The market for advanced analytics solutions includes a plethora of tools available including data mining and statistical software that use techniques to create, test and execute statistical models. Some of these major methodologies include clustering, neural networks/artificial intelligence, machine learning, regression and rule induction. Advanced analytics tools are used to derive insights from data and uncover latent predictions that are not too obvious or too complicated using query reporting and multidimensional analysis tools.
Over the last few years, there has been a significant increase in the volume of both structured and unstructured data which is being generated by companies on a daily basis including customer data, product data, social media chatter and data from various digital channels in business operations. Advanced analytics helps an enterprise gain insight into such diverse data and gives them a competitive edge to drive growth. Advanced analytics helps enterprises drive growth by providing deeper insight into customer behaviors. These features enhance cost management by optimizing operations and improving risk management through better regulatory compliance and internal risk control.
The global market for advanced analytics technologies is expected to grow from $REDACTED billion in 2019 to $REDACTED billion in 2025 at a compound annual growth rate (CAGR) of REDACTED%. The global market for advanced analytics has been segmented based on type, deployment, organization size, end-userindustry and geography. Based on type, the market for advanced analytics technologies has beensegmented into big data analytics, business analytics, customer analytics, risk analytics, statistical analytics and others. Big data analytics accounted for the dominant share of the market in 2019 and was estimated to grow at a CAGR of REDACTED% to reach $REDACTED billion by 2025.
The market for advanced analytics technologies based on deployment has been segmented into cloud deployment and on-premises. Cloud deployment model currently accounts for the dominant share of the market and is expected to maintain its position over the forecast period. The market for advanced analytics technologies for cloud deployment was valued at $REDACTED billion in 2019 and is estimated to grow at a CAGR of REDACTED% to reach $REDACTED billion by 2025. The global market for advanced analytics technologies based on organization sizewas categorized into large enterprises and small and medium enterprises (SMEs). Large enterprises currently dominate the market for advanced analytics and are expected to maintain their dominant position over the forecast period. They have large volumes of structured data and a skilled workforce and have significantly increased the adoption of advanced analytics solutions such as customer analytics and business analytics to efficiently manage vast databases of customers and assets.
Based on end-user vertical, the overall market was classified into banking, financial and insurance (BFSI), healthcare and life sciences, retail, IT and telecommunications, government and defense, manufacturing, energy and utilities, and others. The BFSI segment was the dominant industry vertical and was valued at $REDACTED billion in 2019; it estimated to grow at a CAGR of REDACTED% and reach $REDACTED billion by2025. Financial institutions over the years have been compelled to incorporate analytics and data-driven technologies to fuel development and productivity, lower costs and increase efficiencies, accelerate digital transformation, and promote risk and regulatory priorities.
Banks also deploy advanced analyticsto improve customer targeting, enhance risk assessment and improve productivity and decision making.Healthcare and life sciences is estimated to be the fastest growing end-user industry. In the healthcaresector, analytics is being used at both macro and micro levels to effectively streamline operations,improve patient care and lower overall costs. The application of advanced analytics in healthcare improves performance by delivering data-based quality care, reducing patient wait-times by measuring and leveraging scheduling and staffing procedures, and improving patient satisfaction and quality of care by streamlining tedious processes related to making appointments, processing insurance and providing referrals. Geographically, the market was segmented into North America, Europe, Asia-Pacific, and rest of the world (RoW).