The engine room of the digital economy is undergoing a massive expansion, with the data analytics and insight market growing up to four times faster than the advertising sector, driven by a huge demand for artificial intelligence, cloud computing, and real-time decision-making.
According to new industry projections for 2025-2035 from Grand View Research and Technavio, the data analytics market is set to achieve a compound annual growth rate (CAGR) of up to 16.4%. In sharp contrast, the overall worldwide advertising market is expected to grow at a much slower pace, with projections hovering around 4% CAGR.
Grand View Research indicates that predictive analytics accounted for over 40% of the data analytics market in 2024, with specialised areas such as customer analytics alone projected to grow at a CAGR of 29.5% through to 2030, from roughly $69.5bn in 2024 to over $302bn.
In 2020, the data analytics market was worth around $171.4bn, but is now forecast to top $1.4trn by 2035.
While digital advertising is shifting toward data-driven strategies, the infrastructure powering these changes is experiencing a far higher velocity of investment.
Analysts highlight a fundamental shift in business behaviour. Companies are moving away from simply collecting data towards using it for predictive decision-making and immediate, actionable insights, a trend strongly supported by Fortune Business Insights.
This surge is particularly pronounced in specialised segments like predictive analytics, which, according to Technavio, is expected to expand even faster, driven by increased adoption across sectors such as retail, finance, and marketing.
The report states: “The demand for AI-driven insights and real-time decision-making is fueling the high growth in data analytics. As organisations adopt cloud platforms, the ability to process data is increasing, significantly boosting the services segment of the analytics market.”
While the broader advertising market shows moderate growth, the marketing analytics sub-sector is emerging as a hotbed of investment. Companies are directing budgets towards advanced tracking, precise targeting, and, crucially, ROI measurement, attempting to justify digital spend in an increasingly fragmented market.
This data growth will be driven by the urgent need to manage enormous databases generated by online shopping, social media, and connected devices. As organisations look to improve operational efficiency and personalise customer experiences, the investment in AI, cloud-based analytics tools, and security intelligence is outpacing the growth of the media in which they advertise.
The Grand View Research report states that while the advertising sector navigates a complex transition, the data analytics sector looks set to continue its high-speed growth for the remainder of the decade.
The report concluded: “The rise in big data analytics, increasing security intelligence technology expenditures, and large amounts of data generated by virtual offices are all driving the expansion of the sector.”
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