Business Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Business Analytics Market was valued at USD 67.92 billion in 2020 and is expected to reach USD 103.65 billion by 2026 and work at a CAGR of 7.3% over the forecast period (2021-2026). Strategic decisions in many organizations were traditionally powered by business analytics that relied on big, centralized-managed data servers or data warehouses. However, things have been changing recently, and business analysts are pulling data from dozens of heterogeneous data sources. Organizations had to be patient with the slow development and deployment of BI, analytics and supporting data management solutions. However, smarter, faster, and more automated technologies, along with flexible development methods, are helping to reduce delays.

• Another key trend in 2019 and likely to continue across 2020 is the use of augmented analytics. Here, the insights that are most important or critical to a business are focused upon. Also, augmented data preparation is expected to gain popularity among business users as they will be able to pursue data-testing tasks without IT staff's help. Back in 2018, as businesses were exposed to smart data discovery and augmented analytics platforms, to interpret massive volumes of data. In traditional Business Intelligence (BI) and Analytics systems, over 80 % of this data remained unused or underutilized, severely restricting the usefulness of the analytics systems. Augmented data management as a process overlooks automatic data refinement by using machine learning and artificial intelligence techniques.
• With hosted BI platforms and IoT devices pouring out diverse types of data, advanced data cataloging tools are gaining traction. For instance, Alation, a startup focused on cataloging data in the enterprise, in December 2019, launched an analytics application within its Data Catalog offering to extend stewardship and better governance for its clients. Visualization and explorative data analysis for business users have evolved into one of the most critical trends in the business analytics market. A host of major industries are also leveraging the power of business analytics to make strategic business decisions. While business analytics helps in supply chain management, inventory management, measure performance of targets, as well as risk mitigation plans, in manufacturing, it is extended to include fraud detection and defense as well.
• As traditional business analytics tools have been lacking in excellent data storage facilities or proper data visualization tools, the modern ML-powered business analytics platforms offer improved data visibility and comprehension. Moreover, increasing data has led startups to emerge in the space against blue-chip companies by building customized and superior analytics offering. This is evident as large organizations have been observed to acquire startups. Additionally, startups have revamped data management processes to automate the process of data circulation and optimize the course of further analysis. With salesforce .com acquiring Tableau, the latter in September 2019, launched new Data Management capabilities with Tableau Catalog while introducing its Server Management Add -On.
• Businesses across the whole world are struggling to respond to the COVID-19 impact. Managers must make rapid decisions about controlling costs and maintaining liquidity and need to define the proper priorities while staying active and adjusting their decisions quickly to ongoing changes. According to a recent survey that included 300 analytics professionals across the United States conducted by Burtch Works and the International Institute for Analytics, 43 % of respondents stated that analytics is at the front of their activities, helping their organizations make major decisions in response to the COVID-19 crisis. More than 26 % of the respondents said that they were dealing with a substantial number of requests related to COVID-19, and more than 10% were asked to focus exclusively on the analytics associated with the impact of coronavirus.

Scope of the Report

Business analytics generally refers to the technologies, practices, and skills for continual step by step exploration, and investigation of the past performance of the businesses to gain various insights and drive business planning accordingly. Companies are using business analytics software for query reporting and analysis tools, advanced and predictive analytics, location intelligence, content analytics, data warehousing platform, and enterprise performance management.

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Key Market Trends

BFSI is Expected to Hold Major Share

• Technology is transforming the banking and finance industry. With the rising usage of the internet and the proliferation of mobile devices and apps, today's financial institutions face mounting competition, changing client demands, and strict control and risk management in a highly dynamic market. At the same time, technology has given rise to powerful business analytics tools. Business analytical tools that the banking and finance industry can use to leverage customer data for insights that can lead to smarter and efficient management practices and better business decisions. Banking and finance institutions are using Business Analytics solutions to drive profitability, reduce risk, and create a competitive advantage.
• In February 2020, Quantzig which is a prominent data analytics and advisory firm that delivers actionable analytics solutions to resolve complex business problems has announced the completion of its latest engagement, during which they helped a leading investment banking firm for the improvement od sales and customer experience using a robust and efficient big data analytics strategy. The rising popularity of big data analytics in the investment banking sector has made leading investment banking companies to analyze data sets and get conclusions on the behavior of customers using advanced business analytics. Quantzig's robust data analytics solutions portfolio for the investment banking industry focuses on helping companies to significantly develop the operations and increase profitability using accurate data-driven analysis.
• With the increasing focus on retail customers, Yes Bank is leveraging data to understand customer behavior. It could offer the right mixture of products based on a particular predictability model. The bank has already diversified into the retail segment and now harnessing data analytics to come up with models that help understand customer behavior. The bank has built a war chest of about INR 120-150 crore for its data strategy up to 2022-23 and plans to hire data scientists and experts who will be part of the company's TechTONic group has100 in-house experts. The company conducted a Datathon where the top models were based on predictive service delivery, which would enable the banks to provide active service, sales recommendation models, customer transaction relation graph, fraud detection, and analytics for card customers.

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