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The global cloud analytics market size was USD 19.04 billion in 2020 and is projected to grow from USD 22.84 billion in 2021 to USD 86.15 billion in 2028 at a CAGR of 20.9% during the 2021-2028 period. Based on our analysis, the global market exhibited a significant growth of 19.8% in 2020 compared to year-on-year growth during 2017-2019. The global impact of COVID-19 has been unprecedented and staggering, with cloud analytics solutions witnessing a positive demand shock across all regions amid the pandemic. The steady rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Integrating analytics solutions into the cloud platform has enabled companies to gain greater control over business operations and stay competitive in the market. Cloud analytics is a service model that covers business intelligence or data analytics conducted on a private or public cloud to minimize expense and maintenance costs involved with on-premises data storage and computation.
The increasing availability of data connectivity through multi-cloud and hybrid environments, various benefits of analytics solutions integrated on the cloud, and growth of big data technology are some of the major factors driving the growth of the global market. Key players operating in the market are actively taking key initiatives to offer differentiated and customized solutions that will enable companies to smoothen their multi-cloud journey. For instance,
Increased penetration of IoT and cloud computing is expected to boost the demand for cloud analytics solutions. These solutions continue to influence how organizations run, organize, and use produced data through their digital channels. Additionally, increasing demand for reliable, flexible, and efficient data storage platforms and growing penetration of the software-as-a-service (SaaS) platform among businesses has positively influenced the global market.
COVID-19 to Boost Adoption of Cloud Solutions for Business Sustainability
The spread of COVID-19 has impacted the global market moderately initially. The expansion of IT infrastructure has slowed due to a decrease in supply and reduced capacity. Businesses that provide solutions and services are also anticipated to see a temporary slowdown. However, the use of collaborative apps, analytics, security solutions, and artificial intelligence (AI) is expected to rise in the second half of the year.
Throughout the COVID-19 pandemic, enterprises and governments faced a need to solve analytical issues that are faced while executing main business decisions. Cloud-based analytics solutions and platforms have enabled enterprises to increase operational efficiency and reduce costs. During the spread of COVID-19, enterprises have recognized the need for analytical solutions that can access huge amounts of data and allow data analysts to focus on data-driven goals in order to get insights from the data.
Healthcare and pharmacy companies are using business intelligence and other solutions for the better delivery of healthcare aids on the basis of data obtained. For instance, the Center for Disease Control and Prevention (CDC) integrated cloud analytics solutions for the better management of resources and drug delivery with the help of analytical dashboards.
On a long-term basis, the businesses operating in IT & telecom, BFSI, healthcare, and retail will be in a greater position and equipped with an effective cloud environment to deploy analytics solutions that aid in better business outcomes. Therefore, the market is expected to witness consistent growth over the forecast period.
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Easy Access and Connectivity Offered by Business Intelligence (BI) Tools to be a Key Trend
Over the recent years, business intelligence has gained prominence as structured and unstructured data has been exploded. Businesses of all sizes are putting greater focus on implementing business intelligence solutions into their business suites and thus gain a competitive advantage. Most businesses are now using a streamlined procedure that entails identifying, collecting, preserving, and exchanging a huge quantity of data. For this data, BI solutions are utilized in order to have a quick and simple business decision-making process. The data should have a standard visualization capability that can be utilized to detect consumer preferences and patterns, extract strategic insights, and keep the demand and supply of new and existing products and services in balance. Business intelligence solutions are used by businesses in a variety of industries to make data easier to interpret and generate meaningful business insights.
Key players are taking major initiatives to spread awareness about the benefits of analytics and business intelligence solutions. For instance,
Through BI and cloud analytics solutions, organizations may discover business drivers and Key Performance Indicators (KPIs) through data visualization. It assists in the elimination of redundant data in order to uncover patterns, insights, trends, and use plans, all of which aid in the cloud analytics market growth.
Increased Demand of Analytics Solutions to Aid Growth
The rising digitization, availability of a wide range of data, and the desire to remain at the forefront of competition have led organizations to focus on analytics solutions to adopt the strategic decision-making process. Businesses these days are moving towards digitization to improve business strategies by analyzing a large amount of unstructured data flowing through various platforms.
According to International Data Corporation (IDC), 80% of the global data collected among enterprises will be unstructured by 2025. This growth of unstructured data has prompted businesses to implement various business management tools based on the cloud to understand global trends, customer demand, and competitor benchmarks. These analytics solutions are helping companies to make better decisions based on historical and present data and will help the company function more smoothly and effectively.
With real-time insights gained from cloud-based analytics solutions, businesses are now able to understand a large amount of data, which enables them to better customer experience, accelerate digital business, and improve communications network, security, and application performance. Cloud-based analytics platforms help organizations make better strategic decision-making and enable them in high operational efficiency, improved customer satisfaction, and vigorous profit and revenue levels. Thus, as unstructured data increases, there will be a robust demand for cloud-based data storage and analytics tools.
Data Security Concerns Associated with Confidential Data to Hamper Growth
Data security problems, such as data thefts, breaches and loss of industry-specific information, are arising as a result of the growing use of cloud technology among corporate organizations working across a variety of sectors globally. Data is transported from multiple cloud providers, and their multi-tenancy infrastructure is shared by a number of different business enterprises in cloud analytics. Instead of being shared over a single line, cloud infrastructure servers are accessed and shared virtually across numerous lines inside an organization. As a result of this procedure, a variety of data security concerns occur.
According to a survey conducted by Ermetic Ltd, a cloud risk security company, in June 2020, nearly 80% of the businesses have witnessed at least one cloud data breach over the 18 months, and 43% of the businesses reported data breaches more than 10. The companies with ineffective cyber security frameworks might end up facing data breaches and thus lose critical business information. Organizations will face increasing pressure to be open about data collection, data analysis and utilization, and data storage as they retain many types of sensitive data in huge quantities over extended periods of time. Thus, data security issues related to These type of analytics solutions might hamper the market growth.
Analytics Solutions to Captured High market Share
Based on solutions, the market has been segmented into cloud business intelligence (BI) tools, enterprise information management, governance, risk, and compliance, enterprise performance management, analytics solutions, and others.
The analytics solution segment held the largest market share in 2020. Analytical solutions such as predictive, speech, text, and video analytics, among others, are empowering businesses to retain customers with the help of dashboards and identify new business opportunities. Cloud analytics solutions have made it easier for enterprises to use and manage large data sets and use data-driven objectives to gain actionable insights.
The governance, risk, and compliance segment is expected to grow at the highest CAGR over the cloud analytics market forecast period. The growth of governance, risk, and compliance is mainly driven by the growing need among enterprises to meet stringent compliance and security needs and get a holistic view of enterprise policy.
Public Cloud Segment to Augment Growth
Based on deployment, the global market has been segmented into public, private, and hybrid clouds.
The public cloud segment captured the largest cloud analytics market share. The growth of the public cloud segment is owing to the low costs and high bandwidth efficiency offered by public cloud servers. A cloud service provider can operate the public cloud infrastructure over the web and internet, offering tremendous value to the businesses in terms of cost savings, communication and network agility, and easy access to mission-critical data.
The public cloud model is enabling enterprises to meet their collaborative needs of business functionalities and offer rapid control over business infrastructure and communications channels with the ability to consume resources over a pay-per-use basis. Organizations are implementing public cloud deployments to handle business applications and an aspect of streaming and real-time.
The hybrid cloud segment is expected to witness a significant CAGR over the forecast period. The growth of the segment is mainly driven by the high level of security and control it offers. Organizations are implementing a hybrid cloud framework to address and privacy concerns and gain control over their organizational data.
Large Enterprises to Showcase Strong Growth
Based on organization size, the market is segmented into small and medium enterprise and large enterprise.
The large enterprises' segment is expected to hold the largest share in the global market. This growth is mainly attributed to the growing digital transformation with the ubiquitous adoption of data storage platforms. With a large customer base and established brands, large enterprises are better able to leverage cloud solutions for improving their operational efficiency and enhancing the customer experience.
A growing number of SMEs are shifting towards cloud solutions to manage their customer base and boost productivity. Implementation of cloud solutions along with the Software-as-a-Service (SaaS) platform helps SMEs to avoid high costs and achieve better data safety. Data storage platforms in cloud solutions will help small and medium-sized enterprises to manage data and take necessary precautions to protect data from data breaches. In addition to this, cloud-based analytics platforms offer SMEs a gamut of advantages such as simple usage & low cost, data protection, scalability, and flexibility.
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BFSI Industry to Experience Healthy Growth Rate
Based on industry, the market is categorized into BFSI, IT and telecommunications, retail and consumer goods, healthcare and life sciences, manufacturing, research & education, others.
The BFSI organizations are leveraging cloud-based technologies for improving their operational efficiency and enhancing the customer experience to cater to the needs of their large customer base.
The cloud analytics platform is helping BFSI firms to secure transactions and strengthen customer experience by ensuring data confidentiality and availability of information over the internet. Cloud-based analytics is enabling BFSI organizations to achieve considerable gains in efficiency and reduced costs, as technology helps banks to pay only for the services they avail of. In addition, cloud analytics assists the BFSI industry by providing them security on payment gateways, ERPs and CRMs systems, regulatory compliance, and secure storage of sensitive information.
The adoption of analytics tools has witnessed the fastest growth in the healthcare and life sciences segment in terms of CAGR. Cloud-based analytics solutions play a vital role in the healthcare sector and change how doctors, clinics, healthcare companies, and hospitals are delivering quality and cost-effective cloud analytics services.
Cloud-based solutions allow hospitals and healthcare companies to access a massive amount of data, better diagnostic quality, and access to patient’s images and reports. Cloud analytics solutions are helping healthcare companies to store and secure massive data such as electronic medical records, patient portals, and data collected by mobile applications.
North America Cloud Analytics Market, 2020 (USD Billion)
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Geographically, the market is segmented across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
North America captured maximum market share in 2020 and is expected to maintain its dominance over the forecast period. Key players in the region are adopting cloud-based analytics solutions to fulfill user demand for better data quality, better integration, and data visualization. Rising investment in cloud services by key players and the promotion of Cross-Border Privacy Rules (CBPR) by the U.S. is expected to provide lucrative growth opportunities for this market to grow in the region. Additionally, the rising shift towards subscription-based services, increased penetration of smartphones, and technological advancements in the region have bolstered the regional market.
The growth of the market in Asia Pacific is primarily driven by the opening of data centers by major providers such as Amazon Web Services (AWS) and Google Cloud, resulting in the elimination of concerns of data offshoring and security breaches. Better bandwidth connectivity provided by key players has made it easier to offer cloud services, thus helping the market to boost in the region. Businesses in the region are looking to capitalize on new and innovative technologies to expand their data platform, which is expected to boost the market in the region.
Europe captured a substantial market share in 2020. Due to increased expenditures and a rising presence of companies exploring the use of AI and NLP technologies for diverse applications, Germany and U.K. has prominent markets. The regional markets have widely used AI and NLP technologies in their commercial institutions and other sectors, allowing them to better serve consumers and improve company efficiency. The regions hold the sophisticated infrastructure, technologies, and activities required to transform analytics into strong solutions with novel advantages.
The growth of this market in the Middle East & Africa, and Latin America is mainly driven by the exponential use of data analytics solutions among various industry verticals such as BFSI, retail, among others, to manage and process large data sets and gain actionable business insights.
Key Players to Develop Effective Analytics Solutions to Satisfy Rising Demand of Consumers
Companies operating in the market such as Oracle Corporation, IBM Corporation, Teradata, Google LLC, TIBCO Software Inc., Hexagon Software, among others, are focused on developing and offering efficient cloud analytics solutions. Also, the high competition in the market is forcing service providers to focus on acquisition strategies for strengthening their positions.
An Infographic Representation of Cloud Analytics Market
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The global cloud analytics market research report provides an in-depth analysis of the market. It focuses on key aspects such as leading companies, product Industry, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several key factors that have contributed to the market's growth over recent years.
2017 – 2028
2021 – 2028
2017 – 2019
Value (USD billion)
Solution, Deployment, Organization Size, End-User, Region
By Organization Size
According to Fortune Business Insights, the global market is expected to reach USD 86.15 billion by 2028.
Fortune Business Insights says that the market stood at USD 19.04 billion in 2020.
The market is expected to grow at a CAGR of 20.9% during the forecast period (2021-2028).
Based on solution, the analytics solutions segment is expected to lead the market.
The increased demand for cloud analytics solutions to gain actionable insights from unstructured is one of the key drivers for market growth.
Oracle Corporation, IBM Corporation, Teradata, Google LLC, TIBCO Software Inc., Hexagon Software are the top companies in the market.
The BFSI industry segment holds the major market share.
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