Cloud Analytics Market

The global market for cloud analytics had a size of USD 19.04 billion in 2023 and is anticipated to reach USD 86.15 billion by 2030, with a compound annual growth rate (CAGR) of 20.9% during the period from 2023 to 2030. Our analysis reveals that the market experienced significant growth of 19.8% in 2020 compared to the year-on-year growth observed during 2017-2019. The COVID-19 pandemic had an unprecedented and staggering impact globally, but it resulted in a positive surge in demand for cloud analytics solutions across all regions. As the pandemic subsides, the market is expected to return to pre-pandemic levels, driving the steady rise in CAGR.

The integration of analytics solutions into cloud platforms has empowered companies to gain better control over their business operations and enhance their competitiveness in the market. Cloud analytics, which involves business intelligence and data analytics conducted on public or private clouds, offers cost and maintenance benefits compared to on-premises data storage and computation.
The growth of the global market is driven by factors such as increased data connectivity in multi-cloud and hybrid environments, the advantages of cloud-integrated analytics solutions, and the expansion of big data technology. Key market players are actively implementing initiatives to provide differentiated and customized solutions that facilitate companies in their multi-cloud journey. For example,

In June 2020, Wipro Limited, a prominent consulting and Technology Company, partnered with IBM Corporation to assist Wipro customers in managing critical workloads and transitioning seamlessly to a multi-cloud platform. Such strategic initiatives by major players are expected to strengthen their global presence and contribute to market growth. The rising adoption of IoT and cloud computing is expected to further fuel the demand for cloud analytics solutions. These solutions continue to transform how organizations collect, organize, and utilize data through their digital channels. Moreover, the increasing need for reliable, flexible, and efficient data storage platforms, along with the growing popularity of software-as-a-service (SaaS) platforms among businesses, has positively influenced the global market.

COVID-19 IMPACT

The global market has experienced a moderate impact from the spread of COVID-19 in its initial stages. The expansion of IT infrastructure has been hampered by supply chain disruptions and reduced capacity. Providers of solutions and services have also faced temporary slowdowns. However, there is an anticipated increase in the adoption of collaborative apps, analytics, security solutions, and artificial intelligence (AI) in the latter half of the year.

During the COVID-19 pandemic, enterprises and governments have encountered analytical challenges when making critical business decisions. Cloud-based analytics solutions and platforms have enabled these entities to enhance operational efficiency and reduce costs. The importance of analytical solutions capable of handling large volumes of data and facilitating data-driven insights has been recognized by enterprises amidst the pandemic.

Healthcare and pharmaceutical companies, for example, have leveraged business intelligence and other solutions to improve healthcare delivery based on data insights. The Center for Disease Control and Prevention (CDC) is one such organization that integrated cloud analytics solutions to manage resources and enhance drug delivery through analytical dashboards.

In the long term, businesses in the IT & telecom, BFSI, healthcare, and retail sectors will be well-positioned and equipped with efficient cloud environments to deploy analytics solutions, leading to better business outcomes. As a result, the market is expected to exhibit consistent growth throughout the forecast period.

LATEST TRENDS

In recent years, the significance of business intelligence has grown exponentially alongside the explosion of structured and unstructured data. Businesses of all sizes are now prioritizing the implementation of business intelligence solutions within their operations to gain a competitive edge. The process typically involves identifying, collecting, preserving, and exchanging vast amounts of data, which is then analyzed using BI solutions to facilitate quick and informed decision-making. Visualizing the data in a standardized format enables businesses to identify consumer preferences, detect patterns, extract strategic insights, and effectively manage the demand and supply of products and services. Across various industries, businesses utilize business intelligence solutions to enhance data interpretation and generate valuable insights.

Major industry players are actively undertaking initiatives to raise awareness about the benefits of analytics and business intelligence solutions. For example,

• In August 2019, Salesforce.com, Inc., a prominent data and technology company, acquired Tableau Software, a leading provider of analytics platforms. This acquisition aimed to deliver AI-driven analytics solutions on hybrid and multi-cloud environments, highlighting the company's commitment to innovation.

By leveraging BI and cloud analytics solutions, organizations can uncover business drivers and Key Performance Indicators (KPIs) through data visualization. This enables the identification of patterns, insights, and trends, as well as the formulation of effective strategies, thereby contributing to the growth of the cloud analytics market.

DRIVING FACTORS

The growing need for organizations to stay competitive, coupled with the digitization of processes and the abundance of data available, has resulted in a heightened focus on analytics solutions for strategic decision-making. In order to enhance their business strategies, businesses are increasingly embracing digitization and utilizing analytics to analyze vast amounts of unstructured data across various platforms.

According to the International Data Corporation (IDC), it is projected that by 2025, 80% of the data collected by enterprises globally will be unstructured. This surge in unstructured data has prompted businesses to adopt cloud-based analytics tools to gain insights into global trends, customer preferences, and competitor benchmarks. By leveraging these analytics solutions, companies can make informed decisions based on historical and real-time data, leading to improved operational efficiency and effectiveness.

Cloud-based analytics solutions provide real-time insights that enable businesses to comprehend large volumes of data, leading to enhanced customer experiences, accelerated digital business strategies, and improved network communication, security, and application performance. By utilizing cloud-based analytics platforms, organizations can make more informed strategic decisions, resulting in increased operational efficiency, heightened customer satisfaction, and robust profitability and revenue levels. As the volume of unstructured data continues to grow, there will be a strong demand for cloud-based data storage and analytics tools.

RESTRAINING FACTORS

The widespread adoption of cloud technology across various industries globally has given rise to data security concerns, including data theft, breaches, and the loss of industry-specific information. With data being transferred from multiple cloud providers and shared within a multi-tenancy infrastructure, various businesses accessing and sharing cloud infrastructure servers, data security vulnerabilities can emerge.

A survey conducted by Ermetic Ltd, a cloud risk security company, in June 2020 revealed that nearly 80% of businesses experienced at least one cloud data breach in the past 18 months, with 43% of businesses reporting more than 10 breaches. Organizations with inadequate cybersecurity frameworks are at risk of data breaches and potential loss of critical business information. As companies accumulate significant volumes of sensitive data over extended periods of time, there is a growing pressure for transparency regarding data collection, analysis, utilization, and storage practices.

These types of data security issues associated with cloud analytics solutions have the potential to hinder market growth. Organizations will need to address these concerns and implement robust security measures to ensure the protection of their data and maintain trust with their stakeholders.

REPORT SCOPE AND SEGMENTATION

By Solution
• Cloud Business Intelligence (BI) Tools
• Enterprise Information Management
• Governance, Risk, and Compliance
• Enterprise Performance Management
• Analytics Solutions
• Others

By Deployment
• Public
• Private
• Hybrid

By Organization Size

• Small & Medium Enterprises
• Large Enterprises

By End-User

• Banking, Financial Services and Insurance (BFSI)
• IT and Telecommunications
• Retail and Consumer Goods
• Healthcare and Life Sciences
• Manufacturing
• Research & Education
• Others (Energy, Media & Entertainment, Etc.)

By Region

• North America (By Solution, Deployment, Organization Size, End-User, Country)
o U.S.
o Canada
• Europe (By Solution, Deployment, Organization Size, End-User, Country)
o Germany
o U.K.
o France
o Italy
o Spain
o Rest of Europe
• Asia Pacific (By Solution, Deployment, Organization Size, End-User, Country)
o China
o Japan
o India
o Southeast Asia
o Rest of Asia Pacific
• Middle East & Africa (By Solution, Deployment, Organization Size, End-User, Country)
o GCC
o South Africa
o Rest of Middle East & Africa
• Latin America (By Solution, Deployment, Organization Size, End-User, Country)
o Brazil
o Mexico
o Rest of Latin America