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Advanced Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Advanced Analytics Market is segmented by Type (Statistical Analysis, Text Analytics, and Risk Analytics), End-user Industry (BFSI, Healthcare, and IT and Telecommunication), and Geography.

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Market Snapshot

advanced analytics market share
Study Period: 2018 - 2026
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 20 %

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Market Overview

The advanced analytics market is expected to register a CAGR of over 20% over the forecast period (2021-2026), owing to the increased adoption of such solutions to address diverse business needs. The adoption has been augmented by the presence of data generation and collection, and IT and other critical infrastructure. Digitization drive in the past three decades in the industry was also able to create an ecosystem that promotes the business to adopt these advanced solutions for improved business insights.

  • Advanced analytics solutions are becoming more widespread, as enterprises continue to create new data at a rapid rate. For instance, the amount of data generated worldwide is increasing immensely. According to Seagate Technology PLC, the volume of data created worldwide is expected to increase to 47 zettabytes and 163 zettabytes in 2020 and 2025, respectively, from 12 zettabytes in 2015.
  • Moreover, with the increasing popularity of online shopping and rising social network penetration, the demand for advanced analytics is anticipated to rise substantially over the forecast period. For instance, according to We Are Social, as of January 2019, the social network penetration in China and the United States accounted for 71% and 70%, respectively.
  • Data generated, owing to the increasing social penetration, contains hidden patterns that traditional analytics tools are unable to find. If implemented in the correct form, advanced analytics solutions can help businesses unlock critical hidden information, which can then be used by the organizations to customize their offering to their consumers.
  • Furthermore, an increase in the adoption of advanced analytics solutions, owing to the low price, is expected to boost the market's growth positively. Furthermore, the increasing demand to counter Big Data challenges is impacting the market's growth positively.

The advanced analytics market is expected to register a CAGR of over 20% over the forecast period (2019-2024), owing to the increased adoption of such solutions to address diverse business needs. The adoption has been augmented by the presence of data generation and collection, and IT and other critical infrastructure. Digitization drive in the past three decades in the industry was also able to create an ecosystem that promotes the business to adopt these advanced solutions for improved business insights.

  • Advanced analytics solutions are becoming more widespread, as enterprises continue to create new data at a rapid rate. For instance, the amount of data generated worldwide is increasing immensely. According to Seagate Technology PLC, the volume of data created worldwide is expected to increase to 47 zettabytes and 163 zettabytes in 2020 and 2025, respectively, from 12 zettabytes in 2015.
  • Moreover, with the increasing popularity of online shopping and rising social network penetration, the demand for advanced analytics is anticipated to rise substantially over the forecast period. For instance, according to We Are Social, as of January 2019, the social network penetration in China and the United States accounted for 71% and 70%, respectively.
  • Data generated, owing to the increasing social penetration, contains hidden patterns that traditional analytics tools are unable to find. If implemented in the correct form, advanced analytics solutions can help businesses unlock critical hidden information, which can then be used by the organizations to customize their offering to their consumers.
  • Furthermore, an increase in the adoption of advanced analytics solutions, owing to the low price, is expected to boost the market's growth positively. Furthermore, the increasing demand to counter Big Data challenges is impacting the market's growth positively.

Scope of the Report

 Advanced analytics is a comprehensive set of analytical techniques and methods, such as statistics, descriptive and predictive data mining, simulation, and optimization, designed to help businesses discover trends and patterns, and accurately predict the future. The market scope includes such solutions adopted and used by the end-user industries considered in this study. Applications of advanced analytics include healthcare, marketing, and risk management.                                                                    

Type
Statistical Analysis
Text Analytics
Risk Analytics
Predictive Analytics
Other Types
End-user Industry
BFSI
Retail and Consumer Goods
Healthcare
IT & Telecommunication
Transportation & Logistics
Government & Defense
Other End-user Industries
Geography
North America
US
Canada
Europe
Germany
UK
France
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

Need to Mitigate Frauds and Risk Management Prompt Paced Adoption in BFSI

Companies operating in the banking and financial sector are using advanced analytics technology to mitigate frauds, optimize processes followed by banks, and to manage risks.

According to Accenture’s 2018 Compliance Risk Study, 89% of the respondents indicated a rise in compliance investments over the next two years, with a focus on technology. Advanced analytics helps banks sort through unstructured data to analyze global and local regulatory compliance, which may depend upon the region of operation.

Similarly, according to the Grant Thornton survey, 85% of respondents believed that their bank’s data and risk information management initiatives need additional efficiencies to realize the full potential. Furthermore, 82% also indicated the same for their institution’s risk analytics and measurements. However, with the adoption of the advanced analytics solutions, this scenario is changing, with banking players adopting a more performance-oriented risk management approach. This realignment has led banks to invest more in such solutions to generate actionable information that can guide critical business choices impacting profitability. The need to identify and mitigate risks before an incident, to reduce the intensity of its impact, is a major factor driving the adoption of advanced analytics in this sector.

Moreover, according to the Coalition against Insurance Fraud Study, traditional anti-fraud technology tools are giving way to advanced analytics as insurance fraud rises. Majority of insurers have expanded their range of anti-fraud tools and their ability to detect and investigate the fraud. Many players are entering the field with new products and services, which is expected to boost the market's growth positively. AI technology evolution has further enabled the market capabilities in offering better real-time insights.                                                                   

advanced analytics market size

North America is Expected to Hold a Significant Share

North America is expected to hold the highest market share, with the United States leading the market. The dominance of the region is due to its increasing adoption of advanced technologies, presence of supporting infrastructure, and drive for early technological adoption, owing to competition from other businesses operating in the low-cost regions.

Moreover, advanced analytics solution providers have a strong foothold on the region, which is anticipated to drive the market in the region. Some of the vendors of the region are SAS Institute Inc., Oracle Corporation, Microsoft Corporation, and IBM Corporation, among others.

SAS is one of the major companies in the region. The company's advanced analytics platform is used by various organizations. For instance, Volvo Trucks North America strengthened its portfolio of uptime-boosting services by improving remote diagnostics with an advanced analytics platform from SAS Institute Inc.

The increasing demand from enterprises to gain insights into the data available to them and to identify the trends of various industries is expected to result in this region’s high market revenue generating capacity during the forecast period.

Moreover, a significant rise in the adoption of social media in the region has also contributed to the growth of the advanced analytics market. Furthermore, the presence of well-established infrastructure that supports the faster implementation of advanced technologies made this region a key market for the growth of advanced analytics.                                                 

advanced analytics industry forecast

Competitive Landscape

The advanced analytics market is a relatively consolidated market, as major vendors account for a significant share of the market, especially in the enterprise-level adoption. Their presence in different levels of data handling value chain augments their positions in the market.  Large companies dominate this market, owing to their ability to offer innovative and high-quality services to end users on a different scale and with customization that suits their specific needs. The emergence of niche players offering vertical-specific solutions, having new innovative solutions that bring AI capabilities and cloud services to small- and medium-level businesses, has been continuously changing the dynamics of the market. Additionally, this factor is prompting the major vendors to provide industry-specific solutions and bring new capabilities and updates to stay ahead in the market.

  • May 2019 - SAS Institute Inc. announced updates to its data analytics platform, highlighted by enhancements to its machine learning (MI), computer vision, and natural language processing capabilities. These developments are part of the company’s recently announced USD 1 billion investment in AI to drive the technology on a global scale. 
  • February 2019 - IBM Corporation announced a new portfolio of Internet of Things (IoT) solutions that team AI and advanced analytics in order to help asset-intensive organizations, such as the Metropolitan Atlanta Rapid Transit Authority (MARTA), to improve maintenance strategies. The solution is designed to help organizations lower costs and reduce the risk of failure from physical assets, such as vehicles, manufacturing robots, turbines, mining equipment, elevators, and electrical transformers.
advanced analytics market opportunities

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Growing Need to Prevent Fraudulent Activities

      2. 4.3.2 Increasing Demand to Counter Big Data Challenges

      3. 4.3.3 Technological Developments of Advanced Analytics Solutions

    4. 4.4 Market Restraints

      1. 4.4.1 Lack of Data Integration and Connectivity

    5. 4.5 Industry Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Statistical Analysis

      2. 5.1.2 Text Analytics

      3. 5.1.3 Risk Analytics

      4. 5.1.4 Predictive Analytics

      5. 5.1.5 Other Types

    2. 5.2 End-user Industry

      1. 5.2.1 BFSI

      2. 5.2.2 Retail and Consumer Goods

      3. 5.2.3 Healthcare

      4. 5.2.4 IT & Telecommunication

      5. 5.2.5 Transportation & Logistics

      6. 5.2.6 Government & Defense

      7. 5.2.7 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 US

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 UK

        3. 5.3.2.3 France

        4. 5.3.2.4 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Rest of Asia-Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 IBM Corporation

      2. 6.1.2 SAS Institute Inc.

      3. 6.1.3 Oracle Coporation

      4. 6.1.4 SAP SE

      5. 6.1.5 Microsoft Corporation

      6. 6.1.6 KNIME AG

      7. 6.1.7 RapidMiner Inc.

      8. 6.1.8 Alteryx Inc.

      9. 6.1.9 Avanade Inc.

      10. 6.1.10 Fair Isaac Corporation (FICO)

      11. 6.1.11 StatSoft Inc. (TIBCO Software Inc.)

      12. 6.1.12 Angoss Software Corporation (Altair Engineering Inc.)

      2. *List Not Exhaustive

  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Advanced Analytics Market market is studied from 2018 - 2026.

The Advanced Analytics Market is growing at a CAGR of 20% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

IBM Corporation, SAS Institute Inc., SAP SE, Oracle Corporation, Fair Isaac Corporation (FICO) are the major companies operating in Advanced Analytics Market.

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