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Analytics as a Service Market Size (2024 - 2029)

The Analytics as a Service market is experiencing significant growth, driven by the increasing adoption of cloud technologies and the need for organizations to analyze vast amounts of data generated by automation and IoT-enabled devices. This market expansion is supported by the ability of analytics to optimize operations and enhance profit margins across various industries. However, concerns over data security and the complexity of analytical procedures pose challenges to market growth. Despite these hurdles, the demand for improved consumer insights and data management continues to present substantial opportunities for the market. The shift to remote work during the Covid-19 pandemic has further accelerated the need for analytics services, contributing to the market's upward trajectory.

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Market Size of Analytics as a Service Industry

Analytics as a Service Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 25.00 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Analytics as a Service Market Major Players

*Disclaimer: Major Players sorted in no particular order

Analytics as a Service Market Analysis

The Analytics as a Service Market is expected to register a CAGR of 25% over the forecast period 2022 - 2027. Technological tools have enabled solutions to be delivered as a service. Owing to this, Software as a Service (SaaS), Platform as a Service (PaaS), and Data as a Service (DaaS) have emerged as potential growth opportunities for analytics service providers.

  • The era of industry 4.0 and its adoption by almost all the sectors globally are driving the organization to move to the cloud. The automation is creating a massive amount of data on day to day basis. The collected data is then analyzed for the pattern and is used for predicting future incidences. This opportunity is increasing with the commercialization of IoT-enabled Devices.
  • The analytics optimizes complex operations like logistics for almost all industries to reduce production costs. The performance of the internal assets helps increase the organization's profit margin. In addition to enabling historical data analysis, predictive analytics, which manufacturers can use to schedule predictive maintenance. This allows manufacturers to prevent costly asset breakdowns and avoid unexpected downtime.
  • These are the major factors driving the growth of analytics as a service market. However, the increasing data breach incidences restrict organizations from adopting cloud services due to privacy concerns. Also, the uncertainty of the return on investment for these services limits the analytics as a service market.
  • Data security issues and the availability of complicated analytical procedures are expected to hamper the growth of the Analytics as a Service Market. With this, the expanding company requirement to better understand consumer activities and behavior and manage created data will present significant opportunities for the Analytics as a Service Market.
  • Companies have allowed their employees to work from home during the Covid-19 pandemic, which has increased the usage of video conferencing platforms like Microsoft Teams and Zoom, significantly increasing the growth of the analytics-as-a-service industry. Furthermore, the growing need for cloud computing technologies drives the market's expansion. By giving access, cloud computing enables employees to operate from any place. Employees may access the necessary data and documents by utilizing specific credentials, ensuring security while allowing them to work from home. This circumstance is propelling the AaaS industry forward.

Analytics as a Service Industry Segmentation

The scope of the study for analytics as a service market has considered the applications of analytics in SMEs and LEs in a wide range of End-user verticals globally. Whereas the after-sales services are not considered for market estimation.

The Analytics as a Service Market is segmented by Enterprise Size (Small and Medium Enterprise, Large Enterprise), End-user Industry (IT and Telecommunication, BFSI, Healthcare, Retail, Manufacturing), and Geography.

By Enterprise Size
Small and Medium Enterprises
Large Enterprises
By End-User Industry
IT and Telecommunication
Energy and Power
BFSI
Healthcare
Retail
Manufacturing
Other End-user Industries
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East and Africa
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Analytics as a Service Market Size Summary

The Analytics as a Service (AaaS) market is experiencing significant growth, driven by the increasing adoption of cloud technologies and the proliferation of IoT devices. As industries embrace Industry 4.0, there is a surge in data generation, necessitating advanced analytics to optimize operations and reduce costs. The shift towards cloud-based solutions, including Software as a Service (SaaS), Platform as a Service (PaaS), and Data as a Service (DaaS), presents substantial opportunities for analytics service providers. These services enable organizations to analyze historical data and employ predictive analytics, enhancing operational efficiency and profit margins. However, concerns over data security and the complexity of analytical procedures pose challenges to market expansion.

North America holds a dominant position in the AaaS market, fueled by a robust demand for analytics platforms and the presence of key market players. The region's growth is further supported by advancements in machine-to-machine communication and the need for businesses to analyze vast amounts of social media data. Strategic partnerships and collaborations among major companies, such as Teradata and Microsoft, are enhancing the capabilities and offerings in the market. The fragmented nature of the AaaS industry allows for differentiation and value-added services, although it also intensifies competition and impacts profitability. Companies like Wipro and Informatica are leveraging cloud-based data and analytics solutions to drive business value, while IBM, Microsoft, Oracle, and SAP continue to expand their strategic partnerships to address digital transformation challenges.

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Analytics as a Service Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Value Chain Analysis

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitutes

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Enterprise Size

      1. 2.1.1 Small and Medium Enterprises

      2. 2.1.2 Large Enterprises

    2. 2.2 By End-User Industry

      1. 2.2.1 IT and Telecommunication

      2. 2.2.2 Energy and Power

      3. 2.2.3 BFSI

      4. 2.2.4 Healthcare

      5. 2.2.5 Retail

      6. 2.2.6 Manufacturing

      7. 2.2.7 Other End-user Industries

    3. 2.3 By Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia Pacific

      4. 2.3.4 Latin America

      5. 2.3.5 Middle East and Africa

Analytics as a Service Market Size FAQs

The Analytics as a Service Market is projected to register a CAGR of 25% during the forecast period (2024-2029)

IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP SE and Hewlett Packard Enterprise Company are the major companies operating in the Analytics as a Service Market.

Analytics as a Service Market Report Snapshots

Analytics as a Service Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)