Financial Analytics Market

The global financial analytics market is projected to expand at a substantial CAGR during the forecast period, 2021 – 2028. The growth of the market is attributed to the high demand for enhanced technology in business analytics and business intelligence across the globe.

Financial analytics is a key tool that provides systematic views on financial data of a business. It helps to gain in-depth knowledge on the financial position and factors that are likely to impact the financial growth, on basis of which strategic decisions are taken to improve the overall performance of the business. This tool helps companies in easy and compressive understanding of income statements as it offers a precise graphic representation of financial data, which in turn, improving the overall business processes. These solutions are extensively adopted across various industries to improve their business operations.

Financial analytics is primarily designed to manage business operations and allows a clear assessment of the future financial position of organizations. Using this financial analysis software, several monetary data of an organization can be presented in an effective graphical form, which requires less efforts to understand or interpret. Moreover, it offers a range of insights to business enterprises regarding their financial positions and key aspects for improvement in the financial management using the prevailed data. In short, the tool provides a system to understand fundamental analysis of a company as it can offer a detailed analysis of a company’s performance, competitive advantages, financial statement, market, and competitors.

Market Drivers, Restraints, Trends, and Opportunities

• Growing demand for financial analytical solutions and focus to expand business operations of organization are expected to boost the market growth during the forecast period.
• Rising requirement of the analytics system for research activities related to corporate, security, and equity bond markets is expected to boost the demand for financial analytics during the forecast period.
• Wide availability of expansion of the business models such as business-to-business, business-to-consumer, and business-to-employee are anticipated to create several opportunities for the growth of financial analytics market.
• Various technological advancements that lead to the development of new analytical system including software, which timely assist in automating day-to-day operations and assess financial position. This factor is expected to spur the market growth during the forecast period.
• Rapid growth in data intensity and growing awareness related to the financial analytics usage for competitive differentiation is expected to drive the market growth during the forecast period.
• Increasing applications of cloud analytics system in various industries is expected to boost the adoption of financial analytics during the forecast period.
• Rising security issues and lack of experts for handling the analytical tool are expected to hamper the market growth during the forecast period.
• The COVID-19 pandemic has severe implications on the global financial analytics market. Government bodies have imposed various restrictions to control the spread of the virus which resulted in halting various business-related operations.

Scope of Financial Analytics Market Report

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

Financial Analytics Market Segment Insights

BFSI segment anticipated to represent a considerable market share

On the basis of end-users, the market is segmented into BFSI, healthcare, manufacturing, government, IT, telecom, and others. The BFSI segment is anticipated to represent a considerable market share during the forecast period. Wide adoption of the financial analytics system in banking financial services, and insurance are key factors driving the segment growth. The analytical tool helps these organizations to access these services including asset & liability management, governance and risk and compliance (GRC), budgetary control, receivables management, payables and profitability management. On the other hand, the telecom segment is projected to expand at a substantial CAGR during the forecast period. Several major companies are focusing to maximize their products presence for big data analytics for the telecom industry.

B2B segment expected to account for a considerable share

In terms of business models, the global financial analytics market is divided into business-to-business (B2B), business-to-consumer (B2C), and business-to-employee (B2E). The B2B segment is expected to account for a considerable market share during the forecast period. Recent technological advancement has resulted in automation of everyday business operations, which in turn, enhances the business processes efficiency by providing accurate insights about financial positions. Additionally, growing data intensity and awareness related to the financial analytics usage is boosting the adoption of B2B business models.

On-cloud segment projected to constitute a large market share

Based on deployment types, the market is bifurcated into on-premise and on-cloud. The on-cloud segment is projected to constitute a large market share during the forecast period. The on-cloud solutions offer facilities such as collaboration between partners, improves business functions, and provides financial stability. Additionally, it allows organization to incorporate data from all channels and sources by assessing a big data scale. Furthermore, on-cloud solutions make it cost-efficient for organizations to collect data from all internal applications, devices, social networks, and data subscriptions. Additionally, cloud computing acceptance across various industries is expected to positively impact the financial analytics market.

North America projected to account for a significant market share

In terms of regions, the global financial analytics market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America is expected to account for a significant market share during the forecast period. The increased adoption of the tool across multiple industries coupled with a quick adoption of advanced technology are key driving factors for the regional market growth. Growing awareness about applications of analytics solutions and strong organizational focus on enhancing customer experience among industries are the key factors driving the regional growth of the market. On the other hand, the market in Asia Pacific is projected to expand at a healthy CAGR during the forecast period. Rising awareness regarding financial analytics and various favorable government initiatives are boosting the regional growth of the market. Markets in emerging economies especially India and China are projected to register a positive growth rate during the forecast period.

Segments

The global financial analytics market has been segmented on the basis of

End-Users

• BFSI
• Healthcare
• Manufacturing
• Government
• IT
• Telecom
• Others

Business Models

• Business-to-business
• Business-to-consumer
• Business-to-employee

Deployment Types

• On-premise
• On-cloud

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Competitive Landscape

Some of the industry participants in the global financial analytics market are Deloitte, Hitachi Consulting, Information Builders, Microstrategy, Rosslyn Analytics, SAS, Tableau Software, Tibco, Fico, IBM, Microsoft, Oracle, SAP, Symphony Teleca, and Teradata Corp.

Industry participants are focusing on various market strategies such as mergers, partnerships, and acquisitions to expand their market share and improve their product portfolio. Additionally, key players are collaborating with companies taking active measure to strengthen their market position.