In today’s In today’s business analytics market environment, huge volume of structured and unstructured data is being generated by the organizations due to their day to day business activities, which has been giving rise to the big data trends. These data are related to the activities of the customers, products, competitors and through various digital channels involved in business. All these factors have been influencing the increase in demand by businesses to gain insights from all the forms of big data, so that they can provide digitalize and personalized experiences to their customers. Analytics helps the businesses to drive growth by delivering deeper customer insights and product and service innovation, enhancing cost management by optimizing operations, reducing errors and better financial performance analysis. Moreover, it also helps organizations to improve risk management through enhanced regulatory compliance and internal risk control. Thus business analytics provide businesses with the real-time capabilities of visualizing, analyzing and make business decisions based on the large volume and diverse data from their business. Thus it’s becoming very clear that business analytics is rapidly becoming the important part of the every business operations in diversified verticals and the operations and decision making process of the companies are becoming dependent on it.

Earlier few business intelligence and data warehousing solutions were there to address these needs of the organization. But they had certain limitations related to the management and storage of unstructured and semi structured forms of data. The query tool was not sufficient enough to respond all the business queries. Also such business analytics market solutions don’t provide separate applications to be integrated to ERP and CRM system of any organizations that don’t have intelligence tools or solutions earlier. So, it becomes and difficult for organizations to replace such systems with new ones, doing this incurs huge cost. Thus, business analytics solved the purpose and can store any form of data and provide organizations to obtain insight and answer related to any business query and various analytics applications are there which can be easily integrated to any ERP and CRM system.

Change in business environment, increasing big data trend and increasing need for customer analytics are some of the factors driving the business analytics market. High investment cost for implementation of solutions and reluctance in adoption of business analytics are some of the major factors hindering the growth of the market. Rising demand for mobile analytics and increasing trends in deployment of analytics will offer new opportunities for the vendors to sustain in this market for longer period. Incompatibility between tools across cross organizational capabilities is the major challenge being faced by the marketers in the ecosystem.

This study is done to understand the structure of the business analytics ecosystem and is intended to help the business analytics software vendors to better serve their clients in SMBs and large enterprises. The overall business analytics market size in this study has been defined as the summation of overall spending by SMBs and large enterprises on business analytics software such as query, reporting analysis tools, advanced and predictive analytics, location intelligence, content analytics, data warehousing platform and enterprise performance management. The overall market size has been further segmented into industry verticals which include BFSI, education, energy & power, government, healthcare, telecom & IT, media & entertainment, and others such as across all the regions, namely North America, Europe, APAC, MEA, and Latin America.

North America extensively implements business analytics across its diverse organizations. Europe is eventually following North America in enabling widespread business analytics market solution in its area. APAC and MEA regions are in the middle phase of growth and are significantly showcasing a rise in the adoption considerations of business analytics. Latin America is the markets where the technology is still at the nascent stage of growth.

At present, retail, BFSI, and Telecom & IT have the maximum adoption of business analytics market solutions with healthcare and media & entertainment offering great opportunities to the vendors. Whereas, in terms of deployment type, cloud is the fastest growing segment. The overall market size is expected to grow from $40,814.6 million in 2014 to $66,719.8 million in 2019, at an estimated CAGR of 10.3%.

Global Business Analytics Market: Market Size, 2014 - 2019 ($Billion)

Source: MarketsandMarkets Analysis