Global Analytics as a Service Market By Enterprise Size (Large Enterprise and Small & Medium Enterprise (SME), By Type (Predictive, Prescriptive, Diagnostic and Descriptive), By End-Use (BFSI, Retail, Government, IT & Telecom, Healthcare, Manufacturing, and Other End-Uses), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Analytics as a Services Market Overview:

Global analytics as a services market was valued at USD 7,893.10 Million in 2021. It is projected to grow at a compound annual rate (CAGR of 25.45%) between 2023 and 2032.

Analytics as a Service (AaaS), is a model where third-party vendors provide analytical solutions via a cloud platform. Companies are increasingly looking to improve their statistical and computational abilities in order to assess consistency among data patterns. This bodes well for market growth. Enterprises are focusing on analytics to drive data-driven decision-making in order to improve various business aspects such as sales, demand forecasting, and raw material procurement. AaaS demand will be positively influenced by the increasing adoption of cloud-based solutions.

Global Analytics as a Service Market Scope:

Enterprise Size Analysis

The market share of large enterprises in terms of income was over 60% in 2021. Large enterprises generate a lot of data which has led to a growing demand for big predictive analysis and data analytics solutions. This is a key factor in the rise of AaaS. Large enterprises in the utility and energy sectors are also using analytics to implement preventive measures such as real-time customer billing equipment maintenance, and management field services.

Large retail companies are also using analytical solutions to increase the truthfulness of their decreased inventories and forecasting models. Analytical solutions are used in a variety of sectors and industries including automotive, oil & gas, manufacturing, and others. They are used to forecast demand and provide predictive analytics which is key to segment growth.

AaaS is being demanded by large numbers of small & medium businesses in countries like India, China, and Singapore. AaaS is cheaper than software, which has allowed small & medium businesses to take advantage of these services. As small and medium businesses focus on reporting and visualization tools, there has been an increase in demand for analytics over the past few years. According to research by the National Association of Software and Services Companies, 60% of Indian SMEs have accepted cloud-based analytics solutions. This number is expected to increase to 75% in the following eight years.

Type Analysis

Predictive analytics accounted for over 25% of 2019’s market share in terms of revenue. These solutions are helping retailers make better decisions and increase their profitability. Companies that are developing the automated driving system (ADAS technology) and autonomous vehicles extensively use predictive analytics to analyze connected car data and build driver assistance algorithms.

AaaS is being used to manage plant operations and distribution networks using predictive analytics. This has driven segment growth. Companies in the eCommerce sector are also leveraging predictive solutions to offer a customized and personalized shopping experience to customers.

Over the next eight years, prescriptive analytics is expected to grow at a significant CAGR. Prescriptive analytics is able to combine tools and methods such as Artificial Intelligence, computational modeling procedures, and mathematical sciences to effectively prescribe decision-making. The increasing demand for prescriptive maintenance in the manufacturing sector is fueling this segment’s growth.

Prescriptive analytics is also in high demand, which bodes well for segment growth. Prescriptive analytics help healthcare sector incumbents plan for future capital investment for equipment and facilities. It also allows them to understand the trade-offs involved in expanding or adding beds.

End-Use Analysis

AaaS has seen a rise in demand in the BFSI segment due to the increased use of AaaS for banking services like revenue management, financial crime prevention, billing management, lending, and leasing. A major driver of the segment’s growth is the increasing use of analytical solutions by banks to monitor and track various transactions performed for their customers. The segment’s growth is also expected to be influenced by the increased use of AaaS applications like stock market predictions and Bitcoin predictions. Stock exchanges like the New York Stock Exchange (NYSE), and the National Stock Exchange of India (NSX) have developed analytical solutions that allow investors to predict the price movements of stocks.

Providers of network services are now capturing and analyzing network data in order to provide proactive support, predict outages and improve customer experience. They also create impactful product roadmaps which will be beneficial for the AaaS segment in IT and telecom. They are also shifting away from on-premise solutions to reduce capital expenditure and fuel the segment’s growth.

Due to increasing streaming data for media subscription services like NetFlix, Amazon Prime Video, Hulu, and Hulu, there has been an increase in demand for database management tools. IoT has the potential to improve efficiency and drive segment growth through the combination of analytical solutions and cellular networks. It has made it possible to share information and data between IoT devices faster and more accurately without the need for human intervention.

Key Market Segments:

By Enterprise Size

• Large Enterprise
• Small & Medium Enterprise (SME)

By Type

• Predictive
• Prescriptive
• Diagnostic
• Descriptive

By End-Use

• BFSI
• Retail
• Government
• IT & Telecom
• Healthcare
• Manufacturing
• Other End-Uses

Market Dynamics:

Businesses are shifting away from traditional systems to digital solutions. This is increasing the demand for AaaS. Market growth has been aided by the increasing demand for analytic solutions across a variety of applications, such as forecasting electricity consumption and trade market trends, and traffic trend prediction. Many companies such as Google LLC, IBM, and Oracle Corporation offer analytical solutions through their cloud platform. This has had a significant impact on the market growth. IBM, for example, offers Watson Cloud’s analytical solutions-Watson Analytics, which allows clients to analyze structured data.

Another factor driving the market growth is the increasing use of analytical solutions for demand sensing of products in e-commerce. Retailers use demand sensing extensively to identify potential customers for a product. It helps them understand consumer behavior and how it affects the supply chain. Market growth is also expected to be supported by an increase in the adoption and use of analytical solutions for translating RFID tag data.

In August 2019, Nike, Inc. purchased Celect, Inc., which is a cloud-based, predictive analysis platform developer. Nike, Inc. started to use Celect, Inc.’s pre-emptive analytical solutions and RFID technology to improve inventory performance after the acquisition. Technologies such as virtual reality (VR), and Augmented Reality (AR), are data-intensive technologies that require high bandwidth to operate. This results in large amounts of data being generated. Analytical solutions are used to classify, process, and display unstructured data.

There has been an increase in business data generated by various industries such as manufacturing, retail, healthcare, and transportation. Enterprises are now focusing on the aggregation of data from different departments and turning it into useful insights. Market growth is expected to be supported by increased investments by government agencies and incumbents in various industries such as banking, manufacturing, or professional services. In 2018, the BFSI sector alone spent approximately USD 20.8 million on big data analytics.

Globally, governments are using analytic solutions to extract travel data and hospital information to predict the spread of coronavirus disease and its consequences. Law enforcement agencies and healthcare organizations also use analytical solutions for gaining location intelligence to locate individuals who have been advised to self-isolate. The most adverse effect of COVID-19 is on industries that depend heavily on the movement of people, such as the hospitality and travel industries.

Many organizations working in these industries have begun to adopt financial analytics solutions and risk analysis solutions. GeoSpark Analytics, Esri, and GeoSpark Analytics are both focusing their efforts on developing risk analytics solutions. Esri, for example, created a Covid-19 ArcGIS hub in March 2020 that gathers and distributes relevant information using geospatial data.

Regional Analysis:

North America accounted for the highest share with 40%. The region’s growth is also possible because of collaboration between government agencies and healthcare organizations in the development of analytics solutions for the healthcare industry.

In May 2017, the U.S. Department of Energy (DOE), in collaboration with the U.S. Department of Veterans Affairs, developed analytical solutions under the “Million Veterans Program Computational Health Analytics to Improve Outcomes Now” (MVP CHAMPION). This solution combines VA’s health data with DOE’s High-Performance Computing and data analytics solutions. It allows healthcare organizations to spot trends that can be used to develop new treatments or preventive strategies.

The rise in investment in Asia Pacific analytics firms by companies like EXL, IDG Ventures Partners, and TA Associates is responsible for the region’s growth. EXL invested USD 240 million in SCIOInspire, Corp. in May 2018. This company provides AaaS for the healthcare industry. Several trade associations in the region, such as Asia Cloud Computing Association and Asia Analytics Alliance, are encouraging the adoption of AaaS solutions. This is boosting the market growth.

The Asia Analytics Alliance was established in 2016 and focuses on the acceleration of the development and growth of analytics technologies within the region. The regional market has also been boosted by the increasing emphasis placed on cloud computing and big-data analytics adoption by industries in countries like Australia, Japan, and India.

Key Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

Major market players are focusing on R&D to develop new products or improve existing solutions. Microsoft Corporation’s R&D expenditures in FY 2019 and FY 2018 were USD 16.87 billion, US 14.72 billion, and USD 13.03 trillion, respectively. The company launched the new Azure Synapse Analytics version in November 2019 thanks to these investments. This service combines big data analytics and enterprise data, giving clients insights from the data generated from multiple sources.

Other players, such as Google, LLC, Hewlett Packard Enterprise Development LP, SAS Institute Inc., and others, are focusing their efforts on cloud platforms that make various AaaS accessible to their customers. Hewlett Packard Enterprise Development LP, for instance, announced in December 2019 the launch of its cloud platform. This platform will allow customers to access various AaaS including predictive analytics, big data analytics, and predictive analytics.

To increase their market share, major players are focusing on strategies like mergers, acquisitions, and partnerships. In February 2020, Amazon Web Services, Inc. acquired DataRow, which provides analytics to companies in IT, telecom, and BFSI. Amazon Web Services, Inc. grew its market share with the acquisition.

Market Key Players:

• Amazon Web Services Inc.
• Google LLC
• IBM
• Microsoft Corporation
• Oracle Corporation
• SAS Institute Inc.
• BAE Systems
• Accenture
• Other Key Players

For the Analytics as a Service Market research study, the following years have been considered to estimate the market size: