The cloud analytics market has a current business value of about USD 26.8 billion in 2022 and it is expected to grow 18.24% globally to around USD 143.17 billion by 2032.
Factors such as rising data connectivity through hybrid and multi-cloud environments, easy access and connectivity offered by business intelligence (BI) tools and increasing demand for analytics solutions are driving the market’s growth. Moreover, the cloud analytics market has significant growth potential due to a lack of house IT expertise. However, security and privacy concerns and traditional data warehouses obstruct the market.
Asia Pacific is estimated to grow faster during the forecast period. The rapid development of e-commerce manufacturing in Japan, China, and India has established a requirement for a technologically advanced e-commerce logistics sector. Additionally, rising demand in the BFSI sector opens new prospects for postal automation systems in the Asia Pacific region.
Furthermore, Europe is expected to grow faster than the rest of the world during the forecast period. The region's growth is driven by rising expenditures and the increased existence of companies discovering AI and NLP technologies for various applications; Germany and the United Kingdom are significant markets. The regional markets have extensively implemented AI and NLP technologies in their business institutions and other sectors, enabling them to provide better customer service and increase company effectiveness. The regions have the advanced infrastructure, technologies, and activities necessary to translate analytics into powerful solutions with unique benefits.
COVID-19 Impact:
Throughout the COVID-19 pandemic, businesses and authorities were faced with the demand to resolve analytical concerns arising from significant business decisions. Cloud-based analytics solutions and platforms have allowed businesses to improve operational efficiency while decreasing costs. Enterprises have recognized the demand for analytical solutions that can retrieve vast amounts of data and accept data analysts to focus on data-driven goals to gain insights into the data as COVID-19 has spread.
Based on the data obtained, healthcare and pharmacy companies use business intelligence and other solutions to improve the delivery of healthcare aids. For instance, the Centers for Disease Control and Prevention (CDC) used analytical dashboards to integrate cloud analytics solutions for better resource management and drug delivery.
Cloud Analytics Market Report Scope:
| Report Coverage | Details |
| Market Size in 2022 | USD 26.8 Billion |
| Projected Forecast Value in 2032 | USD 143.17 Billion |
| Growth Rate | 18.24% from 2023 to 2032 |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | By Component, By Deployment. By Organization Size, By Industry Vertical, and By Applications |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Market Dynamics:
Driver: Adoption of cloud
Companies see numerous advantages to a cloud environment, such as reduced costs, digitized services, increased efficiency, etc. Moving to the cloud has become almost inevitable since it hides the entire costly and complex infrastructure. One of the primary reasons businesses are migrating to the cloud is security. Companies want to strengthen cyber security by migrating to modern platforms as cyber-attacks become more common. Malware and phishing attacks have also become more sophisticated and challenging to combat. Cloud computing secures the business against these invading threats, making it a key business driver for cloud adoption.
An on-premises data center necessitates a significant investment in hardware, storage, and network devices. The cloud significantly reduces your capital expenditure (CapEx). The pay-per-use cloud model allows you to pay only for what you use, saving a significant portion of your investment for other productive pursuits of business expansion.
Restraint: Conventional data warehouses
The columnar database is used by most on-premises and conventional data warehouses, and SQL is used to access the data. The main problem with cloud-based business analytics is that data warehouses are not fundamentally intended to operate on the cloud.
Furthermore, since the cloud is a horizontally flexible scale-out platform rather than a vertically integrated system, optimizing executed on these data warehouses, such as sharing, indicators, and compressed, does not interpret well. As a result, SMBs and large enterprises' reluctance to replace their traditional data warehouses with cloud-based data warehouses has become a great challenge for market vendors.
Opportunity: Rising big data analytics
Companies use big data analytics to extract business trends and insights from massive data. As the cloud offers elasticity and expertise for data access, it can derive value from it. Enterprises can use private cloud infrastructure to reduce risk and maintain control by analyzing load, cost, and security, among other things. Extensive data analysis has numerous benefits, including increased business growth, cost savings, revenue growth, and improved marketing for organizations. When an enterprise uses analytics services, the enterprise's scalability improves.
Microsoft's big data solutions are based on Hadoop and can be used in the cloud or on Windows. Business users use Hadoop to analyze structured and unstructured data and create sophisticated 3D visualizations using benchmark tools such as Excel or Office 365, which can be integrated with core databases. Microsoft's solution allows users to analyse Hadoop data from within excel, giving software packages new functionality.
Since big data and analytics are evolving quickly, businesses are expected to adopt the cloud, which has replaced displaced legacy systems. Hadoop and BI platforms such as Birst have established a new paradigm for enterprise analytics. Hadoop and Birst provide big business consumers with data accessibility, analytic agility, and application performance. Analytics, along with social, mobile, and cloud technologies, has emerged as one of the primary disruptors of the digital age. Thus, big data and analytics are expected to drive the market.
Component Insights:
The services segment is estimated to grow faster during the forecast period. Cloud analytics services are a set of cloud-based solutions for businesses that help them harness the power of massive amounts of data. It provides a method for organizing, managing, and analyzing data to provide insights for business decisions. At times, the service may combine software tools with cloud data storage. In other cases, a company may develop software tools and then use cloud services' data storage and computing power to work on their data.
The service providers provide data analysis, management, and organization services that provide insights to help clients make business decisions. The rising preference from SMEs and large organizations to manage data and quality insights is estimated to boost the market.
Deployment Insights:
The private cloud segment is estimated to grow faster during the forecast period. Advantages such as service customization and excellent management as the cloud infrastructure is committed to a single-user organization, enabling privacy and greater security, are expected to fuel growth, particularly for large enterprises. For instance, Barclays announced in December 2021 that it had chosen HPE GreenLake to deliver integrated on-premises cloud infrastructure to improve operational implementation and agility.
Organization Size Insights:
The SME segment is estimated to grow faster during the forecast period SMEs are implementing hybrid and public clouds as they are extensible, permitting online and geographical expansion without affecting the financial plan. It allows businesses to do more with less infrastructure and decreases or reduces downtime. Furthermore, cloud analytics solutions are dependable and boost team efficiency by enabling them to retrieve it from anywhere. Cloud analytics solutions are expected to grow demand for cloud analytics solutions in SMEs due to reduced operational costs and increased workforce productivity.
Application Insights:
The customer service segment is estimated to grow faster during the forecast period. The increased demand for personalized services by customers, as well as key performance indicators such as total time resolution (TTR), the first response time (FRT), and customer satisfaction (CSAT) used by companies to measure performance and design future strategies, are attributed to the growth. Furthermore, the growing use of customer journey analytics, customer retention analytics, and customer engagement analytics to better understand various aspects of customers is fueling the segment's growth.
Industry Vertical Insights:
The healthcare & life sciences industry is anticipated to grow faster during the forecast period. Cloud analytics solutions assist healthcare and life sciences organizations make critical decisions based on the gathered healthcare data. It allows healthcare teams and administration to evaluate the workforce, economic, and operating performance in any healthcare solution, among them variances, trends, and future consequences, in real-time.
Recent Developments:
Major Key Players:
Market Segmentation:
By Component
By Deployment
By Organization Size
By Industry Vertical
By Application
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