Market Size was valued at USD 7.2 billion in 2022. The Analytics as a Service market industry is projected to grow from USD 9.2 Billion in 2023 to USD 40.1 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 27.82% during the forecast period (2024 - 2032).

Figure 1: Analytics as a Service Market Size, 2022-2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Analytics as a Service Market Trends

The surge in data security concerns boosting the market growth

Surging data security concerns due to the rising number of cybercrimes is a significant factor negatively impacting the market growth. Since data is always stored on remote servers, data and applications can be vulnerable to cyber-attacks when end users access the data while it is in transit over the internet. As a result, public safety organizations have enforced strict regulations that service providers must adhere to. For example, the General Data Protection Regulation (GDPR), which requires companies to protect data processed through any system or software, applies to organizations operating in the European Union.

The transformation of enterprises from legacy systems to digital solutions plays a major role in the centralization of data across all departments and functions of an organization, thus increasing the need for AaaS. Increasing demand for analytical solutions in a range of applications such as forecasting electricity consumption, trade markets, and forecasting traffic trends is driving the market growth. Several companies, including Google LLC; IBM; Oracle Corporation; offer analytics solutions through their flagship cloud platforms, which have significantly impacted growth. For example, IBM offers its analytics solution, Watson Analytics, through Watson Cloud, which helps the company's clients analyze structured data.

The rising use of analytics solutions for product demand perception in e-commerce and retail is another major factor driving the market growth. Demand sensing is widely used in the retail industry to identify potential consumers of a product, helping retailers understand consumer behavior and its impact on the entire supply chain. Moreover, increasing the adoption of analytical solutions to translate data generated using RFID tags is heralding market growth.

For example, in August 2019, Nike, Inc. acquired Celect, Inc., a cloud-based predictive analytics platform developer. Following the acquisition, Nike, Inc. began using RFID technology and Celect, Inc.'s predictive analytics solution to optimize inventory performance. In addition, technologies such as virtual reality (VR) and augmented reality (AR) are data-immersive technologies that require high bandwidth to operate, resulting in large amounts of data. As large amounts of unstructured data are generated, analytics solutions are used to classify, process, and present it into meaningful insights. Therefore, the Analytics as a Service market CAGR has increased ly in recent years. These are important factors driving the growth of the Analytics as a Service market revenue.

Analytics as a Service Market Segment Insights

Analytics as a Service Component Insights

The Analytics as a Service market segmentation, based on Components, includes Solutions, and Services. The solution segment held the majority share 2022 of the Analytics as a Service market revenue. The growth of this segment is attributed to the fact that analytics-as-a-service solutions can enable organizations to increase operational efficiency and reduce costs. Companies are adopting solutions and services as it helps in managing and predicting data as well as analyzing data to make better decisions.

Figure 2: Analytics as a Service Market by Component, 2022 & 2030 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Analytics as a Service Analytics Type Insights

Based on Analytics Type, the Analytics as a Service industry has been segmented into predictive and Prescriptive. The predictive segment is expected to hold a major market share. Various organizations in the retail industry are utilizing these solutions for demand forecasting, helping them to make informed decisions and improving profitability, thereby boosting growth. Additionally, companies developing autonomous driver assistance system (ADAS) technology and self-driving cars extensively use predictive analytics to analyze sensor data from connected cars and build driver assistance algorithms. Moreover, increasing demand for AaaS to manage factory operations and distribution networks through predictive analytics drives the segment's growth. Additionally, companies in the e-commerce space are utilizing predictive solutions to provide a tailored shopping experience to their customers.

Analytics as a Service Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North America Analytics as a Service market accounted for USD 3.29 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is due to various associations and organizations in the Region, such as the Cloud Native Computing Foundation and the National Association of Cloud Technologists, which promote using cloud computing to deploy various high-tech solutions, such as advanced analytics, big data analytics, and predictive analytics. Moreover, various healthcare organizations and government agencies are collaborating to develop analytics solutions for the healthcare industry, which heralds the regional market's growth.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Analytics As A Service Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Analytics as a Service market accounts for the second-largest market share. The Region is driven by the rising volume of data generated by organizations, the rising need for data-driven decision-making, and the rising demand for cost-effective analytics solutions—several recalls. Further, the Germany Analytics as a Service market held the largest market share, and the U.K. Analytics as a Service market was the fastest-growing market in the European Region.

The Asia-Pacific Analytics as a Service Market is expected to grow at the fastest CAGR from 2022 to 2030. The growth in APAC is attributed to the increase in the number of analytics firms, such as EXL, IDG Ventures Partners, and TA Associates, investing in emerging analytics firms in the Region. For example, in May 2018, EXL made a $240 million investment in SCIOInspire, Corp., which provides AaaS to the healthcare industry. Additionally, industry associations in the Region, such as the Asia Cloud Computing Association (ACCA) and the Asia Analytics Alliance, promote adopting AaaS solutions to boost market growth. Moreover, the China Analytics as a Service market held the largest market share, and the India Analytics as a Service market was the fastest-growing market in the Asia-Pacific region.

Analytics as a Service Key Market Players & Competitive Insights

Major market players are spending a lot on R&D to increase their Component lines, which will help the Analytics as a Service market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new Component launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Analytics as a Service industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the Analytics as a Service industry to benefit clients and expand the market sector. The Analytics as a Service industry has provided medicine with some of the most significant benefits in recent years. In the Analytics as a Service market, major players such as Accenture – USA, Atos SE – USA, Google, Hewlett Packard Enterprise Development Lp – USA, SAS Institutes - USA, and others are working on expanding the market demand by investing in research and development activities.

Accenture plc is an Irish-American professional services firm based in Dublin, specializing in information technology (IT) services and consulting. As a Fortune 500 company, it reported revenue of $61.6 billion in 2022. Accenture's clients include 91 of the Fortune 100 and more than three-quarters of the Fortune 500. [8] As of 2022, Accenture is considered the consulting firm with the largest number of employees ly.

Also, Google LLC is an American multinational technology company focused on online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, artificial intelligence, and consumer electronics. Due to its market dominance in artificial intelligence, data collection, and technological superiority, it has been called "the world's most powerful company" and one of the world's most valuable brands. Its parent company, Alphabet, is considered one of the top five information technology companies in the United States, along with Amazon, Apple, Meta, and Microsoft.

Key Companies in the Analytics as a Service market include

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  Accenture - USA

  
  


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  Atos SE - USA

  
  


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  Google

  
  


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  Hewlett Packard Enterprise Development Lp - USA

  
  


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  Hitachi Solutions - Japan

  
  


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  IBM - USA

  
  


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  Oracle - USA

  
  

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  SAS Institutes - USA, among others

  
  

Analytics as a Service Industry Developments

In April 2024, Dataproc incorporated additional functionality to deploy clusters that use Compute Engine machine types. This improvement enables more freedom in the allocation of resources hence enabling the tailoring of cluster configurations to more accurately meet specific workload needs.

In March 2024, with the new update of Oracle Analytics Cloud in March 2024, the company was able to introduce enhancements across exploring, dashboarding, storytelling, data connectivity, modeling, preparation, augmented analytics, machine learning, performance, compliance, and administration tasks.

June 2023: Microsoft and Moody's Corporation entered into a strategic alliance aimed at providing cutting-edge data, collaboration, research, analytics and risk management solutions in corporate intelligence and financial services.

March 2023: Domo released a range of new capabilities in a series of low-code to pro-code solutions aimed at allowing consumers to quickly create and deploy modified data experiences to all the individuals within an organization.

April 2023: With this collaboration, Microsoft Corporation and EPIC planned to provide advanced generative AI solutions by combining Azure OpenAI Service with electronic health record software. The integration would create complete AI-based solutions powered by EPIC’s EHR system to increase efficiency, improve patient services and boost the financial standing of a healthcare system across the globe.

In November 2022, IBM Corporation said that it was bringing to the market new software known as IBM Business Analytics Enterprise, which aims to assist enterprises in wiping out all the data and analytics obscure to fast-tracking decision-making and, by extension, steering their way through sudden disturbances.

In May 2022, Atos marked the launch of Atos (BOaaS) Atos Business Outcomes-as-a-service on a Dell partnership to offer cloud infrastructure that enhances the commercial value with AI by automatic provisioning, controlling and supervision.

In October 2024, GoodData said it had entered into a partnership with Witboost, whose goal was to provide an integrated solution that would simplify and enhance, within an organization, data management, data analysis and data governance. The neat offering includes automated lifecycle management, streamlined deployment and change management, and robust data governance and security.

In September 2024, SAS Institute rocked the healthcare world with the announcement it made together with Duke Health that SAS would be working with the latter for two years, predicting how many patients may be treated with AI, machine learning and operational analytics in the case the operations at their facilities are advanced.

Analytics as a Service Market Segmentation

Analytics as a Service Component Outlook

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  Solutions

  
  


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  Services

  
  

Analytics as a Service Analytics Type Outlook

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  Predictive

  
  


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  Prescriptive

  
  

Analytics as a Service Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  

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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

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  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America