Financial Analytics Market Size, Share & Industry Analysis, By Application (Revenues Management, Expenses Management, Audit & Compliance, Wealth Management, Customer and Product Profitability, Portfolio Management, and Others), By Deployment Model (On-Premises and Cloud), By Enterprise Size (Small and Medium-sized Enterprises and Large Enterprises), By Industry (Healthcare, BFSI, Retail and Consumer Goods, Energy & Power, IT & Telecom, Automotive and Manufacturing, and Others), and Regional Forecasts, 2024-2032

The global financial analytics market was valued at USD 8.78 billion in 2023 and is projected to grow from USD 9.68 billion in 2024 and reach USD 23.04 billion by 2032, exhibiting a CAGR of 11.5%. North America dominated the global market with a share of 34.05% in 2023. Increasing adoption of pervasive computing devices, rising advanced storage capabilities, and growing innovation of new analytical tools are providing new opportunities to market participants, which is driving the growth of the global financial analytics market.

Additionally, increasing end-user awareness about the benefits of financial analytics solutions, especially real-time data analysis and decision-making, will positively impact the market growth. However, the steady increase in the number of cyber threats and data breaches suggests that critical business and customer information becomes a potential target for hackers and cybercriminals, hindering the market growth. Further, emerging markets, including Latin America and the Middle East and Africa, are expected to offer significant growth opportunities to prominent players due to the limited penetration of financial analytics solutions and infrastructure during the forecast period.

Key players in the market are actively partnering to streamline the process of collecting financial and ESG data. For instance,

• In September 2022, S&P Global, a provider of financial intelligence solutions, announced a partnership with Novata, Inc., a provider of private companies' ESG-based databases. S&P Global market intelligence customers can access Novata’s platform to bridge their financial data with ESG data through this partnership. This, in turn, will help in making data-driven decisions about how ESG drives financial outcomes. 

The coronavirus pandemic had a significant impact on the global market. During the initial months of the pandemic, Financial markets encountered extreme unpredictability and volatility. Numerous industries faced severe disruptions, with investors limiting investments due to unprecedented market fluctuations. The COVID-19 pandemic has emphasized the need for deeper integration of digital technology to sustain the uncertain business environment. Thus, adopting financial analytics is anticipated to increase rapidly during the forecast period.   

Financial Analytics Market Trends

Increasing Focus of Organizations on Data-driven Decision-making Aids the Market Growth

Data-driven business decision-making focus is rising rapidly as it helps organizations stay ahead of the competition. One of the major factors responsible for increasing focus on data-driven decision-making is that it reduces the possibility of biased or subjective judgments. By depending on financial analytics tools, decision-makers make more informed and evidence-based choices. As per a survey conducted by S&P Global in 2022, around 25% of surveyed respondents said nearly all of their decisions are driven by data, while 44% said most are.

Financial Analytics Market Growth Factors

Rising Importance of Predictive Analytics Coupled with Regulatory Compliance Requirements Fuels the Market Growth

Predictive analytics involves the interpretation of financial data to estimate the possibilities of future outcomes. Organizations increasingly adopt predictive analytics to solve complex business problems and improve performance. As global and domestic economic conditions become more and more complex and unreliable, predictive analytics for finance functions is expected to play an extremely crucial role in helping decision-makers respond more effectively. All these factors are expected to drive the industry growth during the forecast period. In addition, an increasingly strict regulatory environment worldwide further augments the market growth. Regulatory compliance is critical for organizations of all sizes to ensure that they operate within legal and ethical boundaries.

RESTRAINING FACTORS

Data Security Concerns Coupled with Shortage of Skilled Professionals to Hamper the Market Growth

As financial analytics involves the processing of sensitive financial data, data security has become one of the major concerns that is anticipated to hinder market growth. More and more data is being stored and processed in the cloud, which increases the risk of unauthorized access, data loss, and cyberattacks. In addition, the shortage of skilled professionals is another key factor expected to limit the industry growth. According to various surveys, there was a shortage of around 1,50,000–2,00,000 data science professionals in 2022. Financial analytics tools require professionals with a range of skills, including logical thinking, excellent knowledge of statistics, ability to interpret results and translate insights into actionable strategies.

Financial Analytics Market Segmentation Analysis

By Application Analysis

Increasing Need for Organizations to Comply with Audit & Compliance Regulations to Boost the Market Growth

Based on application, the market is divided into revenues management, expenses management, audit & compliance, wealth management, customer and product profitability, portfolio management, and others. Audit & compliance segment is expected to grow with the highest CAGR during the forecast period due to the increasing complexity of auditing and compliance regulations worldwide. Data analytics is expected to play a critical role in upcoming years to help leaders to execute a risk-based approach toward internal and compliance audits.

The largest market share is anticipated to be held by the revenues management segment. Using financial analytics tools for revenue management enables businesses to understand better how to manage resources during demand fluctuations. Companies are increasingly analyzing historical revenue trends to create a sustainable business strategy to give them a competitive edge. One of the major benefits of using financial analytics tools for revenue management is improved revenue, as these tools help to understand better customer demand and pricing strategies that maximize revenue.

By Deployment Model Analysis

Cloud Deployment Model to Propel the Market Growth

Based on deployment model, the market is divided into on-premises and cloud. The cloud segment is anticipated to grow at the highest CAGR during the forecast period. Organizations are increasingly moving to cloud-based financial analytics solutions due to various benefits such as cost saving and better data recovery. According to Model N, “2020 State of Revenue – A Survey of Senior Executives”, 9 in 10 senior executives accountable for revenue management of the company noted that their ideal technology solution would be cloud-based.

By Enterprise Type Analysis

Small and Medium-sized Enterprises to Increase the Adoption of Financial Analytics

Based on enterprise type, the market is divided into small and medium-sized enterprises and large enterprises. The Small and Medium-sized Enterprises (SMEs) segment is anticipated to grow at the highest CAGR during the forecast period. SMEs worldwide increasingly embrace digitalization and transform their business models to utilize technological advancements.

The large enterprises segment is anticipated to hold the largest market share due to increasing importance of data-driven decision-making and strategic planning in large enterprises. Various studies show that one-third of large-scale organizations will adopt decision intelligence by 2023 to stay ahead of the competition.

By Industry Analysis

Growing Focus on Optimized Decision-Making to Surge the Market Demand in the BFSI Industry

Based on industry, the market is segmented into healthcare, BFSI, retail and consumer goods, energy & power, IT & telecom, automotive and manufacturing, and others (aviation, government, and others).

The BFSI segment is expected to show the fastest CAGR during the forecast period. The BFSI sector has been growing rapidly due to the growing adoption of digitization. Moreover, the sector is becoming increasingly competitive, empowering modern customers. The BFSI sector increasingly embraces Big Data technologies to manage huge volumes of structured and unstructured data in real time and improve decision-making, risk management, customer experience, and overall operational efficiency.

REGIONAL INSIGHTS

By geography, the market is categorized into five key regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further segmented into countries.

North America is expected to account for the largest financial analytics market share during the forecast period owing to well-established players, increased adoption of Business Intelligence (BI) tools across various sectors, stringent regulatory compliance, and technological developments in this region. The U.S. has maintained its leadership in the North American region on account of rapid developments in digitization. Acquisitions, collaborations, and partnerships by key regional players contribute to the region’s market growth. For instance,

• In June 2021, Fractal Analytics Inc., a provider of artificial intelligence, management consulting, and data analytics services, acquired Samaya.ai, a Revenue Growth Management (RGM) company. This acquisition helped Fractal Analytics Inc. bolster its RGM offerings and help its clients make better business decisions to drive sustainable growth.

Furthermore, the Asia Pacific market is expected to show the highest growth rate during the forecast period owing to the presence of the world’s fastest-growing economies, such as India, China, Japan, South Korea, and Singapore. China's economy is expected to overtake the U.S. economy by 2030. Moreover, India will become the third-largest economy by 2030, overtaking Japan and Germany. The presence of a talent pool is another major factor contributing to the fastest market growth in this region. As per the report by Nasscom (The Trade Association of Indian IT-BPM Industry), India has the 2nd largest AI/ML/Big Data Analytics talent resources worldwide.

The presence of well-established digital infrastructure, a rising focus on risk management, and robust regulatory frameworks drives the Europe market. The European BFSI sector faces various risks, including market volatility and regulatory changes. Financial analytics tools help BFSI organizations to manage such risks better.

In South America, the emergence of startup and innovation ecosystems and cloud computing expansion is expected to drive market growth. Brazil is expected to maintain its leadership position in this region due to the rising awareness of BI solutions.

The Middle East & Africa (MEA) region shows moderate growth, with several major players entering the region's market.      

List of Key Companies in Financial Analytics Market

Key Players are Focused on Improving their Market Position with Continuous Developments

The market is dominated by major companies such as Alteryx, TABLEAU SOFTWARE, LLC, QlikTech International AB, and S&P Global. These players are expanding their operations by adopting mergers, product launches, acquisitions, partnerships, and collaborations.

List of Key Companies Profiled:

• Alteryx (U.S.)


• TABLEAU SOFTWARE, LLC (U.S.)


• QlikTech International AB (U.S.)


• SAP SE (Germany)


• Fractal Analytics Inc.  (U.S.)


• S&P Globalx (U.S.)


• Capgemini (France)


• IBM Corporation (U.S. )


• Accenture (Ireland)


• Microsoft Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: MICROSTRATEGY INCORPORATED, a business intelligence software company, expanded its partnership with Microsoft Corporation, a multinational technology corporation. The partnership will incorporate MicroStrategy’s advanced analytics solutions with Microsoft's Azure OpenAI Service to enable enterprises to harness the full potential of their data.


• May 2023:  QlikTech International AB, a business intelligence solutions provider, acquired Talend Inc., a data integration and management software developer. This acquisition is expected to expand QlikTech International AB's capabilities in various areas, such as data quality, transformation, application connectivity, and API services.


• February 2023: Alteryx launched self-service and enterprise-grade functions to its analytics cloud platform to aid its customers in making faster business decisions. The enhanced platform offers a modern interface without compromising data governance.  


• October 2022: Oracle, a cloud applications and platform services company, announced new product innovations across its broad data and analytics solutions portfolio to help customers make better and faster business decisions. Oracle's customers can now access the prebuilt library of around 2,000 KPIs, dashboards, and reports. 


• November 2022: IBM Corporation, a computer, technology, and IT consulting corporation, launched the latest software to aid enterprises in breaking down data and analytics silos and making data-driven decisions faster.

REPORT COVERAGE

The market research report offers qualitative and quantitative insights into the market and a detailed analysis of the size & growth rate for all possible segments in the market. It also provides an elaborative analysis of market dynamics, emerging trends, and the competitive landscape. The report also offers key insights, such as implementing automation in specific market segments, recent industry developments such as partnerships, mergers, funding, and acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and major industry trends. This detailed analysis provides a comprehensive view of the market and its potential for growth and development.

REPORT SCOPE & SEGMENTATION