Advanced Analytics Market Size and Forecast to 2031 (2024)

Global Advanced Analytics Market size was valued at around USD 41.85 billion in 2022 and is expected to rise from USD 64.3 billion in 2023 to reach a value of USD 480.99 Billion by 2031, at a CAGR of 28.6% during the forecast period (2024–2031).

The growth of the global advanced analytics market is the rise in use of computer learning and artificial intelligence (AI) to provide personalized consumer experiences, coupled with the rise in popularity of online shopping. Besides this, the expanding adoption of social networking platforms is another key factor fueling this market's expansion. The amount of data collected by companies throughout the world has increased exponentially in recent years. In order to make better, timely, and fact-based decisions, many firms get insights from the collected data. For data management and strategic decision-making, this has particularly translated into an increase in demand for sophisticated analytics solutions.

Furthermore, developments in the big data space have aided in enhancing the evaluation skills of data science experts. Enterprises can improve key company processes, goals, and operations by utilizing big data analytics. By transforming information into intelligence, organizations may meet stakeholder requests, manage the amount of data, manage risks, enhance process controls, and increase administrative performance.

The market is anticipated to expand as a result of the increasing use of advanced analytics tools for applications including predicting and forecasting electricity consumption, the trade market, and traffic trend predictions. Utilizing advanced analytics in demand forecasting can support businesses in making profitable decisions. Governmental organizations and other sectors, including banking, manufacturing, and business services, have recently made significant investments in big data analytics.

For instance, to make their data sets informative and maintain their competitiveness in the market, international banks are optimizing information, such as the data collected through social media feeds, client transactions, and service inquiries, to create based on data Business-Intelligence (BI) models and implement developed predictive analytics. The industry is being driven by developments in location-based services and the ongoing integration of advanced analytics into geographic information systems (GIS).

Numerous healthcare institutions are heavily utilizing cutting-edge analytical methods to obtain clinically significant results through the exploratory mining of patient Electronic Health Records (EHRs). By reducing costs, this could help to improve patient care outcomes including patient health and patient safety. Additionally, healthcare data mining is using AI-integrated data analytics technologies to create individualized treatment regimens. For instance, in 2021 IBM announced a cooperation with Palantir Technologies, a big data analytics software company, to give institutions, researchers, and healthcare providers consistent datasets for analysis and the generation of results for their operations and patients.

US Advanced Analytics Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024–2031

The global advanced analytics market is segmented based on type, business function, vertical, offering and region. Based on Type, the market is segmented into Big Data Analytics, Predictive Analytics, Customer Analytics, Risk Analytics, Statistical Analysis, Prescriptive Analytics and Other. Based on Business Function, the market is segmented into HR, Sales and Marketing, Finance and Accounting, Operations and Supply Chain, Others. Based on Vertical, the market is segmented into BFSI, Government and Defense, Healthcare and Sciences, Media and Entertainment, IT & ITEs, Telecom, Retail and Customer Goods, Manufacturing, Automotive and Transportation, and Others. Based on Offering, the market is segmented into Solutions (Cloud and On Premises) and Services (Professional Services [Training & Consulting, System Integration & Implementation, Support & Maintenance] and Managed Services). Based on Region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

Analysis by Type

Big data analytics accounted for more than 35% of the market in 2022 and is projected to continue dominance during the forecast period. The growth of social media platforms and the emergence of online businesses that produce huge volumes of data can be attributed to the segment's expansion. SaaS-based big data analytics have also simplified automation installation and enabled the building of potent analytical models utilizing a self-service paradigm. The rising demand for big data analytics solutions has pushed big data service providers to boost their investments in cloud technologies in order to gain a competitive edge.

The consumer analytics market is expected to have a spectacular CAGR of 20.1% due to the increased demand for improved lead management, customer retention, and customer experience management. Customer analytics are widely used in the retail industry to develop personalized communications and marketing strategies.

The segment has grown as a result of consumers' increasing need for omnichannel experience in the retail industry. Several social media platforms, like Facebook and YouTube, have been effectively used by major businesses like Amazon and Walmart. The market is anticipated to grow as more retail companies concentrate on offering their customers omnichannel options.

Analysis by Deployment

The on-premise market share was greater than 45%. On-premise solutions allow organizations more flexibility and control over how they customize their IT infrastructure, while also reducing their dependency on the internet and protecting important company data from theft and fraud. It is projected that these advantages will persuade major organizations to choose on-premise deployment.

Furthermore, due to increased concerns about frauds such as new account fraud and account takeovers, organizations in the BFSI industry prefer the on-premise solution. On-premise firms are less vulnerable to these scams, which bodes well for the segment's growth.

The cloud segment is expected to witness significant growth over the forecast period. The increased penetration of IoT and Cloud Computing is expected to boost the demand for cloud solutions. Advanced cloud analytics solutions continue to influence how organizations run, organize, and use data generated by their digital channels.

Additionally, key players such as International Business Machines Corporation, SAP SE, and Microsoft Corporation are focusing on developing customized solutions that can enable companies to smoothen their multi-cloud journeys. For instance, Microsoft Corporation offers its big data analytics software through the Microsoft Azure cloud service.

North America represented a significant market share of more than 45% of the globally advanced analytics market. This is due to the availability of supporting infrastructure for the application of cutting-edge analytics, as well as a surge in the usage of advanced technologies like AI and machine learning.

Asia Pacific market is anticipated to grow at a large CAGR of 23.5% over the forecast period. The region's increased usage of big data analytics solutions and tools is driving the regional market's rise. Furthermore, some companies in the region are investing heavily in consumer analytics in order to improve corporate efficiency and production. In addition, regional travel companies including China Ways LLC, TNT Korean Travel, and Trafalgar are integrating analytical tools for applications like tracking buses, train schedules, problems, and traffic management.

Advanced Analytics Market Drivers

Growing Demand for Data-driven Insights

• With the increasing amount of data being generated, there is a growing need for advanced analytics solutions to derive insights and make informed decisions.

Investment in R&D

• Companies are increasingly investing in research and development to enhance their analytics capabilities. This includes developing new algorithms, improving data integration, and exploring innovative applications of advanced analytics.

Advanced Analytics Market Restraints

Lack of Skilled Personnel

• The advanced analytics market requires highly skilled personnel who are proficient in data science, statistics, and programming. The shortage of skilled personnel can impede the growth of the market.

Lack of Data Security and Privacy

• With the increasing volume of data being generated, concerns around data privacy and security are paramount. Regulations such as GDPR in Europe and CCPA in California impose strict data protection requirements, which can limit the use of certain types of data for analytics purposes.

A few huge players dominate the market. However, in recent years, the advent of niche competitors offering solutions tailored to the industry has altered market dynamics. Companies can be observed pursuing mergers, acquisitions, and alliances in order to improve their products and obtain a market advantage. Companies are developing new products and improving existing ones in order to get new clients and expand their market share. RapidMiner, Inc., for example, announced an agreement with Hivecell, an Edge-as-a-Service firm, in 2021. The cooperation aims to enable users to quickly construct and run models with data that streams from the edge.

Advanced Analytics Market Top Player’s Company Profiles

• IBM

• Microsoft Corporation

• SAP SE

• Oracle Corporation

• SAS Institute Inc.

• Amazon Web Services Inc.

• Google LLC

• Teradata Corporation

• Alteryx, Inc.

• MicroStrategy Incorporated

• TIBCO Software Inc.

• Qlik Technologies Inc.

• Tableau Software, LLC

• RapidMiner, Inc.

• KNIME AG

• FICO (Fair Isaac Corporation)

• Databricks, Inc.

• Cloudera, Inc.

• Talend Inc.

• MathWorks, Inc.

Advanced Analytics Market Recent Developments

• In July 2024, The Maxwell Centre at the University of Cambridge announced their strategic partnership with SAS, a global leader in data and analytics, to accelerate healthcare innovation. By combining Cambridge's world-class research with SAS' advanced analytics capabilities, the collaboration aims to develop groundbreaking solutions for complex healthcare challenges. This partnership will foster innovation, improve patient outcomes, and drive the future of healthcare.
• In July 2024, CallTower, a global leader in delivering unified communications, including Microsoft Teams, Webex by Cisco, and Zoom, announced that they are partnering with Tollring to deliver advanced call analytics on Microsoft Teams with Analytics 365. This cutting-edge solution, designed specifically for Microsoft Teams, revolutionises the way organisations harness call data insights to enhance team performance, improve customer engagement and maximise revenue.
• In February 2024, Blu Parrot, a leader in data analytics, has entered into a strategic partnership with Bright Data, a global leader in public web data collection. This collaboration aims to enhance Blu Parrot's data analytics capabilities by leveraging Bright Data's vast and diverse dataset. By combining their expertise, the two companies will deliver more comprehensive and actionable insights to clients across various industries.

• Artificial Intelligence (AI) and Machine Learning (ML) Dominance: AI and ML are emerging as the dominant technologies in advanced analytics. These technologies can help organizations extract insights from complex and unstructured data and automate decision-making processes.

• Cloud-based Solutions: Cloud-based solutions are gaining popularity due to their scalability, cost-effectiveness, and ease of deployment. With the rise of hybrid and multi-cloud environments, cloud-based advanced analytics solutions are becoming more critical for organizations.

• Natural Language Processing (NLP): NLP is gaining momentum as an essential technology for advanced analytics solutions. NLP can help organizations derive insights from unstructured data, such as customer feedback and social media, which can provide valuable insights into customer behavior and preferences.

• Predictive Analytics: Predictive analytics is a key trend in the advanced analytics market. It can help organizations anticipate future events and outcomes, enabling them to make informed decisions and take proactive measures to optimize their operations.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our global advanced analytics market analysis, we found that the rise in popularity of online shopping, and the expanding adoption of social networking platforms are the key factors fueling the market's expansion. The amount of data collected by companies throughout the world has increased exponentially in recent years. In order to make better, timely, and fact-based decisions, many firms get insights from the collected data. For data management and strategic decision-making, this has particularly translated into an increase in demand for sophisticated analytics solutions.