Software Analytics Market Analysis

Software Analytics Market Overview

Software Analytics Market Size was valued at USD 5.45 billion in 2022. The software analytics market industry is projected to grow from USD 6.01 Billion in 2023 to USD 13.27 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.40% during the forecast period (2023 - 2032). The increasing company competitiveness and demand for better software analytics are the key market drivers enhancing market growth. Data analysis is required everywhere, from bots to AI, which may appeal to the customer support option. Opportunities have increased for the market due to the rising demand for software analytics.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review 

Industry News of Software Analytics Market

IBM and Palantir will collaborate in February 2021 to make it easier for businesses to deploy robust and open AI applications and unlock valuable data across hybrid cloud environments.

The new solution uses Palantir Foundry and connects with Red Hat OpenShift, IBM Cloud Pack for Data, and IBM Watson. Additionally, the two companies will provide the knowledge and data science skills that businesses need to scale AI-infused solutions. The partnership is designed to support businesses that are looking to maximise the value of vast amounts of data, including those in retail, financial services, manufacturing, healthcare, and telecommunications.

Software Analytics Market Trends

Rapid adoption of AI, machine learning (ML) methods, and the Internet of Things (IoT) is driving the market growth

Market CAGR for software analytics is driven by the increased adoption of advanced technology. Statistics from the International Data Corporation (IDC) predict that by 2025, 152,200 IoT devices will connect every minute. The demand for connected devices is rising, which accelerates edge computing adoption. Edge computing solutions are structures that move processors closer to the data source or destination rather than in clouds. Data close to the source or destination reduces network and server strain and speeds up data uploads to on-premises or cloud systems. Edge computing is particularly applicable to Industrial IoT due to its faster response times and real-time data processing capabilities. Furthermore, increasing edge computing adoption is anticipated to open up attractive market potential by increasing database quantity.

Data is rapidly growing due to the expanding use of digital solutions globally in industries including banking, healthcare, BFSI, retail, agriculture, telecommunications and media. For instance, using artificial intelligence in agriculture significantly impacts pest control, precision farming, and risk management. The amount of data produced by smart machinery, soil sensors, and GPS-equipped tractors is enormous. In agriculture, big data analytics evaluates enormous data sets, including advanced risk assessment, supply tracks, natural patterns, optimal crops, and more. Similar to how businesses are using bots to modernize and automate working processes. Also, virtual assistants like Apple's Siri, Google Assistants, and Amazon Alexa produce a tonne of data. For instance, 8.2 billion digital voice assistants were used in 2020. Smartphone technology and network access improvements have increased social media usage. Thus, driving the software analytics market revenue.

Software Analytics Market Segment Insights

Software Analytics Service Insights

The software analytics market segmentation, based on service, includes professional service, support and maintenance service. In 2022, the professional service sector dominated the market. A growing emphasis on digitizing company operations is anticipated to drive professional services. A significant trend in the business is the emergence of alternative legal service providers (ALSPs). Professional service providers are concentrating on artificial intelligence (AI) to improve their market position. AI may make professional service organizations run more effectively by increasing production, retaining top talent, minimizing scope creep, and increasing profitability. Additionally, in 2022, the maintenance service witnessed the fastest growth rate. Oil and gas, manufacturing, and processing are just a few industries frequently requiring maintenance services. Furthermore, the expansion of air travel globally is largely a result of globalization. This is driving up demand in the aerospace industry, ultimately driving demand for maintenance services.

Software Analytics Deployment Insights

The software analytics market segmentation, based on deployment, includes cloud and on-premise. In 2022, the on-premise market share was the largest. With less reliance on the internet and better protection against fraud and theft, on-premise solutions allow organizations greater freedom and control for customizing their IT infrastructure. These advantages are projected to persuade major enterprises to choose an on-premise deployment. The cloud segment is predicted to experience significant expansion during the projected period. The demand for cloud solutions is anticipated to expand as IoT and cloud computing become more widely adopted. Modern cloud analytics tools continue to impact how businesses manage, organize, and utilize the data produced by their digital channels.

Software Analytics Vertical Insights

The software analytics market segmentation, based on vertical, includes IT & telecommunication, healthcare, BFSI, and retail. In 2022, the BFSI category held the greatest market share. The continued use of advanced analytics for spotting fraudulent transactions, streamlining workflows, and managing data risks can be blamed for the segment rise. In addition, the market is anticipated to grow due to the increased deployment of BI software to offer continuous access to client databases, secure transactions, and improve the client experience. In 2022, the IT & telecom sector had a significant market share. The increased demand for collaboration tools like web conferencing and video conferencing is responsible for the market growth. Also, businesses in this industry are implementing cutting-edge analytical techniques to avoid fraud, such as illicit access, or

Figure 1: Software Analytics Market, by Vertical, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Software Analytics Regional Insights

By Region, the report provides market insights into Asia-Pacific, North America, Europe, and Rest of the World. The North American software analytics area will dominate this market. This is because a readily available infrastructure supports cutting-edge analytics and because cutting-edge technologies like AI and machine learning are becoming more prevalent. For instance, Microsoft Corporation announced in December 2021 a partnership with Consumer Value Store (CVS) Health, a provider of healthcare solutions, to create cutting-edge solutions to assist consumers in improving their health. CVS Health would use Azure cognitive services like Computer Vision and Text Analytics for Health for task automation.

Further, the leading countries studied in the market report are U.S., Canada, German, UK, France, Spain, Italy, Japan, China, Australia, India, South Korea, and Brazil.

Figure 2: SOFTWARE ANALYTICS MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's software analytics market accounts for the second-largest market share. The use of modern communication, network solutions, electronic gadgets, social media, connected devices, and other technologies has been greatly accelerated across Europe. The region's rapidly expanding data is projected to drive up demand for analytics technologies. According to a report by the European Parliament, data analytics methods in Europe could increase industry productivity. Further, the German software analytics market held the largest market share, and the UK software analytics market was the fastest-growing market in the European region

The Asia-Pacific Software Analytics Market is expected to grow at the fastest CAGR from 2023 to 2032. The regional market is expanding due to big data analytics tools and solutions being widely used there. Also, several businesses are investing significantly in customer analytics to boost productivity and efficiency. Moreover, China’s software analytics market held the largest market share, and the Indian software analytics market was the fastest-growing market in the Asia-Pacific region.

Software Analytics Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the software analytics market, grow even more. Market participants are also undertaking different strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the software analytics industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the software analytics industry to benefit clients and increase the market sector. In recent years, the software analytics industry has offered some of the most significant advantages to medicine. Major players in the software analytics market, including Microsoft Corporation (U.S.), Oracle Corporation (U.S.), SAP SE (Germany), SAS Institute (U.S.), and others, are attempting to boost their market demand by investing in research and development operations.

Microsoft Corporation is a multinational technology company based in Redmond, Washington. The Windows operating system, the Microsoft Office suite, and the Internet Explorer and Edge web browsers are among Microsoft's most well-known software products. Its major hardware products are the Xbox video game consoles and the Microsoft Surface family of touchscreen personal PCs. In March 2022, Microsoft introduced Azure Health Data Services. It is a Platform as a Service (PaaS) created primarily to serve analytical and transactional workloads. It integrates health data and drives cloud-based Artificial Intelligence (AI) that only supports Protected Health Information (PHI).

The International Business Machines Corporation (IBM), or Big Blue, is a multinational technology business headquartered in Armonk, New York, with operations in over 175 countries. It specializes in computer hardware, middleware, and software, as well as hosting and consulting services spanning from mainframe computers to nanotechnology. In November 2022, IBM announced the launching of Business Analytics Enterprise, a business intelligence and analytics suite. The solution is intended to assist enterprises in breaking down data barriers and silos produced by employing diverse analytics tools across different departments. According to the company, the new suite will include a new Analytics Content Center and upgraded versions of Planning Analytics and Cognos Analytics with IBM Watson.

Key Companies in the software analytics market include

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  SAP SE (Germany)

  
  


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  SAS Institute (U.S.)

  
  


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  International Business Machine (U.S.)

  
  


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  Oracle Corporation (U.S.)

  
  


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  Tableau Software (U.S.)

  
  


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  Microsoft Corporation (U.S.)

  
  


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  Teradata Corporation (U.S.)

  
  


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  Microstrategy Inc. (U.S.)

  
  


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  Informatica (U.S.)

  
  

Software Analytics Industry Developments

November 2022: Standard Chartered and the US-based fintech platform upSwot have announced a business analytics solution in Singapore that will provide SMEs with forecasting and insights capabilities on a single digital platform. Standard Chartered SME clients may combine their business apps with upSWOT to generate dashboard analysis and real-time insights utilizing aggregated data.

October 2022: Dynatrace, a software intelligence business, announced the release of its Grail core technology within the Dynatrace Software Intelligence Platform. Grail will transform data analytics and management by combining observability, security data, and business data from cloud-native and multi-cloud systems, preserving context and offering rapid, precise, cost-effective AI-powered answers and automation.

Software Analytics Market Segmentation

Software Analytics Service Outlook

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  Professional Service

  
  


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  Support and Maintenance Service

  
  

Software Analytics Deployment Outlook

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  Cloud

  
  


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  On-Premise

  
  

Software Analytics Vertical Outlook

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  IT & Telecommunication

  
  


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  Healthcare

  
  


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  BFSI

  
  


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  Retail

  
  

Software Analytics Regional Outlook

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  North America

  
  

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  US

  
  


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  Canada

  
  

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  Europe

  
  

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  Germany

  
  


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  France

  
  


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  UK

  
  


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  Italy

  
  


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  Spain

  
  


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  Rest of Europe

  
  

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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America