Data Analytics Market Size, Share Analysis, By Type (Descriptive Analytics, Predictive Analytics, Augmented Analytics, Real-Time Analytics, Prescriptive Analytics, and Others), By Solution (Data Management, Data Mining, Security Intelligence, and Data Monitoring), By Application (Supply Chain Management, Enterprise Resource Planning, Database Management, Human Resource Management and Others), By Industry (Healthcare, IT & Telecom, BFSI, Education, Manufacturing, Government, and Others), and Regional Forecast, 2023-2030

The data analytics market size was valued at USD 41.05 billion in 2022 and is projected to grow from USD 51.55 billion in 2023 to USD 279.31 billion by 2030, exhibiting a CAGR of 27.3% during 2023-2030. North America dominated the global market with a share of 34.68% in 2022.

Data analytics refers to analyzing of data sets to find useful information for solving problems in various fields. It combines computer programming, statistics, and mathematics to provide precise data analysis. The increasing demand for big data and predictive analytics is fueling the data analytics market growth. The leaders of the market are continuously focusing on developing adaptive data sharing, data fabrics, and Artificial Intelligence (AI) systems to promote new growth, resilience, and innovation.

According to a study carried out by an American experience management company, Qualtrics and ServiceNow, around 83% of customers are willing to switch to a brand with a better digital experience, and 70% of customers are more likely to trust brands that provide a great digital experience.

COVID-19 IMPACT

Increased Use of Analytics and AI Amid COVID-19 Pandemic Boosted Market Growth

The COVID-19 pandemic accelerated the use of analytics and AI, and this trend has continued even after 2020. According to an industry study, 52% of companies have expedited their plans to adopt AI due to the COVID-19 crisis. Data analytics was utilized extensively in the fight against COVID-19. Additionally, AI solutions assisted healthcare workers in diagnosing and monitoring the virus more efficiently. For example, Canadian start-up BlueDot utilized AI to analyze unstructured data from social media and news reports, enabling them to trace and predict outbreaks. Furthermore, data analytics also played a crucial role in accelerating the search for a vaccine in laboratories. For instance,

• Google's DeepMind division employed an AI algorithm to analyze the structure of proteins that may aid in the transmission of the virus. Afterwards, the division shared its discoveries to support scientists researching potential remedies.

During the COVID-19 pandemic, the first six months of 2022 demonstrated that the most revolutionary technologies, such as widely used analytics apps, AI software platforms, and data integration and integrity tools, were not greatly affected by market difficulties. They played a crucial role in pursuing new opportunities and reducing risks.

Data Analytics Market Trends

Metadata-Driven Data Fabric Solutions to Expand Market Growth

As companies expanded and diversified, they realized the importance of having a flexible system. A data fabric is a comprehensive data integration architecture that allows for data engineering, analytics, and other data services to be accessible across various endpoints in hybrid multi-cloud environments. It ensures that data management practices and usage are consistent across the cloud, on-premises, and edge devices. The data fabric acts as a bridge between data endpoints, enabling a wide range of data management capabilities, such as integration, metadata discovery, governance, processing, and orchestration.

In today’s digital age, where data is the cornerstone of decision-making, businesses are constantly seeking ways to harness its full potential. The data fabric architecture emerges as a solution that offers a suite of benefits tailored to meet the evolving needs of modern enterprises.

• IBM forecasts that, by 2024, the utilization of data fabric can result in a 158% rise in ROI and a potential decrease of up to 65% in ETL requests. Additionally, it will facilitate self-service data consumption and collaboration. The Active Metadata feature of Data Fabric will automate governance, data protection, and security while also enhancing data integration and automating data engineering tasks.

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Data Analytics Market Growth Factors

Rising Demand for Edge Computing Likely to Boost Market Growth

Nowadays, there is a significant growth in sensors and network devices, resulting in a massive increase in the amount of data collected. This puts a lot of pressure on central data analytics, which handles a vast amount of data. However, edge computing offers a solution by decentralizing the collected data, allowing organizations to improve their scalability, processing power, and analytics capabilities.

AI, 5G, security, and different industries have been embracing edge-based solutions due to advancements in technology. Edge computing has a wide-ranging and transformative impact, from real-time healthcare and immersive gaming experiences to energy efficiency and smart retail.

• In January 2022, Verizon Business and Atos joined forces in a strategic alliance to enable smart IoT solutions using private 5G multi-access edge computing. This collaboration aims to benefit businesses, governments, and communities globally. By utilizing the 5G edge solution, companies can revolutionize their approach to predictive analytics, enhancing operational efficiency, reducing risk, and boosting revenue.

RESTRAINING FACTORS

Data Security Concerns to Impede the Market Progress

Organizations encounter numerous challenges on their journey toward data transformation, including cybersecurity risks, quality concerns, integration, and infrastructure. According to a recent report by the industry experts, the three areas that businesses struggle with the most are safeguarding data privacy (34%), guaranteeing data accuracy (26%), and efficiently processing and analyzing data (24%).

Furthermore, privacy issues seem to be some of the biggest concerns, as vast amounts of data include personal and sensitive information. Financial records, medical information, and personal identifiers can all be exploited for financial gain, identity theft, or other malicious purposes. Thus, these growing challenges are estimated to limit the market growth in the coming years.

Data Analytics Market Segmentation Analysis

By Type Analysis

Predictive Analytics Dominated Market Owing to Rise in AI, ML, and Big Data Fields

Based on type, the market is classified into descriptive analytics, predictive analytics, augmented analytics, real-time analytics, prescriptive analytics, and others (diagnostic analytics).

Predictive analytics dominated the market share in 2022. In recent years, predictive analytics has become crucial for organizations to understand the large volumes of data they have. A major trend in predictive analytics is the growing use of AI and Machine Learning (ML). With the advancement of these technologies, organizations are discovering the ability to develop highly accurate predictive models.

• In November 2023, Actian, a data management platform, joined forces with Quation, a provider of data analytics solutions. This partnership aims to offer data analytics, seamless cloud integration, and transformative digital services to businesses in diverse sectors such as banking, healthcare, and retail.

The real-time analytics segment is projected to experience the highest CAGR growth during the forecast period. By utilizing real-time data analytics, companies can track trends and assess their progress toward goals. They can remotely access data, monitor purchases, allocate resources, and enhance network security. According to a global survey conducted by industry experts in November 2022, the primary area of investment in advanced analytics is complex event processing, with 52% of companies already allocating resources to it. Complex event processing involves utilizing technologies to analyze large volumes of data in motion in real-time.

By Solution Analysis

Rapid Adoption of AI and Automation to Facilitate Data Mining Process Fueled Segment Growth

Based on solution, the market is segmented into data management, data mining, security intelligence, and data monitoring.

In 2022, the data mining segment dominated the revenue share. A major trend in this field is the adoption of automation and artificial intelligence to streamline and expedite the data mining process. With automated tools, tasks, such as data preparation, feature engineering, model selection, and evaluation, can be accomplished without human involvement.

The security intelligence segment is expected to demonstrate the highest CAGR during the evaluation period. The shift toward more advanced Threat Intelligence Platforms (TIPs) is expected to influence the future of cybersecurity greatly. Additionally, AI and ML technologies are expected to redefine traditional cybersecurity approaches, particularly in areas, such as automated threat detection, predictive analytics, and adaptive threat responses.

By Application Analysis

Rapid Adoption of the Solutions in Supply Chain Management Supported Segment Growth

Based on application, the market is segmented into supply chain management, enterprise resource planning, database management, human resource management, customer relationship management, and others (product lifecycle management).

In 2022, the supply chain management segment dominated the revenue share. The application of data analytics in supply chain management promotes the adoption of advanced technologies, such as artificial intelligence and machine learning. These technologies help to uncover hidden patterns and provide valuable insights from the available supply chain data. Manufacturing companies can optimize their supply chain processes by utilizing data analytics in sales and operations planning, capacity planning, business intelligence, and demand forecasting. This optimization contributes to the growth of the sector.

The enterprise resource planning segment is projected to experience the highest growth rate during the forecast period. Data analytics applications play a crucial role in integrating big data with business application data from data warehouses, traditional databases, and data lakes. This integration enhances forecasting, analysis, and planning capabilities. As organizations increasingly rely on data-driven decision-making, the demand for accessing and analyzing databases has also increased. The rapid advancements in artificial intelligence, hybrid cloud, edge computing, and Internet of Things (IoT) have contributed to the exponential growth of big data. This growth has added complexity for businesses to manage, leading to the growth of this segment.

By Industry Analysis

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Surging Need to Improve Network Services, Security, and Customer Experience Fuels IT and Telecom Segment Growth

By industry, the market is divided into healthcare, IT & telecom, BFSI, education, manufacturing, government, transportation & logistics, retail & e-commerce, and others (media & entertainment).

Currently, the IT and telecom segment is leading in terms of market share. Data analytics has been instrumental in helping the telecom sector increase profits by enhancing network services, security, and customer experience. It has played a crucial role in analysing call data to identify fraudulent activities and security threats. This has enabled telecom companies to swiftly respond to and prevent such behaviours in the market.

The healthcare industry is experiencing a rise in digital health records and the use of health-related technologies. This has led to a large amount of health data being generated and stored daily. Data analytics has the potential to impact the healthcare industry in the future greatly. For instance,

• In November 2022, Zephyr AI, Inc., a pioneer in precision medicine technology, teamed up with MedStar Health, the healthcare provider in Maryland and the Washington, D.C., area, to enhance its artificial intelligence (AI)-powered Insights product. This product is designed to customize and improve care for patients with chronic illnesses. The partnership initially concentrated on type 2 diabetes (T2D) and utilized MedStar Health's de-identified T2D data sets and patient management knowledge to enhance Zephyr AI's predictive analytics Insights product.

REGIONAL INSIGHTS

The global market scope is classified across five regions, namely North America, South America, Europe, Middle East & Africa, and Asia Pacific.

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North America accounted for the largest market share in 2022. The growth of the data analytics market in this region can be attributed to the early adoption of digitization and transformative technologies. Data analytics can also be attributed to the presence of major players in the market, such as IBM, Microsoft, Google, and AWS.

The IT & telecom sector in the region is experiencing rapid growth, which is contributing to the overall market expansion. This growth is primarily driven by the increasing use of mobile phones that support 3G, 4G, and 5G services across the U.S. Additionally, the sector's expansion is fueled by factors, such as a growing population, communication services, and the rising adoption of smartphone services. Regulatory authorities also play a significant role in expanding the data analytics market share by adopting 5G networks in the country.

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Asia Pacific is expected to have the highest CAGR from 2023 to 2030. Several Asian countries, such as India, China, and Japan, are utilizing information-intensive AI and ML technologies in different industries, resulting in the increased use of data analytics. Industry experts have reported that in 2022, 66% of marketers in Asia Pacific invested more in first-party data collection, compared to 60% in 2021. Whether it's enhancing customer engagement, improving predictive analytics, or establishing effective data governance, having a well-defined data transformation and data science plan is crucial for long-term success.

The European countries are showing increasing interest in the data analytics market. They are implementing various measures and programs to support its growth and adoption. Among these countries, Germany stands out as the largest economy in Europe, with a population that accounts for 19% of the European Union. Germany has been recognized as a stabilizing force within the European Union, consistently achieving higher growth rates compared to other Member States. The automotive, electrical, and chemical sectors are the main industries in the country, and they are increasingly utilizing big data to enhance production, enhance product quality, and maintain competitiveness. For instance,

• In May 2023, SAP SE announced to expand its partnership with Google Cloud to provide a new open data offering. This offering aims to unlock the potential of business data and simplify data landscapes. Customers can now create a complete data cloud by combining SAP Datasphere solution with Google's data cloud, compiling data from various parts of the enterprise landscape.

List of Key Data Analytics Market Companies

Strategic Collaboration and Product Enhancements by Major Players to Drive Competitive Edge

Leading market players, such as Microsoft, IBM, AWS, SAP SE, Google, and others, are implementing various commercial plans and strategies. They are expanding the range of data they use to enhance their tools and technology, develop innovative solutions, and improve their capabilities in technology and analytics solutions.

List of Key Companies Profiled:

• IBM Corporation (U.S.)


• Microsoft Corporation (U.S.)


• Amazon Web Services, Inc. (U.S.)


• Google LLC (U.S.)


• Oracle Corporation (U.S.)


•  SAP SE (Germany)


• Sisense Ltd. (U.S.)


• Zoho Corporation Pvt. Ltd. (India)


• ThoughtSpot Inc. (U.S.)


• Mu Sigma (U.S.)

KEY INDUSTRY DEVELOPMENTS

• September 2023 – Oracle unveiled the Fusion Data Intelligence Platform, an advanced platform for data, analytics, and AI. This platform empowers Oracle Fusion Cloud Applications users to augment their business results by merging data-driven insights with intelligent choices and actions.


• August 2023 – Microsoft announced a five-year partnership with Synthetaic, a start-up specializing in data analysis from space and air sensors using artificial intelligence. Synthetaic's AI tool, known as the Rapid Automatic Image Categorization (RAIC), had been developed on the Microsoft Azure cloud platform. As part of this agreement, Microsoft granted Synthetaic access to an extensive amount of cloud computing resources, totaling nearly 1 million hours.


• May 2023 – Microsoft introduced a novel data and analytical solution known as the Microsoft Fabric. This tool incorporates a multi-cloud data lake termed OneLake and built-in SaaS. Fabric is a comprehensive analytics product that caters to all the analytical requirements of an organization. The data within the Fabric is efficiently organized in a user-friendly data hub and automatically indexed for seamless sharing, discovery, compliance, and governance purposes.


• May 2023 – Databricks, a company from San Francisco, opened its first office in Israel. The office will help the company expand its business in the country and benefit from the local talent pool.


• February 2023 – IBM and the Marshall Space Flight Center of NASA have recently unveiled a partnership aimed at harnessing the power of IBM's AI technology to uncover groundbreaking discoveries within NASA's extensive collection of geospatial and Earth science data. This collaborative effort will mark the inaugural utilization of AI foundation model technology on NASA's Earth-observing satellite data.

REPORT COVERAGE

An Infographic Representation of Data Analytics Market

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The research report includes prominent regions across the globe to get a better knowledge of the industry. Furthermore, it provides insights into the most recent industry trends and an analysis of technologies that are being adopted quickly on a global scale. It also emphasizes on the market’s drivers and restrictions, allowing the reader to obtain a thorough understanding of the industry.

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