Advanced Analytics Market 2020 and Forecast 2021-2027

  • TBI59178
  • November 05, 2020
  • Global
  • 135 pages
  • IFF Market Research

Report Overview: Advanced Analytics Market

The global advanced analytics market size was valued at USD 8.7 billion in 2020 and is excepted to register a CAGR of 14.2% from 2021 to 2027. Advanced analytics is the autonomous examination of data or content using sophisticated techniques and tools such as data mining, machine learning, neural networks, semantic analysis, and multivariate statistics. Companies in various sectors such as BFSI, IT and telecom, and energy and utilities are leveraging advanced analytics for seamless data processing and make prompt decisions to maintain their competitive edge in the market. The increasing adoption of analytical solutions in the retail sector for activities such as demand forecasting, behavior analytics, and trade promotion optimization, is a significant factor responsible for the growth of the market. In recent years, there has been a tremendous rise in the demand for database management tools owing to the vast adoption of unorganized data generated from streaming activities for media subscription services such as Netflix, Amazon Prime Video, and Hulu. This has translated into growth in demand for advanced analytics. Moreover, continuous advancements in the location-based services and the integration of this technology with a Geographical Information System (GIS) has resulted in increased geospatial data. As a result, various companies are adopting advanced analytics for locating their customers on the map through geospatial data and drafting their strategies accordingly. Furthermore, the growth of the e-commerce sector has resulted in a rise in demand for advanced analytics solutions. The increasing demand for advanced analytics that has become an essential tool for prediction and forecast of electricity consumption, trade market, and traffic trend predictions, has boosted the market growth. The use of advanced analytics in demand forecasting can help organizations in making informed decisions and augmenting their profitability. Government agencies, as well as incumbents of various industries, such as banking, manufacturing, and professional services, have been investing aggressively in big data analytics that bodes well for the growth of the market. For instance, the banking industry had invested USD 20.8 billion in big data analytics in 2016. In large enterprises, the amount of data generated is enormous, which has resulted in a rising demand for solutions such as big data analytics and predictive analytics that is a crucial factor driving the market. According to research conducted by Seagate Technology LLC, the volume of data created worldwide is anticipated to grow to 163 zettabytes by 2025 from 12 zettabytes in 2015. Furthermore, the tremendous rise in demand for IoT predictive solutions that collect data from various sensors connected to the IoT network, such as air quality sensors, temperature sensors, and motion sensors, is expected to drive the adoption of advanced analytical tools. The synergy of cellular networks and advanced analytics have enabled IoT to enhance the efficiency of organizations by improving the speed and accuracy of the information and data shared without human intervention. Various healthcare institutes are extensively using advanced analytical tools to derive clinically meaningful outcomes through investigational mining of Electronic Health Records (EHRs) of patient. This will aid in identifying medical inaccuracies in the database to offer cost-effective treatments to patients while reducing wastage of resources. Furthermore, the increase in demand for real-time monitoring among various pharmaceutical companies and research centers will create new opportunities for advanced analytical solutions to gain insightful clinical outcomes. This is a significant factor in driving the growth of the advanced analytics market.

Type Insights: Advanced Analytics Market

The big data analytics segment accounted for a significantly high share of the market in 2019 owing to the rise in the number of virtual online offices and the increasing popularity of social media that is producing an enormous amount of data. Initially, big data analytics was able to cater to only a single need out of several requirements of businesses. However, the development of Software as a Service (SaaS)-based big data analytics has added convenience to the process of automation and allowed advanced analytical models to be built in a self-service model. Furthermore, the increasing adoption of big data analytics from the companies operating in the industrial sector has propelled segment growth, significantly. The customer analytics segment is anticipated to grow significantly on account of rising demand for better customer retention, lead management, and customer experience enhancement. Moreover, the integration of various CRM suites with multiple data processing tools for mining unstructured contact data of potential customers is the prime focus of end users. This, in turn, is driving the demand for customer analytics. The increasing demand for omnichannel experience among the customers of the retail industry has propelled market growth. Furthermore, companies in the retail sector are emphasizing the adoption of customer analytics for the development of personalized communications and marketing programs. This, in turn, is further driving segment growth.

Deployment Insights: Advanced Analytics Market

Enterprises opting for on-premise deployment have better control of the IT infrastructure as well as the flexibility to customize the IT infrastructure whenever required. The on-premise deployment helps in reducing the dependency on the internet and protecting the data from potential losses and frauds. Such benefits are expected to encourage enterprises to opt for on-premise deployment. Furthermore, organizations operating in the BFSI sector are preferring the on-premise model owing to the growing concerns towards the frauds such as new account frauds and account takeovers. Organizations utilizing the on-premise model are more immune to these frauds that bodes well for segment growth. Companies operating in the market such as IBM Corporation, SAP SE, and Microsoft Corporation, are emphasizing on their advanced analytics solutions through their cloud platforms, thereby driving segment growth. For instance, Microsoft offers its big data analytics software through Microsoft Azure. Furthermore, some of the companies are deploying advanced analytics solutions through their existing products such as Customer Relationship Management (CRM) and Enterprise Asset Management (EAM). As these solutions are provided through the cloud, the demand for cloud-based deployment has risen significantly. However, concerns regarding security and privacy are the major hindrances observed in cloud deployment that is negatively impacting segment growth.

Enterprise Size Insights: Advanced Analytics Market

The advanced analytics market is expected to witness significant adoption across the large enterprise segment, which can be attributed to the growing adoption of advanced analytics solutions such as customer analytics and business analytics for efficiently managing the vast databases of customers and assets. In large enterprises, the amount of data generated is enormous that has resulted in a rising demand for solutions such as big data analytics and predictive analytics, which is a significant factor boosting the growth of the segment. Large enterprises are prioritizing location intelligence, data governance, and enterprise planning, which is a significant factor in driving the segment. Moreover, large enterprises in the retail sector are leveraging advanced analytics for improving the accuracy of their sales forecasting models and reducing inventories. The exponential rise in the number of small and medium enterprises in countries such as Australia, China, and Singapore is a significant factor driving the demand for advanced analytics. The significant role of governments in the provision of funds to small and medium enterprises for the adoption of cloud-based solutions is expected to further drive the demand for advanced analytics by small and medium enterprises. For instance, the Government of Australia provides funds to start-ups for the adoption of cloud-based advanced analytics solutions under its Digital Australia 2020 initiative. Furthermore, SMEs are opting for advanced analytics solutions such as business analytics and customer analytics for providing enhanced customer service and making better decisions in-line with the inherent risks.

End-use Insights: Advanced Analytics Market

The BFSI segment held the largest share in the market in 2019, owing to the rising need to optimize processes, alleviate frauds, and risk handling. Advanced analytics is helping banks sort through unstructured data for analyzing global and regulatory compliance that depends on the region of operation. Moreover, credit risk management, capital planning, and insurance risk management are increasingly important owing to regulatory requirements. Furthermore, incumbents operating in the BFSI sector is emphasizing on the replacement of traditional anti-fraud technology tools with advanced analytics. The demand for these solutions is anticipated to grow significantly in the IT and telecom sector on account of the growing demand for collaboration tools such as web conferencing and video conferencing. Furthermore, the companies in this sector are adopting advanced analytical tools for the prevention of frauds, such as illegal access, authorization, or cloning. Moreover, as telecom companies serve a large number of customers, the use of big data analytics will enable them to build micro-segmentations. This will, in turn, allow these companies to personalize every customer’s needs and determine the most valuable customers. Additionally, the incumbents of the IT and telecom sector are emphasizing the adoption of advanced analytics for network optimization, enabling them to serve their customers at all times.

Regional Insights: Advanced Analytics Market

In 2019, North American dominated the market owing to the adoption of technologies such as artificial intelligence and big data analytics and the presence of supporting infrastructure. The growth of the regional market is driven by the increasing adoption of advanced analytical tools by automotive manufacturers in the region. For instance, in October 2018, SAS Institute Inc. bagged a contract from Volvo Trucks North America for providing its advanced analytics platform. This helped Volvo Trucks North America strengthen its portfolio of uptime-boosting services by improving remote diagnostics. The growth of the regional market is further propelled by the rising adoption of social media that has fueled the demand for advanced analytical solutions. The Asia Pacific region is anticipated to grow at phenomenal rate over the forecast period owing to the rise in the number of frauds in the region’s BFSI sector. The growth of the e-commerce industry in countries such as China, India, and Singapore has resulted in increased demand for solutions such as demand forecasting and predictive analytics. Furthermore, various enterprises in the region are investing heavily in customer analytics to improve business efficiency and productivity. Moreover, travel companies in the region such as China Ways LLC, TNT Korea Travel, and Trafalgar, are extensively adopting advanced analytical solutions for tracking buses, train schedules, breakdowns, and traffic management. This, in turn, bodes well for the growth of the regional market.

Advanced Analytics Market Share Insights: Advanced Analytics Market

Some of the major players in the market include Although the market is dominated by a few large players, the emergence of niche players offering industry-specific solutions has changed the market dynamics. Some of the players operating in the market such as IBM Corporation, Microsoft Corporation, and Trianz have adopted strategies such as mergers, acquisitions, and collaborations for enhancing their market share. For instance, in January 2018, Trianz acquired CBIG Consulting to strengthen its analytics practice. Companies such as IBM Corporation and Microsoft Corporation are also focusing on R&D activities for the development of new products. For instance, IBM Corporation invests more than USD 5 billion on its R&D expenses annually enabling it to launch innovative cutting-edge solutions and products. For instance, in February 2019, IBM Corporation launched a new portfolio of IoT solutions that use a combination of advanced analytics and artificial intelligence. These IoT solutions enable asset-intensive organizations, such as the Metropolitan Atlanta Rapid Transit Authority (MARTA) to improve their maintenance strategies. Moreover, they reduce the risk of failure from physical assets, such as manufacturing robots, vehicles, mining equipment, turbines, elevators, and electrical transformers. This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global advanced analytics market report based on type, deployment, enterprise size, end use, and region.

Type Outlook (Revenue, USD Million, 2016 - 2027)

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

Deployment Outlook (Revenue, USD Million, 2016 - 2027)

  • On-premise
  • Cloud

Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)

  • Large Enterprises
  • Small & Medium Enterprises (SMEs)

End-use Outlook (Revenue, USD Million, 2016 - 2027)

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

Table of Contents
Chapter 1 Methodology and Scope
1.1 Research Methodology
1.2 Research Scope and Assumptions
1.3 List of Data SourcesChapter 2 Executive Summary
2.1 Advanced Analytics Market - Industry Snapshot & Key Buying Criteria, 2016 - 2027
2.2 Global Advanced Analytics Market, 2016 - 2027
    2.2.1 Global advanced analytics market, by region, 2016 - 2027
    2.2.2 Global advanced analytics market, by type, 2016 - 2027          
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