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North America Software Analytics Market

ID: MRFR/ICT/60344-HCR
200 Pages
Aarti Dhapte
October 2025

North America Software Analytics Market Research Report By Service (Professional Service, Support and Maintenance Service), By Deployment (Cloud, On-Premise), By Vertical (IT & Telecommunication, Healthcare, BFSI, Retail), and By Region (US, Canada)- Forecast to 2035

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North America Software Analytics Market Summary

As per MRFR analysis, the North America software analytics market Size was estimated at 2000.0 USD Million in 2024. The North America software analytics market is projected to grow from 2181.4 USD Million in 2025 to 5200.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 9.07% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The North America software analytics market is experiencing robust growth driven by technological advancements and evolving consumer needs.

  • The US remains the largest market for software analytics, while Canada is emerging as the fastest-growing region.
  • There is a notable increase in the adoption of cloud-based solutions across various industries, enhancing accessibility and scalability.
  • Integration of artificial intelligence and machine learning technologies is transforming data analysis capabilities, leading to more insightful outcomes.
  • Rising demand for data-driven decision making and the expansion of e-commerce are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 2000.0 (USD Million)
2035 Market Size 5200.0 (USD Million)
CAGR (2025 - 2035) 9.07%

Major Players

Microsoft (US), IBM (US), SAP (DE), Oracle (US), SAS (US), Tableau (US), Qlik (US), MicroStrategy (US), Domo (US)

North America Software Analytics Market Trends

The software analytics market in North America is currently experiencing a dynamic evolution, driven by the increasing demand for data-driven decision-making across various sectors. Organizations are increasingly recognizing the value of harnessing data analytics to enhance operational efficiency, improve customer experiences, and gain competitive advantages. This trend is further fueled by advancements in artificial intelligence and machine learning technologies, which enable more sophisticated data analysis and predictive modeling. As businesses strive to adapt to rapidly changing market conditions, the integration of software analytics tools has become essential for informed strategic planning and resource allocation. Moreover, the regulatory landscape in North America is also influencing the software analytics market. With heightened focus on data privacy and security, companies are compelled to adopt analytics solutions that comply with stringent regulations. This has led to a surge in demand for software that not only provides insights but also ensures data protection and ethical usage. As organizations navigate these complexities, the software analytics market is poised for continued growth, with innovations likely to emerge that address both analytical capabilities and compliance requirements. The interplay between technological advancements and regulatory frameworks will shape the future trajectory of this market, making it a focal point for businesses aiming to leverage data effectively.

Increased Adoption of Cloud-Based Solutions

The shift towards cloud computing is significantly impacting the software analytics market. Organizations are increasingly opting for cloud-based analytics solutions due to their scalability, flexibility, and cost-effectiveness. This trend allows businesses to access advanced analytics tools without the need for substantial upfront investments in infrastructure.

Focus on Data Privacy and Compliance

As data privacy regulations become more stringent, there is a growing emphasis on compliance within the software analytics market. Companies are seeking analytics solutions that not only provide insights but also adhere to legal standards, ensuring the ethical use of data and safeguarding consumer information.

Integration of Artificial Intelligence and Machine Learning

The incorporation of artificial intelligence and machine learning technologies is transforming the software analytics market. These innovations enable organizations to perform more complex analyses, uncover hidden patterns, and make predictive forecasts, thereby enhancing decision-making processes across various industries.

North America Software Analytics Market Drivers

Increased Focus on Operational Efficiency

In the software analytics market, the emphasis on operational efficiency is a critical driver shaping the landscape. Organizations are continually seeking ways to streamline processes and reduce costs, leading to a heightened interest in analytics solutions. By employing software analytics, companies can identify inefficiencies, monitor performance metrics, and implement data-driven improvements. Recent studies indicate that businesses leveraging analytics can achieve up to a 15% reduction in operational costs. This focus on efficiency not only enhances profitability but also positions organizations to respond more effectively to market changes. As a result, the software analytics market in North America is witnessing a growing adoption of tools designed to facilitate operational excellence.

Emergence of Advanced Analytics Technologies

The software analytics market in North America is witnessing a transformative shift due to the emergence of advanced analytics technologies. Innovations such as predictive analytics, natural language processing, and real-time data processing are reshaping how organizations approach data analysis. These technologies enable businesses to gain deeper insights and make proactive decisions based on predictive models. The market for advanced analytics is projected to grow significantly, with estimates suggesting a CAGR of around 30% over the next few years. This rapid evolution in analytics capabilities is driving demand within the software analytics market, as organizations seek to leverage these advanced tools to maintain a competitive edge.

Expansion of E-Commerce and Digital Services

The software analytics market in North America is significantly impacted by the rapid expansion of e-commerce and digital services. As online shopping continues to gain traction, businesses are increasingly reliant on analytics to understand consumer behavior and preferences. The e-commerce sector alone is expected to reach over $1 trillion in sales by 2025, creating a pressing need for robust analytics solutions. Companies utilize software analytics to track customer interactions, optimize marketing strategies, and enhance user experiences. This trend not only drives the demand for analytics tools but also fosters innovation within the software analytics market, as providers develop tailored solutions to meet the unique needs of e-commerce businesses.

Rising Demand for Data-Driven Decision Making

The software analytics market in North America experiences a notable surge in demand as organizations increasingly prioritize data-driven decision making. Companies are recognizing the value of leveraging analytics to enhance operational efficiency and improve customer experiences. According to recent estimates, the market is projected to grow at a CAGR of approximately 25% over the next five years. This growth is largely attributed to the need for actionable insights derived from vast amounts of data generated daily. As businesses strive to remain competitive, the adoption of software analytics tools becomes essential for identifying trends, optimizing processes, and making informed strategic choices. Consequently, this driver significantly influences the software analytics market, as organizations invest in advanced analytics solutions to harness the power of their data.

Growing Importance of Customer Experience Management

In the software analytics market, the growing importance of customer experience management is a pivotal driver influencing market dynamics. Organizations are increasingly recognizing that enhancing customer satisfaction is essential for long-term success. As a result, they are turning to software analytics to gather insights into customer preferences and behaviors. By analyzing customer data, businesses can tailor their offerings and improve service delivery. Recent surveys indicate that companies prioritizing customer experience see a 20% increase in customer retention rates. This trend underscores the necessity for robust analytics solutions, propelling growth within the software analytics market in North America as firms invest in tools that facilitate effective customer experience management.

Market Segment Insights

By Service: Professional Service (Largest) vs. Support and Maintenance Service (Fastest-Growing)

In the North America software analytics market, the distribution of market share among the Service segment values reveals Professional Service as the dominant player, capturing a substantial portion of the market. This segment encompasses various consulting and implementation services aimed at optimizing software usage, and it has established a solid reputation for delivering high-value solutions. In contrast, Support and Maintenance Service is witnessing rapid growth, driven by the increasing demand for ongoing software support and updates, catering to businesses prioritizing operational efficiency and system performance. The growth trends in these segments are influenced by several key drivers. The Professional Service sector is boosted by the realization among enterprises that leveraging expert assistance can enhance software investments. Meanwhile, the Support and Maintenance Service is expanding as organizations emphasize the need for reliable support infrastructures to minimize downtime. As software becomes more complex, the growth of these service offerings will play a crucial role in ensuring that organizations can maximize their software capabilities and maintain competitive advantages.

Professional Service (Dominant) vs. Support and Maintenance Service (Emerging)

Professional Service in the North America software analytics market stands out as a dominant segment, characterized by its comprehensive offerings that include consulting, implementation, and optimization services. Companies seeking these professional services are often looking for tailored solutions that align with their specific operational goals and software functionalities. This segment thrives on building long-term relationships with clients, ensuring a continuous feedback loop which further enhances service delivery. On the other hand, Support and Maintenance Service represents an emerging segment, growing rapidly as businesses realize the importance of continuous support to address the evolving software landscape. Its market position is bolstered by the need for efficient troubleshooting and timely updates, making it an essential partner to ensure business continuity.

By Deployment: Cloud (Largest) vs. On-Premise (Fastest-Growing)

The North America software analytics market has shown a clear preference for the cloud deployment model, which currently holds the largest share due to its scalability, lower upfront costs, and ease of integration with existing systems. On-premise solutions, while still relevant for certain industries, account for a smaller portion of the market as businesses increasingly seek agile and cost-effective analytics solutions. In recent years, the adoption of cloud technologies has surged, driven by the need for real-time data access and collaborative tools. Meanwhile, on-premise deployments are witnessing growth as companies managing sensitive data seek more controlled environments. This growth is also fueled by enterprises upgrading their legacy systems, positioning on-premise solutions as a competitive alternative in specific sectors.

Cloud (Dominant) vs. On-Premise (Emerging)

Cloud deployment in the software analytics market is characterized by its flexibility, offering enterprises the ability to scale resources according to demand without significant capital investment. This model allows for seamless updates and integration with other cloud services. In contrast, on-premise solutions are considered emerging as they attract organizations prioritizing data security and control over their analytics processes, especially in regulated industries. While cloud remains the dominant choice due to its efficiency, on-premise systems are adapting to incorporate more cloud-like features, helping organizations transition smoothly while still managing data within their own infrastructure.

By Vertical: IT & Telecommunication (Largest) vs. Healthcare (Fastest-Growing)

The market share distribution among the segment values within the vertical segment reveals that IT & Telecommunication holds the largest share, benefiting from rapid digital transformation and increasing demand for analytics solutions. Healthcare remains a strong contender, rapidly growing as organizations adopt sophisticated analytics tools to enhance decision-making and patient outcomes. Retail and BFSI also demonstrate substantial involvement but are currently overshadowed by the dominance of IT & Telecommunication and the growth of Healthcare. Growth trends indicate that the vertical segment is primarily driven by the ongoing digitalization across industries. The rise in cloud technologies, coupled with an increasing emphasis on data-driven strategies, particularly in Healthcare, marks a significant shift. The demand for real-time insights remains crucial in both IT & Telecommunication and Healthcare, propelling the sector's growth forward and leading to innovative solutions that cater to specific industry needs.

IT & Telecommunication: Dominant vs. Healthcare: Emerging

The IT & Telecommunication sector stands out as the dominant player in the vertical segment due to its foundational role in the tech-driven landscape. This segment thrives on robust infrastructure and continuous investment in analytics to improve operational efficiencies and customer engagement. Conversely, Healthcare is emerging rapidly, propelled by technological advancements and the integration of analytics in clinical settings. This sector focuses on improving patient care, streamlining operations, and leveraging data for better health outcomes. Together, these sectors depict a dynamic interplay where IT & Telecommunication provides the backbone, while Healthcare increasingly leverages analytics to navigate the complex demands of the industry.

Get more detailed insights about North America Software Analytics Market

Regional Insights

US : Leading Market with Robust Growth

The US software analytics market is valued at $1600.0 million, representing a significant share of approximately 80% of North America's total market. Key growth drivers include the rapid adoption of cloud computing, increasing demand for data-driven decision-making, and advancements in AI and machine learning technologies. Regulatory policies promoting data privacy and security, such as the CCPA, further enhance market growth. Additionally, robust infrastructure and a strong tech ecosystem support industrial development, fostering innovation in analytics solutions.

Canada : Growth Driven by Innovation and Demand

Canada's software analytics market is valued at $400.0 million, accounting for 20% of North America's market share. The growth is fueled by increasing investments in technology and a strong focus on data analytics across various sectors, including healthcare and finance. Government initiatives, such as the Digital Canada 150 strategy, promote digital innovation and infrastructure development. The demand for analytics solutions is rising as businesses seek to enhance operational efficiency and customer insights.

North America Software Analytics Market Regional Image

Key Players and Competitive Insights

The software analytics market in North America is characterized by a dynamic competitive landscape, driven by rapid technological advancements and an increasing demand for data-driven decision-making. Key players such as Microsoft (US), IBM (US), and Oracle (US) are at the forefront, leveraging their extensive resources to innovate and expand their offerings. Microsoft (US) focuses on integrating artificial intelligence (AI) into its analytics solutions, enhancing user experience and operational efficiency. Meanwhile, IBM (US) emphasizes its cloud-based analytics services, aiming to provide scalable solutions for businesses of all sizes. Oracle (US) is strategically positioning itself through acquisitions, enhancing its capabilities in data management and analytics, which collectively shapes a competitive environment that is increasingly reliant on technological innovation and strategic partnerships.

The business tactics employed by these companies reflect a concerted effort to optimize operations and enhance market presence. The market appears moderately fragmented, with a mix of established players and emerging startups. This structure allows for diverse offerings and competitive pricing, although the influence of major players like Microsoft (US) and IBM (US) remains substantial. Their strategies, including localized service offerings and supply chain optimization, contribute to a robust competitive framework that encourages innovation and responsiveness to market demands.

In October 2025, Microsoft (US) announced the launch of its new AI-driven analytics platform, designed to streamline data processing and provide real-time insights for businesses. This strategic move is significant as it not only reinforces Microsoft's commitment to AI integration but also positions the company to capture a larger share of the growing analytics market. The platform's capabilities are expected to enhance customer engagement and drive operational efficiencies across various sectors.

In September 2025, IBM (US) unveiled its latest cloud analytics solution, which incorporates advanced machine learning algorithms to improve predictive analytics capabilities. This development is crucial as it aligns with the increasing demand for sophisticated analytics tools that can provide actionable insights. By enhancing its cloud offerings, IBM (US) aims to solidify its position as a leader in the analytics space, catering to businesses seeking to leverage data for strategic advantage.

In August 2025, Oracle (US) completed the acquisition of a leading analytics startup, which specializes in real-time data visualization tools. This acquisition is indicative of Oracle's strategy to bolster its analytics portfolio and enhance its competitive edge. By integrating innovative technologies from the startup, Oracle (US) is likely to offer more comprehensive solutions that meet the evolving needs of its clients, thereby strengthening its market position.

As of November 2025, the competitive trends in the software analytics market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances among key players are shaping the landscape, fostering innovation and collaboration. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident, suggesting that future competitive differentiation will hinge on the ability to innovate and adapt to changing market dynamics.

Key Companies in the North America Software Analytics Market market include

Industry Developments

Recent news developments in the North America Software Analytics Market indicate a significant growth trajectory, driven by increasing demand for data-driven decision-making across various sectors.Dynatrace successfully acquired Metis in March 2025, a database observability platform that is AI-driven. This acquisition has integrated advanced analytics capabilities into Dynatrace's observability and software intelligence offerings for North American enterprise clients. 

FactSet acquired LiquidityBook, a cloud-based portfolio and execution management software provider, in April 2025. This acquisition will improve FactSet's analytics and data workflow capabilities for North American financial services firms. Palantir and Microsoft expanded their strategic partnership in August 2025 to provide Foundry analytics and AI services on Microsoft's government and classified Azure cloud networks. This expansion accelerated joint analytics solutions for North American defense and intelligence clients.

Future Outlook

North America Software Analytics Market Future Outlook

The Software Analytics Market is projected to grow at a 9.07% CAGR from 2024 to 2035, driven by increased data utilization, cloud adoption, and AI integration.

New opportunities lie in:

  • Development of AI-driven predictive analytics tools for real-time decision-making.
  • Expansion of subscription-based analytics platforms targeting SMEs.
  • Integration of advanced data visualization solutions for enhanced user engagement.

By 2035, the software analytics market is expected to achieve substantial growth and innovation.

Market Segmentation

North America Software Analytics Market Service Outlook

  • Professional Service
  • Support and Maintenance Service

North America Software Analytics Market Vertical Outlook

  • IT & Telecommunication
  • Healthcare
  • BFSI
  • Retail

North America Software Analytics Market Deployment Outlook

  • Cloud
  • On-Premise

Report Scope

MARKET SIZE 20242000.0(USD Million)
MARKET SIZE 20252181.4(USD Million)
MARKET SIZE 20355200.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)9.07% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Million
Key Companies Profiled["Microsoft (US)", "IBM (US)", "SAP (DE)", "Oracle (US)", "SAS (US)", "Tableau (US)", "Qlik (US)", "MicroStrategy (US)", "Domo (US)"]
Segments CoveredService, Deployment, Vertical
Key Market OpportunitiesIntegration of artificial intelligence enhances predictive capabilities in the software analytics market.
Key Market DynamicsRising demand for real-time data insights drives innovation and competition in the software analytics market.
Countries CoveredUS, Canada

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FAQs

What is the expected market size of the North America Software Analytics Market in 2024?

The North America Software Analytics Market is expected to be valued at 2.0 billion USD in 2024.

What is the projected market size for the North America Software Analytics Market in 2035?

By 2035, the market is anticipated to reach a value of 5.2 billion USD.

What is the expected compound annual growth rate (CAGR) for the North America Software Analytics Market from 2025 to 2035?

The market is projected to grow at a CAGR of 9.075% during the forecast period from 2025 to 2035.

Which region holds the largest share of the North America Software Analytics Market in 2024?

The United States is expected to dominate the market, valued at 1.5 billion USD in 2024.

What is the market size of the North America Software Analytics Market for Canada in 2024?

Canada is projected to represent a market size of 0.5 billion USD in 2024.

What are the expected market values for Professional Services in the Software Analytics Market by 2035?

Professional Services are expected to be valued at 2.4 billion USD in 2035.

What is the expected market value for Support and Maintenance Services in the Software Analytics Market by 2035?

Support and Maintenance Services are anticipated to reach a market value of 2.8 billion USD by 2035.

Who are the key players in the North America Software Analytics Market?

Major players include Qlik, Domo, SAP, Palantir Technologies, and Google among others.

How much of the North America Software Analytics Market does IBM account for in 2024?

IBM, along with other significant players, contributes to the overall market size, but specific figures for IBM alone are not publicly available.

What are the main growth drivers for the North America Software Analytics Market?

Key growth drivers include increasing data volumes, rising demand for data-driven decision-making, and advancements in AI and machine learning technologies.

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