Software Analytics Market

Rapid adoption of AI, machine learning (ML) methods, and the Internet of Things (IoT) is driving the market growth

Edge computing is particularly applicable to Industrial IoT due to its faster response times and real-time data processing capabilities. Furthermore, increasing edge computing adoption is anticipated to open up attractive market potential by increasing database quantity.

Data is rapidly growing due to the expanding use of digital solutions globally in industries including banking, healthcare, BFSI, retail, agriculture, telecommunications and media. For instance, using artificial intelligence in agriculture significantly impacts pest control, precision farming, and risk management. The amount of data produced by smart machinery, soil sensors, and GPS-equipped tractors is enormous. In agriculture, big data analytics evaluates enormous data sets, including advanced risk assessment, supply tracks, natural patterns, optimal crops, and more. Similar to how businesses are using bots to modernize and automate working processes.

Also, virtual assistants like Apple's Siri, Google Assistants, and Amazon Alexa produce a tonne of data. For instance, 8.2 billion digital voice assistants were used in 2020. Smartphone technology and network access improvements have increased social media usage. Thus, driving the software analytics market revenue.

The Global Software Analytics Market Industry is poised for substantial growth, with projections indicating a market size of 6.63 USD Billion in 2024 and an anticipated increase to 17.2 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 9.06% from 2025 to 2035, reflecting the increasing reliance on software analytics across various sectors. As organizations continue to recognize the value of data-driven insights, the market is likely to expand, driven by technological advancements and evolving business needs.

Regulatory compliance and data governance are becoming increasingly critical in the Global Software Analytics Market Industry. Organizations are required to adhere to stringent regulations regarding data privacy and security, which necessitates robust analytics solutions to ensure compliance. This demand for governance tools is driving the adoption of software analytics, as companies seek to mitigate risks associated with data breaches and non-compliance penalties. The emphasis on data integrity and security is likely to bolster market growth, as organizations invest in analytics solutions that provide transparency and accountability in their data handling practices. This trend underscores the importance of analytics in navigating the complex regulatory landscape.

The transition to cloud-based solutions is a pivotal driver for the Global Software Analytics Market Industry. Organizations are increasingly migrating their analytics operations to the cloud to benefit from scalability, flexibility, and cost-effectiveness. Cloud-based analytics platforms allow for real-time data processing and collaboration across geographies, which is particularly advantageous for multinational corporations. This shift is expected to contribute to a compound annual growth rate of 9.06% from 2025 to 2035, as businesses recognize the advantages of cloud technology. The Global Software Analytics Market Industry is thus positioned to grow as more organizations embrace cloud solutions for their analytics needs.

The Global Software Analytics Market Industry experiences a notable surge in demand as organizations increasingly prioritize data-driven decision making. Companies are leveraging analytics tools to derive actionable insights from vast datasets, enhancing operational efficiency and strategic planning. In 2024, the market is projected to reach 6.63 USD Billion, reflecting a growing recognition of the value of data analytics. This trend is particularly evident in sectors such as finance and healthcare, where data insights can lead to improved customer experiences and optimized resource allocation. As organizations continue to embrace this paradigm, the Global Software Analytics Market Industry is likely to expand significantly.

Enhancing customer experience is a primary focus for businesses, significantly influencing the Global Software Analytics Market Industry. Companies are utilizing analytics to gain insights into customer behavior, preferences, and feedback, enabling them to tailor their offerings accordingly. This customer-centric approach not only fosters loyalty but also drives revenue growth. As organizations increasingly recognize the importance of understanding their customers, the demand for analytics solutions that facilitate this understanding is likely to rise. The Global Software Analytics Market Industry is thus expected to expand as businesses invest in tools that enhance customer engagement and satisfaction.

Technological advancements in artificial intelligence and machine learning are propelling the Global Software Analytics Market Industry forward. These innovations enable more sophisticated data analysis, allowing organizations to uncover patterns and trends that were previously difficult to identify. The integration of AI and ML into analytics platforms enhances predictive capabilities, thereby facilitating proactive decision making. As businesses increasingly adopt these technologies, the market is expected to witness substantial growth, with projections indicating a rise to 17.2 USD Billion by 2035. This evolution signifies a shift towards more intelligent analytics solutions, which could redefine how organizations interact with their data.

By Region, the report provides market insights into Asia-Pacific, North America, Europe, and Rest of the World. The North American software analytics area will dominate this market. This is because a readily available infrastructure supports cutting-edge analytics and because cutting-edge technologies like AI and machine learning are becoming more prevalent. For instance, Microsoft Corporation announced in December 2021 a partnership with Consumer Value Store (CVS) Health, a provider of healthcare solutions, to create cutting-edge solutions to assist consumers in improving their health. CVS Health would use Azure cognitive services like Computer Vision and Text Analytics for Health for task automation.

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

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

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's software analytics market accounts for the second-largest market share. The use of modern communication, network solutions, electronic gadgets, social media, connected devices, and other technologies has been greatly accelerated across Europe. The region's rapidly expanding data is projected to drive up demand for analytics technologies. According to a report by the European Parliament, data analytics methods in Europe could increase industry productivity. Further, the German software analytics market held the largest market share, and the UK software analytics market was the fastest-growing market in the European region

The Asia-Pacific Software Analytics Market is expected to grow at the fastest CAGR from 2023 to 2032. The regional market is expanding due to big data analytics tools and solutions being widely used there. Also, several businesses are investing significantly in customer analytics to boost productivity and efficiency. Moreover, China’s software analytics market held the largest market share, and the Indian software analytics market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the software analytics market, grow even more. Market participants are also undertaking different strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the software analytics industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the software analytics industry to benefit clients and increase the market sector. In recent years, the software analytics industry has offered some of the most significant advantages to medicine. Major players in the software analytics market, including Microsoft Corporation (U.S.), Oracle Corporation (U.S.), SAP SE (Germany), SAS Institute (U.S.), and others, are attempting to boost their market demand by investing in research and development operations.

Microsoft Corporation is a multinational technology company based in Redmond, Washington. The Windows operating system, the Microsoft Office suite, and the Internet Explorer and Edge web browsers are among Microsoft's most well-known software products. Its major hardware products are the Xbox video game consoles and the Microsoft Surface family of touchscreen personal PCs. In March 2022, Microsoft introduced Azure Health Data Services. It is a Platform as a Service (PaaS) created primarily to serve analytical and transactional workloads. It integrates health data and drives cloud-based Artificial Intelligence (AI) that only supports Protected Health Information (PHI).

The International Business Machines Corporation (IBM), or Big Blue, is a multinational technology business headquartered in Armonk, New York, with operations in over 175 countries. It specializes in computer hardware, middleware, and software, as well as hosting and consulting services spanning from mainframe computers to nanotechnology. In November 2022, IBM announced the launching of Business Analytics Enterprise, a business intelligence and analytics suite. The solution is intended to assist enterprises in breaking down data barriers and silos produced by employing diverse analytics tools across different departments.

According to the company, the new suite will include a new Analytics Content Center and upgraded versions of Planning Analytics and Cognos Analytics with IBM Watson.