The analytics as a service industry works off of the cloud. It allows people to use various business analytical tools needed to extrapolate data and information from data. But analytics as a service industry allows users to store this data. They can then retrieve the data at a later date for future analysis and extrapolation. Data analysis is often necessary to make key and informed business decisions.
analytics as a service industry operate entirely off of artificial intelligence (AI). It uses ‘smart’ algorithms that extract and store data based on certain algorithms and patterns. Thus, in this sense, the AI.’learns’ which information will be important to the user in the future and acts accordingly.
It’s the fact that the Internet is increasingly being used for a variety of tasks and services that’s driving growth in the analytics as a service industry. Many businesses are recognizing the need for and the usefulness of analytics as a service, especially in the area of social media. This is the reason why they are investing heavily in it.
The Compound Annual Growth Rate (CAGR) for the analytics as a service industry is projected to be 27.82% for the next three years.
Source: MRFR analysis:
The global market for Analytics as a Service is expected to reach USD 38.35 Billion at a 27.82% CAGR over the forecast period 2020-2030.
The analytics as a service market was enjoying healthy growth before the COVID-19 pandemic. Governments had already recognized the usefulness of this technology and were passing legislation to maket it easier for companies to adopt market analytics services into their regular business operations.
The pandemic has just forced governments to enact laws and pass legislation in favor of analytics as a service. The reason being that this industry supports doing business with as little human contact as possible. There may be even greater opportunities for growth in the analytics as a service industry once the global population has developed herd immunity to the COVID virus. The reason is that the emphasis on remote working is here to stay.
One of the main drivers behind the breakneck speed growth in the analytics as a service industry is a fact that more and more businesses around the world are becoming acquainted with IoT. they are also becoming more comfortable with using the new devices and technologies that are emerging as the Internet is evolving.
Some opportunities in the analytics as a service market include the increased need for businesses to understand the ever-changing consumer behavior patterns that influence buying behavior. Because this behavior is increasingly becoming more complex, businesses need to consult large databases that use driven AI to help them isolate the data that will uncover new growth areas and new markets.
Believe it or not, not all companies are happily embracing analytics as a service. Indeed, the analytics as a service market is facing some major restraints that are acting as ‘hurdles’ in terms of universal adoption and usage. These are:
There are many challenges in the adoption of analytics as a service industry. These tend to be centered around the need to sync all data sources to make sure that they operate in harmony. Also, another huge hurdle to widespread adoption is the fact that there just aren’t enough people who are trained to understand and interpret the data that these complex models tend to generate.
It can also be hard to glean meaningful information from the data since professionals may not always know which data is relevant and/or useful.
Cumulative growth analysis
The analytics as a service industry is expected to grow healthily. It’s expected to be a 30 billion US Dollar market by 2023.
The technologies that power the analytics as a service industry industry are constantly improving. For example, predictive hardware is constantly improving. This is key for analytics as a service because it uses algorithms to predict future phenomena. Another great technological boost for this industry is the improvement in the databases used to store this data. These are NoSQL databases.
The analytics as a service industry is expected to help those businesses that sell various services and products. They can use vast amounts of diverse and complex data to come up with information that is easier to understand. This will also help them make better-informed decisions and predictions of the market.
Also, the fact that this industry is broken down into the following categories of consulting managed service, and support and maintenance means that analytics as a service can continue to focus on the analytical part of data extraction and storage.
Many companies in many industries use analytics as a service industry. Some of these are financial services companies, companies that manage risk. BFSI, e-commerce, retail, government, healthcare, etc...
The analytics as a service industry is facing the strongest growth in the following regions:
The strongest growth in the services analytics market has been in the North American region. The reason being the strong concentration of solutions providers who need the type of complex data and data models that analytics as a service can generate. However, the Asia-Pacific market is clocking the strongest growth of all of the regions in the world. The nations that dominate in this market are India, China, South Korea, and Japan. India’s fast economic growth is also the main contributor.
There is a lot of competition in the global analytics market. One of the main reasons for this is the fact that tremendous growth in the industry is presenting many opportunities for handsome profit potential for companies in the industry.
A major key player in the services analytics market is Amazon Web Services. This global major uses big data to help it better understand the changing nature of consumer buying behavior. This makes it easier for the marketing team to create marketing campaigns that will successfully sell its brands.
There are other key players in this industry. They are:
Many companies around the world are finding that they need to use analytics as a service because the increasing usage of the IoT is complicating consumer buying behavior. Governments were already passing legislation to facilitate the transition to this technology. COVID-19 only accelerated this trend.
The technologies that drive growth in this industry are constantly maturing and this provides many opportunities for analytics as a service provider.
|Market Size||USD 38.35 Billion (2020-2030)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||by Component, by Analytics Type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||IBM Corporation (U.S.), Hewlett-Packard Enterprise (U.S.), Oracle Corporation (U.S.), 1010 Data Inc. (U.S.), Google Inc. (U.S.), EMC Corporation (U.S.), Amazon (U.S.), Hitachi, Ltd. (Japan), Good data Corporation (U.S.), SAS Institute (U.S.), and Cloudera, Inc. (U.S.)|
|Key Market Opportunities||The technologies that drive growth in this industry are constantly maturing and this provides many opportunities for analytics as a service provider.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global analytics as a service market is poised to register a market value of USD 30 billion at a CAGR of approximately 35% over the review period (2020-2030).
The increasing demand for analytics as a service for data management, coupled with the growing adoption of IoT technology, is creating opportunities for market players.
The global analytics as a service market is analyzed on the basis of type and application, wherein the IT and telecom application segment is expected to witness maximum demand over the review period.
It’s expected to grow by 27.82% a year until 2030. The market size is expected to be more than USD 38.35 Billion.
Companies are increasingly using analytics as a service for data analysis to help them understand the behavior of consumers in the ever-complex world that the IoT is creating.