The global advanced analytics market is expected to grow at a CAGR of around 33.5% from 2021 to 2028 and expected to reach the market value of around US$ 40.2 Bn by 2028.
Advanced analytics is a data analysis methodology that analyses business information from a variety of data sources using predictive modelling, machine learning algorithms, deep learning, business process automation, and other statistical methods. Advanced analytics is a valuable technique for enterprises because it allows an organization to operate with greater accountability from its own data sets, regardless of where the data is stored or whether it is available in any format. Advanced analytics can help businesses address key issues that traditional business intelligence (BI) cannot.
Future of Advanced analytics in several end-user industries
According to a report released by Project HOPE: The People-to-People Health Foundation, Inc., advanced analytics in healthcare is rapidly adopting electronic health records (EHS), which will dramatically increase the amount of clinical data available electronically. As a result, rapid progress is being made in the field of advanced analytics, which involves techniques for analyzing large quantities of data. As a result, there are several opportunities to use advanced analytics for large amounts of data and discover new insights for the analytical view. Companies in other industries have had great success using advanced analytics to improve the efficiency of their business operations. Such factors have a positive impact on the global advanced analytics market's growth.
Big calls for "Advanced Analytics" in managing operations at organizational level
According to Harvard Business School Publishing statistics, incorporating advanced analytics into organization gains 85% of the organisation significant business and IT benefits. Furthermore, 70% reported that advanced analytics are enterprise-driven technologies, and 75% reported that their incorporation has a positive impact across multiple lines of business. As data management and analysis become increasingly important for the public and private sectors to manage day-to-day operations more efficiently and make informed decisions to serve the client base. Given that the problems to be solved in the public sector are far more complex and multifaceted than those in the private sector, advanced analytics is viewed as an unavoidable path that every organization must take.
Where advanced analytics can help during COVID-19?
According to the TDWI report, advanced analytics played a critical role during the unprecedented situations of COVID-19. During the COVID-19 response, the organization began by identifying new business challenges and setting up central nerve centers, mobilizing business, and analytics resources to address the COVID-19 challenges to the organization. Building new data streams, reporting business-critical issues to guide near-term decisions, and developing a longer-term view of data for a broader perspective are all part of this. Several businesses are currently opting for analytics, adopting new analytics solutions and redesigning existing ones to support the critical business priorities arising from the COVID-19 pandemic.
The global advanced analytics is segmented as type, deployment, enterprise, and end-use. Based on type, the market is segmented as big data analytics, business analytics, customer analytics, risk analytics, statistical analysis, and others. By deployment, the market is bifurcated into on-premise and cloud. By enterprise, the market is classified into large enterprise and small & medium enterprises (SMEs). Further, end-use is segregated as BFSI, government, healthcare, IT & telecom, military & defense, and others
Based on type, the big data analytics segment accounted largest market share for the global advanced analytics market. By deployment, the on-premise segment holds the dominating revenue share for the global advanced analytics market. Based on enterprise size, the large enterprise segment holds the dominating share from the past and is expected to continue similar trend till the forecast period. Based on end-user, the BFSI segment accounted largest market share for the global advanced analytics market.
Big data is ranked 20th out of 33 key technologies. In the telecom and financial services industries, 53% of companies are using big data analytics, up from 17% in 2015, propelling the growth of the global market for advanced analytics.
By investing in advanced analytics tools, banks can gain real-time insights into individual prospects and personalize engagement. These tools' actionable and accurate insights help to generate interest in products and services for a large customer base and improve customer segmentation. Citibank's adoption of advanced analytics, for example, has resulted in an analytical approach and the implementation of experiments with innovative use cases of analytics by deconstructing data. The bank analyzed its customer data using machine learning algorithms and used the results to target promotional spending. These factors have a positive impact on segmental growth, which ultimately contributes to the growth of the global advanced analytics market.
North America dominates, Asia Pacific to record fastest growing CAGR for the advanced analytics market
North America has dominated the advanced analytics market in the past and is expected to do so again during the forecast period. According to tdwi statistics, advanced analytics adoption is increasing, and enterprises are reaping significant benefits. 44% of respondents have seen differentiation or transformational benefits from the use of advanced analytics. Aside from that, the presence of diverse end-use industries fuels the adoption of advanced analytics, ultimately contributing to the market's overall growth. The telecommunications and financial services industries were the first to adopt advanced analytics, with technology and healthcare coming in third and fourth. Furthermore, because of the numerous job opportunities associated with advanced analytics, it is a widely used technology that contributes to the overall market's growth. According to a report by the Information and Communications Technology Council, big data adoption employs 43,700 Canadians both directly and indirectly. It is expected to reach around 56,000 by 2020 for the development and earning of more profitable business models.
Asia Pacific, on the other hand, is expected to have the fastest growing CAGR in the advanced analytics market. Data and analytics are reshaping industries by upending long-held business models and providing unprecedented insights into the global market. Various organisations are utilising data and analytics to increase revenue and reduce costs. For example, by implementing predictive analytics, an Indian automotive OEM increased its sales by nearly 50%. Furthermore, the growth of several end-user industries in India has shown promising growth, particularly in sectors involving telecommunications, financial services, and information technology, which are responsible for the growth of advanced analytics. Furthermore, Asian businesses are investing more in technology to become more digital and agile.
The prominent players of the global advanced analytics market is segmented as Bain & Company, Altair Engineering, Inc., International Business Machines Corporation, FICO (Fair, Isaac, and Company), Microsoft Corporation, Oracle, Trianz, and among others
Market By Type
Big Data Analytics
Market By Deployment
Market By Enterprise Size
Small & Medium Enterprises (SMEs)
Advanced analytics market is expected to reach a market value of around US$ 40.2 Bn by 2028.
The advanced analytics market is expected to grow at a CAGR of around 33.5% from 2021 to 2028.
Based on deployment, on-premise segment is the leading segment in the overall market.
Rising adoption of digitization is one of the prominent factors that drive the demand for advanced analytics market.
Bain & Company, Altair Engineering, Inc., International Business Machines Corporation, FICO (Fair, Isaac and Company), Microsoft Corporation, Oracle, Trianz, and among others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years