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The global business intelligence market size was USD 22.26 billion in 2020. the global market is projected to grow from USD 24.05 billion in 2021 to USD 43.03 billion in 2028 at a CAGR of 8.7% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with business intelligence witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a higher growth of 8.0% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
In the rapidly evolving technological era, enterprises have to adopt BI platforms to derive data-driven decisions for efficient business operations. The enterprises are maintaining an equilibrium between physical and digital competencies to create new business models. Real-time data from smart devices, the internet of things (IoT), combined with historical data, big data analytics, and artificial intelligence is expected to surge the demand for the data analytics software across enterprises.
Deployment of Advanced Analytics in Companies to Augment Market Expansion
The spread of the novel coronavirus has caused disruptions across various industries. The global health crisis has resulted in economic downturns and supply chain disruptions, which, in turn, severely hampered business investments. However, the crisis has provided a chance to deploy advanced analytics to enhance decision making.
Market players are offering advanced visualization dashboards to help users to get the real-time status of the Coronavirus. For instance, Dundas Data Visualization, Inc. developed real-time dashboards from Dundas BI. Similarly, Microsoft’s Power BI is working with the USAFacts organization to empower the users to visualize and interact with the COVID-19 dataset. Hence, data visualization dashboards are expected to observe unprecedented demand in the near future.
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Natural Language Processing to Accelerate Business Intelligence Adoption Across Enterprises
Advanced natural language is being applied to support the analytical conversation capabilities in BI tools. Natural language enables users to ask questions based on their data visualization. Hence, the Vendors are offering a natural language interface for visualizations so that customers can interact with their data. As natural language matures across the industry, it is likely to break down the barriers to business intelligence adoption across the organizations and further embed data into the core of the work culture.
Speech recognition, machine translation, natural language generation, semantic search, and machine learning (ML) are some of the common features of natural language processing integrated into BI tools. The platforms such as Tableau and Microsoft Power BI have integrated NLP features such as semantic search with the platform.
Data Visualization and Storytelling to Permeate the Business Intelligence Implementation
Data Visualization has become a standard for data analysts to convey information to decision-makers in an easy and actionable way. The analysts' skills combined with the steps taken by them to discover the data are often referred to as ’Storytelling.’ Storytelling has become a critical aspect of the analytical process. Long-form storytelling formats through multi-stage dashboards or scrolling are becoming more pervasive, allowing the analysts to display a step-by-step approach to derive data insights.
Data visualization and storytelling are transforming how enterprises use data to inform, engage, and implement ideas. As a result, data visualization and storytelling are likely to permeate the adoption of business intelligence tools to leverage advanced analytical approaches. This factor will also help businesses to enhance data literacy to drive actionable insights.
Cloud Computing and Big Data to Have a Greater Impact on BI Solutions
Cloud computing, and big data analytics have been gaining traction in recent years due to rapid technological advancements. Cloud computing is regarded as an ideal platform to provide BI applications, as it serves as a repository for structured and unstructured data. Similarly, big data technology has enabled this tools to analyze a large amount of data to deliver actionable insights to businesses that help them understand opportunities and improve marketing techniques.
Social media has brought a paradigm shift in the operational strategies of businesses. It has generated a huge amount of data from several media channels by driving the need for this solutions to analyze the data. Hence, the proliferating use of social media and other internet services such as over-the-top services and e-commerce that generate a large volume of heterogeneous data is likely to amplify the market size.
Expensive IT Infrastructure Investments to Impede Market Growth
The cost of deploying BI infrastructure is a primary concern for small and mid-sized enterprises. Also, limited resources such as qualified data science experts, consulting analysts, professional IT experts are likely to restrict the business intelligence market growth. However, the advent of self-service is expected to eliminate the challenge of expensive infrastructure.
Increasing use of BI Solutions in Enterprises is Fueling Market Growth
By component, the global market is classified into solutions and services. The solutions offered by the market players such as Board International’s Board 11, SAP Analytics Cloud & SAP BusinessObjects Lumira, Yellowfin BI, Tableau (Server, Desktop, Online, Prep), and QlikSense & QlikView, among others are used by the enterprises to derive actionable insights by tracking real-time and historical business performance. Further, the integration of artificial intelligence-driven analytics solutions with the business intelligence platform is likely to drive the demand for more enhanced visualization. Similarly, augmented reality-based BI Augmented Analytics would ensure to transform these tools in the long term.
The services, including consulting, deployment & integration, and support & maintenance, are likely to show significant growth in the coming years. Limited data science experts and IT professionals in the industry are expected to drive the demand for BI services.
Small and Mid-Sized Enterprises to be Potential Customers of Business Intelligence Solutions
Based on the enterprise size, the market is classified into small and mid-size enterprises and large enterprises. BI has evolved over the years, as organizations have extended their online analytical processing (OLAP) capabilities. Large enterprises are expected to hold a major share attributed to a substantial investment, availability of IT infrastructure, among others.
SMEs are expected to grow at the highest CAGR due to the increasing deployment of software for smooth functioning. It plays an important role in increasing customer satisfaction through advertisements and targeted marketing campaigns. Apart from this, resource optimization and continuous evaluation of productivity are some of the aspects that drive the need for advanced tools across SMEs.
Cloud-Based BI Solutions to Gain Maturity and Acceptance Across Enterprises
By deployment, the market is divided into cloud and on-premise. On-premise deployment holds the largest business intelligence market share in 2020. Cloud deployment is expected to grow at the highest CAGR during the forecast period. Cloud deployment allows enterprises that have deployed on-premises The applications to expand the use of storage, networking, and tools coupled with analytical capabilities. Cloud deployments enable the organization to outsource the BI infrastructure to manage its applications. This factor helps the organization to increase productivity, optimize implementation timelines, and reduce operational costs. Hence, cloud deployment is expected to show a significant growth rate.
Financial Performance and Strategy Management, and CRM Analytic Applications to be Most Prominent Application
By application, the market is segmented into supply chain analytic applications, CRM analytic applications, Financial performance and strategy management, production planning analytic operations, and others (workforce analytic operations, services operations). Financial performance and strategy management application holds the largest market share in 2020, and it is expected to grow at the highest during the forecast period. Financial performance and strategy management include planning, budgeting, strategy management, and others. BI enables user to test multiple business scenarios and draw financial impacts to take action. It also increases the forecasting accuracy of the organization. These factors drive the demand for these solutions in financial operations.
Customer data analysis, contact center data, and website analytics are likely to drive the integration of BI in CRM analytic applications. Procurement, logistics, manufacturing, and inventory management are some of the use cases in supply chain applications. In supply chain and production planning analytic applications is expected to witness unprecedented growth owing to the advent of Industry 4.0, Blockchain among others.
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Banking, Finance and Insurance Industry to Create Lucrative Opportunities for Market Players
By end-use industry, the market is analyzed across different industries, including banking, financial services, and insurance (BFSI), IT and telecommunications, retail and consumer goods, manufacturing, healthcare, and others. Advanced technologies such as artificial intelligence, biometrics, machine learning, and blockchain are gaining traction within the financial industry. Financial institutions are exploring predictive and adaptive analytics, business automation, and the internet of things (IoT) to improve decision-making capabilities. Thus, the banking, finance, and insurance industry segment is expected to create lucrative opportunities for market players in the near future.
The IT and telecommunication industry is forecast to hold a major market share in the global market. BI encompasses the integration of a business support system (BSS) and operation support system (OSS) to discover new business opportunities and predict future outcomes in the telecom industry. The healthcare industry is confronting new challenges as the ramification of the pandemic COVID-19 reverberates across the industry. However, in the long-term, the healthcare industry is anticipated to demonstrate significant adoption of tools.
Retailers adopt these solutions to achieve retail goals. Understanding customer behavior, leveraging location intelligence are some of the major applications in the retail industry. The tools help retailers record and analyze data points to generate insights and represent them in graphical ways.
North America Business Intelligence Market Size, 2020 (USD Billion)
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Based on the geography, the market is analyzed across five major regions, including North America, South America, Europe, Middle East and Africa, and Asia Pacific. According to the Business Application Research Center, North America is more committed to cloud BI than Europe. Most of the companies in the region show a high degree of investments in cloud BI. These factors support the market growth across the region.
North America is expected to dominate the market in terms of revenue during the forecast period. The rapid development and adoption of emerging technologies and major players such as Microsoft Corporation, IBM Corporation, Oracle Corporation, Tableau Software, LLC and others are expected to drive the growth across the region.
The Business Intelligence Institute, SC (Mexico) is an organization in Latin America specializing in the development of data intelligence software, data governance, and advanced analytics. The organization leverages machine learning, artificial intelligence, IoT, and cloud computing in different industries such as retail, banking, and national security, among others. Such active organizations are expected to drive awareness of these solutions.
Brazilian Government emphasizes the ‘FAIR principles’ meaning findable, accessible, interoperable, and reusable as good practices for data management processes. In November 2019, Huawei Technologies Co., Ltd., headquartered in Shenzhen, China launched an artificial intelligence-enabled cloud storage service in Brazil as a part of its geographic expansion in South American countries.
Similarly, in August 2019, IBM announced the launch of the IBM Cloud Multizone region (MZR) by the end of 2020 to deploy applications across cloud infrastructure. The cloud services located in Brazil, Sao Paulo, will be focused on delivering IBM Public cloud services to the users. These factors are foreseen to drive market growth.
The government of the U.K. is committed to driving excellent infrastructure to facilitate big data analysis. According to the U.K. trade and investment report, the government has invested approximately USD 222.6 million for capital funding in energy-efficient computing and data centers. This factor shows that the region possesses strong government support and substantial investment that will support market growth. Also, organizations such as the British Healthcare Business Intelligence Association upkeep the awareness of BI across the region.
Asia Pacific is expected to hold lucrative market opportunities in the near future. Market players based in other regions plan to expand their businesses in Asia Pacific countries to increase their market share and grab potential opportunities. For instance, in February 2020 – Sisense expanded its presence across Australia to support the growing demand for BI and analytics. The company also announced a funding of USD 100 million with approximately more than USD 1 billion valuations to power its growth.
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The Middle East and Africa are expected to show moderate market growth in the coming years. Post outbreak of the pandemic crisis, the overall macroeconomic scenario in the region is uncertain. Rising unemployment & inflation and financial sector downturns are some of the reasons that could impact enterprises' investment in business intelligence.
Market Leaders and High Performers to Embrace Strategic Partnerships and Acquisitions
Strategic agreements, partnerships & collaborations, mergers & acquisitions are some of the fundamental business strategies adopted by market players to strengthen their market position in the highly competitive and fragmented market. For instance,
Such partnership and acquisition strategies adopted by the market players are expected to facilitate research and development activities in this industry.
An Infographic Representation of Business Intelligence (BI) market
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The market research report offers qualitative and quantitative insights on the product and a detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and the competitive landscape.
Key insights provided in the report are the adoption trends by individual segments, recent industry developments such as mergers & acquisitions, consolidated SWOT analysis of key players, partnerships, Porter’s five forces analysis, and business strategies of leading market players, key business intelligence market trends, macro, and micro-economic indicators.
Value (USD billion)
Component; Deployment; Enterprise Size; Application; End-use Industry; and Geography
By Enterprise Size
By End-use Industry
The projected market value of the global market is USD 43.03 billion by 2028.
In 2020, the North American market stood at USD 22.26 billion.
The market is projected to grow at a CAGR of 8.7%.
The BI Platform segment is expected to be the leading segment in this market during the forecast period.
The trend for cloud computing and big data is a key factor driving the growth of the market.
Microsoft Corporation, IBM Corporation, Tableau Software LLC, Oracle Corporation, and others are the major players in the global market.
North America dominated the market share in 2020.
Asia Pacific is expected to exhibit the highest growth rate during 2021-2028.
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