The social media analytics market is estimated at US$5.147 billion for the year 2019 growing at a CAGR of 25.06% to reach the market size of US$19.686 billion by 2025. The primary growth driver of the market is the surge in the number of social media users across the globe. The changing business requirements and the changing business scenario is further leading to a shift from traditional business intelligence to the rising adoption of latest and advanced business solutions across the different industry verticals is also anticipated to positively impact the growth of the market during the coming years. The rising penetration of smartphones on account of rising disposable income and the availability of cheaper and faster internet in some countries is also one of the key factors spurring the demand for social media analytics solutions due to the fact that a large number of population has an access to the content available on the social media sites through their portable devices such as smartphones and tablets. Furthermore, the evolving trend of cloud computing and the growing popularity of the e-commerce industry in the major developing economies is also anticipated to propel the market growth opportunities as the companies are focused to gain deeper insights into consumer spending behavior as a support for their branding and sales.
Cloud-based solutions are expected to witness a significant market growth rate
On the basis of deployment, the social media analytics market has been segmented on the basis of cloud-based solutions and on-premise solutions. The cloud social media analytics solutions are projected to grows at a significant CAGR during the forecast period owing to the fact that the product offering for the cloud solutions is comparatively high than on-premise solutions owing to the fact that high scalability and cost-effectiveness can be achieved on the adoption of these cloud solutions, thereby supplementing the growth during the forecast period. Furthermore, due to high adoption of these solutions by the SMEs on account of the increasing affordability of SMEs for the adoption of these tools coupled with growing awareness regarding the adoption of analytical solutions among the SMEs due the cost advantage and better efficiency provided by these solutions is also projected to boost the adoption of social media analytics solutions as a part of their marketing strategy, thereby supplementing the market growth significantly. However, the risk of data security is expected to one of the prime factors that may hinder the adoption of cloud solutions, especially in the case of large enterprises that are highly cautious about cloud-based services.
Retail segment holds notable market share
On the basis of industry vertical, the social media analytics market is classified into retail, media and entertainment, BFSI, travel and hospitality and others. The retail segment is projected to hold a notable share during the year 2019. This is due to the fact that these solutions help retailers to enhance the customer experience through brand awareness on social media platforms and also helps to connect with the audience in a better manner. Furthermore, with the help of these solutions, the gaps between the sales cycles are also reduced, thereby positively impacting the demand for these solutions across the retail sector. Moreover, these solutions are highly useful for fashion brands to track the brand’s online mentions and related metrics like sentiments to brand success. The listing of companies on social media platforms further helps the retailers to boost their sales through successful campaigns. In addition, the e-commerce industry is also on a rise which is further pushing the retailers to adopt these solutions with an aim to identify the consumer behavior and trends so as to keep up with the changing business environment and to maintain a balance in the highly competitive market scenario. Through the social media analytics platforms brands can have real-time insight regarding consumer behavior and thereby can plan their investments accordingly the market demand and can boost brand perception, sales, competitiveness, thereby augmenting its demand significantly during the coming years.
North America is the largest regional market
Geographically, the global market has been segmented into North America, South America, Europe, Middle East, and Africa and Asia Pacific. The North American region is projected to hold a notable market share on account of the early adoption of technology and well-established infrastructure. The high internet penetration in countries such as the United States and Canada and rising penetration of the internet in Mexico coupled with growing investments in the 5G technology are the factors that collectively contribute towards the growth of the market in North America. For instance, according to the World Bank Group, the individuals using the internet (% of the population) in Canada increased from 73.2% in 2007 to 91% by 2017. Similarly in Mexico, it increased to 65.773% by 2018 from 20.81% in 2007. Furthermore, the presence of key players in the market in the region also supports the growth of the market for the North American region.
The growing penetration of social media platforms in major developing economies such as India, China, and Indonesia coupled with a surge in the penetration of faster and cheaper internet along with a considerably larger social media user among other regions is one of the key factors for the market to grow at a decent rate in the Asia Pacific region. In India, the individuals using the internet (% of the population) increased drastically by more than 30% during the period 2007 to 2017.
The major players discussed in the report include SAS Institute Inc., IBM Corporation, SAP SE, Oracle, NetBase Quid, Adobe, Salesforce.com, Inc., GoodData Corporation, and Clarabridge.
Prominent key market players in the social media analytics market include SAS Institute Inc., IBM Corporation and Oracle among others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings.
Major players in the social media analytics market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.