Analytics as a Service Market Size, Share, Trends, Industry Analysis Report – By Component (Solutions and Services), Offering, Data Type, Data Processing, Analytics Type, Enterprise Type, Vertical, and Region; Market Forecast, 2024–2032
- Published Date:Oct-2024
- Pages: 115
- Format: PDF
- Report ID: PM5139
- Base Year: 2023
- Historical Data: 2019-2022
AaaS Market Outlook
The analytics as a service market size was valued at USD 10.91 billion in 2023. The market is anticipated to grow from USD 13.57 billion in 2024 to USD 80.07 billion by 2032, exhibiting a CAGR of 24.8% during 2024–2032.
AaaS Market Overview
Analytics as a Service (AaaS) is a cloud-based service that provides organizations with access to data analytics tools and expertise without the need for extensive on-premises infrastructure. It enables businesses to analyze data efficiently, derive insights, and make informed decisions. The analytics as a service (AaaS) market is growing due to advancements in predictive analytics, demand for improving organizational efficiency, and processing of data generated from business operations driving the market growth. Additionally, the surge in the adoption of cloud computing, big data, and AI technologies has resulted in the cost-effectiveness of technology and accelerated adoption of AssS by organizations, leading to market expansion. Furthermore, AaaS enhances the operational efficiency of an enterprise and competitive advantage through predictive analytics capabilities.
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Collaboration and partnerships between major and new players in the market are expected to drive growth in the analytics as a service market. Major players are teaming up with new players to exchange technology and resources, which is projected to lead to advancements and cost reductions in advanced software. This, in turn, will have a positive impact on the growth of the analytics as a service (AaaS) market. For instance, in May 2024, Wipro partnered with the Centre for Brain Research to utilize artificial intelligence AI, machine learning, and big data analytics in developing innovative health solutions.
Growth Drivers
Technological Advancements in Analytics as a Service
AaaS solutions are being enhanced with analytical capabilities that are more accurate and predictive and are powered by machine learning and artificial intelligence. Organizations can now easily interpret results obtained from their data visualization tools and dashboards embedded within AaaS solutions. Technological advancements in analytics as a service play an important role in driving the growth of the analytics as a service market.
In March 2024, Cloudera collaborated with NVIDIA and unveiled to integrate enterprise-grade NVIDIA NIM microservices into their Cloudera Machine Learning product under the Cloudera Data Platform for AI/ML workloads.
Adoption of Industry 4.0 and Internet of Things (IoT)
The concept of Industry 4.0 involves the integration of sensors and machines to automate processes, exchange data, and manage physical systems, resulting in a variety of data sources. This leads to the generation of large amounts of data, which is not only convenient but also provides valuable insights for decision-making through real-time analytics. Many companies are adopting AaaS to improve their supply chain efficiency. Furthermore, the increasing use of the Internet of Things (IoT) across various industries, such as healthcare, infrastructure, and consumer electronics, is expected to drive the demand for Platform as a Service (PaaS) software in the coming years. AaaS is essential for collecting and analyzing data in real time, making it a key component of IoT. Therefore, the analytics as a service market is being positively influenced by the adoption of Industry 4.0 and the Internet of Things.
Restraining Factors
High Investments in Advanced Technology
The higher investment in advanced technology such as data analytics, artificial intelligence, machine learning, and others is attributed to the complexity of data integration, hindering the growth of the analytics as a service market. Additionally, high expenses may restrain innovation and slowdown technological advancement, which can restrain the demand for analytics as a service.
Report Segmentation
The analytics as a service market is primarily segmented on the basis of component, offering, data type, data processing, analytics type, enterprise type, vertical, and region.
By Component Analysis
Solution Segment Accounted for Larger Market Share in 2023
The solution segment held a larger revenue share of the analytics as a service market. This dominance is primarily driven by the organization's ability to use analytics-as-a-service solutions to reduce costs and boost operational efficiency. The adoption of cloud-based solutions scales organizations' analytics capabilities and boosts segment growth.
In August 2023, FICO, an advanced on-premises hosting solution provider, launched a cloud-based platform at the Pullman Hotel in Jakarta, Indonesia.
The services segment is also projected to register a higher CAGR during the forecast period in analytics as a service market. The demand for AaaS in the service segment is increasing as it enables organizations to derive actionable insights from vast data sets without investing in expensive infrastructure. This approach enhances decision-making, improves operational efficiency, and drives strategic growth through data-driven insights.
In April 2024, Google Public Sector and Accenture Federal Services introduced Data & AI Center of Excellence services. These services support federal agencies in modernizing cities using purpose-built solutions, including generative AI-based cloud technologies.
By Vertical Analysis
Healthcare & Life Sciences Segment to Witness Highest Growth
The healthcare & life sciences segment is projected to register the highest CAGR during the forecast period, mainly driven by increasing demand for data analytics to facilitate patient care, manage medical records, and support research and development. Moreover, analytics as a service enables predictive modeling, streamlines operations, and identifies treatment effectiveness, leading to improved outcomes. All these benefits fuel the analytics as a service market growth for this segment.
The BFSI segment held the largest revenue share of the analytics as a service market in 2023. This dominance is attributed to the increasing demand for advanced analytics due to a rise in demand for fraud detection software, managing risks, and enhancing customer experience.
In June 2023, Kyndryl deployed advanced technology services for ClaimSearch Israel Ltd to enhance fraud detection. This fraud prevention system is intended for insurance companies in the compulsory insurance sector in Israel and boasts robust infrastructure and analytics tools.
AaaS Market Regional Insights
North America Registered Largest Share
North America held the dominant share in the global analytics as a service market due to the advanced IT infrastructure, high adoption of cloud-based software and services, and significant investments in big data analytics solutions for various verticals that drive regional growth. Moreover, the presence of major players drives the regional market growth.
In May 2024, SAP and IBM collaborated to boost client productivity and innovation via generative AI and industry-specific cloud solutions. This collaboration aims to help businesses become next-generation enterprises.
Analytics as a service market in Asia Pacific is projected to register the highest growth during the forecast period owing to the increasing investments in advanced analytics IT infrastructure projects, digital transformation such as Industry 4.0, and rapid economic growth in emerging countries. Moreover, the rising adoption of advanced cloud-based data analytics solutions across several verticals drives the growth of the analytics as a service market in Asia Pacific.
Key Market Players and Competitive Insights
Strategic Partnerships to Drive Competition
The analytics as a service market is highly fragmented. The growing investments in digital transformation using advanced analytics solutions are positively influencing the global market. The ongoing expansion initiatives, including partnerships and collaborations, fuel competition in the marketplace. In May 2024, Telecom Italia (TIM) and Oracle partnered to enhance cloud adoption in Italy. It aims to integrate Oracle Cloud Infrastructure (OCI) into TIM's managed cloud services to leverage the public and private sectors.
Major Players Operating in Analytics as a Service Market
- Microsoft Corporation
- IBM Corporation
- SAP SE
- Atos
- Msys Technologies
- Cloudera
- Thoughtspot
- Qlik
- Domo
- Synoptek
- Alteryx
Recent Developments in Industry
- April 2024: SAP released SAP Analytics Cloud 2024.10 with new features of improved user profile management. This release also encompasses improved data discovery, modeling, corporate planning, and story-crafting tools to offer dependable analytics for businesses.
- March 2024: Cloudera collaborated with NVIDIA to integrate NVIDIA NIM microservices into Cloudera Machine Learning data platform services for AI/ML workflow. This collaboration aims to provide secure, simplified, and fast AI workflows in production and enable enterprises' operational performance through AI transformation.
Analytics as a Service Market Segmentation
By Component Outlook (USD Billion, 2019 - 2032)
- Solution
- Services
By Offering Outlook (USD Billion, 2019 - 2032)
- Software
- Software by Integration
- Cloud Type
- Services
By Data Type Outlook (USD Billion, 2019 - 2032)
- Structured
- Unstructured
By Data Processing Outlook (USD Billion, 2019 - 2032)
- Real-time Analytics
- Batch Processing
By Analytics Type Outlook (USD Billion, 2019 - 2032)
- HR Analytics
- Marketing Analytics
- Sales Analytics
- Finance Analytics
- Operation Analytics
By Enterprise Type Outlook (USD Billion, 2019 - 2032)
- Small Size Enterprise
- Medium Size Enterprise
- Large SizeEnterprise
By Vertical Outlook (USD Billion, 2019 - 2032)
- BFSI
- Telecommunication
- Retail & Consumer Good
- Healthcare and Life Sciences
- Government & Defense
- Automotive
- Education
- Manufacturing
- Transportation & Logistics
- Other
By Regional Outlook (USD Billion, 2019 – 2032)
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
Report Coverage
The analytics as a service market report emphasizes key regions across the globe to provide a better understanding of the product to the users. Also, the report provides market insights into recent developments and trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers an in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides a detailed analysis of the market while focusing on various key aspects such as competitive analysis, component, offering, data type, data processing, analytics type, enterprise type, vertical and their futuristic growth opportunities.
Analytics as a Service Market Report Scope
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Report Attributes |
Details |
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Market Size Value in 2024 |
USD 13.57 billion |
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Revenue Forecast in 2032 |
USD 80.07 billion |
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CAGR |
24.8% from 2024 to 2032 |
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Base Year |
2023 |
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Historical Data |
2019–2022 |
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Forecast Period |
2024–2032 |
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Quantitative Units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments Covered |
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Regional Scope |
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Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
FAQ's
The analytics as a service market size was valued at USD 10.91 billion in 2023 and is projected to grow to USD 80.07 billion by 2032.
The market registers a CAGR of 24.8% during the forecast period, 2024-2032.
North America had the largest share of the global market.
The key players in the market are Microsoft Corporation IBM Corporation, SAP SE, Atos, Google, Msys Technologies, Cloudera, Thoughtspot, Qlik, Domo, Synoptek and Alteryx.
The healthcare and life science segment is anticipated to experience substantial growth with a significant CAGR in the global market. This growth is due to increase in demand for data analytics to facilitate patient care, manage medical records, and support research and development
The solution segment accounted for the largest revenue share of the market in 2023 due to increase in demand for cost reduction and boost operational efficiency in businesses.
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