The global analytics as a service market size was valued at USD 4.90 billion in 2020 and is expected to expand at a CAGR of 25.4% during the forecast period, 2021–2028. The growth of the market is attributed to the increasing demand among enterprises to examine consistency in data patterns and greater focus on improving computational and statistical abilities of various organizations.
Analytics as a service (AaaS) is a cloud-based deployment strategy in which a third-party provider delivers analytical solutions. Enterprises are prioritizing analytics tools for data-driven decision-making to improve the performance of many business areas such as sales, demand forecasting, and raw material procurement. The increasing popularity of cloud-based solutions is likely to boost demand for AaaS. Several firms such as Google LLC, IBM, and Oracle Corporation are offering analytical solutions through their flagship cloud platform, which has had a big impact on growth. Virtual Reality (VR) and Augmented Reality (AR) are highly immersion technologies that necessitate a high bandwidth for operation, resulting in the creation of massive amounts of data. Analytical solutions are used to categorize, process, and display massive amounts of unstructured data as a result of its generation. There has been a fast increase in the volume of business data collected across a variety of industries including transportation, manufacturing, healthcare, and retail. As a result, businesses are focused on gathering data from many departments and transforming raw data into relevant insights.
The COVID-19 pandemic had resulted in a decrease in enterprise revenue, affecting their long-term spending budgets. Therefore, some businesses are rethinking their investment in analytical solutions. Governments throughout the world are employing analytical systems to collect travel data and hospital information to forecast the spread of coronavirus sickness and its hazards. IBM announced the availability of tools that enable IBM Watson to access and analyses data from the World Health Organization and a variety of national, state, and local governments. These features, which have been integrated into The Weather Channel app, include Artificial Intelligence (AI) enhanced interactive Incidents Map with COVID-19 data as well as statistics such as the number of confirmed instances by cities, states, and nations.
Market Trends, Drivers, Restraints, and Opportunities
- Rapid transition of organizations from old systems to digital solutions is playing an important role in the centralization of data across all departments and activities of an organization. This is a key factor driving demand for AaaS market.
- Growing demand for analytical solutions in a variety of applications such as estimating power consumption, trade market, and traffic trends has fueled the market expansion.
- Another key factor driving market expansion is the increasing use of analytical solutions in product demand sensing in the e-commerce and retail sectors.
- Issues concerning around data security violation and rise in cybercrime are two significant factors that can hamper the market growth.
- Rising demand for Internet of Things (IoT)-enabled devices and increasing requirement for advanced digital platforms for companies are key factors creating immense opportunities for the market players during the forecast period.
Scope of the Report
The report on the global analytics as a service market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes
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Details
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Report Title
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Analytics as a Service Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Enterprises (Small & Medium Enterprise and Large Enterprise), Types (Diagnostic Analytics, Descriptive Analytics, Predictive Analytics, and Prescriptive Analytics), End-users (IT & Telecom, Healthcare, Manufacturing, BFSI, Retail, Government, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Google LLC; IBM; Microsoft Corporation; Oracle Corporation; SAS Institute Inc.; and Amazon Web Services, Inc.
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Market Segment Insights
Large enterprise segment is expected to grow at a rapid pace
Based on enterprises, the analytics as a service market is bifurcated into small & medium enterprise and large enterprise. The large enterprise segment is expected to grow at a rapid pace during the forecast period due to the wide use of the cloud-platforms among big enterprises. Such deployment of platforms allows to store massive amount of data collected, which has resulted in increasing demand for solutions such as big data analytics and predictive analytics. Furthermore, large retailers are implementing analytical solutions to increase the accuracy of their sales forecasting models and reduce inventories. However, the small & medium enterprise segment is anticipated to hold a key share of the market in the coming years as the cheaper costs of AaaS compared to software have allowed small and medium-sized businesses to use these services, which is boosting demand even higher.
Predictive analytics segment to expand at a considerable CAGR
On the basis of types, the market is segregated into diagnostic analytics, descriptive analytics, predictive analytics, and prescriptive analytics. The predictive analytics segment is projected to expand at a considerable CAGR during the forecast period as such various retail organizations are leveraging these technologies in demand forecasting their overall business processes. Using the tools, companies allow to make more informed decisions and increase their profitability, so contributing to the growth of the industry. On the other hand, the prescriptive analytics segment is anticipated to account for a major market share during the forecast period due to the ability of prescriptive analytics to effectively prescribe decision making by combining tools and techniques such as Artificial Intelligence (AI), computer modeling procedures, and mathematical sciences.
End-users segment to account for a major market share
In terms of end-users, the analytics as a service market is segmented into IT & telecom, healthcare, manufacturing, BFSI, retail, government, and others. The demand for AaaS in the banking sector for various services applications such as financial crime control, revenue management, billing management, compliance management, and lending and leasing services present key driver for the expansion of AaaS in the BFSI segment. Network service providers are collecting and analyzing network-related data to assist businesses to provide proactive support, predicting service disruptions, improving customer experience, and developing significant product roadmaps. The convergence of cellular networks and analytical solutions has enabled IoT to improve organizational efficiency, which boost well for the segment growth.
North America is anticipated to constitute a key market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected period attributed to the presence of various regional associations and organizations, such as the Cloud Native Computing Foundation and the National Cloud Technologists Association. Moreover, rising promotion regarding the use of cloud computing for the deployment of various high-tech solutions such as advanced analytics, big data analytics, and predictive analytics among business organization in the region present another key factor for growth of the market in the region. However, the market of the Asia Pacific is anticipated to expand at a rapid pace during the forecast period on account of investing in the region's growing analytics firms.
Segments
Segments Covered in the Report
The global analytics as a service market has been segmented on the basis of
Enterprises
- Small & Medium Enterprise
- Large Enterprise
Types
- Diagnostic Analytics
- Descriptive Analytics
- Predictive Analytics
- Prescriptive Analytics
End-users
- IT & Telecom
- Healthcare
- Manufacturing
- BFSI
- Retail
- Government
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Google LLC
- IBM
- Microsoft Corporation
- Oracle Corporation
- SAS Institute Inc.
- Amazon Web Services, Inc
Competitive Landscape
Key players competing in the global analytics as a service market are Google LLC; IBM; Microsoft Corporation; Oracle Corporation; SAS Institute Inc.; and Amazon Web Services, Inc. To increase their market share, major firms are pursuing techniques such as mergers, acquisitions, and alliances. For example, Amazon Web Services, Inc. finalized the acquisition of Data Row in February 2020, which used to deliver analytics as a service to enterprises in areas such as IT, telecom, and BFSI. Amazon Web Services, Inc. increased its market share as a result of the acquisition.