Embedded Analytics Market Share, Growth, Opportunities 2031

Report Description

The global embedded analytics market size was USD 45.6 Bn in 2022 and is likely to reach USD 122.5 Bn by 2031, expanding at a CAGR of 13.8% during 2023–2031. The market growth is attributed to the increasing adoption of cloud computing and mobile business intelligence in real-time insights-sharing applications.

Embedded analytics are tools for analysis that provide customer-centric business intelligence (BI) and mined data. This data is integrated with software applications to function as one component of an enterprise. Embedded analytics share the same common inbuilt application platform of the enterprise application software.

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Analyzing through the common platform enables business users to have rich quality data and effective reporting of the mined information. Such refined data is useful in providing insights and trends when embedded into consumer portals. Billing, invoicing, delivery tracking, and stock tracking are some of the wide applications of data analyzed through embedded analytics.

The integrated structure of embedded analytics tools is a major advantage driving enterprises to opt for embedded analytics in their businesses. Data analysis is possible by merging various business streams in a single data collection suite using embedded analytics. In comparison to traditional analyzing methods, data generated through embedded analytics provides trends and categorized data insights.

COVID-19 Impact on Embedded Analytics Market

The market report finds that the COVID-19 pandemic created growth opportunities for the market. Several businesses incorporated embedded analytics into their key decision-making processes, owing to increased digitalization and data processing needs. The demand rise was recorded with an increase in digital transactions during the pandemic period.

Online shopping, food ordering, and digitized payment methods provided a data pool to businesses. Embedded analytic tools provided businesses with data trends and insights during COVID-19 through the generated digitized data, which boosted the market growth.

Embedded Analytics Market Dynamics

The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global embedded analytics market report has up-to-date insights about market scenarios that can shape the overall market performance and condition during the forecast period, 2023 to 2031.

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What are the Trends in Embedded Analytics Market?

Demand for Customized Data Generation

A major trend in the embedded analytics market is the increasing demand for data center services and data generation that can be customized by the business enterprise. Generation of in-house analytical data trends is possible through embedded analytic tools.

Data fetched from different products and operations of a business are available for utilization through storage on cloud computing systems. Real-time data visualization is possible through the analysis of embedded data.

What are the Drivers of Embedded Analytics Market?

Growing Data Analysis and Data-Backed Decision Implementation

The need for data analysis is growing due to increased marketing activities for business promotion. Embedded analytics tools aid in data presentation that is integrated with internal software systems and apps for a business This ever-growing need for segmented data is likely to bolster the embedded analytics market in the coming years.

Combining data from varied sources gives insights for a business that is helpful in strategic decision-making. Reduction in operational costs and time is an added advantage of embedded analytics. These features are boosting the demand for tools and software embedded with data analytics.

The facilitation of data-driven decision-making is responsible for the growing popularity of embedded analytics. Decisions backed with strong data inputs enable an organization to have an edge over its competitors. The growing need for data analysis across business sectors is anticipated to fuel the embedded analytics market growth.

Increasing Use of Cloud Computing and Hand-held Devices

Businesses get a better understanding of consumer data with embedded analytics integrated with cloud computing. Increasing implementation of cloud computing technologies is one of the key factors driving the demand for embedded analytics.

The growing use of hand-held devices such as mobile phones and tablets has increased digitalization. Digitalized data is a necessary source of information for embedded analytics which has boosted the market growth.

What are the Restraints of Embedded Analytics Market?

Data Integration Hindrances with Legacy Systems

Embedded analytics make use of integrated data structures that are data sources for several business applications at once. Such data sharing with legacy systems can be one of the major hindrances to enterprises due to the possibility of data theft.

Legacy systems make use of software automation to optimize data for business analysis. The use of traditional data protection measures such as non-encrypted passwords as system codes poses a risk of data manipulation affecting revenue generation for an enterprise.

What are the Opportunities in Embedded Analytics Market?

Growing Data Analysis for Business Model Expansion

Expanding business models provide a major opportunity for the growth of the embedded analytics market. Financial data analysis for expanding business models such as business-to-employee, business-to-consumer (BtoC), and business-to-business (BtoB) is a major advantage of embedded analytical tools for businesses, creating growth opportunities for the market.

Scope of Embedded Analytics Market Report

The global embedded analytics market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Embedded Analytics Market Segment Insights

Which Major Factors Influence the Significant Growth of the Services Segment?

Increasing Need for Integrating Analytics in Business Operations

Based on the component segment, the embedded analytics market is divided into software and services. The services segment is expected to expand at a significant growth rate during the projection period due to the need of integrating analytics into business operations that include web applications, inventory, and management platforms.

The segment growth is further attributed to the increased interaction of businesses with customers and stakeholders outside the business. Reports, dashboards, and analytics, derived from embedded analytics tools and software can be easily shared with clients and associates, which is expected to enhance the adoption of embedded analytics services during the forecast period.

The software segment is anticipated to hold a key share of the market in the coming years with the growing need to generate in-depth data insights. Visualization, data integration, and transformation of operational data enable a business in delivering actionable insightful data. The segment growth is further attributed to the operational tracking insights provided by embedded analytics.

Analysis of business operations in response to user behavioral patterns aids in the identification of underperforming business processes. Such in-depth analysis is possible through embedded analytics software which is expected to boost the revenue growth of the segment during the forecast period.

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What Key Factors Contribute to the Significant Expansion of the Cloud-based Segment?

Increasing Focus on Infrastructure Cost Reduction

On the basis of deployment, the global market is bifurcated into on-premises and cloud-based.
The cloud-based segment is projected to register a considerable CAGR during the forecast period due to the increasing cost reduction requirements for IT infrastructures of businesses.

The need for developing technology systems with the least response times can be catered to using cloud-based data storage systems. The segment growth is further attributed to the multi-tenancy and effective virtualization provided by cloud computing. Exceptional capabilities of data recovery and auto-updation have boosted the deployment of cloud-based embedded analytics systems.

The on-premises segment is anticipated to account for a key market share in the coming years as the in-house systems are hosted in their own data environment of businesses. Data security risks are reduced along with data retrieval time through on-premise deployment.

The hosting of analytic systems on an external data center or public cloud is not necessary with on-premise deployment. The segment growth is further attributed to the anytime accessibility provided by on-premise data servers.

What are the Main Aspects for Boosting the IT & Telecommunications Segment?

Growing Need to Assess Key Performance Indicators (KPIs)

On the basis of industry, the embedded analytics market is segmented into IT & telecommunications, retail, banking financial services & insurance, manufacturing, healthcare, and others.

The IT & telecommunications segment is expected to register a robust growth rate during the forecast period owing to the growing requirement for providing real-time analytics for the Key Performance Indicators (KPIs) of a business. For instance, a gauging factor for the resolution of customer-raised tickets in a specified time frame is a KPI for a business. It is analyzed through analytics integrated into business operations.

Data insights of KPIs are an easy assessment of successful resolution through embedded analytics, fueling the segment growth during the forecast period. The segment growth is also attributed to the increasing developments of technology, system deployment, and maintenance for a business.

The BFSI segment is projected to hold a large market share in the coming years due to an increasing need to employ artificial intelligence (AI), sales intelligence (SI), and machine learning (ML) systems. AI and ML systems are being employed on a large scale for identifying and blocking fraudulent activities, boosting segment growth.

The growth of the BFSI segment is further attributed to a rise in automation through digital banking channels. Business intelligence software tools allow the real-time monitoring of several branches of a business. Analyzing employee performances and operations tracking through live data representations is possible through embedded analytics which is expected to boost the revenue growth of the segment during the forecast period.

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Which Major Factors Influence the Significant Growth of the Small & Medium-sized Enterprises (SMEs)?

Increasing Implementation in Enhancing Decision-making

On the basis of organization size, the embedded analytics market is segmented into large enterprises and small & medium-sized enterprises (SMEs). The small & medium-sized enterprises (SMEs) segment is expected to register a robust growth rate during the forecast period with enhanced decision-making through the use of embedded analytics.

Enhanced productivity through analysis of data generated by embedded analytics facilitates ease in decision-making for SMEs. In-depth performance measurements and aggregated performance evaluation are possible through embedded analytics. Improvements in business functions of SMEs and monitoring are further boosting the segment growth.

The large enterprises segment is projected to hold a significant market share in the coming years with effective collaboration and low operating costs through the use of embedded analytics. The segment growth is further attributed to the rapid use of embedded analytics in modernizing the business processes of large enterprises.

What are the Main Aspects for Boosting the Marketing Segment?

Growing Need for Boosting Sales through Data Trend Analysis

On the basis of business function, the embedded analytics market is segmented into finance, marketing, IT, production, HR, and others. The marketing segment is expected to register a robust growth rate during the forecast period owing to the growing need of generating high-value sales through analyzing data trends.

Graphical visualization, auto-generation of reports with data charts, and identifying trends in customer usage patterns are boosting embedded analytics in business marketing. The segment growth is further attributed to the mounting need for customer-centric sales performance.

The prime focus of analytics tools in marketing is for tracking customer engagement. Data generated through embedded analytics is utilized for upselling and cross-selling. Such customer-specific data generation through embedded analytics is expected to drive the segment’s revenue growth over the forecast period.

The IT segment is projected to hold a considerable market share in the coming years due to the increasing demand for improving productivity through the automation of business resources. IT teams of businesses integrate BI analytics into software codes. Applications of insights into strategic business decisions are expected to boost the segment’s revenue growth.

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What Key Factors Contribute to the Significant Expansion of the Dashboard & Data Visualization Segment?

Based on the analytics tool segment, the embedded analytics market is divided into reporting, dashboard and data visualization, benchmarking, and self-service tools.

The dashboard and data visualization segment are expected to register a robust growth rate during the forecast period.

The self-service tools segment is projected to hold a significant market share in the coming years with the ease in report generation and query handling for professionals of a business. The segment growth is further attributed to the rapid use of BI tools that are self-serving. Analyzing, data visualization, and filtering, without involving IT personnel are expected to boost segment growth.

Why is North America Dominating Embedded Analytics Market?

Growing Implementation of Analytics Tools in Various Sectors

In terms of region, the global embedded analytics market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

North America is expected to dominate the market during the projection period. The regional market growth is attributed to the significant development of information technology infrastructure and well-established IT companies in the region. IBM Corporation and Microsoft Corporation, giants of the global IT industry are headquartered in the US.
                                                                                                                                       
Asia-Pacific is projected to hold a significant market share in the coming years with a strong projected growth rise in the manufacturing and banking and financial sectors of the region. The increasing integration of technology and analytics is expected to boost market growth in the region.

The market of Europe is anticipated to expand rapidly in the coming years owing to the robust development of business giants in the automotive, BFSI, and IT sectors. These market leaders have incorporated embedded analytics into their business processes to cater to their large European customer base.