Cloud analytics is adopted by the companies to analyse a large amount of unstructured data flowing through various platforms including connected devices to get useful information and better insights. Cloud analytics help to streamline the business process by gathering, integrating, analysing, and presenting insights which will help the businesses to take better decision for a better outcome. The higher adoption rate of the cloud analytics across all industries and the enormous amount of data generated by the enterprises are the major factors that is contributing to the growth of the cloud analytics market.
The outbreak of covid-19 and its subsequent lockdown had impacted every industry. The cloud analytics market was negatively impacted. The global ICT spending declined and further the slowdown in the supply of the hardware is majorly impacting the IT industry. The further slowdown of the infrastructure growth of IT and reduction of the manufacturing capacity negatively impacted the industry. However, with the large amount of data being uploaded on the cloud due to work from home and working remotely is expected to create opportunities and demand for the cloud analytics solution. The usage of the collaborative application, AI, security solutions, and analytics will boost the cloud analytics market and ultimately help the market to boost.
Market Players included in the report of the cloud analytics market are SAP, Oracle Corporation, Microsoft Corporation, IBM Corporation, Teradata Corporation, Alphabet, Inc., Hewlett- Packard, SAS Institute, Inc., Microstrategy Incorporated, and Tableau Software.
On the basis of region, the cloud analytics market is segmented as North America, South America, Asia Pacific, Middle East & Africa, and Europe. North America region is estimated to dominate the market of cloud analytics and is expected to continue holding a larger share of the market during the forecasted period. The region has high number of companies which are committed to cloud analytics at a higher percentage. This is encouraging the market players to focus on improving and offering better data quality, better data visualization, and integration. Further the rising investment, technological advancement and increasing shift towards subscription-based services are the key factors that is boosting the market growth of the cloud analytics market.
Whereas, Asia Pacific region is expected to witness significant growth on account of entering of major providers of the market such as Google Cloud and Amazon Web Services (AWS)
The cloud analytics market on the basis of the deployment model is segmented as Public Cloud, Private Cloud, and Hybrid Cloud.
On the basis of organization size, the cloud analytics market is segmented as Small, Medium, and Large.
While the cloud analytics market by industry verticals is segmented as BFSI, Consumer Electronics, Retail, Healthcare, Media and Entertainment, Government, Education, Energy and Power, Communication and Technology, Manufacturing and Others
Hybrid Cloud Deployment segment is expected to hold the higher CAGR during the forecasted period. Organization is increasingly depending on the data as it is valuable asset for the formulating the business strategies and gain competitive advantage. Enterprise prefers the deployment mode based on their requirement regarding level of data security and scalability. IBM announced in November 2020 several data and automation updates to its Hybrid Cloud Software Portfolio that will allow business to accelerate digital transformation and to push creativity.
The market is witnessing increase in demand for the cloud analytics to gain actionable insights from the unstructured data. With the expansion of digitalization and increasing dependence on technology especially during pandemic is generating huge amount of data which the companies are using for the strategic decision making. The exponential growth of the structured and unstructured data is one of the major driving factors of the market. Besides helping the organization in strategic decision, it also helps in improving the satisfaction of the consumers by providing high operational efficiency and vigorous profit and revenue levels. The players of the market are further trying to improve the market by introducing innovated products. For instance, SAP updated Analytics cloud in January 2021 with new features such as Voice to Insight, Smart Discovery, Story Exploration & improved view time story tool bar, data analyser and Plan Process Management with flexible modelling of calendar tasks and processes.
Further the surge in the adoption of Machine Learning and Artificial Intelligence will help in the growth of the cloud analytics market as the usage will enhance the visualization capacity of the business and will help in understanding the complex data.
The growing demand for the flexible, efficient and reliable data storage and growth in the penetration of the software-as-a-service (SAAS) among the business is having a positive influence on the cloud analytics market. Google acquired Looker Data Sciences Inc in June 2019 for $2.6 billion to help Google sell more cloud storage and software to its customers.
The Internet of Things (IoT) generates a huge amount of data daily which is creating huge demand among the companies for the cost-effective delivery model to collect data in a streamlined way and to have a better understanding and insight into the data they own. Thus, the companies adopt cloud analytics to gain valuable insights into the data that they have collected. BFSI industry is considered to be one of the major end-users of the cloud analytics solutions. Fintech companies leverage cloud-based technology in order to improve their operational efficiency and get a better understanding of their customers. Cloud analytics solutions adoption further enables the BFSI sector to provide secure storage of sensitive information, payment gateway, regulatory compliance and CRM & ERP system. Cloud Analytics is cost-effective and is priced as subscription or pay per use thus is a popular choice among the organization.
However, the increasing adoption of the cloud analytics is creating data security and privacy concerns among the business organization globally as the data is transferred from various providers and their multi-tenancy infrastructure is shared by the numerous diverse business organization. Thus, cyber breaches is the major concern for the cloud-based environment. According to Rivest-Shamir-Adelman (RSA) Data Privacy and Security Survey 2019, countless high-profile data breaches that compromised billions of accounts were witnessed in 2018. In these incidents, businesses not only suffered financial damages in the form of breach-related expenses and regulatory fines, but also suffered a severe loss of customer trust. Consumers later realized that without their approval and consent their data was leaked. The loss of trust is often witnessed as unseen risk in the mobile apps and websites.