The advanced analytics market is expected to register a CAGR of over 20% over the forecast period (2020 - 2025) owing to increased adoption of such solutions to address diverse business needs. The adoption has been augmented by the presence of data generation and collection IT and other critical infrastructure. Digitization drive in the past three decades in the industry has also been able to create an ecosystem that promotes the business to adopt these advanced solutions for improved business insights.
- Advanced analytics solutions are becoming more widespread as enterprises continue to create new data at a rapid rate. For instance, the amount of data generated worldwide is increasing hugely. According to Seagate Technology PLC, the volume of data created worldwide is expected to increase to 47 zettabytes and 163 zettabytes in 2020 and 2025, respectively, from 12 zettabytes in 2015.
- Moreover, with the increasing popularity of online shopping and growing social network penetration, the demand for advanced analytics is anticipated to rise substantially over the forecast period. For instance, according to We Are Social, ss of January 2019, the social network penetration in China and the United States accounted for 71% and 70% respectively.
- The data from increasing social penetration contains hidden patterns that traditional analytics tools are unable to find. If implemented in the correct form, advanced analytics solutions can help the businesses to unlock critical hidden information, which can then be used by the organizations to customize organizations offering to their consumer.
- Furthermore, an increase in the adoption of advanced analytics solutions owing to the low price is expected to boost the market's growth positively. Furthermore, increasing demand to counter bigdata challenges are impacting the market's growth positively.
Scope of the Report
Advanced analytics is a comprehensive set of analytical techniques and methods such as statistics, descriptive and predictive data mining, simulation, and optimization designed to help businesses discover trends and patterns, and accurately predict the future. The market scope includes such solutions adopted and used by the end-user industries considered in this study. Applications of advanced analytics include healthcare, marketing, and risk management.
Key Market Trends
Need to Mitigate Frauds and Risk Management Prompts Paced Adoption in BFSI
- Banking and financial sector companies are using advanced analytics technology to mitigate frauds, optimize processes followed by the bank, and to manage risks.
- According to Accenture’s 2018 Compliance Risk Study, 89% of the respondents indicated a rise in compliance investments over the next two years, with a focus on technology. Advanced analytics helps banks sort through unstructured data to analyze global and local regulatory compliance which may depend upon the region of operation.
- Similarly, according to the Grant Thornton survey, 85% of respondents believed that their bank’s data and risk information management initiatives need additional efficiencies to realize its full potential. Further, 82% had also indicated the same for their institution’s risk analytics and measurements. However, with the adoption of the advanced analytics solution, this scenario is changing with banking players adopting a more performance-oriented risk management approach. This realignment has led banks to invest more in such solutions to generate actionable information that can guide critical business choices impacting profitability. Identifying and mitigating risk before it happens or the impact intensifies is a major factor driving the adoption in this sector.
- Moreover, according to the Coalition Against Insurance Fraud Study, traditional anti-fraud technology tools are giving way to advanced analytics as insurance fraud rises. Majority of insurers have expanded their range of anti-fraud tools and their ability to detect and investigate the fraud. Many players are entering the field with new products and services, which is expected to boost the market's growth positively. AI technology evolution has further enabled the market capabilities in offering better real-time insights.
North America is Expected to Hold a Significant Share
- North America is expected to hold the highest market share, with the United States leading the market. The dominance of the region is due to its increasing adoption of advanced technologies, presence of supporting infrastructure and drive for early technological adoption owing to competition from other businesses operating in low-cost regions.
- Moreover, the region has a strong foothold of advanced analytics solution providers, which is anticipated to drive the market in the region. Some of the vendors of the region are SAS Institute Inc., Oracle Corporation, Microsoft Corporation, and IBM Corporation, among others.
- SAS is one of the major company in the region. The company's advanced analytics platform is used by various organization. For instance, Volvo Trucks North America further strengthened its portfolio of uptime-boosting services by improving remote diagnostics with an advanced analytics platform from SAS Institue Inc.
- The increasing demand from enterprises to gain insights into the data available to them and to identify the trends of various industries will result in this region’s high market revenue generating capacity during the forecast period.
- Moreover, the significant rise in adoption of social media in the region has also contributed to the growth of the advanced analytics market. Furthermore, the presence of well-established infrastructure that supports the faster implementation of advanced technologies made this region a key market for the growth of advanced analytics.
The advanced analytics market is relatively a consolidated market as the major vendors account for a significant share of the market, especially in the enterprise level adoption. Their presence in the different level of data handling value chain augments their position in the market. The large companies dominate this market owing to their ability to offer innovative and high-quality services to end users on a different scale and with customization that suits their specific needs. The emergence of the niche players offering vertical-specific solutions, having new innovative solution that brings AI capabilities, cloud services to small and medium level business has been continuously changing the dynamics of the market prompting the major vendors to provide industry-specific solutions and bringing in new capabilities and updates to stay ahead in the market.
- May 2019 - SAS Institue Inc. announced updates to its data analytics platform, highlighted by enhancements to its machine learning (MI), computer vision, and natural language processing capabilities. These SAS Analytics developments are part of the company’s recently announced USD 1 billion investment in AI to drive the technology on a global scale.
- February 2019 - IBM Corporation announced a new portfolio of Internet of Things (IoT) solutions that team AI and advanced analytics to help asset-intensive organizations, such as the Metropolitan Atlanta Rapid Transit Authority (MARTA), to improve maintenance strategies. The solution is designed to help organizations to lower costs and reduce the risk of failure from physical assets such as vehicles, manufacturing robots, turbines, mining equipment, elevators, and electrical transformers.
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