Business Analytics Software Market | Contrive Datum Insights

Market Overview

The Business Analytics Software Market size was valued at USD 19.76 billion in 2022 and is projected to reach USD 42.99 billion by 2030, at a CAGR of 9.10% from 2022 to 2030.

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Business analytics software helps interpret and analyze business data by allowing ongoing research and investigation of previous business performance to gain actionable insights into business strategy. It facilitates the discovery of patterns and connections between data streams, and the automation of tasks and processes for real-time decision-making. Cloud-based business analytics software is in high demand among small and medium businesses due to its low cost and ease of use. Moreover, with the popularity of social media marketing, the demand for social media analytics as a subset of business analytics has rapidly increased, driving the industry forward.
The market is primarily driven by the widespread use of e-commerce and the increasing adoption of data-oriented business models by small, medium, and large organizations. For example, restaurant chains such as Wendy's and Ruby Tuesday in the US are heavily using BI software to enhance customer relationships. A BI approach enables companies to implement strategic decisions in a way that can bring about a positive shift, resulting in high-quality customer service. Moreover, increasing usage of data and business analytics software, backed by continuous investments in business intelligence and tools, is generating high revenue growth.

The Business Analytics Software Market has been recently published by Contrive Datum Insights to its huge database which helps to shape the future of businesses by making well-informed business decisions. It offers a comprehensive analysis of various business aspects such as global market trends, recent technological advancements, market size, shares, and new innovations. Furthermore, this analytical data has been compiled through data exploratory techniques such as primary and secondary research. Moreover, an expert team of researchers throws light on various static as well as dynamic aspects of the global Business Analytics Software market.

Significant Market Dynamics

Drivers

SMBs' increased demand for cloud-based business analytics software

Increased availability of large amounts of data and simple access to low-cost data centre services provided by cloud vendors have lowered the market entry barrier for small and medium-sized businesses by lowering their initial investment costs. Consequently, the demand for cloud-based business analytics software among small and medium-sized enterprises (SMEs) has increased. SMEs are increasingly utilising business analytics to gain a deeper understanding of how to operate their businesses more efficiently. Small- and medium-sized enterprises (SME) have invested in cloud-based business analytics software for a variety of reasons, including increased competitive advantage and revenue growth. Using cloud-based business analytics, organisations can store all of their data on a single platform, extending information consistency to all devices while reducing the cost of investment in multiple sources for each device. This data is applicable everywhere and at any time. Numerous end-users, including banking, financial services, insurance (BFSI), retail, healthcare, manufacturing, telecommunications & IT, and media & entertainment, have rapidly adopted cloud-based business analytics, thereby boosting the global expansion of the market.

An increased awareness of the numerous benefits of business analytics solutions

The market has advanced due to the ability of business analytics software to facilitate better and faster decision-making as well as a competitive edge by analysing and acting on data in a timely manner. In addition, the demand for business analytics software has increased as a result of the benefits it offers, such as simple access to key company indicators, helpful insight into customer behaviour, increased revenue, and increased productivity. In addition, businesses utilise business analytics for real-time surveillance and forecasting of a variety of events that may impact the performance of an organisation. In addition, the ability of the solution to rapidly mitigate risks by optimising complex judgements regarding unanticipated events such as cyber-attacks and other crises propels the business analytics software market.

Restraints

High business analytics software implementation costs

Small businesses are unable to spend the required amount on the implementation of business analytics, which is the primary factor restraining the market's growth.

Opportunities

Adoption of business analytics applications provided in the cloud

  The cloud segment is anticipated to experience the greatest development in the coming years, as it enables businesses to focus on their core activities rather than managing their IT infrastructure. In addition, small and medium-sized businesses adopt cloud-based business analytics software at a very high rate due to its affordability, which significantly contributes to the expansion of the global market.

Advancement in business analytics tools

The development of artificial intelligence (AI) and predictive analytics, the increasing ability of analytics tools to analyse complex data from businesses, and the presence of active business marketplaces are anticipated to create new opportunities for business analytics market providers to offer tools that provide better and faster insights.

Increasing demand for social media analytics

Demand for social media analytics, a subset of business analytics, has increased significantly as social media marketing's popularity has grown, propelling the industry forward. Emerging trends such as social media analytics and text analytics, as well as an increase in the need for business planning insights, are anticipated to provide numerous opportunities for market growth over the forecast period.

Key Market Updates

• In August 2019, Salesforce, the world's leading CRM company, announced that it has completed the acquisition of Tableau Software, combining the world's best CRM with the best analytics platform.
• In January 2019 MicroStrategy Incorporated, a global leader in enterprise analytics and mobility software, today launched the industry's first and only enterprise platform for hyperintelligent, transformative mobile and federated analytics.

Market Segmentation

By Component 

The increasing demand for financial management tools in businesses and corporations for planning, budgeting, analyzing, and reporting is expected to boost the market. In North America's BFSI industry, financial management software is frequently used to reduce risk, increase productivity, and improve corporate operations. In addition, the market will have significant growth potential throughout the forecast period due to the increasing number of mobile applications that facilitate financial data management and offer a variety of additional financing-related use cases.

By Deployment Mode  

Depending on the deployment mode, the on-premises segment dominated the market share for business analytics software in 2020. The segment's growth is attributable to an increase in on-premises business intelligence (BI) strategy deployment among end users. In addition, the on-premises deployment enables a high degree of customization, which reduces costs associated with the addition of new resources. However, the cloud segment is anticipated to experience the greatest development in the coming years, as it enables businesses to focus on their core activities rather than managing their IT environment.

By Application  

The increasing demand for financial management tools in businesses and corporations for planning, budgeting, analyzing, and reporting is expected to boost the market. In North America's BFSI industry, financial management software is frequently used to reduce risk, increase productivity, and improve corporate operations.

By Organization Size    

  In 2022, the large enterprise segment dominated the market with a revenue share of over 60 percent. Large organizations utilize business software and services to enhance their internal and external company processes. In addition, large organizations utilize business solutions and services for analytical engines, real-time data compilation tools, and process blueprints. Large companies' increased concentration on improving individual departmental productivity and the subsequent installation of various business software contributes to the segment's growth.

Large enterprises' need for enterprise software and services is anticipated to be bolstered by the increasing demand among businesses for efficient networking solutions and automation capabilities. The increasing significance of strategic decisions and resource allocation is also anticipated to propel the segment's growth. The SME category is anticipated to expand due to an increase in government initiatives, including digital campaigns such as social media marketing, video marketing, and search engine marketing.

By End User       

In 2022, the BFSI segment dominated the market with a revenue share of over 15%. The increase can be attributed to the increasing use of corporate software, which provides benefits such as secure transactions and continuous access to client databases while enhancing the customer experience. The IT & telecommunications sector is anticipated to expand swiftly over the forecast period. This can be attributed to the growing demand for reevaluation of business strategies and advanced technology across a variety of industries.

Regional Insights

North America dominated the market with a value of USD 8.2 billion in 2018. This dominance can be attributed to the adoption of BI applications and the rise of digitization across various fields.

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 The widespread adoption of cloud strategies has doubled the use of business intelligence. The presence of key players in cloud BI software in North America is expected to drive the regional growth of the market. Asia Pacific is expected to be the fastest-growing region owing to rising demand from emerging economies such as China and India. Rising adoption of BI software and tools, outsourcing activities for cloud deployment, and demand for customer insights are some of the major highlights of the market growth in APAC. Organizations in this region are focusing on strengthening their management systems and improving overall efficiency to remain competitive in the market. This is expected to provide lucrative business opportunities for BI Software industry players during the forecast period.

Geographically, the global Business Analytics Software market has been analyzed in various regions such as North America, Europe, Asia-Pacific, Latin America, the Middle East, and India. The global region is dominating this market in the upcoming future.

Key Vendors

Market Key Players

• Oracle Corporation
• SAS Institute Inc.
• SAP SE
• International Business Machines (IBM) Corporation
• Microsoft Corporation
• Adobe Systems Incorporated
• Tableau Software.com
• QlikTech International AB
• Fair Isaac Corporation
• Acumatica, Inc.
• Deltek, Inc.
• Epicor Software Corporation
• NetSuite Inc.
• TOTVS S.A.
• Unit4
• SYSPRO

Major Market Segments Covered

By Component 

• Software
• Service

By Deployment Mode  

• On-premise
• Cloud

By Application  

• Customer Analytics
• Supply Chain Analytics
• Marketing Analytics
• Pricing Analytics
• Risk & Credit Analytics
• Others

By Organization Size      

• Large Enterprises
• Small- & Medium-sized Enterprises

By End User       

• IT & Telecom
• Retail & E-commerce
• BFSI
• Manufacturing
• Healthcare
• Government
• Education
• Others

By Region

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Conclusion

Business analytics software aids in the interpretation and analysis of business data by enabling ongoing research and investigation of past business performance in order to provide actionable insights for business strategy. Due to its minimal cost and user-friendliness, cloud-based business analytics software is in high demand among small and medium-sized enterprises. This dominance is attributable to the proliferation of BI applications and the rise of digitization in numerous industries. The presence of key cloud BI software vendors in North America is anticipated to drive regional market expansion.