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The Analytics as a Service Market size is estimated to grow by USD 61.60 billion at a CAGR of 30.08% between 2023 and 2028. The market's growth is driven by several crucial factors. One significant driver is the expanding availability and complexity of data. As organizations collect and manage larger volumes of data, there is an increasing demand for solutions that can handle and analyze this information effectively. Additionally, there is a growing need to enhance business efficiency. Companies are investing in technologies and strategies that streamline operations, improve productivity, and reduce costs, which fuels market expansion. Another important factor is the rising adoption of social media applications. The widespread use of these platforms generates vast amounts of user data and interactions, creating opportunities for businesses to leverage this information for marketing, customer engagement, and strategic insights. Together, the increasing complexity of data, the drive for improved efficiency, and the growth of social media adoption are collectively propelling the market forward and shaping its development. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
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The market is rapidly evolving with the integration of advanced analytic techniques and Machine Learning (ML) to support digital transformation initiatives. This market leverages data connectivity and data integration across multi-cloud and hybrid and multi-cloud environments to manage vast data volumes effectively. Key players utilize platforms like BigQuery and SAS Analytics to deliver real-time analytics, ensuring high data accuracy and enhanced data reporting. Generative AI and Internet of Things (IoT) innovations are driving the market, offering solutions for data democratization and improved scalability. Data integration complexities are addressed through flexibility and robust compliance capabilities, supported by robust encryption to secure sensitive information. As technological players continue to advance, real-time analytics and data accuracy remain critical for achieving actionable insights and maintaining a competitive edge in the AaaS landscape.
One of the key factors driving market growth is the growing availability and complexity of data. Some of the key factors for the development of various intelligence-based data analysis techniques are the availability of a large volume of data and the growing data complexity in organizations. The implementation of intelligent techniques, including technologies such as ML and AI, can enable companies to extract a huge amount of complex data and beneficially use that data to improve their services and business processes.
Furthermore, enterprises generally store data in silos and the format of data can be different and complicated as the type of data includes product support, bills, the latest regulations relating to contracts, and the implications of other events discovered. The analysis of such data can be a complex and tedious task for a normal computer as well as human beings. Thus computers highly depend on analytics for performing such tasks. Therefore it is positively impacting the AaaS market growth. Hence, such factors are expected to drive market growth during the forecast period.
A key factor shaping the market growth is the rising use of IoT analytics in enterprises. Some of the key technologies which are utilized by IoT analytics include Radio Frequency Identification (RFID), sensors, barcodes, and GPS which are extensively used to track and manage the physical assets of any organization. For instance, RFID-tagged goods are easier to monitor in the supply chain of a company, which is especially used in the retail industry.
Additionally, RFID enables the management and maintaining the inventory of an organization. By leveraging IoT, enterprises are able to interconnect devices within the organization. Furthermore, there is increasing adoption of IoT across enterprises as it helps them to monitor and control their business processes closely, resulting in more effective decisions being made in real-time. Therefore, it is positively impacting the market growth. Hence, such factors are expected to drive the AaaS market growth during the forecast period.
Data privacy and security concerns are one of the key challenges hindering market growth. As there is an increase in the number of devices that are highly dependent on the Internet and private and public networks, there is a growing concern regarding several data privacy and security concerns. The growing connectivity and data sharing between devices has resulted in an increase in cybersecurity issues and data breaches.
Additionally, due to the emergence of IoT across several industries, there will be an increase in large-scale combinations of both physical and virtual worlds in the future which may result in potential economic loss from cyber-attacks in industries as well as data breaches of sensitive data. Therefore, such factors can negatively impact the market growth. Hence, it is expected to hinder the market growth during the forecast period.
The predictive analytics segment is estimated to witness significant growth during the forecast period. The branch of analytics that utilizes advanced artificial intelligence (AI) and machine learning algorithms to make future predictions and assessments based on the analysis of historical data is termed as predictive analytics. There is increasing adoption of predictive analytics across various industries such as BFSI, retail, healthcare, manufacturing, and the public sector which is significantly contributing to the growth of this segment.
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The predictive analytics segment was the largest segment and was valued at USD 4.68 billion in 2018. Additionally, there is a rise in the implementation of advanced analytics across the world to enhance enterprise productivity, mitigate cyber risks, enhance customer engagement, and reduce administrative errors to drive superior business outcomes. Furthermore, the rapid expansion of cloud computing across industries is also fuelling the growth of this segment. The main application of predictive analytics in BFSI includes the detection and reduction of financial fraud, measuring credit risk, and retention of valuable customers. Additionally, in the energy sector, predictive analytics enables the prediction of safety and reliability hazards as well as resource and capacity requirements. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The increasing customer-centric approach in the BFSI segment increases the market growth. Factors such as the ongoing digitization of processes, the adoption of a consumer-centric approach, and the generation of a huge amount of content are fuelling the growth of this segment. There is rapid digital transformation in the BFSI sector due to the continuously evolving customer expectations. Due to the rapid adoption of digital platforms by consumers, a huge volume of data is being generated in digital form as different transactions and service requests are being made through the digital platform. Thus, analytics helps to analyze this huge volume of data to extract meaningful full insights which assist in business decisions. Hence. such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is one of the key regions which are early adopters of technology as well as one of the main innovators of advanced technologies. Some of the key factors which are significantly driving the global analytics as a service (AaaS) market growth include the booming retail sector, the rising healthcare sector, and increasing manufacturing output. Additionally, in terms of advanced analytics development in the healthcare sector, Canada is considered one of the markets in North America which will significantly contribute to the market growth as the population is growing at a rapid pace, especially the geriatric population. Furthermore, the manufacturing and retail sectors are expected to fuel the growth of the market due to the presence of a full-fledged and technologically mature industrial sector in the region. Hence, such factors are expected to drive market growth in the region during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and trends report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is thriving due to the demand for advanced analytics capabilities and Big Data solutions. Companies are leveraging real-time analytics to enhance decision making and operational efficiency. With the rise of IoT devices and exponential increasing data, businesses face challenges related to data quality, data silos, and data formats. Business Intelligence (BI) services provide industry-specific analytics solutions for sectors like healthcare analytics and retail analytics, supporting data-driven decision making. Hybrid and multi-cloud environments offer scalable solutions that integrate multiple sources of operational data. Advanced Query Accelerators and machine learning technologies are used to overcome data integration complexities and improve strategic planning. Despite the upfront investment and IT infrastructure costs, AaaS offerings enable optimization of processes through automation and robotic process automation (RPA). As the data analytics market grows, businesses must navigate operational risk and leverage specialized expertise to capitalize on business opportunities.
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Industry Scope |
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Report Coverage |
Details |
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Page number |
186 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 30.08% |
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Market growth 2024-2028 |
USD 61.60 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
23.21 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 34% |
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Key countries |
US, China, UK, Germany, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture Plc, Alphabet Inc., Alteryx Inc., Amazon.com Inc., Atos SE, Cloudera Inc., Hewlett Packard Enterprise Co., Hitachi Ltd., Infor Inc., International Business Machines Corp., Microsoft Corp., MicroStrategy Inc., Oracle Corp., QlikTech international AB, Salesforce Inc., SAP SE, SAS Institute Inc., Sisense Ltd., Thales Group, and TIBCO Software Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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