The global data analytics market will witness a huge surge over the next six years, driven by businesses – both large and small – craving a better understanding of their customers, and is projected to be worth $512bn (£405bn) by 2026, growing at a compound annual growth rate of 14.8% from 2019 to 2026.
While the advertising and marketing industry reels from the effects of Covid-19, a new study by Valuates Reports forecasts that the big data and business analytics market – which was worth $171.4bn (£135.7bn) in 2018 – will continue to thrive.
The report predicts this growth will be spurred on by businesses’ desire to deliver enhanced and faster decision-making and provide competitive advantage by analysing and acting on information in near real-time, as well as demand for cloud-based big data analytics software among SMEs.
There will also be a drive to gain better insights for business planning and emerging trends such as social media analytics, which the report predicts will provide “lucrative opportunities” for the growth of the global market.
However, the double whammy of the huge costs associated with having such systems running in-house and the exponential growth of data will drive most business on to the cloud, which can provide “agility, scale, and flexibility” the report says.
Augmented analytics will also be a key factor in increasing the market size, as will the growing take up of artificial intelligence and machine learning technology.
In terms of region, North America is expected to maintain its dominance of the sector but, due to the advancement of the banking and insurance industry, and the penetration of emerging technologies like the Internet of Things and big data, Asia-Pacific is forecast to experience the highest growth rate during the period.
There are still a few flies in the ointment, including high implementation costs for SMEs as well as the long-predicted skills shortage, however, overall the study insists that the global data analytics market is in rude health.
We’ll need analytics skills to survive, UK chiefs predict
Data science is thriving – do we know what’s going on?
Digital transformation spend to hit $7.4 trillion by 2022
Why CMOs are putting their faith in digital and data
Skills shortage triggers retail bonus for data experts
Martech spend tops $120bn but marketers crave more
Marketers plough budget into exploring new technology
Martech solutions are too complex for us, say marketers