The advanced analytics market is projected to grow at a CAGR of 24.78% during the forecast period to reach US$93.553 billion by 2026, from US$19.863 billion in 2019. Advance analytics involves an autonomous or semi-autonomous examination of the available data to generate fruitful insights that facilitate better decision-making. Advance analytics accommodate sorts, channelize, interprets, and forecast the data to generate a business result that impacts the planning and strategizing of the organization by making it more calculative and approximate to the actual market in the future. The analyzed data through this technology can be used in two ways. The first is to generate insight into the sector and facilitate the organization to make a decision. The second is to sell the data or the insights to a 3rd party, generating additional income for the organization. With digitalization, globalization, and increasing economic complexities, the world has become a hub of information for several industry verticals, whose insights can be used to generate lucrative plans and strategies. Moreover, increased cloud adoption and technology penetration play a vital role in the growth of the advanced analytics market, since it adds up to the available data and generates more insights on consumer preference. However, the technicalities of software and the requirement of a skilled workforce have the potential to hamper the market growth. Nevertheless, increased learning platforms coupled with the development of user-friendly analytics software are projected to remove the requirement of a highly skilled workforce and replace it with moderately skilled ones.
Predictive and prescriptive analysis suggests the future policies and strategies of the organization and hence have greater market prospects.
Based on type, the advanced analytics market is segmented into predictive analytics, prescriptive analytics, diagnostic analytics, and descriptive diagnostic. Predictive analytics studies the time series and the overall growth in the study market to make forecasts and predictions about the market worth and size in the future. It also determines the trends and growth opportunities for the organization studying the market/ sector. Prescriptive analytics, on the other hand, offers solutions for various operational problems by reviewing the market trends and opportunities. This type of advanced analytics also prescribes policies and strategies that can help the studying organization in operational efficiency, sales, diversification, and other activities. During the forecasted period, predictive and prescriptive analytics is projected to hold a significant share in the market owing to wider application, especially in telecom and IT, banking and finance, and consumer goods and retail sectors. Diagnostic analytics is also projected to grow at a significant rate during the forecasted period.
Lack of a highly skilled workforce has the potential to constrain market growth since complex analytics software requires a skilled and knowledgeable person. However, the launch of user-friendly software has replaced the requirement for highly skilled workers with semi-skilled workers, removing a major constrain for the market.
One of the main hindrances facing the market for advanced analytics is the lack of availability of a highly skilled workforce. Certain advanced analytics software requires a highly skilled workforce that has the knowledge of technology and deep education regarding technicality. Lack of a highly skilled workforce decreases the market for advanced analytics software and hence hinders growth.
However, the launch of user-friendly, easy software does not require a highly skilled workforce. The software can be operated by a moderately skilled workforce or workforce with basic knowledge, opening new growth prospects for the market. Google, for instance, launched its updated, user-friendly analytics software in October 2020 for supporting small and medium scale businesses. The Google Analytics tool provides the organization smarter insights into the data, yielding better ROI.
Rising internet penetration and cloud computing have created an ocean of data with several complexities, which is expected to increase the adoption of advanced analytics tools for a clear view.
Another prime reason that is forecasted to support the market growth is rising internet penetration and growing adoption of cloud computing, especially by small and medium enterprises, which has created a pool of data that requires analytics tools to provide a clear picture of the market. Techjury states that 93% of businesses in 2020 uses a multi-cloud strategy, of which 83% utilize a hybrid cloud approach. The website further estimates that 14% of revenue generated in the IT sector will come from enterprise cloud usage. The rise in cloud computing is expected to provide significant opportunities for advanced analytics software.
The coronavirus pandemic boosted the market for advanced analytics tools. Nationwide lockdown led to the adoption of work from home culture, a rise in internet penetration, and cloud computing. This expanded the pool of data available for analytics and the requirement of new software capable of handling them. Further, the surge in technical education during the lockdown period, owing to people taking it as an opportunity to enhance their skills, increased the workforce available. Udemy, an online education platform, saw exponential growth during the lockdown period. The company reports a 425% increase in enrolment, 55% increase in instructors, and 80% increase in usage by business and/ or government organizations. The company observed a 21,598% increase in its telecommunication course enrolment.
|Market size value in 2019||US$19.863 billion|
|Market size value in 2026||US$93.553 billion|
|Growth Rate||CAGR of 24.78% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, End-User Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Microsoft, IBM, Dell Inc., SAS Institute Inc., Siemens, FICO, Tibco|
|Customization scope||Free report customization with purchase|
Key Market Segments
Frequently Asked Questions (FAQs)
Q1. What are the growth prospects for the advanced analytics market?
A1. The global advanced analytics market is projected to grow at a CAGR of 24.78% over the forecast period.
Q2. What will be the advanced analytics market size by 2026?
A2. The advanced analytics market is projected to reach a total market size of US$93.553 billion in 2026.
Q3. What is the size of the global advanced analytics market?
A3. Advanced Analytics Market was valued at US$19.863 billion in 2019.
Q4. How is the advanced analytics market segmented?
A4. The global advanced analytics market has been segmented by type, end-user industry, and geography.
Q5. What factors are anticipated to drive the advanced analytics market growth?
A5. Increased cloud adoption and technology penetration play a vital role in the growth of the advanced analytics market.
1.1. Market Definition
1.2. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis
5. ADVANCED ANALYTICS MARKET, BY TYPE
5.2. Predictive Analytics
5.3. Prescriptive Analytics
5.4. Diagnostic Analytics
5.5. Descriptive Analytics
6. ADVANCED ANALYTICS MARKET, BY END-USER INDUSTRY
6.2. Telecom and IT
6.3. Banking and Finance
6.4. Government and Defence
6.6. Consumer goods and retail
6.7. Transportation and Logistic
7. ADVANCED ANALYTICS MARKET, BY GEOGRAPHY
7.2. North America
7.2.1. United States
7.3. South America
7.4.3. United Kingdom
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.6. Asia Pacific
7.6.3. South Korea
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrative
8.3. Mergers, Acquisition, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.3. Dell Inc.
9.4. SAS Institute Inc.
SAS Institute Inc.
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