Cloud Analytics Market Size, Share & Industry Analysis, By Solution (Cloud Business Intelligence (BI) Tools, Enterprise Information Management, Governance, Risk, and Compliance, Enterprise Performance Management, Analytics Solutions, and Others), By Deployment (Public, Private, and Hybrid), By Organization Size (Small & Medium Enterprises, and Large Enterprises), By End-User (BFSI, IT and Telecommunications, Retail and Consumer Goods, Healthcare and Life Sciences, Manufacturing, Research & Education, Others), and Regional Forecast, 2024-2032

The global cloud analytics market size was valued at USD 33.05 billion in 2023, and is projected to grow from USD 39.88 billion in 2024 and reach USD 147.19 billion by 2032, exhibiting a CAGR of 17.7% during the forecast period. North America dominated the global market with a share of 33.22% in 2023.

Integrating analytics solutions into the cloud platform has enabled companies to gain greater control over business operations and stay competitive in the market. Cloud analytics is a service model that covers business intelligence or data analytics conducted on a private or public cloud to minimize the expense and maintenance costs involved with on-premises data storage and computation.

The increasing availability of data connectivity through multi-cloud and hybrid environments, various benefits of analytics solutions integrated into the cloud, and the growth of big data technology are some of the major factors driving the growth of the global market. Key players operating in the market are actively taking key initiatives to offer differentiated and customized solutions that will enable companies to smoothen their multi-cloud journey. For instance,

• In June 2023, Salesforce and Google Cloud announced an extended strategic partnership. The move aimed at aiding businesses deploy AI and data to deliver more tailored customer experiences, better understanding of customers' behavior, or effective campaigns at a lower cost in the area of marketing, sales, services, and others.

Increased penetration of IoT and cloud computing is expected to boost the demand for cloud analytics solutions. These solutions continue to influence how organizations run, organize, and use produced data through their digital channels. Additionally, increasing demand for reliable, flexible, and efficient data storage platforms and growing penetration of the software-as-a-service (SaaS) platform among businesses has positively influenced the global market.

The global impact of COVID-19 has been unprecedented and staggering, with cloud analytics solutions witnessing a positive demand shock across all regions amid the pandemic.

Cloud Analytics Market Trends

Easy Access and Connectivity Offered by Business Intelligence (BI) Tools to be a Key Trend

Over recent years, business intelligence has gained prominence as structured and unstructured data has exploded. Businesses of all sizes are putting greater focus on implementing business intelligence solutions into their business suites and thus gaining a competitive advantage. Most businesses are now using a streamlined procedure that entails identifying, collecting, preserving, and exchanging a huge quantity of data. For this data, BI solutions are utilized to have a quick and simple business decision-making process. The data should have a standard visualization capability that can be utilized to detect consumer preferences and patterns, extract strategic insights, and keep the demand and supply of new and existing products and services in balance. Business intelligence solutions are used by businesses in a variety of industries to make data easier to interpret and generate meaningful business insights.

Key players are taking major initiatives to spread awareness about the benefits of analytics and business intelligence solutions. For instance,

• In September 2023, Oracle introduced new AI-powered capabilities in its Analytics Cloud. The new capabilities help analytics self-service users to perform better analysis and make business decisions by using Oracle Cloud Infrastructure's Generative AI services.

Through BI and cloud analytics solutions, organizations may discover business drivers and Key Performance Indicators (KPIs) through data visualization. It assists in the elimination of redundant data to uncover patterns, insights, trends, and use plans, all of which aid in the cloud analytics market growth.

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Cloud Analytics Market Growth Factors

Rising Adoption of Analytics Solutions to Boost Market Growth

The rising digitization, availability of a wide range of data, and the desire to remain at the forefront of competition have led organizations to focus on analytics solutions to adopt the strategic decision-making process. Businesses these days are moving towards digitization to improve business strategies by analyzing a large amount of unstructured data flowing through various platforms.

According to the International Data Corporation (IDC), 80% of the global data collected among enterprises will be unstructured by 2025. This growth of unstructured data has prompted businesses to implement various business management tools based on the cloud to understand global trends, customer demand, and competitor benchmarks. These analytics solutions are helping companies to make better decisions based on historical and present data and will help the company function more smoothly and effectively. In addition, the development of businesses worldwide, which drives the continuous increase in data sources and volumes, is driving the growth of data capacity. In 2023, according to an industry expert, about 55% of the companies used Big Data for monitoring and improving their performance.

With real-time insights gained from cloud-based analytics solutions, businesses are now able to understand a large amount of data, which enables them to better customer experience, accelerate digital business, and improve communications network, security, and application performance. Cloud-based analytics platforms help organizations make better strategic decision-making and enable them to achieve high operational efficiency, improved customer satisfaction, and vigorous profit and revenue levels. Thus, as unstructured data increases, there will be a robust demand for cloud-based data storage and analytics tools.

RESTRAINING FACTORS

Data Security Concerns Associated with Confidential Data to Hamper Growth

Data security problems, such as data thefts, breaches, and loss of industry-specific information, are arising as a result of the growing use of cloud technology among corporate organizations working across a variety of sectors globally. Data is transported from multiple cloud providers, and their multi-tenancy infrastructure is shared by several different business enterprises in cloud analytics. Instead of being shared over a single line, cloud infrastructure servers are accessed and shared virtually across numerous lines inside an organization. As a result of this procedure, a variety of data security concerns occur.

According to a survey conducted by Ermetic Ltd, a cloud risk security company, in June 2020, nearly 80% of the businesses have witnessed at least one cloud data breach over the 18 months, and 43% of the businesses reported data breaches more than 10. Companies with ineffective cyber security frameworks might end up facing data breaches and thus lose critical business information. Organizations will face increasing pressure to be open about data collection, data analysis and utilization, and data storage as they retain many types of sensitive data in huge quantities over extended periods. Thus, data security issues related to these types of analytics solutions might hamper the market growth.

Cloud Analytics Market Segmentation Analysis

By Solution Analysis

Analytics Solution to Dominate Owing to Data-Driven Adoption

Based on solutions, the market has been segmented into cloud business intelligence (BI) tools, enterprise information management, governance, risk, and compliance, enterprise performance management, analytics solutions, and others.

The analytics solution segment held the largest market share in 2023. Analytical solutions such as predictive, speech, text, and video analytics, among others, are empowering businesses to retain customers with the help of dashboards and identify new business opportunities. Cloud analytics solutions have made it easier for enterprises to use and manage large data sets and use data-driven objectives to gain actionable insights. For instance,

• In June 2022, Dublin Port Company (DPC), the operator of passenger port and freight announced that they adopted Oracle Fusion Cloud EPM (Enterprise Performance Management) to enhance its operation and support expansion strategy. Oracle EPM is expected to support DPC by providing quality insights across the organization to improve accuracy of its budget, forecast, and planning for better decision making.

The governance, risk, and compliance segment is expected to grow at the highest CAGR over the cloud analytics market forecast period. The growth of governance, risk, and compliance is mainly driven by the growing need among enterprises to meet stringent compliance and security needs and get a holistic view of enterprise policy.

By Deployment Analysis

Public Cloud Segment to Generate Highest Share Due to its Low-Cost and High-Bandwidth Efficiency

Based on deployment, the global market has been segmented into public, private, and hybrid clouds.

The public cloud segment captured the largest market share in 2023. The growth of the public cloud segment is owing to the low costs and high bandwidth efficiency offered by public cloud servers. A cloud service provider can operate the public cloud infrastructure over the web and internet, offering tremendous value to businesses in terms of cost savings, communication and network agility, and easy access to mission-critical data.

The public cloud model is enabling enterprises to meet their collaborative needs of business functionalities and offer rapid control over business infrastructure and communications channels with the ability to consume resources on a pay-per-use basis. Organizations are implementing public cloud deployments to handle business applications and an aspect of streaming and real-time. 

The hybrid cloud segment is expected to witness a highest CAGR over the forecast period. The growth of the segment is mainly driven by the high level of security and control it offers. Organizations are implementing a hybrid cloud framework to address privacy concerns and gain control over their organizational data.

By Organization Size Analysis

Large Enterprises to Produce Maximum Revenue Share Owing to Rapid Increase in Digital Transformation Technology Adoption

Based on organization size, the market is segmented into small and medium enterprise and large enterprises.

The large enterprises' segment is expected to hold the largest market share in 2023. This growth is mainly attributed to the growing digital transformation with the ubiquitous adoption of data storage platforms. With a large customer base and established brands, large enterprises are better able to leverage cloud solutions to improve their operational efficiency and enhance the customer experience.

The small and medium enterprise is expected to witness the highest CAGR over the forecast period. A growing number of SMEs are shifting towards cloud solutions to manage their customer base and boost productivity. Implementation of cloud solutions along with the Software-as-a-Service (SaaS) platform helps SMEs avoid high costs and achieve better data safety. Data storage platforms in cloud solutions will help small and medium-sized enterprises manage data and take necessary precautions to protect data from data breaches. In addition to this, cloud-based analytics platforms offer SMEs a gamut of advantages such as simple usage & low cost, data protection, scalability, and flexibility.

By End-User Analysis

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BFSI Accounts for the Largest Share Fueled by Consistently Owing to Enhancing the Customer Experiences

Based on end-user, the market is categorized into BFSI, IT and telecommunications, retail and consumer goods, healthcare and life sciences, manufacturing, research & education, and others.

The BFSI sector is expected to hold the largest market share in 2023. The BFSI organizations are leveraging cloud-based technologies to improve their operational efficiency and enhance the customer experience to cater to the needs of their large customer base. The cloud analytics platform is helping BFSI firms secure transactions and strengthen customer experience by ensuring data confidentiality and availability of information over the Internet. Cloud-based analytics is enabling BFSI organizations to achieve considerable gains in efficiency and reduced costs, as technology helps banks pay only for the services they avail of. In addition, cloud analytics assists the BFSI industry by providing them security on payment gateways, ERPs and CRM systems, regulatory compliance, and secure storage of sensitive information.

The adoption of analytics tools has witnessed the highest growth in the healthcare and life sciences segment in terms of CAGR. Cloud-based analytics solutions play a vital role in the healthcare sector and change how doctors, clinics, healthcare companies, and hospitals are delivering quality and cost-effective cloud analytics services.

Cloud-based solutions allow hospitals and healthcare companies to access a massive amount of data, better diagnostic quality, and access to patient images and reports. Cloud analytics solutions are helping healthcare companies store and secure massive data such as electronic medical records, patient portals, and data collected by mobile applications.

REGIONAL INSIGHTS

Geographically, the market is segmented across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

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North America captured the maximum market share in 2023 and is expected to maintain its dominance over the forecast period. Key players in the region are adopting cloud-based analytics solutions to fulfill user demand for better data quality, better integration, and data visualization. Rising investment in cloud services by key players and the promotion of Cross-Border Privacy Rules (CBPR) by the U.S. is expected to provide lucrative growth opportunities for this market to grow in the region. Additionally, the rising shift towards subscription-based services, increased penetration of smartphones, and technological advancements in the region have bolstered the regional market.

The growth of the market in Asia Pacific is primarily driven by the opening of data centers by major providers such as Amazon Web Services (AWS) and Google Cloud, resulting in the elimination of concerns about data offshoring and security breaches. Better bandwidth connectivity provided by key players has made it easier to offer cloud services, thus helping the market to boost in the region. Businesses in the region are looking to capitalize on new and innovative technologies to expand their data platform, which is expected to boost the market in the region.

Europe captured a substantial market share in 2023. Due to increased expenditures and a rising presence of companies exploring the use of AI and NLP technologies for diverse applications, Germany and the U.K. have prominent markets. The regional markets have widely used AI and NLP technologies in their commercial institutions and other sectors, allowing them to better serve consumers and improve company efficiency. The regions hold the sophisticated infrastructure, technologies, and activities required to transform analytics into strong solutions with novel advantages.

The growth of this market in the Middle East & Africa and Latin America is mainly driven by the exponential use of data analytics solutions among various industry verticals such as BFSI, and retail, among others, to manage and process large data sets and gain actionable business insights.

List of Key Companies in Cloud Analytics Market

Key Players to Develop Effective Analytics Solutions to Satisfy Rising Demand of Consumers 

Companies operating in the market such as Oracle Corporation, IBM Corporation, Teradata, Google LLC, TIBCO Software Inc., and Hexagon Software, among others, are focused on developing and offering efficient cloud analytics solutions. Also, the high competition in the market is forcing service providers to focus on acquisition strategies to strengthen their positions.

List of Key Companies Profiled:

• IBM Corporation (U.S.)


• Hexaware Technologies Limited (India)


• Oracle Corporation (U.S.)


• Microsoft Corporation (U.S.)


• Alphabet Inc. (Google LLC) (U.S.)


• Salesforce.com, Inc. (U.S.)


• TIBCO Software Inc. (U.S.)


• SAS Institute Inc. (U.S.)


• Teradata Corporation (U.S.)


• MicroStrategy Incorporated (U.S.)


• The Hewlett Packard Enterprise Company (U.S.)


• SAP SE (Germany)


• Sisense (U.S.)


• Atos (France)


• Cloudera, Inc. (U.S.)


• Hitachi Vantara Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 – Salesforce announced significant updates to the Einstein 1 Platform with the addition of the Einstein Copilot Search and Data Cloud Vector Database. Data Cloud Vector database unifies all business data, including unstructured data such as emails, PDFs, and transcripts, with CRM data to facilitate AI prompts without the need for costly and complex modifications of LLM models.


• June 2023 – CloudZero released Analytics, an intelligent business intelligence tool that automates the delivery of cloud cost information. CloudZero's ability to organize application stack costs, such as AWS, Azure, Snowflake, GCP, and others, makes it uniquely suitable for data driven analytics.


• May 2023 – SAP SE and Google Cloud announced a significant expansion of their partnership, which includes the introduction of an Open Data offering to simplify data environments. This offering enables customers to build an end-to-end cloud of data that brings together the enterprise's information using SAP Datasphere solution and Google Cloud. Therefore, businesses can view their entire database in real time as well as maximize its value by investing in SAP software.


• May 2023 – CaixaBank announced a new strategic multiyear partnership with Google Cloud to accelerate the bank's transition into cloud computing and innovate using data analytics technologies. The Bank uses Google Cloud's data analysis, cloud computing, and AI capabilities to develop new services for its customers as part of this agreement.


• March 2022 – Alteryx, Inc. announced the launch of Alteryx Analytics Cloud, an end-to-end analytics automation platform, which enables users to make informed decisions and develop future business strategies through access to insights.

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The global cloud analytics market research report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies, product Industry, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several key factors that have contributed to the market's growth over recent years.

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