Advanced Analytics Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud and On-premise), By Type (Predictive Analytics, Text Analytics, Prescriptive Analytics, Data Mining, Risk Analytics, and Others), By Application (HR, Sales & Marketing, Operations & Supply Chain, Finance & Accounting, and Others), By Industry (BFSI, Retail & Consumer Goods, Manufacturing, Healthcare, IT & Telecom, Media & Entertainment, Government, and Others), and Regional Forecast, 2023-2030

The advanced analytics market size was valued at USD 79.77 billion in 2022 and is projected to grow from USD 97.69 billion in 2023 to USD 434.60 billion by 2030, exhibiting a CAGR of 23.8% during the forecast period (2023-2030). North America accounted for a market value of USD 29.27 billion in 2022. Advanced analytics refers to the use of advanced technologies and tools to autonomously or semi-autonomously examine the data and content beyond traditional business intelligence techniques. Unlike traditional analytics techniques, advanced analytics focuses on historical data using various techniques, such as data mining, machine learning, predictive modelling and statistical analysis.

The growing usage of analytics tools helps organizations uncover hidden patterns, trends, and correlations to optimize their business processes. It also helps to boost operational efficiency, improve the organization’s performance and reduce time to make informed and data-driven decisions. According to a research study, 98% of organizations said that analytics are important to driving business priorities. It helps to leverage the use of various analytics techniques to improve the customer experience.

IoT integration, growing demand for predictive insights, and reducing the cost of data storage for organizations are the key factors boosting market growth.

COVID-19 IMPACT

Increased Need for Developing Predictive Analytics Models in the Healthcare Industry During Pandemic Boosted Market Growth

The increased demand for remote work policies during the COVID-19 pandemic has driven the growth of global data analytics and remote management solutions. Amid the global pandemic, organizations adopted advanced business analytics solutions and techniques to monitor employee engagement and performance to boost organizational productivity. The usage of advanced analytical tools and techniques across the healthcare industry helped in predicting and tracking the spread of the virus by developing predictive models for public health planning. It also helped in optimizing the healthcare resources by making data-driven decisions.

The increase in digital transformation and high dependency on data analytics techniques accelerated the adoption of analytics tools across different industries such as healthcare and finance and different supply chains to provide real-time insights. An increase in work-from-home operating models during the pandemic enabled the adoption of advanced analytics to enhance workforce productivity and improve cybersecurity measures to protect data from inside and outside threats.

Advanced Analytics Market Trends

Integration of AI and ML Technology with Advanced Analytics Tools for Actionable Insights to Boost Market Growth

The rising integration of edge computing with analytical tools boosts real-time processing and data analysis with improved security and reliability. According to a research survey, 71% of firms actively use analytics techniques to bring data-driven decisions into everyday life. Thus, many companies have shifted from simple statistical analytics to advanced analytics to predict the future and help analyze historical data.

The growing integration of Artificial Intelligence (AI) and Machine Learning (ML) with data analytics and Business Intelligence (BI) tools combining machine learning models with business intelligence to derive deep data insights by improving the accuracy and efficiency of business operations. AI and ML integrated with analytics tools improves the ability to analyze complex data sets and aims to derive actionable data insights. This factor is expected to drive the advanced analytics market growth during the forecast period.

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Advanced Analytics Market Growth Factors

Surge in Demand for Advanced Analytics Tools for Improving Risk Management to Drive Market Growth

The growing volume, velocity, and variety of data generate the need for rich data sources for data analysis and allow organizations to take advantage of analytical technique to gain a competitive edge in making data-driven decisions. It helps organizations build predictive models for predicting the risks that occur, which include financial risks, operational risks, and supply chain risks. It develops different risk management approaches to incorporate analytics technology throughout the risk management process, from identification, assessment, mitigation, and monitoring.

• According to industry experts, nowadays, the volume of daily data production is huge, and it exceeds 180 zettabytes by 2025. Thus, the organizations implement data analytics to mitigate the risks and to improve the overall business performance.

Advanced data analytics for risk management enables the implementation of more advanced fraud detection techniques to analyze social media, transactional, and geospatial data by identifying suspicious patterns and trends. Increasing changes in market demand, changing consumer preferences, and competitive pressures have a huge impact on revenue generation. Thus, to predict future risks in business operations, the demand for predictive analytics tools is expected to increase rapidly during the forecast period.

RESTRAINING FACTORS

Lack of Data Security and Privacy Restricts the Market Growth

A large amount of structured and unstructured data is created via internet searches, GPS location information, social media, stock transactions, and various internet-connected devices. As various organizations gather and analyze a huge amount of data to derive proper insights, there is a risk of incidents that cause data leakage and data breaches of confidential information, including legal, reputational, and financial consequences.

Despite the growing popularity of analytics tools, an organization's culture and resistance to adopting data-driven decision-making techniques may impede the usage of data analytical tools in business processes. The government has implemented data protection regulations, such as the General Data Protection Regulation (GDPR), to restrict the usage of data and provide guidelines for ethical data handling and protecting personal data. This factor limits the availability of data, which restricts the accuracy and reliability of analytics results. This factor has a huge impact on utilizing certain types of data for analysis. Thus, the lack of data privacy and security concerns restricts the market growth.

Advanced Analytics Market Segmentation Analysis

By Deployment Analysis

Rising Need to Manage Large-Sized Complex Data Aims to Drive Cloud Segment Growth

Based on deployment, the market is divided into cloud and on-premise.

Among these, the cloud-based segment is estimated to grow with the highest CAGR over the forecast period. It is due to the fact that cloud analytics tools analyze and extract deep data insights from large data sets, as cloud deployments are capable of performing complex data analysis and are easy to use. Cloud-based analytics tools don’t require the maintenance of physical hardware, hence reducing the processing time and providing continuous monitoring of data.

Moreover, the need for hardware, large storage, and high computing power to install on-premise analytics solutions requires high investment. As organizations need to meet the specific requirements of customers, servers and other components need more maintenance.

Hence, demand for the adoption of cloud analytics tools is high compared to on-premise tools.

By Type Analysis

Increase in Number of Fraudulent Cases Surge the Demand for Risk Analytics Segment Growth

Based on type, the market is divided into predictive analytics, text analytics, prescriptive analytics, data mining, risk analytics, and others.

The risk analytics segment holds the largest market share and is predicted to grow with the highest CAGR during the forecast period. This is due to the rising demand for risk management solutions among different industry verticals to assess and analyze various risk scenarios, leading risk evaluation and decision-making processes. Thus, to optimize the risk assessment process, enhance fraud detection, and improve security compliance, the need for risk analytics techniques is increasing day by day.

The predictive analytics segment is set to grow with the second-largest CAGR over the forecast period as it makes predictions about certain unknowns in the future. The integration of AI, data modelling, data mining, machine learning, and statistical techniques helps to determine the future performance of the industry verticals.

Thus, the risk analytics segment has more rapid growth than any other type.

By Application Analysis

Advanced Technology Integration in Finance and Accounting Applications for Improving Operational Efficiency to Fuel Segment Growth

By application, the market is divided into HR, sales & marketing, operations & supply chain, finance & accounting, and others.

Among these, the finance and accounting segment is set to grow with the highest CAGR over the forecast period. It is due to banks making data-driven decisions to improve operational efficiency and detect fraud cases by using advanced technologies. The usage of analytics techniques among banks and financial firms reduces operational costs and provide personalized customer experience to users.

Meanwhile, the sales and marketing segment holds the largest market share due to the need for customer engagement and predictive modelling for personalized marketing campaigns. The integration of advanced analytics techniques with sales and marketing helps to boost the performance of marketing processes in order to bring effective output.

By Industry Analysis

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Growing Need for Advanced Analytics Tools in the BFSI Industry to Detect Fraudulent Activities Drive Segment Growth

Based on industry, the market is segmented into BFSI, retail & consumer goods, manufacturing, healthcare, IT and telecom, media & entertainment, government, and others.

The BFSI segment holds the largest market share among these industries and is projected to grow with a high CAGR over the forecast period. The integration of advanced analytical tools to detect unusual patterns in transactions and detect potential fraudulent activities helps to reduce financial risks. The use of statistical and ML techniques generates insights to bring development in front and back office data, which helps improve operational efficiency and enhance data accuracy.

Furthermore, the retail & consumer goods segment holds the second largest share due to the rising integration of predictive analytics techniques to predict market conditions and other relevant situations in the retail & consumer goods sector.

The manufacturing sector is expected to grow with the second largest CAGR over the forecast period due to the usage of advanced analytics tools, accelerating the digital transformation in manufacturing industries to analyze and predict new market opportunities across the world. It enhances operational efficiency and provides security to the systems by using zero-touch data operations.

REGIONAL INSIGHTS

The global market is studied across the regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

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North America is projected to account for the largest advanced analytics market share due to the presence of a huge number of data analytics tool providers across the region. According to the industry experts, 55% of North American businesses have adopted big data analytics to bring development to the company’s operational processes and improve business performance. Furthermore, the presence of a large number of start-ups and companies are adopting cutting–edge technologies in countries, such as the U.S. and Mexico, generates demand for the adoption of analytics tools to bring automation to companies’ infrastructure.

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Asia Pacific is set to rise with the highest CAGR over the forecast period due to increasing spending on big data and analytics in countries, such as China and India. According to researchers, there is a huge adoption of AI technology in industrial products and manufacturing and retail sectors among Indian enterprises due to increasing development in digital transformations across these sectors. Furthermore, growing investments in small and medium-sized companies of different industries for implementing AI/ML solutions to boost the organization's performance fuel the demand for analytics tools. These factors are responsible for market growth in the region.

Europe is predicted to secure a significant CAGR over the projected period due to the growing adoption rate of artificial intelligence in European countries, such as France, Germany, Italy, and Spain. This adoption brings automation across different industry verticals to boost the operational performance of the organizations. According to our research, the adoption rate for deployed and exploring AI in countries, such as France, Germany, Italy, and Spain is around 75%, 78%, 83%, and 76%, respectively. Thus, the rising adoption of AI among European companies shows the development of modern IT infrastructure to optimize their business processes.

The Middle East & Africa is estimated to grow with the third leading CAGR over the forecast period due to increasing government investments in bringing digital transformation in modern infrastructure development across various industries. In comparison, the rapid adoption of technology and increasing adoption of AI across GCC countries due to a surge in data generation and data processing techniques boost market growth in the region.

Similarly, South America is in a growing phase due to enterprises' increasing investments in strengthening their analytics capabilities to fulfil the demands generated by customers and expand their businesses by generating more data insights across their infrastructures.

List of Key Advanced Analytics Market Companies

Increasing Investments in Partnerships by Key Players to Boost Market Expansion

Leading companies are making partnerships to boost innovation in advanced analytics to improve their supply chain operations. Rapid innovations in product offerings are supporting key market participants in maintaining their competitive edge. They are concentrating on acquisitions, strategic partnerships, product introductions, and collaborations to increase their business and distribution network to fuel their market revenue.

List of the Key Companies Profiled:

• AVEVA Group Limited (U.S.)


• RapidMiner, Inc. (U.S.)


• Experian Information Solutions, Inc. (U.S.)


• IBM Corporation (U.S.)


• Oracle Corporation (U.S.)


• Teleperformance Group (France)


• Altair Engineering, Inc. (U.S.)


• SG Analytics Pvt. Ltd. (U.S.)


• Alteryx (U.S.)


• Intel Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 – FICO, the advanced analytics software provider, launched its new cloud-based platform in India for banking to reshape its business models and deliver better customer experience. Adopters of this cloud-based analytics platform include AU Small Finance Bank, HDFC Bank and Axis Bank.


• June 2023 – Alteryx, an analytics platform provider, partnered with Snowflake to develop automated decision intelligence cloud capabilities to enable users to drive deep analytics insights in a minimum time duration.


• May 2023– Teradata partnered with FICO and launched new advanced analytics for delivering real-time deep data insights for payment frauds, supply chain optimizations and insurance claims to increase risk mitigation and enhance profits.


• May 2023- SAS SE invested USD 1.00 Billion over the next three years to develop analytics solutions for different industries, which include government, banking, healthcare, retail, energy, manufacturing, and many more.


• August 2022 – Teradata developed a new advanced analytics offering named VantageCloud Lake to manage the workload management capabilities and efficiency of the storage in the cloud.

REPORT COVERAGE

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The advanced analytics market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key End-user developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over the recent years.

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