Analytics as a Service (AaaS) Market

Analytics as a service (AaaS) Market Size:

The global analytics as a service (AaaS) market size reached US$ 23.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 132.9 Billion by 2032, exhibiting a growth rate (CAGR) of 20.7% during 2024-2032. The market is propelled by emerging organizational need to update their services by better understanding system operations, the widespread adoption of social media applications, rapid automation across several industry verticals, and the increasing utilization of predictive and historic data analysis by manufacturing facilities.

Analytics as a Service (AaaS) Market Analysis:

• Major Market Drivers: The market is driven by the proliferation of big data, IoT devices, and digital transformation initiatives across industries. Besides, the rising complexity of data analysis tasks and the need for specialized expertise also create a favorable market impact.
• Key Market Trends: At present, key trends in the market include the adoption of hybrid and multi-cloud deployments for enhanced flexibility and scalability. Besides, the increasing focus on data privacy and security is driving the demand for AaaS solutions with robust encryption and compliance capabilities.
• Geographical Trends: North America is among the leading regions due to the presence of major technological players and early adoption of analytics solutions. Moreover, Asia Pacific is also experiencing growing analytics as a service (AaaS) market share, fueled by rapid digitalization, increasing investments in analytics infrastructure, and expanding internet penetration.
• Competitive Landscape: Some of the major market players in the analytics as a service (AaaS) industry include Atos, Cloudera Inc., Google LLC (Alphabet Inc.), Hewlett Packard Enterprise Company, Infosys Limited, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, ScienceSoft USA Corporation, Sisense, Teradata Corporation, Tibco Software Inc among many others.
• Challenges and Opportunities: Challenges in the market include data integration complexities, ensuring data quality and accuracy, and addressing regulatory compliance requirements. However, business opportunities in analytics as a service (AaaS) market include the growing demand for industry-specific analytics solutions, such as healthcare analytics and retail analytics, which allows market players to tailor their offerings to specific verticals.

Analytics as a service (AaaS) Market Trends:

Growing Volume of Big Data

The analytics as a service (AaaS) market growth is significantly driven by the exponential increasing data generated by businesses across various sectors. Organizations are accumulating vast amounts of data from multiple sources, including IoT devices, social media, and transactional systems. However, managing and extracting valuable insights from this data requires advanced analytics capabilities. AaaS offers scalable solutions that allow businesses to leverage sophisticated analytics tools without significant upfront investment in IT infrastructure. This accessibility is crucial for companies aiming to harness the potential of big data to drive decision-making and strategic planning. According to FORBES MAGAZINE, businesses prefer data-driven decision-making to intuition-based decision-making, which probably accounts for why the data analytics market is growing at a compound annual rate of nearly 30%. Moreover, most organizations struggle to analyze the ocean of data they collect as nearly 90% of data is unstructured or has no defined schema which is escalating the demand for solutions like AaaS.

Automation across various industries

The rising automation across various industries is creating positive analytics as a service (AaaS) market outlook. Automation technologies, such as robotic process automation (RPA) and artificial intelligence (AI), generate vast amounts of operational data that require analysis to optimize processes and decision-making. The new World Robotics report shows an all-time high of 517,385 new industrial robots installed in 2021 in factories around the world. This represents a growth rate of 31% year-on-year and exceeds the pre-pandemic record of robot installation in 2018 by 22%. With this, the stock of operational robots around the globe hits a new record of about 3.5 million units. As industries adopt automation to increase efficiency, there is a concurrent need to understand and leverage the data these technologies produce. AaaS provides a seamless solution by integrating analytics directly with automated systems, enabling real-time data processing and insight generation.

Rising adoption of AI and ML technologies

The rapid advancement in artificial intelligence (AI) and machine learning technologies has significantly enhanced the capabilities of analytics services. AaaS providers are incorporating these technologies to offer more accurate and predictive insights, enabling businesses to anticipate market trends and consumer behaviors. This predictive capability is vital for industries such as retail, finance, and healthcare, where being proactive can lead to competitive advantages. This coupled with the expanding artificial intelligence market which is expected to reach US$ 737.1 Billion by 2032, exhibiting a growth rate (CAGR) of 24.9% during 2024-2032 as per IMARC GROUP is further propelling the demand for AaaS solutions.

Analytics as a service (AaaS) Market Segmentation:

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

Breakup by Type:

• Predictive
• Prescriptive
• Diagnostic
• Descriptive
   

Predictive holds the largest share of the industry

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes predictive, prescriptive, diagnostic, and descriptive. According to the report, predictive accounted for the largest market share.

Predictive analytics helps organizations anticipate future trends, consumer behaviors, and potential risks by analyzing historical and current data. In today's fast-paced and data-driven business environment, the ability to forecast future events is crucial for maintaining a competitive edge. Hence, companies across various sectors, from retail to healthcare, finance, and manufacturing, increasingly rely on predictive insights to make strategic decisions that optimize operations, enhance customer satisfaction, and increase profitability. Consequently, as stated by IMARC Group, the predictive analytics market is expected to reach US$ 86.6 Billion by 2032, exhibiting a growth rate (CAGR) of 20.95% during 2024-2032.

Breakup by Component:

• Solutions
• Services
   

Services accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the component. This includes solutions and services. According to the report, services represented the largest segment.

Training and support services are crucial for enabling organizations to effectively utilize AaaS solutions and derive actionable insights from their data. Hence, service providers offer training programs, workshops, and ongoing support to ensure that clients can leverage AaaS platforms to their full potential. For instance, in May 2022, Wipro and Informatica have partnered to offer cloud-based data and analytics services to market through the Wipro Fullstride cloud services data platform. This will create a one-stop marketplace that drives business value and outcomes for clients by combining the offerings of cloud hyperscalers with Wipro's platforms.

Breakup by Deployment Type:

• Private Cloud
• Public Cloud
• Hybrid Cloud
   

Public cloud represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the deployment type. This includes private cloud, public cloud, and hybrid cloud. According to the report, public cloud represented the largest segment.

Public clouds provide unparalleled scalability and flexibility, which are crucial for analytics applications. Moreover, companies dealing with large volumes of data require infrastructure that can scale up or down based on demand without the need for significant upfront investments in physical hardware. Public clouds allow businesses to adjust their resources dynamically, making it easier to handle variable data loads and computing demands typical in analytics. For instance, Gartner forecasts worldwide public cloud end-user spending to reach nearly $600 billion in 2023. Besides, 41.4% of leading tech companies are increasing their use of cloud-based services and products. Moreover, by 2027, more than 50% of enterprises will use industry cloud platforms to accelerate their business initiatives. These factors are expanding the use of public clouds thus accelerating analytics as a service (AaaS) market forecast in a positive way.

Breakup by Enterprise Size:

• Small and Medium-sized Enterprises
• Large Enterprises
   

A detailed breakup and analysis of the market based on the enterprise size have also been provided in the report. This includes small and medium sized enterprises and large enterprises.

SMEs typically have limited budgets for IT infrastructure and analytics capabilities. AaaS offers a cost-effective solution by eliminating the need for significant upfront investments in hardware and software. The pay-as-you-go model allows SMEs to manage expenses according to their needs and scale.

Large enterprises deal with vast amounts of data and require robust systems that can scale. AaaS offers the ability to efficiently scale up or down based on the enterprise's evolving needs, supporting large-scale data processing and complex analytical computations.

Breakup by Industry Vertical:

• BFSI
• Retail
• Government and Public Sector
• IT and Telecommunication
• Healthcare
• Manufacturing
• Others
   

BFSI represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the vertical. This includes private cloud, public cloud, and hybrid cloud. According to the report, BFSI represented the largest segment.

Financial institutions face continuous risks including credit risk, operational risk, and fraud. According to the ECONOMIC TIMES, banks saw an exponential surge in card and internet-related frauds, reaching 12,069 cases in April-September 2023-24 from about 2,500 in 2020-21. Advanced analytics services help in monitoring, managing, and mitigating these risks. For example, AaaS can provide real-time analytics to detect patterns and anomalies that may indicate fraudulent activities, enabling proactive responses. Similarly, it can be used for predictive analytics to assess credit risks and make informed lending decisions.

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 leads the market, accounting for the largest analytics as a service (AaaS) 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); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for analytics as a service (AaaS).

North America, particularly the United States, boasts a highly developed technological infrastructure, which is crucial for the robust functioning of AaaS platforms. High-speed internet connections and widespread adoption of advanced technologies provide a solid foundation for cloud-based analytics services. This infrastructure supports the seamless collection, storage, and analysis of large volumes of data, essential for businesses leveraging AaaS. Besides, the companies in the North America are making strategic partnerships and developing analytics services. For instance, in February 2022, Teradata and Microsoft established a global partnership to connect the Teradata Vantage data platform with Microsoft Azure.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the analytics as a service (AaaS) industry include Atos, Cloudera Inc., Google LLC (Alphabet Inc.), Hewlett Packard Enterprise Company, Infosys Limited, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, ScienceSoft USA Corporation, Sisense, Teradata Corporation and Tibco Software Inc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The analytics as a service (AaaS) market report shows that leading companies are expanding their AaaS offerings to include a wider range of analytics services. This includes advanced capabilities like predictive analytics, machine learning, artificial intelligence, and real-time analytics. By broadening their service portfolios, these companies can cater to a more diverse set of industry needs and customer requirements, making their platforms more attractive to potential clients. Besides, they are entering into partnerships and collaborations with other technology firms, data providers, and industry-specific enterprises. For instance, Wipro and Informatica have partnered to offer cloud-based data and analytics to market through the Wipro Fullstride cloud services data platform.

Analytics as a service (AaaS) Market News:

• In August 2022, Morae Global Corporation and Intelligent Voice Limited, a provider of secure speech and natural language processing eDiscovery solutions have announced a global strategic partnership to bring Intelligent Voice data analytics to Morae clients.

Analytics as a service (AaaS) Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the analytics as a service (AaaS) market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global analytics as a service (AaaS) 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 analytics as a service (AaaS) industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.