Global Analytics as a Service Market Analysis, Growth, Size, Demand & Forecast 2022-2027

Overview of the Report

The global analytics as a service market was estimated at USD 4.98 billion in 2019, with a compound annual growth rate (CAGR) of 25.9% predicted from 2020 to 2027. Analytics as a service (AaaS) is a cloud-based deployment strategy in which a third-party provider delivers analytical solutions. The growing demand among enterprises to assess consistency in data patterns has resulted in a greater focus on improving their computational and statistical abilities, which bodes well for market growth. Enterprises that emphasise analytics for data-driven decision making to improve the performance of many elements of company, such as sales, demand forecasting, and raw materials procurement, are driving the expansion. The rising popularity of cloud-based solutions is likely to boost demand for AaaS.

The global analytics as a service market is predicted to increase at a Compound Annual Growth Rate (CAGR) of 23.2 percent over the forecast period, from USD 4.3 billion in 2019 to USD 12.1 billion in 2024. The increasing awareness of IoT devices among enterprises, the requirement to manage large workloads with little infrastructure expenditures, and the adoption of big data analytics solutions for analysing data that helps make faster business choices are all important growth reasons for the AaaS market.

Global Analytics as a Service Market

The marketing analytics category is expected to increase at the fastest CAGR among solutions throughout the projected period.

Financial analytics, risk analytics, marketing analytics, web analytics, supply chain analytics, security analytics, IT operations analytics, and others, which include HR analytics and legal analytics, make up the analytics as a service market. During the projected period, the marketing analytics segment is expected to increase at the fastest rate. Companies can use AaaS solutions to improve operational efficiencies and cut expenses. Companies are using AaaS products and services since it enables them to assess marketing operations and optimise ROI. Businesses can use AaaS products and services to store, manage, and anticipate data in order to analyse and make better business decisions. AaaS solutions and services are being used by a growing number of businesses to examine and improve their internal processes. Implementing AaaS solutions helps businesses strike the correct balance between operating costs, speed, flexibility, and quality. During the projected period, the financial analytics segment is expected to have the greatest market size. Data specialists can use AaaS solutions to discover a variety of trends, including financial growth prospects, financial benchmarking versus industry norms, and financial repercussions.

During the forecast period, the public cloud segment is expected to increase at a high rate.

The majority of analytics as a service suppliers provide cloud-based AaaS solutions to increase profitability and successfully automate the equipment maintenance process. Due to features such as easy maintenance of generated data, cost-effectiveness, agility, flexibility, scalability, and effective management of these solutions, the use of public cloud-based AaaS solutions is predicted to expand. Public cloud-based AaaS solutions are preferred by businesses because they enable their regional, cross-regional, and cross-country data recovery strategies. This gives them the ability to maintain resilient in the event of a calamity.

Insights from COVID-19

Enterprises’ long-term spending budgets have been impacted by the fall in revenue caused by COVID-19. As a result, some businesses are rethinking their investment in analytical solutions. In addition, the COVID-19 pandemic is wreaking havoc on the consumer packaged goods (CPG) and retail businesses. These industries are likely to drive considerable growth in the market because they are leveraging the use of analytical solutions to analyse the ensuing changes in consumer behaviour across brands and channels. Various brands are analysing media data by region in order to use analytical tools to optimise investments in relation to a target market in a specific geographic location on the pandemic timeline. Marketing analytical tools are being used by ecommerce organisations to optimise the launch of campaigns and offers in order to raise awareness of their services.

Governments throughout the world are employing analytical methods to collect travel data and information from hospitals in order to predict the spread of the coronavirus sickness and associated risks. Furthermore, law enforcement and healthcare organisations are employing analytical methods to gain access to location intelligence in order to follow the whereabouts of people who have been instructed to self-isolate. COVID-19 has the greatest harmful impact on industries that rely heavily on human movement, such as hospitality and travel. As a result, financial analytical solutions and risk analytics, among other things, are being adopted by numerous businesses in these industries. Risk analytics solutions are being developed by a number of geospatial analytics companies, including GeoSpark Analytics and Esri. For example, Esri created a customised Covid-19 ArcGIS Hub in March 2020 that gathers and shares essential information using geographic data.

The market for analytics as a service is seeing a surge in demand for real-time data to track and evaluate COVID-19’s impact. It is intended to present market participants with attractive opportunities. As a result, firms like IBM and Oracle Corporation are focusing on developing analytical tools that allow for the tracking of COVID-19 situations. IBM, for example, stated in March 2020 that it will provide tools that leverage IBM Watson to access and analyse data from the World Health Organization as well as many national, state, and local governments. These capabilities, which include an artificial intelligence (AI) enhanced interactive Incidents Map of the COVID-19 data and statistics such as the number of confirmed instances by cities, states, and countries, have been integrated into The Weather Channel app. It also includes information like patient education materials, public health information, and the locations of important healthcare clinics. It also includes an interactive dashboard built on IBM Cognos Analytics that allows users to dig deeper into the data and filter it by location.

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