Insights-As-A-Service Market

Consumption Analysis of Insights-as-a-service from 2016-2020 Vs Market Outlook for 2021-2031

The global market for insights-as-a-service market has grown at the rate of 20.7% over 2016-2020. Increasing focus of businesses to scale up in order to achieve their business goals will result in higher prospects for growth.

Besides this, focus on improving customer lifecycle management among SMEs and large enterprises will result in increasing application of insights-as-a-service across organizations.

FMI identfies Europe, followed by North America, as the leading market. Expansion in Europe is supported by the region’s developed infrastructure that encourages the adoption of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) in data analytics.

Driven by these factors, the global market is projected to reach a valuation of US$ 20.5 Bn by 2031, rising at a CAGR of 23.4%.

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Why is Adoption of Insights-as-a-Service Increasing in Small and Mid-sized Businesses?

Cloud services and digital transformation help companies to increase agility, improve efficiencies and ROI, and curb unnecessary expenses in small and mid-sized enterprises.

Adoption of insights-as-a-service burgeoned as remote working became highly prevalent following the COVID-19 outbreak. This trend is expected to continue even as the pandemic passes, creating demand for remote and mobile while access applications, services, systems, and data both in the cloud and on premise.

How Businesses Leverage Insights-as-a-Service Platform to Achieve Business Goals?

In recent years, the growth of the big data analytics has been significant. Insights-as-a-Service solutions provides insights to companies which helps them to create unprecedented opportunities. It provides companies predictive analytics and business intelligence with helps of company data such as stocks, financial data and results, keyword performance, employee details, and business process data.

Such insights helps company to increase the sales of products and services. It also uses different data types such as company data, usage data, and syndicated data and provides insights on the ROI, important decisions to be taken in future. Therefore Insights-as-a-Service solutions helps companies/SMEs to scale up in order to achieve their business goals in coming years fuels the demand for the insights-as-a-service platform.  

Will IoT Integration Create Opportunities for Insights-as-a-Service Providers?

Rise in adoption of IoT technology across diverse industries is expected to drive the demand for insights-as-a-service. Insights-as-a-service is a cloud based services offered to companies, which help them to increase their ROI.

Demand for insights-as-a-service solutions is expected to increase as a result of integration of advanced technologies such as 5G and 4G internet across industries.  As per the New Eclipse Foundation’s IoT commercial adoption survey about 40 percent of industry leaders responding to the survey say that their organizations are using IoT solutions and 22 percent more plan to deploy IoT in the coming years. Also IoT investment is expected to increase as 40 percent of organizations are planning to spend more on IoT solutions from 2020 to 2021.

Thus rising adoption of IoT ultimately propels the demand for the insights-as-a-service solutions in coming years.       

Lower Up-front Cost and High ROI of Insights-as-a-Service Solutions to Push their Demand

IaaS is a cloud-mediated tool which interact with a company and process the data. It helps companies to provide insights and business intelligence in real time and figure out future steps. IaaS increases data prioritization from collected data and identifies challenges that need a company needs to overcome.

It focuses on the higher-level strategy and reduces the in-house cost which ultimately results in better decisions. IaaS provides most effective path to company to capture insights, which ultimately increases returns on all investments. Also up-front cost of IaaS is lower as compare to traditional methods of data analysis.

Owing to lower up-front cost and high ROI of insights-as-a-service solutions, their demand is expected to rise.

How Has COVID-19 Crisis Impacted Sales of Insights-as-a-Service?

The COVID-19 pandemic has changed the way businesses operate, and organizations/enterprise forced to adopt enterprises technology to aid remote working and social distancing. Amid the global pandemic crisis, the demand for cloud solutions and services has increased significantly, as most of the workforce started working from home/remote places.

For an instance, in 2021, as per Vox Media, by 2025, an estimated 70% of the workforce will be working remotely at least five days a month. Also companies such as Twitter, Shopify and Dropbox have already announced that they will be moving to permanent work-from-home setups. Thus many of the organizations has begun the adoption of cloud based services.

This also will create scope for expansion of the insights as a service market.

Country-wise insights

Why is Indonesia a Prominent Market for Insights-as-a-service?

The Indonesia market is expected to be one of the leading markets for insights-as-a-service and is anticipated to surge at a CAGR of 34.9% over the forecasted period.    

As per the Indonesian Internet Service Providers Association (APJII) survey, the number of the internet users has increased by 14.6%. Also internet penetration rate of the country has been increased from 64.8% to 73.7%.  Thus increasing internet penetration rate in the country will augment the demand for the insights-as-a-service offering.  

Government support also will emerge as a chief growth driver. For instance, in August 2021, the Indonesia government announced allocation US$2.1 Bn budget for Information and Communication Technology (ICT) development to accelerate the digital transformation.

Insights-as-a-service solutions are cloud based and cloud is directly dependent on availability of the infrastructure for the internet connectivity. Thus favorable initiatives adopted by the government are expected to fuel the demand for the insights-as-a-service in the country.       

How will sales in Insights-as-a-service market shape up in the U.S.?

Currently, the U.S. market accounts for the largest consumption of insights-as-a-service in North America, and is expected to expand at a CAGR of around 22.7%.

Demand for insights-as-a-service is increasing in the U.S. due to factors such as increasing adoption of the advanced technology like IoT, use of AI and ML in data analytics, increasing investment in insights-as-a-service in the region.  Also US has developed infrastructure for the cloud based solutions.

The U.S. has presence major tech companies such as C3, AWS, and Google which promotes their products and analytics toolsets. These venders offer cloud based solutions or services which helps SMEs to grow at significant rate. Thus rapid-adoption of cloud computing solutions in almost every sector ultimately fuels the demand for the insights-as-a-service offering. 

Stringent rules and regulations of US government to develop ICT propels the demand for the insights-as-a-service in the country. For instance, in June 2019, according to the U.S. Federal Cloud Computing Strategy, US government instituted the CloudFirst policy to accelerate the pace of cloud adoption.

It also promotes the innovation, service management, and adoption of emerging advanced technologies. Such initiatives taken by US government is developing advanced technologies fuels the demand for the insights-as-a-service. 

Why is Germany a one of the prominent Market for Insights-as-a-service?

Currently, the Germany market accounts for the largest consumption of insights-as-a-service in Europe, and is expected to expand at a CAGR of around 26.3% by 2031.

Germany has been forecast to register high adoption of advanced telecommunication infrastructure and technological innovations. This trend is more prevalent across large telecom companies in the country.

Germany has developed infrastructure for the adoption of new technologies such as Artificial Intelligence (AI), Machine Learning (ML), and other digital technologies are pushing the frontier of applications in the private, public, and social sectors in the Germany. This in turn is driving the demand for the insights-as-a-service solutions.

Category-wise Insights

Why is Insights-as-a-service Highly Sought-after?  

Demand for insights-as-a-Service Platform is expected to expand at a CAGR of around 24.3% owing to reasons such as increase in adoption of IoT technology by many industries is expected to drive the demand for the insights-as-a-service market.

Why is Demand for Customer Analytics Rising?   

The customer analytics segment is expected to expand at highest CAGR of around 24.3% owing to emergence of new vendors in insights-as-a-service and the investment in cloud based offering by the key vendors in recent years.     

The use of insights-as-a-service solutions in industries such as business, finance, retail, media, and telecommunications has been increased in recent years. As per the study, the investments towards other cloud-based and insights-as-a-service offerings is expected to increase wing to stringent government rules and regulation to promote start-ups in the developed as well as developing countries.

Thus emergence of new vendors and increasing investment in cloud based offering by key players is expected to fuel the demand for the insights-as-s-service solutions.   

Why Does Large Enterprises Exhibit High Demand for Insights-as-s-Service?

The large enterprises segment is expected to contribute maximum revenue share of more than 71.6% in the global demand for insights-as-s-Service in 2020.

IaaS provides most effective path to company to capture insights it ultimately increases the returns on all investments. Also up-front cost of IaaS is lower as compare to traditional methods of data analysis. Thus owing to lower up-front cost and high ROI of insights-as-a-service solutions fuels the demand of insights-as-s-service in large enterprises segment.      

Why is Demand Rising in the BFSI sector?

BFSI segment accounts for the largest consumption of insights-as-a-service, and is expected to expand at a CAGR of around 19.6%. BFSI segment holds 19.7% of total market share of insights-as-a-service in 2020.

There are many key vendors across the globe that offers insights-as-a-service solutions to clients and it helps to increase their ROI and customer lifecycle management. In recent years, along with such key vendors the emergence of new vendors in insights-as-a-service solutions has been increased and it’s been one of the driving factor for the BFSI segment.

Competitive landscape

Many key Cloud based service suppliers are inclined at investing heavily in innovation, research, and development practices to uncover increased applications of insights-as-a-service. With the use of technology, players are also focusing on ensuring safety, quality, and customer satisfaction for captivating an increased customer base.

• In September 2021, Capgemini acquired VariQ. VariQ serves as a provider of software development, cybersecurity, and cloud services for federal government departments and agencies across the United States. Thus it ultimately helps to enhance its insights as service offering. 
• In October 2020, Oracle Corporation launched Oracle Cloud observability and management platform. It enables visibility and insight across cloud native and traditional technology, whether deployed in multicloud or on-premises environments, with broad, standards-based ecosystem support.  

Insights-as-a-service Industry Report Scope

FAQs Answered in Market Study

• How much is the global insights-as-a-service market valued at?

  The global insights-as-a-service market is currently valued at over US$ 2.5 Bn.

• What is driving demand for insights-as-a-service?

  Market drivers include lower up-front cost and high ROI of insights-as-a-service solutions and rise in adoption of insights-as-a-service in small and mid-sized business.

• At what CAGR did demand for insights-as-a-service increase over the past 5 years?

  From 2016 to 2020, demand for insights-as-a-service increased at a CAGR of 20.7%.

• What will be the demand outlook for insights-as-a-service through 2031?

  Sales of insights-as-a-service are projected to increase at 23.4% CAGR and be valued at over US$ 20.5 Bn by 2031.  

• What are the key trends being witnessed in this marketplace?

  Key market trends include emergence of new vendors in insights-as-a-service and increasing investment in insights-as-a-service by key vendors.

• What is the market share of the top 5 manufacturers of insights-as-a-service?

  Capgemini, Oracle Corporation, IBM Corporation, Accenture, and GoodData are the top 5 insight-as-service service providers, accounting for around 20% to 30% market share.  

• Which countries are registering high growth in Europe?

  The U.K. and Germany together hold a large market share of 47.3% of the Europe market in 2020.

• Which are the top 5 countries driving most of the demand for insights-as-a-service?

  The U.K., U.S., Italy, Indonesia, and Germany are major demand centres for insights-as-a-service.   

• Which countries are the key service provider of insights-as-a-service?

  The U.S., U.K., France, India, and Germany are key service provider of insights-as-a-service.

• How is the insights-as-a-service faring in Japan and South Korea?

  In 2021, the Japan market will total US$ 100.8 Mn, whereas South Korea market value will top US$ 47.0 Mn.  

Insights-as-a-service Industry Survey by Category

Solution:

• Insights-as-a-Service Platform (SaaS-based)
• Services
  • Consulting & Advisory
  • Implementation & Integration
  • Support & Maintenance

Application:

• Branding & Marketing Management
• Supply Chain Analytics
• Competition Benchmarking
• Governance, Risk & Compliance
• Customer Analytics
• Others

Enterprise Size:

• Small & Medium Enterprises (SMEs)
• Large Enterprises

Industry:

• BFSI
• Retail & CPG
• IT & Telecom
• Media & Entertainment
• Education
• Healthcare and Life Sciences
• Government
• Manufacturing
• Others

Region:

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