Business Intelligence (BI) Market Size, Share & COVID-19 Impact Analysis, By Component (Solution, Services), By Deployment (Cloud, On-premise), By Enterprise Type (Small and Medium-Sized Enterprises (SMEs), Large Enterprises), By Application (Supply Chain Analytic Applications, CRM Analytic Operations, Financial Performance and Strategy Management, Production Planning Analytic Operations, Others), By End-use Industry (BFSI, IT and Telecommunication, Retail and Consumer Goods, Manufacturing, Healthcare, others), and Regional Forecast, 2023-2030

The global business intelligence market size was valued at USD 27.11 billion in 2022 and is projected to grow from USD 29.42 billion in 2023 to USD 54.27 billion by 2030, exhibiting a CAGR of 9.1% during the forecast period.

Business Intelligence (BI) is a technical and procedural infrastructure that stores, gathers, and evaluates the data generated through the organization's activities. It encompasses process analysis, data mining, descriptive analysis, and performance benchmarking. The increasing focus of organizations on strategic decision-making, valuable insights, faster & accurate reporting, and improved productivity enhances the demand for these solutions in the market. Hence, with the increasing initiatives for digital transformation, various key players are developing new advancements, innovations, and collaborations. For instance,

• In November 2022, Board partnered with Microsoft to incorporate Intelligent Planning across present Microsoft enterprise technology to provide better corporate outcomes. Board will be integrated with Power BI, Dynamics 365, and Microsoft Azure.

The global business intelligence market growth can be attributed to increasing adoption of cloud-based, AI/ML services, and analytics across organizations. In addition, the surge in demand for flexible architecture and adaptable solutions opens up market expansion opportunities.

COVID-19 IMPACT

Deployment of Advanced Analytics in Companies to Enhance Market Expansion

The COVID-19 outbreak has impacted the software industry worldwide. With the abrupt surge in remote working, well-capitalized technological firms, vast user networks, and huge amounts of digital data are well-positioned to capitalize on the opportunity of the crisis. Thus, increasing demand for analytics, business intelligence, and advanced analytics experts to meet the new challenges caused by the pandemic.

• According to the United Nations, 64.2 zettabytes of data were created in 2020, a 314% increase over 2015. Increased demand for information due to the COVID-19 pandemic also contributed to better-than-expected growth. Thus, driving demand for reliable and scalable business intelligence platforms to enhance decision-making. 


• According to a large data literacy survey by Qlik & Accenture, 67% of its global workforce have access to BI tools, and 75% have access to data analytics software.

This has led enterprises to take advantage of the opportunity to enable more employees to use their data at work, which drives further growth for business intelligence tools. Thus, demand for BI tools has certainly increased since the pandemic with rising investments in software. 

LATEST TRENDS

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Growing Usage of Mobile BI Propels the Market Growth

Mobile BI allows businesses to gain insights with data analysis by using applications optimized for smartphones. It presents real-time data for users to analyze on mobile devices such as tablets and smartphones, thus enabling users to make effective decisions.

The incorporation of mobile BI features into operational business developments increases the penetration of BI within enterprises and aids in the form of added information. Thus, speeding up the decision-making capabilities while expanding data and minimizing the time required for searching for relevant information.

Hence, mobile BI has the potential to aid operational developments while concurrently increasing the penetration of the technology within enterprises. Thus, several BI and analytics vendors have started to offer an HTML5 browser for optimized mobile applications. Other key players have, in part, reinvested in mobile applications to enable the features of Mobile BI to users. For instance,

• Si Sense, Roambi Analytics, Microsoft Power BI Pro, IBM Cognos Analytics, and Amazon QuickSight are prominent applications provided by key players in the market.

Thus, mobile BI avails the larger availability of information, faster reaction speed and efficient working, shorter workflows, and improved internal communication.

DRIVING FACTORS

Increasing Usage of Integrated BI Systems to Augment the Market Growth

BI advancements and an API-first architecture drive embedded business intelligence and analytics in business and personal applications. Moreover, its integration with other software, such as ERP and CRM, enables organizations to leverage and analyze large data apprehended by the ERP software. The software helps to analyze and represent the data in an improved actionable format along with easy interpretations.

• According to Wisdom of Crowd's report 2021 BI, 17% of organizations feel that embedded BI contained with a portal or application or integrated with other systems is critical for their businesses, and 43% of organizations think that embedded BI is important for their companies.


• In August 2022, Dbt Labs launched an exclusive partner program to strengthen the integration of its links with developers of data governance, data management, and data quality tools. The company plans to enhance technical integrations and business alliances within the startups and leading software and data management vendors.

Thus, the primary drivers of integrated business applications are the rising demand for data culture, mobile insight, ETL, data mining, and analytics.

RESTRAINING FACTORS

Difficulties in Abstracting Data from Third-party Systems due to Poor Data Quality Hinder the Market Growth

Emerging technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and Machine Learning (ML) add large amounts of data to organization systems every minute of the day.

In a rush to aggregate data for analysis, several organizations neglect the quality of the collected data from these various sources. Lack of understanding among users about the importance of efficient data management is the reason for degrading data quality. Business intelligence tools can merge data from various sources, but it requires a combination of data understanding and technical skills. This limits the scalability and increases the desired time for analytics. For instance,

• According to Gartner research, the aggregate financial effect of poor data quality on enterprises is USD 9.7 million annually. IBM also revealed that businesses in the U.S. lose USD 3.1 trillion yearly owing to poor quality of data.

Also, with the emerging number of third-party data sources and the quality of data collected, the need for reporting and analysis in the required time increases. Thus, this increases the demand to develop an effective solution for the flexible abstraction of data from various sources. 

SEGMENTATION:

By Component Analysis

Increasing Usage of Analytical Applications Drives the Market Demand 

There are two components in the market, solution and services. The scope considers three major solutions, analytical applications, Corporate Performance Management (CPM) suites, and BI platform. Services consist of consulting, deployment and integration, and support & maintenance.  

Solutions segment holds the maximum share with the increasing demand for analytical BI solutions. ABI platforms enable users with less technical knowledge to model, explore, analyze, and manage data with enabled IT and augmented Artificial Intelligence (AI). Corporate Performance Management (CPM) suites are estimated to grow with a high CAGR during the forecast period. The CPM growth is attributed to the growing hybrid culture in organizations and the increased focus of businesses on continuous feedback and check-ins. 

By Deployment Analysis

Higher Consumption of Self-service BI or On-premise BI to Enhance the Market Growth 

These solutions are deployed into the cloud and on-premise. On-premise segment accounts for the maximum share compared to the cloud segment, as companies managing their sensitive data make maximum use of self-service or on-premise. It also provides better speed and higher security for industries such as healthcare and finance with restrictions in handling sensitive data.

Cloud-based deployment is projected to have the highest CAGR over the forecast period due to the rising demand of enterprises for data integration, data quality tools, advanced visualization, and data discovery. 

By Enterprise Type Analysis

Increasing Investments in Digitization by Large Enterprises to Augment the Market 

These solutions are used in small and medium-sized enterprises and large enterprises. Large enterprises generated the largest revenue for the year 2022. Large enterprises are more inclined toward digitization and adopting advanced technologies. Also, increasing investment in IoT, AI/ML, and cloud-based solutions results in higher adoption of the technology among large enterprises.

SMEs are likely to grow with the highest CAGR during the forecast period due to the rising number of start-ups and small business initiatives for digital transformation. The must-have features of BI, such as visual analytics, dashboards, data warehousing, among others, drive the adoption across small and medium-sized enterprises. 

By Application Analysis

Growing Applications of BI in Financial Performance and Strategy Management Propels the Market Growth

There are various applications such as supply chain analytics applications, financial performance and strategy management, CRM analytic operations, production planning analytic operations, and others.

Financial performance and strategy management segment holds the largest market share and is predicted to have the highest growth rate during the forecast period. This technology in financial performance and strategy helps to monitor and handle an organization's performance and financial requirements. With the higher Return on Investments (ROI), revenue, overhead, and operational costs, it has been adopted across numerous enterprises as a component of BI.

• In September 2022, Intellicus launched an omnichannel workforce management software, Flow. Flow enables Business Process Management (BPM) with AI, machine learning, and cloud-based technologies to optimize workforce-related decision-making. Intellicus provides enterprises with BI and data analytics solutions, platforms, and embedded BI competencies.

Such advancements of new applications in financial performance and strategy management are enhancing market growth.

By End-use Industry Analysis

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Growing Focus on Optimized Decision-Making to Surge the Growth of the IT and Telecommunication Sector

Industries adopting BI solutions include BFSI, IT and telecommunication, retail and consumer goods, manufacturing, healthcare, and others.

According to Fortune Business Insights, in 2022, IT and telecommunication gained the maximum revenue share in the market. It enables telcos to refine their pricing strategies, target marketing campaigns, and advance products based on consumer understanding and effective decision-making. BI in telecommunication offers network optimization, operational efficiency, and enhanced customer satisfaction. Thus, increasing the requirement for its applications in IT and telecommunications.

BFSI is projected to have the highest market growth for the forecast period. BI tools drive profitability in BFSI with real-time reporting, improved customer retention, risk management, enhanced workflows, and ease of data handling.

REGIONAL INSIGHTS

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The market is geographically studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific, and each region is further studied across countries.

According to our analysis, North America dominates the global market, with a market share of 30.9% in 2022. The market growth is attributed to the region's emerging technologies and rapid developments in automation and digitization. New innovations and advancements, along with collaborations and partnerships, by key players in the region, contribute to the region's market growth. For instance,

• In March 2022, SYSPRO USA announced its partnership with ZAP to expand BI competencies. With the partnership, both companies plan to provide distribution and manufacturing firms with a flexible platform that delivers new techniques to strategic action priorities based on improved data. ZAP Data Hub effortlessly integrates with SYSPRO ERP Software, providing a combined customer base with a data warehouse. It automatically pulls SYSPRO data using predefined Extraction, Transformation, and Loading (ETL) tools.

Asia Pacific to witness the maximum CAGR during the forecast period. The market's growth in this region is credited to escalating opportunities in Asia Pacific and numerous investments in business intelligence solutions. The region has various emerging start-ups contributing to the growth of BI adoption in the region.

The business intelligence market share is significantly growing in Europe with increasing advancements by key players in the region such as SAP and Valcon. For instance,

• In December 2021, SAP launched an advanced version of SAP BusinessObjects BI 4.3 SP02, which is available for market users. It is a preconfigured SAP solution accessible on the Cloud Appliance Library of SAP. The new version comes with hybrid connectivity, better user experience, and improved enterprise readiness.

South America is projected to show moderate growth during the forecast period with high-tech companies and government initiatives to enhance IT & telecommunication and the rising awareness of embedded BI solutions in the region.

The Middle East and Africa region indicates moderate development, with several players entering the region's market. Rising number of businesses in Turkey are enabling value for data-driven decision-making with distinguished insights from the variety & volume of internal & external availability of data to them.

KEY INDUSTRY PLAYERS:

Rising Prominence on Global Expansion to Strengthen the Market Positions

The key players are keen on developing BI solutions in numerous applications such as CRM analytic operations, supply chain analytic applications, production planning, workforce analytics and others. Innovation of new products and upgrading existing products to multiply business opportunities is one of the key strategies of enterprises. Likewise, market players strategically procure businesses and collaborate worldwide for global expansion.

List of Key Companies Profiled:

• Microsoft Corporation (U.S.)


• Tableau Software, LLC (Salesforce) (U.S.)


• IBM Corporation (U.S.)


• QlikTech International AB (U.S.)


• SAP SE (Germany)


• Oracle Corporation (U.S.)


• Redash (Databricks) (Israel)


• Mode Analytics Inc. (U.S.)


• Looker (Google) (U.S.)


• Infor (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• In January 2023, Microsoft announced Power BI in Microsoft Teams for improved experiences. The announcements come with three new features, rich broadcast cards for Chat in Microsoft Teams, an update for legacy Power BI tabs for Channels 2.0, and listening and learning from experiences and requirements. 


• In December 2022, Tableau launched its upgraded Tableau 2022.4 for business users and analysts to explore insights. It automates developing, analyzing, and communicating insights with data stories such as Data Change Radar, Data guide, and Explain the Viz.


• In November 2022, Qlik launched a new cloud-based data integration platform. The advanced platform as a service combines catalog capabilities and data preparation in a single place. The new integration enables real-time data analysis for organizations. The advanced platform includes a range of services that form a data fabric unification of services to connect data sources that allow an organization to have an integrated view of its data.


• In October 2022, Mode Analytics announced its partnership with Dbt Labs to reveal the launch of the new Semantic Layer of Dbt. Mode Analytics deep integration and Dbt Semantic Layer enables governed, consistent metrics instantaneously accessible for exploration without any code. Thus, it allows organizations to define and manage their key business metrics consistently.


• In October 2022, Oracle enhanced inclusive and incorporated data and analytics facilities to empower corporate users. With the new abilities in Oracle Fusion Analytics over ERP, CX, HCM, and SCM analytics, corporate users can now use dashboards, KPIs, and reports to evaluate performance over strategic goals.

REPORT COVERAGE

An Infographic Representation of Business Intelligence (BI) market

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The study on the market includes prominent areas globally to gain enhanced knowledge of the Industry verticals. Moreover, the research offers insights into the most recent endeavor and industry developments and analyses high-tech solutions being adopted promptly worldwide. It also highlights some of the growth-stimulating limitations and elements, allowing the reader to obtain a comprehensive understanding of the market.

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