Analytics Market to Grow by USD 286.5 Billion from 2024-2028, with AI Driving Market Transformation Amid Increasing Data Availability and Complexity – Technavio

News provided byTechnavio 

Sep 24, 2024, 17:52 ET

NEW YORK, Sept. 24, 2024 /PRNewswire/ — Report on how AI is driving market transformation- The global analytics market size is estimated to grow by USD 286.5 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  15.06%  during the forecast period. Growing availability and complexity of data is driving market growth, with a trend towards growing advances in nlp, ml, and ai technologies. However, data privacy and security concerns  poses a challenge. Key market players include Accenture Plc, Alphabet Inc., Amazon.com Inc., Dell Technologies Inc., Infor Inc., Informatica Inc., Infosys Ltd., International Business Machines Corp., Open Text Corporation, Microsoft Corp., MicroStrategy Inc., Oracle Corp., QlikTech international AB, Salesforce Inc., SAP SE, SAS Institute Inc., TIBCO Software Inc., Wipro Ltd., and WNS Holdings Ltd..

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Market Driver

The analytics market is experiencing significant growth due to advancements in Natural Language Processing (NLP), processing speed, and Machine Learning (ML) models. Artificial Intelligence (AI), a technology in the AI field, is a key driver of this growth. Companies worldwide are investing in AI to develop systems that can interpret data contextually, provide analysis, and trigger activities based on findings. ML and neural network techniques enable machines to think more like humans, reducing human errors, creating precise analytic models, and transforming data-collecting devices into powerful analytic tools. Applications such as natural-language-based search interfaces, automated suggestions, and automated model building are being developed using AI/ML algorithms to help analysts and users find meaningful insights easily. Organizations are utilizing these technologies to enhance operational efficiencies, better understand customer behaviors, and gain a competitive edge. ML is being used for traditional analysis purposes, including fraud and risk analysis, customer behavior analysis, and asset management for preventive maintenance. Analytics solutions from vendors offer these capabilities, ensuring businesses remain relevant and advanced in their industries. 

Businesses are increasingly leveraging data analytics to gain insights and drive corporate growth. Historical trends show a significant shift towards statistical strategy in managing data. Big data analytics is a major trend, with large enterprises leading the way. Social media analytics and text analytics are key business prospects, providing valuable information from advertising campaigns, product promotions, events, and social media platforms. Client demands for real-time data analysis are on the rise, requiring advanced analytical tools and machine learning algorithms. Security is a growing concern, with real-time security, network security, data loss incidents, and cyberattacks becoming common issues. Mobile technology and Internet-connected devices, including mobile networks, Wi-Fi, and the Internet of Things, are generating massive volumes of unstructured data. SaaS-based data analytics, customer analytics, and edge computing are popular solutions for managing this data. Industrial IoT and the retail sector are major areas of focus, with the omnichannel experience a key business opportunity. IT infrastructure, web, and security are critical areas of investment for businesses in today’s data-driven world. Theft and fraud are significant challenges, with the cloud segment offering potential solutions. 

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Market Challenges

• The Internet of Things (IoT) revolution has led to an increased interconnectivity and data sharing, posing significant challenges for data privacy and security in organizations. With the growing number of devices connected to the Internet and dependent on private and public networks, securing the transfer of critical data becomes essential. IoT networks consist of multiple devices, increasing the risk of data theft. Cybersecurity concerns have become more prevalent as the physical and virtual worlds converge, leading to potential economic losses from cyber-attacks. From a customer perspective, sharing personal data raises serious concerns. Many consumers are unaware of the extent of data being shared with companies and how third-party vendors use it. In January 2022, a hacker gained unauthorized access to Crypto.com, compromising 483 user wallets and resulting in a loss of approximately USD33.8 million in cryptocurrency. Such incidents highlight the importance of addressing privacy and security issues. Despite regulations tightening around data safety, cybercrimes continue to occur. These factors may hinder the growth of the analytics market during the forecast period.
• In today’s IT industry, analytics is undergoing an industrial revolution. Automation is a major challenge for businesses as they adopt smart applications in various sectors. In agriculture, GPS-equipped tractors and soil sensors are revolutionizing farming. In industries, smart machines and IoT are transforming production. The predictive analytics segment is a game-changer for client experience management, customer retention, and lead management. Security intelligence is crucial to prevent fraudulent activity. Businesses use business intelligence software for data mining in banking, healthcare, telecom, and more. Supply chain management and enterprise resource planning rely on prescriptive and descriptive analytics. Data management, data monitoring, and database management are essential for data security. Human resource management also benefits from analytics. Digital marketing, including Google Ads, e-commerce, email campaigns, and social media advertising, uses analytics for effective targeting. Overall, analytics is a key driver for growth in various sectors.

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Segment Overview 

This analytics market report extensively covers market segmentation by  

1. Component
   • 1.1 Services
   • 1.2 Software
   • 1.3 Hardware
2. End-user
   • 2.1 BSFI
   • 2.2 Manufacturing
   • 2.3 Retail
   • 2.4 Healthcare
   • 2.5 Others
3. Geography
   • 3.1 North America
   • 3.2 Europe
   • 3.3 APAC
   • 3.4 Middle East and Africa
   • 3.5 South America

1.1 Services-  The Analytics Market is a significant business sector that uses data to gain insights and make informed decisions. Companies in various industries rely on analytics to understand customer behavior, optimize operations, and identify new opportunities. The market is driven by the increasing availability of data and the need for businesses to gain a competitive edge. Analytics solutions help organizations improve efficiency, reduce costs, and enhance customer experience. Key players in the market include IBM, Microsoft, Oracle, SAS, and SAP.

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Research Analysis

The analytics market is experiencing significant growth as businesses increasingly rely on data to drive corporate growth and gain a competitive edge. Historical trends indicate a shift towards big data analytics, with companies leveraging statistical strategy to derive insights from vast amounts of data. This includes social media analytics for understanding consumer behavior and text analytics for sentiment analysis. Machine learning and artificial intelligence are key technologies driving this trend, enabling individualized consumer experiences in sectors like online shopping and advertising campaigns. Social networking platforms, Google Ads, email campaigns, and social media advertising are major areas of investment. Business prospects are further enhanced by the integration of analytics into business intelligence software, ERP systems, SCM, HRM, and database management. Data security remains a critical concern, with advanced analytics solutions providing protection against cyber threats.

Market Research Overview

The analytics market is a dynamic and evolving industry focused on extracting valuable insights from data to drive corporate growth and make informed business decisions. Historical trends indicate a significant shift towards big data analytics, particularly in the large enterprise segment. Business prospects are vast, with applications ranging from social media analytics and text analytics for advertising campaigns and product promotions to client demands for personalized consumer experiences in retail and online shopping. The rise of mobile devices and internet-connected devices, including the Internet of Things (IoT), machine learning algorithms, and artificial intelligence, have expanded the scope of data analytics. However, security issues, such as real-time security, network security, data loss incidents, and cyberattacks, remain critical concerns. Industries like retail, banking, and IT are leading the way in adopting advanced analytics tools, including edge computing, SaaS-based data analytics, and business intelligence software. The predictive analytics segment is also gaining traction, offering opportunities for risk-related decisions, fraudulent transaction detection, and customer retention. The future of analytics is bright, with advancements in machine learning, AI, automation, and smart applications set to revolutionize industries, from agriculture and manufacturing to transportation and healthcare. However, addressing security challenges and ensuring data privacy will remain essential to the success of analytics initiatives.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Component
  • Services
  • Software
  • Hardware
• End-user
  • BSFI
  • Manufacturing
  • Retail
  • Healthcare
  • Others
• Geography
  • North America
  • Europe
  • APAC
  • Middle East And Africa
  • South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio