Advanced Analytics Market

Market Overview:

The global advanced analytics market size reached US$ 22.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 106.4 Billion by 2032, exhibiting a growth rate (CAGR) of 18.18% during 2024-2032. The increasing uptake of several analytical solutions across industries, the rising demand for artificial intelligence (AI) and machine learning (ML) in companies, and the growing cases of fraudulent activities in the banking, financial services, and insurance (BFSI) sector are some of the factors propelling the market.

Advanced analytics is a transformative force that empowers businesses to unearth invaluable insights from their data. Its sophisticated techniques enable organizations to make informed decisions and drive growth. Analyzing historical data and spotting trends helps anticipate future outcomes, contributing to strategic planning. One of its key strengths lies in predictive analytics, which forecasts future scenarios and aids in proactive problem-solving. Prescriptive analytics takes it further, offering actionable recommendations to optimize processes and enhance customer experiences. Moreover, the integration of machine learning and AI amplifies the accuracy and depth of analysis, facilitating the discovery of hidden patterns that humans might miss. In healthcare, advanced analytics improves patient outcomes by identifying potential risks and suggesting personalized treatments. In finance, it aids fraud detection and risk assessment, ensuring secure transactions. This technology streamlines operations and cultivates innovation from marketing to supply chain management. It is a guiding light, illuminating pathways to success and innovation across industries.

The global market is majorly driven by the expansion of data sources. In line with this, the rapid technological advancements in AI, machine learning, and data processing are significantly contributing to the market. Furthermore, the increasing competitive pressure on organizations is positively influencing the adoption of advanced analytics. Apart from this, the rising regulatory compliance is catalyzing its demand. Moreover, medical institutions worldwide use analytics to manage patient data efficiently, propelling its demand. Besides, the rise of connected devices generates more data for analysis, stimulating market expansion. Additionally, the e-commerce expansion and the growing financial market trends are providing a boost to the market.

Advanced Analytics Market Trends/Drivers:

Increasing demand for risk management solutions

The escalating demand for risk management solutions is favoring the market growth. Organizations face multifaceted risks that can impact operations and reputation in an increasingly complex business landscape. As a result, there is a compelling need to employ advanced analytics to identify, assess, and mitigate these risks effectively. By utilizing data-driven insights, businesses can anticipate potential challenges, quantify risks, and develop proactive strategies for risk mitigation. This demand has led to the development of sophisticated risk analytics tools that employ predictive and prescriptive analytics techniques. The integration of AI and machine learning further enhances the accuracy of risk assessment and aids in identifying subtle patterns that might otherwise go unnoticed. As industries seek comprehensive risk management solutions, the advanced analytics market experiences substantial growth, catering to organizations' imperative to safeguard their interests and assets.

Rising trend of remote working and work-from-home (WFH) model

The rising trend of remote working and the work-from-home (WFH) model is acting as another growth-inducing factor. The evolution of technology, improved connectivity, and changing attitudes towards work have propelled this trend. Organizations are increasingly embracing remote work due to its numerous benefits. It allows for greater flexibility, enabling employees to balance their work and personal lives better. This, in turn, can enhance job satisfaction and overall well-being. The WFH model also opens up access to a broader talent pool, as geographical constraints are no longer limiting recruitment factors. The trend has sparked innovation in communication tools, collaborative platforms, and remote project management solutions. Companies invest in cybersecurity measures to protect data in a distributed work environment. Furthermore, reduced commuting and office space requirements contribute to cost savings and environmental benefits.

Rapid integration of cloud computing and software-as-a-software (SaaS)

The rapid integration of cloud computing and the software-as-a-service (SaaS) model is revolutionizing how businesses access and utilize software applications. Cloud computing offers the infrastructure needed for SaaS delivery, enabling seamless access to software over the Internet. This integration has brought numerous advantages. Businesses can now access a wide range of software applications without the need for extensive on-premises installations. SaaS solutions are typically subscription-based, offering cost savings through pay-as-you-go models and reducing upfront investment. The cloud-based nature of SaaS allows for easy scalability, ensuring that businesses can adjust their software usage according to their needs. Furthermore, updates and maintenance are typically handled by the SaaS provider, relieving organizations of the burden of software upkeep. Collaboration is also greatly enhanced, as teams can access and work on applications from anywhere with an internet connection. The rapid integration of cloud and SaaS has also fueled innovation, as software providers can quickly develop and deploy new features and improvements.

Advanced Analytics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global advanced analytics market, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on the component, type, deployment mode, business function, enterprise size and industry vertical.

Breakup by Component:

• Software
• Service
  • Professional Service
  • Managed Service
     

Software dominates the market

The report has provided a detailed breakup and analysis of the market based on the component. This includes software and service (professional service and managed service). According to the report, software represented the largest segment.

Advanced analytics software offers diverse tools and solutions that empower organizations to extract valuable insights from their data. These software packages encompass predictive modeling, data visualization, machine learning algorithms, and more, enabling businesses to make informed decisions. As industries recognize the competitive advantage of data-driven strategies, the demand for sophisticated software has surged. Software providers continually innovate, integrating AI and automation to enhance analytics capabilities. Additionally, cloud-based offerings facilitate seamless access and scalability, catering to businesses of all sizes.

Furthermore, the software segment is instrumental in democratizing analytics, enabling users across departments to engage with data analysis without extensive technical expertise. This accessibility fosters a culture of data-driven decision-making, fostering growth across sectors. Overall, the dynamic and evolving nature of advanced analytics software propels the market forward by enabling organizations to harness the full potential of their data.

Breakup by Type:

• Big Data Analytics
• Business Analytics
• Customer Analytics
• Statistical Analytics
• Risk Analytics
• Others
   

Big data analytics dominates the market

The report has provided a detailed breakup and analysis of the market based on the type. This includes big data, business, customer, statistical, risk analytics, and others. According to the report, big data analytics represented the largest segment.

Big Data Analytics is a pivotal type driving market growth within the advanced analytics landscape. With the exponential growth of data from various sources, organizations are increasingly harnessing big data analytics to extract valuable insights. This type of analytics involves processing and analyzing vast and complex datasets to uncover hidden patterns, trends, and correlations that traditional methods might miss.

As industries strive to make data-driven decisions, the demand for big data analytics solutions has increased. These solutions employ advanced algorithms, machine learning, and AI to quickly process large volumes of structured and unstructured data. They enable businesses to anticipate market trends, optimize operations, and enhance customer experiences.

The evolution of big data analytics has led to innovations in storage, processing frameworks, and distributed computing technologies. It has enabled organizations to gain real-time actionable insights, facilitating timely decision-making. By unlocking the power of big data, this type of analytics drives market growth by providing the tools necessary for organizations to remain competitive and responsive in a data-driven world.

Breakup by Deployment Mode:

• On-premises
• Cloud-based
   

On-premises dominates the market

The report has provided a detailed breakup and analysis of the market based on the deployment mode. This includes on-premises and cloud-based. According to the report, on-premises represented the largest segment.

The on-premises deployment mode remains a significant driver of market growth within the advanced analytics landscape. This mode involves implementing advanced analytics solutions within an organization's infrastructure. Despite the rise of cloud-based solutions, on-premises deployment maintains its importance, particularly for businesses with specific security, compliance, or data control requirements. Industries dealing with sensitive data, such as finance and healthcare, often prefer on-premises deployments to maintain greater control over their data and adhere to regulatory standards. This deployment mode also suits businesses with established IT infrastructures seeking to leverage existing resources.

On-premises solutions allow companies to manage and customize their analytics environments to their unique needs. They offer enhanced data privacy and security, appealing to organizations cautious about data breaches. While cloud solutions are gaining traction, the on-premises deployment mode continues to drive market growth by catering to enterprises with specific data control, security, and compliance demands.

Breakup by Business Function:

• Supply Chain
• Sales and Marketing
• Finance
• Human Resource (HR)
• Others
   

Supply chain dominates the market

The report has provided a detailed breakup and analysis of the market based on the business function. This includes supply chain, sales and marketing, finance, human resource, and others. According to the report, supply chain represented the largest segment.

Advanced analytics applications are transforming how supply chain management operates. By leveraging data from various sources, organizations optimize inventory levels, streamline logistics, and enhance overall operational efficiency. Supply chain analytics empowers businesses to forecast demand, improving production planning and minimizing stockouts. It also aids in identifying trends and disruptions, allowing for proactive decision-making and risk mitigation. Machine learning algorithms enhance accuracy by analyzing historical and real-time data to predict future supply chain scenarios.

In an increasingly competitive landscape, supply chain optimization directly impacts a company's bottom line. By adopting advanced analytics, businesses reduce costs, enhance customer satisfaction, and achieve a competitive edge through better resource allocation and more agile responses to market changes. The growth of supply chain analytics is driven by its tangible impact on an organization's efficiency, cost-effectiveness, and customer experience. As industries recognize these advantages, the demand for advanced analytics solutions catering to supply chain functions continues to surge, fueling overall market expansion.

Breakup by Enterprise Size:

• Large Enterprise
• Small and Medium-sized Enterprise
   

Large enterprise dominates the market

The report has provided a detailed breakup and analysis of the market based on the enterprise size. This includes large, and small and medium-sized enterprises. According to the report, large enterprise represented the largest segment.

Large enterprises play a significant role in driving market growth within the advanced analytics landscape. These sizable organizations often possess vast amounts of data from various sources and need sophisticated analytics tools to extract valuable insights. The complexity of operations within large enterprises demands advanced analytics solutions to optimize processes, enhance decision-making, and gain a competitive edge. Predictive and prescriptive analytics help these organizations forecast trends, identify opportunities, and make informed choices across multiple departments.

Furthermore, large enterprises have the resources to invest in building robust analytics teams or partnering with analytics service providers. The integration of AI and machine learning into analytics strategies allows them to delve deeper into data to uncover patterns and correlations that drive strategic decisions. As large enterprises prioritize data-driven decision-making, the demand for advanced analytics solutions tailored to their needs continues to grow. Their adoption of these solutions serves as a driving force behind market expansion, propelling innovation and technological advancements in advanced analytics.

Breakup by Industry Vertical:

• BFSI
• Healthcare
• Government
• IT and Telecom
• Military and Defense
• Others
   

BFSI dominates the market

The report has provided a detailed breakup and analysis of the market based on the industry vertical. This includes BFSI, healthcare, government, IT and Telecom, military and defense, and others. According to the report, BFSI represented the largest segment.

The expansion of the Banking, Financial Services, and Insurance (BFSI) sector is catalyzing the market growth. This industry thrives on data-driven insights to optimize operations, manage risk, and enhance customer experiences. Advanced analytics in BFSI enables accurate fraud detection by analyzing transactional patterns, preventing financial losses. It aids in credit risk assessment, helping lenders make informed decisions while extending credit. Predictive analytics also assists in identifying potential market trends and guiding investment strategies.

Customer-centricity is a key focus in BFSI, and advanced analytics enables personalized offerings, better customer service, and tailored marketing campaigns. Machine learning algorithms help create predictive models for customer behavior, leading to targeted cross-selling and upselling opportunities. Regulatory compliance is paramount in BFSI, and advanced analytics ensures adherence by monitoring transactions and flagging suspicious activities.

The complex and data-intensive nature of the BFSI sector fuels the demand for advanced analytics solutions. As the industry seeks competitive advantages and compliance support, the market responds with innovative tools tailored to meet its specific needs, driving overall market growth.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America is a pivotal driving force behind the growth of the market. The region's technological advancements, mature business landscape, and widespread adoption of data-driven strategies contribute to its prominence. The concentration of technology giants, innovative startups, and renowned research institutions fosters a dynamic environment for developing cutting-edge analytics solutions. Industries such as finance, healthcare, and retail in the region heavily rely on advanced analytics to optimize operations and gain insights from their data.

The early adoption of cloud computing and big data technologies has fueled the market growth. Moreover, the region's regulatory environment and data privacy standards encourage organizations to adopt robust analytics solutions to ensure compliance.

As businesses across North America harness data for strategic decision-making, the demand for these tools and services continues to rise. The region's innovation hub and commitment to leveraging data assets position North America as a driving force propelling the market.

Competitive Landscape:

Top companies are strengthening the market growth by pioneering innovation, expertise, and comprehensive solutions. These industry leaders are at the forefront of developing cutting-edge analytics technologies, leveraging AI, machine learning, and big data capabilities to provide accurate insights. Their robust platforms offer a range of applications, from predictive analytics to prescriptive recommendations, catering to diverse business needs. These companies also contribute to market growth by offering consultancy services and helping businesses navigate the complexities of data analysis. Their thought leadership and educational initiatives promote the adoption of advanced analytics, fostering a data-driven culture. Moreover, their partnerships and collaborations with other technology providers create ecosystems that support holistic solutions. Top companies inspire confidence in businesses seeking transformative insights by continuously pushing the boundaries of what analytics can achieve. Their contributions propel the entire market forward, encouraging innovation, driving adoption, and shaping the future of data-driven decision-making.

The report has provided a comprehensive analysis of the competitive landscape in the advanced analytics market. Detailed profiles of all major companies have also been provided.

• Absolutdata Technologies Inc. (Infogain Corporation)
• Adobe Inc.
• Altair Engineering Inc.
• Alteryx Inc.
• Amazon Web Services Inc. (Amazon.com Inc.)
• Fair Isaac Corporation (FICO)
• Hewlett Packard Enterprise Company
• International Business Machines Corporation
• Microsoft Corporation
• Moody's Analytics Inc. (Moody's Corporation)
• SAS Institute Inc.
• TIBCO Software Inc.

Recent Developments:

• In April 2020, Absolutdata Technologies Inc. launched the COVID-19 Toolkit to help organizations navigate uncertain times.
• In June 2023, Adobe Inc. announced the availability of Adobe Product Analytics for enterprise customers and major improvements to Adobe Mix Modeler, Adobe Experience Manager, Adobe Real-Time Customer Data Platform, and Adobe Journey Optimizer.
• In July 2023, Altair Engineering Inc. acquired OmniV, a product development software company based in southeast Michigan, to expand its digital engineering technology.

Advanced Analytics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the advanced analytics market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global advanced analytics market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the advanced analytics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.