Data Analytics Market Analysis

Data Analytics Market Overview

Data Analytics Market Size was valued at USD 55.1 billion in 2022. The Data Analytics market industry is projected to grow from USD 7.03 Billion in 2023 to USD 303.4 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 27.60% during the forecast period (2023 - 2030). The growing popularity of big data and predictive analytics is driving the growth of the data analytics market and is expected to continue growing over the forecast period. The data analytics trend has gained popularity in recent years and has become even more critical since the emergence of COVID-19. These are the key market drivers enhancing market growth.

Figure 1: Data Analytics Market Size, 2022-2030 (USD Billion)

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

Industry News of Data Analytics

On Mar. 03, 2023, Orbital Insight, a geospatial intelligence specialist, announced a partnership with Carahsoft Technology Corp. to provide AI-powered geospatial data analytics. The partnership will enable Carahsoft to serve as a master government aggregator, making the company's AI-powered geospatial data analytics easily available to the public sector. Orbital Insight's TerraScope offers a scalable, robust, and high-performance environment for geospatial analysis.

On Mar. 02, 2023, Google announced new analytics user access management changes in Google Ads and introduced a new cross-product access management model. This new cross-product access management tool allows easy creation and application of audiences from GA4 to Google Ads. From now on, all Google Ads will be integrated with 

Google Analytics 4 audience builder to make it easier to create and apply Google Analytics 4 audiences to Google Ads campaigns. This model allows a Google Analytics 4 property Admin to grant explicit permissions to users in a linked Google Ads account.

Data Analytics Market Trends

Growing application of data analytics tools for forecasting to boost the market growth

Increasing use of data analytics tools for forecasting and forecasting applications such as trade markets, healthcare data, research analysis, and traffic trend forecasting is expected to drive the growth of the data analytics market. The application of data analytics in demand forecasting can help organizations make informed decisions and improve profitability. Government agencies and industries, such as banking, e-commerce, and IT services, have invested heavily in big data and business intelligence tools in recent years, driving the industry demand.

The e-commerce sector enhances the traditional shopping experience of customers. Email campaigns, dedicated online/social media advertising, and customer service analytics are the most critical factors in increasing a company's sales. Due to the increasing popularity of connected devices, retailers focus on real-time consumer shopping behavior analysis. The real-time analysis results can also be used to create tailored offers to improve customer retention. However, data security concerns may hamper the growth of the market.

Many new business prospects are expected to emerge due to recent breakthroughs in big data analytics, including social media and text analytics. Additionally, many businesses have turned to social media as a primary source for advertising campaigns, product promotions, and events because it is more effective than traditional advertising. Furthermore, the expansion of social media analytics is driven by the proliferation of connected mobile devices such as smartphones and tablets and the increase in the number of users of social media platforms. In a business environment where organizations must operate quickly, customer demands constantly change.

In addition to looking at current information about their customers, goods, services, and business processes, companies also look at historical data about their past performance to gain insight and discover historical trends and patterns. Business analytics software and solutions have been adopted across multiple industries to study these patterns, identify new business opportunities, and develop strategies based on the latest insights. This is expected further to accelerate the expansion of the big data market. Therefore, the Data Analytics market CAGR has been increasing in recent years. These are essential factors driving the Data Analytics market revenue growth.

Data Analytics Market Segment Insights

Data Analytics Type Insights

Based on Type, the Data Analytics market segmentation includes Predictive Analytics, Prescriptive Analytics, Descriptive Analytics, and Customer Analytics. The predictive analytics segment held the majority share in 2022, contributing most of the Data Analytics market revenue. The expansion of this segment can be attributed to the increase in the usage of social media sites and the rise of virtual businesses that generate large amounts of data. Additionally, the evolution of SaaS-based data analytics helps simplify automated installations and creates powerful analytical models using a self-service paradigm. Big data solution providers have been urged to increase their spending on cloud technologies to gain a competitive advantage to meet the growing demand for big data analytics solutions.

Data Analytics Solution Insights

The solution has bifurcated the Data Analytics market data into Data Management, Fraud & Security Intelligence, Data Mining, and Data Monitoring. Fraud & Security Intelligence has a considerable share of the market. The segment's growth can be attributed to the increasing adoption of advanced analytics to identify fraudulent transactions, optimize processes, and address data risks. Furthermore, increasing the Deployment of BI software to enable continuous access to customer databases, secure transactions, and enhanced customer experience is also expected to drive the growth of this segment over the forecast period.

Figure 2: Data Analytics Market by Solution, 2022 & 2030 (USD billion)

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

Data Analytics Application Insights

The Data Analytics industry has been segmented based on Application into Enterprise Resource Planning, Supply Chain Management, Human Resource Management, and Database Management. Database management accounts for the largest share of the Data Analytics market because it allows these companies to personalize their offerings to each customer's needs and identify their most valuable customers.

Data Analytics Deployment Insights

Based on Deployment, the Data Analytics industry has been segmented into Cloud and On-Premises. The on-Premises segment is expected to contribute a higher market share. On-premises installations give businesses more control over how their IT infrastructure is customized, reducing reliance on the network and protecting sensitive company information from theft and fraud. These advantages are expected to convince large enterprises to opt for on-premises deployments.

Data Analytics Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Data Analytics market, which accounted for USD 25.2 billion in 2022, is expected to exhibit a significant CAGR growth during the study period, owing to key regional players' presence and technological advancements. Adopting predictive analytics in big data as the supporting Hadoop architecture is used by some significant e-commerce giants, such as Walmart and eBay, contributes to the value increase of the data analytics market in this Region.

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

Figure 3: DATA ANALYTICS MARKET SHARE BY REGION 2022 (%)

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

Europe's Data Analytics market accounts for the second-largest market share. Europe benefits from significant investment and attention from European organizations. Additionally, businesses are increasingly adopting a data-driven approach to doing business. The UK is the leading economy in the market owing to the country's high investment in prescriptive analytics. This is followed by Germany, the second largest data analytics market after the UK. Furthermore, the UK is expected to be the fastest-growing region owing to growing awareness of the benefits of market growth. Further, the German Data Analytics market held the largest market share, and the U.K. Data Analytics market was the fastest-growing market in the European Region.

The Asia-Pacific Data Analytics Market is expected to grow at the fastest CAGR from 2022 to 2030 due to high demand from BFSI, IT, Telecom, Retail, Healthcare, Food & Beverage, and Government sectors. Other factors include rising technology spending in countries such as China and India and demand for cost-effective advanced analytics software and services across industries. Moreover, China Data Analytics held the largest market share, and the Indian Data Analytics market was the fastest-growing market in the Asia-Pacific region.

Data Analytics Key Market Players & Competitive Insights

Major market players are spending a lot on R&D to increase their Type lines, which will help the Data Analytics market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new Type launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Data Analytics 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 Data Analytics industry to benefit clients and expand the market sector. The Data Analytics industry has provided medicine with some of the most significant benefits in recent years. In the Data Analytics markets, major players such as IBM Corporation (US), Microsoft (US), Oracle (US), SAP SE (Germany), Amazon Web Services Inc. (US), and others are working on expanding the market demand by investing in research and development activities.

International Business Machines Corporation (IBM), nicknamed Big Blue, is an American multinational technology corporation headquartered in Armonk, New York, with operations in over 175 countries. It focuses on computer hardware, middleware, and software and provides hosting and consulting services in areas ranging from mainframe computing to nanotechnology. IBM is the world's largest industrial research institution, with 19 research institutions in more than a dozen countries, and has held the record for the most annual U.S. patents by an enterprise for 29 consecutive years from 1993 to 2021.

Also, Microsoft Corporation is an American multinational technology company headquartered in Redmond, Washington, USA. Microsoft is best known for its software products, the Windows family of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game console and the Microsoft Surface line of touchscreen personal computers. Microsoft ranks 21st in the 2020 Fortune 500 by total U.S. revenue; as of 2019, it is the world's largest software maker by revenue. It is among the five most significant information technology companies in the United States, along with Alphabet (Google), Amazon, Apple, and Meta.

Key Companies in the Data Analytics market include

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  IBM Corporation (US)

  
  


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  SAP SE (Germany)

  
  


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  Microsoft (US)

  
  


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  Tableau Software LLC. (US)

  
  


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  Oracle (US)

  
  


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  Amazon Web Services Inc. (US)

  
  


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  SiSense Inc (US)

  
  


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  Zoho Corporation Pvt. Ltd. (India)

  
  


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  ThoughtSpot Inc. (US)

  
  


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  Mu Sigma (US)

  
  


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  Looker Data Sciences Inc. (US)

  
  


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  Datameer Inc. (US), among others

  
  

Data Analytics Industry Developments

April 2022: An augmented intelligence enterprise called DataRobot entered a strategic alliance with Wipro. The alliance aims to accelerate customers' business impact by delivering scaled augmented intelligence and helping them become AI-driven organizations. This collaboration will ensure faster implementation of AI strategies and faster time-to-value for businesses.

Data Analytics Market Segmentation

Data Analytics Type Outlook

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  Predictive Analytics

  
  


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  Prescriptive Analytics

  
  


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  Descriptive Analytics

  
  


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  Customer Analytics

  
  

Data Analytics Solution Outlook

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  Data Management

  
  


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  Fraud & Security Intelligence

  
  


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  Data Mining

  
  


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  Data Monitoring

  
  

Data Analytics Application Outlook

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  Enterprise Resource Planning

  
  


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  Supply Chain Management

  
  


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  Human Resource Management

  
  


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  Database Management

  
  

Data Analytics Deployment Outlook

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  Cloud

  
  


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  On-Premises

  
  

Data Analytics Regional Outlook