Advanced Analytics Market

Advanced Analytics Market Outlook from 2024 to 2034

The advanced analytics market size is projected to be worth USD 15,149.8 million in 2024. The market is likely to reach USD 26,688.0 million by 2034. The market is further expected to surge at a CAGR of 5.8% during the forecast period 2024 to 2034.

Key Market Trends and Highlights

• The adoption of cloud based analytics solutions is on the rise due to their scalability, flexibility, and cost effectiveness. Cloud platforms enable businesses to access and analyze vast amounts of data without the need for significant on premises infrastructure.
• Tailored analytics solutions for specific industries, such as healthcare, finance, and retail, are gaining traction. The solutions address industry specific challenges and provide insights that are relevant to particular sectors.
• Understanding customer behavior and preferences is crucial for businesses. Advanced analytics allows organizations to analyze customer data to enhance customer experience, personalize marketing efforts, and improve overall customer satisfaction.
• There is a growing emphasis on regulatory compliance and governance, with increasing concerns about data privacy and security. Advanced analytics tools are being designed to ensure that organizations can analyze data while adhering to legal and regulatory requirements.

Attributes	Key Insights
Advanced Analytics Market Estimated Size in 2024	USD 15,149.8 million
Projected Market Value in 2034	USD 26,688.0 million
Value-based CAGR from 2024 to 2034	5.8%

2019 to 2023 Historical Analysis vs. 2024 to 2034 Market Forecast Projections

The scope for advanced analytics rose at a 5.5% CAGR between 2019 and 2023. The global market for advanced analytics is anticipated to grow at a moderate CAGR of 5.8% over the forecast period 2024 to 2034.

Report Attributes	Details
Market Value in 2019	USD 11,954.1 million
Market Value in 2023	USD 14,355.5 million
CAGR from 2019 to 2023	5.5%

The advanced analytics market experienced a significant growth during the historical period from 2019 to 2023. The exponential growth in data generation from various sources, including social media, IoT devices, and business operations, has driven the demand for advanced analytics tools to derive valuable insights from vast datasets.

Organizations increasingly recognized the importance of data driven decision making. Advanced analytics solutions offered sophisticated tools for business intelligence, enabling companies to make informed decisions based on data analysis.

Different industries, including finance, healthcare, retail, and manufacturing, adopted advanced analytics for industry specific applications. For instance, predictive analytics in healthcare and fraud detection in finance.

The forecast period from 2024 to 2034 is expected to see accelerated growth in the market. The integration of artificial intelligence and machine learning capabilities into advanced analytics platforms is expected to enhance predictive modeling, anomaly detection, and automation, driving increased adoption.

The adoption of advanced analytics is expected to expand across various industries, including those that may not have traditionally embraced these technologies. The diversification will contribute to market growth. There will be a growing focus on prescriptive analytics, providing actionable insights and recommendations for optimal decision making.

Advanced analytics solutions that prioritize and ensure compliance with regulations will be in high demand, especially in regions with stringent data protection laws, with the increasing focus on data security and privacy.

Advanced Analytics Market Key Drivers

• The proliferation of digital technologies and IoT devices has led to an exponential increase in data generation. Advanced analytics leverages this data to provide valuable insights for businesses.
• There is a growing need for real time analytics to make quick and informed business decisions. Advanced analytics tools can process and analyze data in real time, enabling organizations to respond promptly to changing market conditions.
• The synergy between advanced analytics and big data technologies allows organizations to analyze and derive insights from large and complex datasets. Big data analytics tools enhance the capacity of advanced analytics by handling massive volumes of structured and unstructured data.
• Organizations are increasingly adopting predictive and prescriptive analytics to forecast future trends and prescribe actions to optimize outcomes, which helps businesses move beyond descriptive analytics and towards more proactive decision making.

Challenges in the Advanced Analytics Market

• The increasing focus on data privacy regulations such as GDPR, and concerns about data breaches pose challenges to the collection, storage, and analysis of sensitive information. Organizations need to invest in robust security measures to build and maintain trust.
• The shortage of skilled professionals in data science, machine learning, and advanced analytics is a significant barrier. The demand for these skills often outstrips the available talent pool, making it difficult for organizations to fully exploit advanced analytics capabilities.
• Integrating advanced analytics solutions with existing IT infrastructure can be complex and time consuming. Legacy systems, data silos, and compatibility issues are expected to hamper the seamless deployment of analytics tools.
• Implementing advanced analytics solutions can be costly, involving expenses related to software, hardware, training, and ongoing maintenance. Smaller organizations may find it challenging to justify and afford these upfront costs.

Country-wise Insights

The below table showcases revenues in terms of the top 5 leading countries, spearheaded by Japan and India. The countries are expected to lead the market through 2034.

Forecast CAGRs from 2024 to 2034

The United States	2.3%
The United Kingdom	3.2%
India	7.6%
China	6.7%
Japan	8.8%

Investments in Big Data Infrastructure Driving the Market in the United States

The advanced analytics market in the United States expected to expand at a CAGR of 2.3% through 2034. The United States is home to a vast and diverse range of industries that generate large volumes of data. The proliferation of digital technologies, IoT devices, and online activities contributes to the increasing demand for advanced analytics to derive insights from this data.

The United States continues to invest heavily in big data infrastructure and technologies. The ability of advanced analytics to process and analyze large datasets aligns with the focus of the country on leveraging big data for strategic decision making.

Government Initiatives to Accelerate Market Growth in Japan

The advanced analytics market in Japan is anticipated to expand at a CAGR of 8.8% through 2034. The Japanese government has been promoting digital transformation and technology adoption across industries. Initiatives supporting the use of advanced analytics in areas such as healthcare, manufacturing, and smart cities contribute to market growth.

Japan has a rapidly aging population, and healthcare analytics plays a crucial role in addressing healthcare challenges. Analytics is used for patient care optimization, disease prevention, and improving overall healthcare outcomes.

Digital Transformation Fueling the Market in India

The advanced analytics market in India is poised to expand at a CAGR of 7.6% through 2034. India is witnessing a rapid digital transformation across industries. Organizations are adopting advanced analytics as a key component of their digital strategies to gain insights, improve operational efficiency, and enhance customer experiences.

The manufacturing sector in India is embracing Industry 4.0 practices, incorporating advanced analytics to optimize production processes, monitor equipment health, and enhance overall operational efficiency.

E-Commerce and Retail Analytics Spearhead the Market in China

Advanced analytics trends in China are taking a turn for the better. A 6.7% CAGR is forecast for the country from 2024 to 2034.

The thriving e-commerce ecosystem in China, led by companies like Alibaba and JD.com, relies on advanced analytics for customer segmentation, personalized marketing, supply chain optimization, and fraud detection. The growth of online retail contributes to the demand for analytics solutions.

The financial services sector in China, including fintech companies, is leveraging advanced analytics for risk management, fraud detection, credit scoring, and customer engagement. The rapid growth of fintech in China is a key driver of analytics adoption.

Telecommunication and Technology Adoption Driving the Sales in the United Kingdom

The advanced analytics market in the United Kingdom is anticipated to expand at a CAGR of 3.2% through 2034. The telecommunications sector in the United Kingdom is actively involved in technology adoption, including advanced analytics for network optimization, customer experience enhancement, and the deployment of innovative services.

Collaboration between technology companies, research institutions, and industry players fosters innovation in analytics solutions. Cross industry collaboration accelerates the development and application of advanced analytics across various sectors.

Category-wise Insights

The below table highlights how big data analytics segment is projected to lead the market in terms of solution, and is expected to account for a share of 23.3% in 2024.

Based on industry, the BFSI segment is expected to account for a share of 22.6% in 2024.

Category	Shares in 2024
Big Data Analytics	23.3%
BFSI	22.6%

Big Data Analytics Segment Claims High Demand for Advanced Analytics

Based on solution, the big data analytics segment is expected to continue dominating the advanced analytics market. The segment is expected to account for a share of 23.3% in 2024.

The exponential growth of data generated by various sources, including social media, IoT devices, and transactional systems, creates a need for advanced analytics solutions capable of processing large volumes of data quickly. Big data analytics is designed to handle the sheer scale and diversity of data.

Big data analytics enables organizations to derive deeper insights from vast datasets, uncovering patterns, trends, and correlations that may not be apparent through traditional analytics. The enhanced decision making capability is a key driver for the adoption of big data analytics solutions.

Big data analytics plays a crucial role in processing and analyzing data in real time, as businesses increasingly demand real time insights. The capability is essential for making timely decisions, especially in dynamic and fast paced industries.

BFSI Segment to Hold High Demand for Advanced Analytics

In terms of industry, the BFSI segment is expected to continue dominating the advanced analytics market. The segment is expected to account for a share of 22.6% in 2024.

Advanced analytics plays a crucial role in detecting and preventing fraudulent activities within the financial sector. Machine learning algorithms can analyze transaction patterns, identify anomalies, and raise alerts for potential fraudulent transactions, enhancing overall security.

The BFSI sector is subject to strict regulatory requirements. Advanced analytics assists in risk management by evaluating and predicting market trends, credit risks, and compliance issues. Analytics tools help financial institutions ensure adherence to regulatory standards and avoid penalties.

Advanced analytics enables banks and insurance companies to analyze customer data to create meaningful segments. The organizations can tailor products and services, by understanding customer behavior and preferences, leading to improved customer satisfaction and loyalty.

Competitive Landscape

The key strategies chosen by large companies include several growth strategies such as technology development, expansion as well and mergers and acquisitions to surge market share, reach and revenue.

• In 2023, SAS Institute announced the launch of its new SAS Viya 4.1 platform, which features new capabilities for artificial intelligence, machine learning, and natural language processing. The new platform is designed to help businesses make better decisions faster by providing them with the insights they need to understand their customers, predict future trends, and optimize their operations.
• In the same year, IBM announced the launch of its new IBM Watson Studio platform, which features new tools for data preparation, model building, and model deployment. The new platform is designed to help businesses of all sizes build and deploy AI and ML models quickly and easily.
• In 2022, Amazon Web Services announced the launch of its new Amazon SageMaker Canvas platform, which features a no code interface that makes it easy for businesses to build and deploy AI and ML models. The new platform is designed to make AI and ML more accessible to businesses of all sizes.
• In the same year, Google announced the launch of its new Vertex AI platform, which features a unified platform for AI and ML development and deployment. The new platform is designed to help businesses of all sizes build, deploy, and manage AI and ML models at scale.

Report Scope

Attribute	Details
Estimated Market Size in 2024	USD 15,149.8 million
Projected Market Valuation in 2034	USD 26,688.0 million
Value-based CAGR 2024 to 2034	5.8%
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	Value in USD million
Key Regions Covered	North America; Latin America; Western Europe; Eastern Europe; South Asia; and Pacific East Asia The Middle East & Africa
Key Market Segments Covered	Solution Industry Region
Key Countries Profiled	The United States Canada Brazil Mexico Germany France France Spain Italy Russia Poland Czech Republic Romania India Bangladesh Australia New Zealand China Japan South Korea GCC countries South Africa Israel
Key Companies Profiled	Altair Engineering, Inc.; Fair Isaac Corporation; International Business Machines Corporation; KNIME; Microsoft Corporation; Oracle Corporation; RapidMiner, Inc.; SAP SE; SAS Institute Inc.; Trianz; Infor; Teradata

Segmentation Analysis of the Advanced Analytics Market

By Solution:

• Big Data Analytics
• Visual Analytics
• Risk Analytics
• Social Media Analytics
• Predictive Analytics
• Other Solutions

By Industry:

• BFSI
• Healthcare
• Government
• Defense
• Retail & Consumer Goods
• Other Industries

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia & Pacific
• East Asia
• The Middle East & Africa

Frequently Asked Questions

What is the expected worth of the Advanced Analytics market in 2024?

The market is expected to reach USD 15,149.8 million in 2024.

What is the expected CAGR for the Advanced Analytics market until 2034?

The market is set to expand by a CAGR of 5.8% by 2034.

How much valuation is projected for the Advanced Analytics market in 2034?

The market is forecast to reach USD 26,688.0 million by 2034.

Which country is likely to be at the pinnacle of the Advanced Analytics market?

India is to be the top performing market, with a CAGR of 7.6% through 2034.

Which is the leading solution in the Advanced Analytics domain?

Big data analytics segment is preferred, and is expected to account for a share of 23.3% in 2024.