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Analytics as a Service Market Size, Share & COVID-19 Impact Analysis, By Component (Solution and Services), By Analytics Type (Predictive, Diagnostic, Descriptive, and Prescriptive), By Enterprise Type (Large Enterprises and Small & Medium Enterprises), By Industry (BFSI, IT & Telecommunication, Retail & Ecommerce, Manufacturing, Transportation & Logistics, Government & Public Sector, and Others), and Regional Forecast, 2023 – 2030

Last Updated : April 01, 2024 | Format: PDF | Report ID: FBI106604

 

KEY MARKET INSIGHTS

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The global analytics as a service market size was valued at USD 6.68 billion in 2022. The market is projected to grow from USD 8.07 billion in 2023 to USD 39.91 billion by 2030, exhibiting a CAGR of 25.7%. North America dominated the global market with a share of 23.35% in 2022.


Analytics as a Service (AaaS) is a type of cloud service. It offers access to data analysis and software tools through the cloud as an alternative to investing in on-premises software. These services are comprehensive, customizable solutions for organizing, analyzing, and visualizing data. The goal is the same as on-site solutions, namely to provide information for better decision making. These tools offer different data analysis methods and technologies such as predictive analytics, data mining, or even advanced techniques such as artificial intelligence and machine learning. This service is typically offered on a subscription basis, where customers pay for the amount of data and level of service they require. This allows enterprises to access advanced analytics capabilities without having to invest in costly software or hardware.


COVID-19 IMPACT


Increasing Digitization among Enterprises during COVID-19 Aided Market Growth


The COVID-19 pandemic had a significant impact on the market for analytics as a service. Governments imposed restrictions confining people to their homes as a precautionary measure to contain the spread of the pandemic. The rising number of people staying at home boosted the demand for faster internet connectivity and increased data usage. During the pandemic, people used social media considerably more as compared to the pre-lockdown period. In addition, companies allowed their employees to work from home, which propelled the use of video conferencing platforms such as Microsoft Teams and Zoom, drastically boosting the growth of this market. Moreover, economic uncertainty and budget constraints in the wake of the pandemic led some organizations to delay or scale back their analytic initiatives, impacting this market. Thus, the pandemic had a significant impact on this market.


LATEST TRENDS


Rising Adoption of Cloud-Based Technological Solutions among Various Businesses to Fuel Market Growth


One of the most important factors shaping the growth trajectory of the global analytics services market in the coming years is the growing adoption of cloud-based technology solutions. This paves the way for modern and technically robust solutions from the global analytics-as-a-service market. These solutions allow organizations to easily scale their analytics infrastructure up or down on the basis of their needs. This flexibility is valuable for handling fluctuating workloads and maintaining large datasets. Furthermore, the growing demand for organizations and businesses to evaluate the consistency of data patterns is also likely to increase the market demand in the coming years. Companies and enterprises across the globe are increasingly using global analytics marketplace solutions as a service to improve the performance of various business aspects and processes, including sourcing raw material supply, demand forecasting, and sales. This factor is boosting the growth of the market.


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ANALYTICS-AS-A-SERVICE MARKET GROWTH FACTORS


Rising Adoption of Social Media Applications among Customers to Drive Market Growth


The emergence of social media applications and advanced technology is one of the major factors impacting analytics services. Social media apps, including Facebook, Twitter, Instagram, YouTube, and others, generate a huge amount of data every second. For instance,



  • According to the Sprout Social Index, 71% of consumers spend more time on Facebook. With Facebook analytics data, brands can track the consumer journey and find ways to reach their viewers more efficiently.


This huge data mainly drives the analytics services market. Furthermore, the growing need for businesses to analyze social media information for their own specific goals is also one of the factors driving the global analytics as a service market growth. For instance, using Twitter data, IBM provides social trading and market intelligence for industries such as retail, media, and entertainment, boosting the market growth in the upcoming years.


RESTRAINING FACTORS


Surging Data Security Concerns Due to Rising Number of Cybercrimes May Hinder Market Growth


With data breaches and cyberattacks on the rise, there are growing concerns about the privacy and security of sensitive data. This makes many organizations more cautious about sharing their data with third-party analytics as a service providers, hindering the market’s growth. Therefore, to address security concerns, analytics as a service providers are now implementing stricter encryption techniques. While these improve data security, they can also slow down the scanning process, thereby affecting the speed and efficiency of the service. Therefore, by addressing these issues, organizations become more cautious in entrusting their data to external providers which restrains market growth.


SEGMENTATION


By Component Analysis


Solution Segment Takes Center Stage, Fueling Market Growth with Data Security


Based on component, the market is segmented into solution and services. The solution segment dominates the market with the highest share. The primary function of this solution is to secure data. The growth of this segment is attributed to the fact that analytics-as-a-service solutions enable organizations to increase operational efficiency and reduce costs. Therefore, companies using AaaS gain a competitive edge by leveraging data insights to improve products, services, and operational efficiency, driving segment growth.


The services segment is predicted to grow with the highest CAGR during the forecast period. Organizations adopt AaaS solutions by partnering with AaaS providers who offer a range of analytics services. This often involves subscribing to their services, either on a recurring basis or as needed. Thus, the adoption of these services in this market is driven by the recognition of the value that data analytics brings to organizations, as well as the desire to leverage specialized expertise and resources offered by AaaS providers to achieve business objectives.


By Analytics Type Analysis


Predictive Analytics Segment Growth Owed to Rising Adoption of ADAS Technology across Automotive Sector


On the basis of analytics type, the market is subdivided into predictive analytics, diagnostic analytics, descriptive analytics, and prescriptive analytics. The predictive analytics segment holds the largest market share in terms of revenue. These solutions help retailers make better decisions and increase profits. Companies developing ADAS technology-based automated driving systems and autonomous vehicles are widely using predictive analytics to analyze data from connected cars and create supporting algorithms. Analytics as a service is being used to manage distribution networks and factory operations using predictive analytics. Companies in the e-commerce industry are also leveraging predictive solutions to deliver personalized shopping experiences to customers. These factors are set to promote market growth.


The prescriptive analytics segment is expected to grow at a significant CAGR over the study period. These analytics can combine tools and methods such as artificial intelligence, computer modeling processes, and mathematical sciences to make decisions effectively. Therefore, the growing demand for prescriptive maintenance in the manufacturing sector is driving the segment’s growth.


By Enterprise Type Analysis


Large Enterprises Segment Holds Dominating Share Due to Increasing Adoption of AaaS Services


By enterprise type, the market is bifurcated into large enterprises and SMEs. The large enterprises segment dominated the market with the highest global analytics as a service market share. These enterprises handle vast amounts of sensitive data, which results in a growing demand for solutions such as predictive analytics and big data analytics, which is a main factor in increasing the adoption of AaaS. Furthermore, large players in the retail sector are deploying analytical solutions for reducing inventories and enhancing the accuracy of their sales predicting models. In numerous industries, including manufacturing, automotive, and others, analytical solutions are deployed for activities such as predictive analytics and demand forecasting that are driving segment growth.


The SMEs segment is expected to grow at the highest CAGR during the forecast period. The exponential increase in the number of SMEs in India, China, and Singapore is a key factor boosting the demand for AaaS. The lower cost of AaaS compared to software has allowed small and medium businesses to adopt these services, which has further fueled the product demand. Therefore, these factors play an important role in driving the analytics as a service market growth.


By Industry Analysis


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BFSI Sector Leads with Growing Demand for Enhanced Financial Services


On the basis of industry, the market is segmented into BFSI, IT & telecommunication, retail & e-commerce, manufacturing, transportation & logistics, government & public sector, and others. The BFSI segment holds a larger market share in 2022. The growing demand for AaaS in the banking industry for services such as lending and leasing services, financial crime monitoring, revenue management, compliance management, and payment management has driven the segment growth. Thus, this factor promotes market growth.


Furthermore, the IT & telecommunication segment is expected to grow at the highest CAGR during the forecast period. The technology plays a crucial role in collecting and transmitting data to analytics platforms. This data can come from various sources, such as IoT devices, social media, or traditional databases. In addition, cloud computing is a key component of AaaS service, allowing businesses to access and process data without the need for on-premises infrastructure. The product adoption in IT and telecommunications is expected to boost market growth.


REGIONAL INSIGHTS


In terms of region, the global market for analytics as a service is divided into five key regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further segmented into countries.


North America Analytics as a Service Market Size, 2022 (USD Billion)

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North America holds the largest share in the global market. It is one of the most significant revenue contributors to the market. The region’s expansion is attributed to the growing adoption of big data, the large base of the market vendors, and the rising adoption of Internet of Things (IoT) devices. Furthermore, enterprises, especially in the U.S., have started using AaaS solutions to generate data insights for making strategic business decisions and remaining competitive in the market. The growing demand for dashboards to have statistical representation of data is pushing dealers to launch a number of AaaS solutions and services to cater to the various needs of organizations and their customers. As a result, North America holds the largest market share due to the growing developments in the region.


Asia Pacific market for analytics as a service is expected to grow rapidly during the forecast period. With the proliferation of IoT devices and increasing internet penetration, there’s a massive influx of data in the region. AaaS helps organizations in this region make sense of their data to gain insights and make data-driven decisions. Hence, the growing adoption of technology in Asia Pacific acts as a catalyst for market expansion.


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Europe’s market size is expected to showcase steady growth over the forecast period. Several global AaaS providers have expanded their presence in Europe, offering a diverse set of analytics solutions and catering to the specific needs of European businesses. In addition, the presence of numerous AaaS providers and startups in Europe fosters competition and innovation in the AaaS market. This encourages organizations to explore a wide range of options in the market.


South America is showing significant growth in its market due to the rising adoption of cloud computing in the region. AaaS is often delivered through the cloud, making it more accessible to organizations that may not have the infrastructure for on-premises analytics solutions. Thus, the region’s growing interest in data analytics and the development of infrastructure and expertise are contributing to the expansion of AaaS in South America. In addition, the Middle East & Africa (MEA) market is expected to witness notable growth in the coming years due to increased investment and government funding for digitization.


KEY INDUSTRY PLAYERS


Market Players Pursue Expansion and Innovation for Sustainable Growth


Prominent companies in the analytics as a service industry are actively working to expand their global footprint and enhance their market share through various strategies such as product innovations, collaborations, mergers, and acquisitions. These firms are dedicated to formulate robust marketing plans and invent fresh solutions to sustain and expand their market presence. The increasing need for cloud-based solutions is anticipated to open up profitable prospects for these market participants.


List of Key Companies Profiled in Analytics-as-a-Service Market: 



KEY INDUSTRY DEVELOPMENTS:



  • June 2023: Microsoft and Moody’s Corporation engaged in a partnership to deliver next-generation data, collaboration, research, analytics, and risk solutions for corporate intelligence and financial services.

  • March 2023: Domo unveiled several new features in a series of low-code to pro-code solutions to help consumers rapidly generate and deploy modified data experiences for individuals across the organization.

  • April 2023: Microsoft Corporation and Epic announced a collaboration to integrate and develop generative AI into healthcare by merging the Azure OpenAI Service with Electronic Health Record (EHR) software. The partnership would provide comprehensive AI-powered solutions combined with Epic’s EHR to grow productivity, enhance patient care, and increase the financial integrity of health systems worldwide.

  • November 2022: IBM Corporation announced the introduction of new software IBM Business Analytics Enterprise, designed to aid enterprises in breaking down data and analytics silos to make data-driven decisions fastly and navigate unpredictable disruptions.

  • May 2022: Atos unveiled the launch of Atos (BOaaS) Atos Business Outcomes-as-a-service - in partnership with Dell Technologies to provide cloud architecture to provide AI-based commercial value increased via automatic deployment, management, and monitoring.


REPORT COVERAGE


An Infographic Representation of Analytics-as-a-Service Market

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.


Report Scope & Segmentation










































ATTRIBUTE



DETAILS



Study Period



2017-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2017-2021



Growth Rate



CAGR of 25.7% from 2023 to 2030



Unit



Value (USD Billion)



 


 


 


 


 


 


 


 


 


 


 


 


 


Segmentation



By Component



  • Solution

  • Services


By Analytics Type



  • Predictive

  • Diagnostic

  • Descriptive

  • Prescriptive


By Enterprise Type



  • Large Enterprises

  • Small & Medium Enterprises


By Industry



  • BFSI

  • IT & Telecommunication

  • Retail & E-commerce

  • Manufacturing

  • Transportation & Logistics

  • Government & Public Sector

  • Others (Education)


By Region



  • North America (By Component, Analytics Type, Enterprise Type, Industry and Country)

    • U.S. (By Industry)

    • Canada (By Industry)

    • Mexico (By Industry)



  • South America (By Component, Analytics Type, Enterprise Type, Industry and Country)

    • Brazil (By Industry)

    • Argentina (By Industry)

    • Rest of South America



  • Europe (By Component, Analytics Type, Enterprise Type, Industry and Country)

    • Germany (By Industry)

    • France (By Industry)

    • Italy (By Industry)

    • Spain (By Industry)

    • Russia (By Industry)

    • Benelux (By Industry)

    • Nordics (By Industry)

    • Rest of Europe



  • Middle East & Africa (By Component, Analytics Type, Enterprise Type, Industry and Country)

    • Turkey (By Industry)

    • Israel (By Industry)

    • GCC (By Industry)

    • South Africa (By Industry)

    • North Africa (By Industry)

    • Rest of the Middle East & Africa



  • Asia Pacific (By Component, Analytics Type, Enterprise Type, Industry and Country)

    • China (By Industry)

    • India (By Industry)

    • Japan (By Industry)

    • South Korea (By Industry)

    • ASEAN (By Industry)

    • Oceania (By Industry)

    • Rest of Asia Pacific








Frequently Asked Questions

According to Fortune Business Insights, the market is projected to reach USD 39.91 billion by 2030.

In 2022, the market was valued at USD 6.68 billion.

The market is projected to grow at a CAGR of 25.7% during the forecast period.

By industry, the BFSI segment leads the market.

The surging adoption of social media applications across the globe is the key factor driving market growth.

Microsoft Corporation, IBM Corporation, SAP SE, Atos, Google, Msys Technologies, Cloudera, Thoughtspot, Qlik, and Domo are the top players in the market.

North America is expected to hold the highest market share.

By component, the services segment is expected to grow with the highest CAGR during the forecast period.

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