Global Business Analytics Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Business Analytics Market Analysis

Companies use data analytics to gather, process, integrate and formulate data for the development, assessment, and review of analytical models, and better decision-making. The use of data analytics pervades several domains, including marketing, healthcare, logistics, finance, e-commerce, food service and restaurants, professional sports, entertainment, casinos, and others. North America, Europe, and Asia are expected to be key regions boosting the growth of the business analytics market.

Descriptive analytics assesses historical data to determine the response of a given unit to a group of variables; predictive analytics, on the other hand, examines historical data to establish the probability of certain future consequences or outcomes. Prescriptive analytics combines descriptive and predictive analytics approaches to gain insights into possible future outcomes with estimated time and reason of occurrence.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Business Analytics Market Trends

Growing Innovations by Market Players

Several leading companies have made significant investments in business analytics, supporting the growth of the business analytics market. Businesses seek to gain deep insights to streamline and optimize processes and eliminate inefficiencies therein. Company-wide optimisation and streamlining processes may include formulation and assessment of company decisions on the basis of past performance and market trends; assessing departmental performance and growth efforts; evaluating employee productivity and performance; assessing present and future human resource and skill requirements; evaluating and forecasting the performance of potential investments; determining demand for a given service or product and observing consumer behaviour; and others, which can increase the business analytics market value.

For instance, Amazon.com discerns sales data by analysing purchases to reach out to customers and predict what types of products would a customer prefer to buy. General Electric uses business analytics on its sensor data to predict when engine maintenance would be needed.  Disney uses business analytics to predict consumer behaviour and preferences and offers superior customer experience. Zara uses data gathered from Instagram, surveys, and social media to better understand customers’ fashion sensibilities and create fashion that becomes popular and a trend once it reaches the stores.

Expanding Applications of Business Analytics

Business analytics indicates the use of statistical methods and techniques to assess historical data to obtain new and deeper insights and improve decision-making. Key elements of business analytics include text mining, data aggregation, data mining, association and sequence identification, forecasting, predictive analytics, data visualisation, and optimisation, which can assist with the business analytics demand.

Examples of business analytics may include management and running of clinical information systems (healthcare sector), following player spending and formulation of retention efforts in nightclubs and casinos, restructuring of operations in fast food restaurants through monitoring of peak customer hours and determining the time of preparation of particular food items on the basis of assembly time. The role of real-time location systems (RTLS) in healthcare has undergone substantial transformation, now leveraging AI to improve workflows by predicting staffing needs and enhancing interactions between patients and staff. Around 79% of healthcare professionals consider the integration of AI essential for improving operational efficiencies moving forward.

Industry News

September 2024

The CX Automation Company announced that it is expanding its contact centre suite designed for business analytics solutions with the addition of the new Verint Genie Bot.

September 2024

Zoho announced the updation of Zoho Analytics 6.0 with the addition of AI to the product. Its new functionality also allows customers to create custom machine-learning models.

Opportunities in Business Analytics Market

As the emphasis on data-driven decision-making grows, several companies are facing increased scrutiny concerning data privacy and ethical considerations. Compliance with regulations such as GDPR, CCPA, and other privacy laws is essential. A significant trend of business analytics market includes the necessity for transparency in data usage, the reduction of biases in algorithms, and the protection of data while ensuring user consent is obtained.

Addressing biases in algorithms is another focus of data analytics. In 2024, companies are increasingly adopting strategies to evaluate and mitigate bias in AI. This includes leveraging diverse datasets for training and regularly assessing AI models to identify any discriminatory patterns. For example, the European Union's AI Act highlights the necessity of human oversight in high-risk AI applications, promoting a "human-in-the-loop" approach to ensure accountability and fairness. Several companies in the market are encouraged to offer clear and comprehensible explanations for the decisions made by AI systems to promote trust and transparency in automated processes.

Business Analytics Market Restraints

The financial challenges associated with adopting business analytics tools, particularly those that require complex data warehousing and integration, pose a significant barrier. For small and medium-sized enterprises (SMEs), these expenses can be daunting, limiting their ability to leverage advanced analytics, which can affect the business analytics demand growth. Additionally, ongoing costs related to consulting, maintenance, and system upgrades further add to the financial burden.

Another major hurdle is the lack of skilled professionals in analytics and data science. The rapid evolution of analytics technologies necessitates a workforce proficient in areas such as machine learning, AI, and data analysis. A 2021 survey by the World Economic Forum indicated that nearly 48% of the global workforce needs reskilling to effectively utilise advanced digital tools. This skills gap restricts organisations' ability to fully harness analytics, hindering market growth as companies struggle to find or train individuals with the necessary expertise.

Market Dynamics

Several companies are increasingly leveraging analytics to understand and enhance the customer experience. Customer experience analytics involves tracking customer journeys, predicting behaviours, and personalising interactions. Companies are taking advantage of customer feedback, social media insights, and real-time behaviour tracking to create customer-centric strategies that boost satisfaction and retention rates, enhancing business analytics market revenue.

The focus on developing seamless omnichannel experiences has grown stronger, with organisations prioritising consistent customer interactions across multiple platforms, such as social media, chatbots, and customer service representatives. For instance, companies such as Airbnb provide a unified experience across different channels, enhancing accessibility and building customer trust. This strategy is crucial, as 73% of consumers take customer experience into account when making purchasing decisions, suggesting that businesses with effective omnichannel approaches are more likely to retain customers in a competitive landscape.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Business Analytics Industry Segmentation

“Business Analytics Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

By software, the business analytics market is segmented into:

• Content Analytics
• Query, Reporting and Analysis Tools
• Data Warehousing Platform
• Others

On the basis of deployment type, the market is divided into:

• Cloud
• On-premises

By enterprise size, the market is segmented into:

• Large Enterprises
• Small and Medium Enterprises

By industry vertical, the market is classified into:

• Energy and power
• Banking, Financial Services, and Insurance (BFSI)
• Government
• Education
• Healthcare
• Retail
• Manufacturing
• Media and Entertainment
• Telecom and IT
• Others

By region, the market is segmented into:

• Middle East and Africa
• North America
• Asia Pacific
• Europe
• Latin America

Business Analytics Market Share

By Software Insights

Query, Reporting, and Analysis Tools are expected to grow at 9.1% CAGR in the forecast period. It plays a crucial role by enabling organisations to access, visualise, and evaluate data, which is essential for making informed decisions. As per the business analytics market dynamics and trends, tools in this area include business intelligence (BI) solutions that help generate reports, dashboards, and visual displays from raw data. Major tools such as Tableau, Microsoft Power BI, and Looker, among others, are popular due to their ease of use, flexibility, and ability to cater to various business needs.

By Deployment Type Insights

Cloud Deployment is expected to witness a CAGR of 10.1% between 2024 and 2032. Cloud-based analytics platforms offer on-demand scalable resources, allowing businesses to modify their resource allocation as needed. This flexibility increases the appeal of cloud solutions, particularly for companies and enterprises experiencing rapid growth or dealing with fluctuating data needs in day-to-day operations. 

As per the business analytics industry analysis, cloud solutions enable users to access data and analytical tools from any location, thereby enhancing collaboration among teams and supporting remote work settings. This level of accessibility has gained significant importance, particularly due to the growing prevalence of hybrid and remote work arrangements.

By Enterprise Size Insights

Large enterprises account for a major market share as they generate and manage significant amounts of data across various departments and locations. This fuels the demand for advanced analytics tools and infrastructure that can handle extensive data processing and storage, leading to an increased demand for business analytics solutions. These companies have to deal with complex challenges and require analytics tools for diverse applications such as analysing customer behaviour, optimising supply chains, and making well-informed strategic decisions, which can positively influence the business analytics demand forecast.

By Industry Vertical Insights

The BFSI accounts for a significant market share as it requires high-end analytical tools to manage risk, enhance customer service, and comply with regulatory requirements. This sector heavily relies on business analytics for tasks like fraud detection, risk assessment, and credit scoring. By leveraging predictive analytics and artificial intelligence, financial institutions can reduce fraud and improve the precision of financial predictions. Additionally, banks and financial organizations use business analytics to gain insights into customer behaviour, optimise marketing strategies, and improve the overall customer experience.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Business Analytics Market Regional Insights

Europe Business Analytics Market Trends

The market growth in the region is primarily driven by countries such as the UK, Germany, France, and Italy, which are expected to have CAGRs of 10.3%, 6.9%, 6.8%, and 5.4% between 2024 and 2032. The companies in these countries are increasingly adopting analytics to enhance their sustainability initiatives, which aids the demand of business analytics market. In countries like Germany and France, analytical tools are utilised to evaluate environmental impacts and resource usage, reflecting a growing shift towards ethical business practices that align with consumer expectations and European Union regulations. The focus on data privacy and regulatory compliance in Europe, underscored by the General Data Protection Regulation (GDPR), has also encouraged businesses to implement advanced analytics solutions.

North America Business Analytics Market Growth

North America, especially the United States, is leading the way in technological innovation and digital transformation in the market. This growth is readily fuelled by major business analytics companies such as IBM, Microsoft, and Oracle. The rapid digitisation of business processes, particularly in end-use sectors such as finance, retail, and healthcare, is fuelling the demand for advanced analytics solutions and enhancing business analytics market opportunities. Many companies in the region are readily adopting data-driven strategies to maintain their competitive edge, leading to increased investments in data analytics tools and services.

Asia Pacific Business Analytics Market Outlook

The Asia Pacific region is expected to grow at a CAGR of 9.1% in the forecast period. The growth in the region is mainly driven by the rising implementation of business analytics solutions in China, Japan, and India, which are expected to grow at CAGRs of 8.0%, 8.2%, and 10.5% respectively.  This regional growth of the business analytics industry is widely influenced by the amount of data produced by the wide population, which companies can leverage to improve customer insights and provide personalisation. Various government bodies in the region are actively encouraging digital transformation within small and medium-sized enterprises (SMEs) through a range of initiatives.

Middle East and Africa Business Analytics Market Dynamics

The Middle East and Africa (MEA) region, especially the Gulf Cooperation Council (GCC) nations, is experiencing substantial investments in smart city projects that leverage data analytics for urban development, traffic control, and energy efficiency. For instance, The King Abdullah Financial District (KAFD) in Riyadh, Saudi Arabia, led by Orange Business, is developing a comprehensive Smart City Platform. This initiative seeks to integrate AI and data analytics capabilities to enhance urban management and improve the overall experience for its residents, which can boost the business analytics market share.

As the telecommunications sector expands, several MEA countries are increasingly leveraging analytics to enhance customer service, optimise network performance, and facilitate governmental efforts towards digital transformation.

Latin America Business Analytics Market Drivers

In Latin America, the growing use of smartphones and improved internet access has played a crucial role in the growth of e-commerce, leading to an increased demand for business analytics. Companies are leveraging analytics to improve customer engagement, manage inventory effectively, and customise their products and services, which can increase the business analytics industry revenue. Countries such as Brazil and Mexico are investing heavily in digital transformation across multiple sectors, including retail and finance. Business analytics tools are helping these end-use sectors identify market trends, optimise supply chains, and enhance operational efficiency.

Innovative Startups in Business Analytics Market 

Startups in the market are focusing on developing innovative solutions to address the increasing need for data-driven decision-making. These companies are leveraging advanced technologies such as artificial intelligence (AI), machine learning (ML), big data, and cloud computing to help organisations analyse data, extract insights, and make informed business choices. Several startups are developing self-service analytics platforms designed to enable non-technical users to examine data without the need for extensive technical expertise. These no-code and low-code platforms facilitate the intuitive creation of dashboards, reports, and data visualisations by users.

ThoughtSpot

ThoughtSpot is a company in the business analytics market specialising in business intelligence and big data analytics, offering a search-driven analytics platform. Its AI-enhanced platform empowers users to execute complex queries and derive insights through an intuitive search interface, thereby making data analysis accessible to people without technical expertise. It focuses on rendering data both accessible and actionable by delivering real-time insights, dashboards, and visual representations.

DataRobot

DataRobot is an AI-centric platform that streamlines the creation, deployment, and management of machine learning models. It is tailored to assist both data scientists and business professionals in rapidly and effectively developing predictive models. The DataRobot platform caters to a variety of industries, enabling organisations to anticipate trends, make informed decisions based on data, and enhance processes through the application of AI and machine learning.

Competitive Landscape

The report comprehensively analyses key players in global business analytics industry, monitoring their capacity and newest developments like plant turnarounds, capacity expansions, and mergers and acquisitions. Leading companies offer modern and high-quality business analytics software solutions to enable efficient business operations. Popular business analytics tools used by companies include QlikView, SAS Business Analytics (SAS BA), Splunk, Board, Microstrategy, Sisense, Dundas BI, KNIME, TIBCO Spotfire, Tableau Big Data Analytics, and others.

Key Industry Players

Oracle Corporation

Oracle Corporation is a leading multinational technology company that specialises in cloud solutions, database software, and enterprise software products. Founded in 1977, Oracle is best known for its Oracle Database software, a powerful relational database management system widely used across various industries.

IBM Corporation

IBM (International Business Machines Corporation) is a well-known global technology company in the business analytics market established in 1911. Known for its innovations in hardware, software, and IT services, IBM offers a wide range of products and solutions in the field of cloud computing.

Panterra Networks, Inc.

PanTerra Networks, Inc. focuses on providing unified cloud services and communication solutions designed for businesses. The company offers a platform that integrates cloud-based voice, video, messaging, and collaboration tools seamlessly.

Other major market players are Teradata Corporation, and Tableau Software, LLC., among others.

The EMR report offers a deep understanding of the industry through a SWOT analysis and Porter’s Five Forces model. 

Recent Developments

June 2024

Databricks announced the launch of two tools which can democratise access to analytics and insights for employees and clients within a business.

April 2024

Tech Mahindra announced its partnership with Microsoft for the launch of a unified workbench on the analytics platform of Microsoft, known as Microsoft Fabric.