Date: dd mmm, yyyy

Global Business Analytics Market

2015-2019

Strictly private and confidentia

Process of Business Analytics

Business Report

Organizational Data

Data Storage

Descriptive Analytics

Helps Discover
Business
Opportunities

Predictive Analytics

Helps Discover
Opportunities that
can provide an
advantage

Prescriptive Analytics

Allocates Resources
Appropriately

Outcome of Analysis

Source: Technavio Research

Note:
Footnote:
2

Global Business Analytics Market

Industry Overview

Business analytics is used to gain insights that inform business decisions and can be used to automate
and optimize business processes.
Business analytics software uses tools and applications for collecting, managing, and analyzing both
structured and unstructured data.
Uses of BA includes: Exploring data to find new patterns and relationships, forecasting future results,
etc.
It helps to improve business processes, achieve corporate goals, and enable better decision making. It
includes EPM and analytical applications, business intelligence (BI) tools, and data warehouse platform
software.
The global business analytics market is expected to grow at a CAGR of 12.65% during the period 2014
2019.
Majority of the demand for business analytics software comes from North America, which accounts for
49.78% of the market.
The global business analytics market is expected to reach $68.81 billion by 2019.
A lack of skilled personnel, who provide customized analytics solutions to end-users, may inhibit the
market growth in the forecast period.

Source: Technavio Research

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Footnote:
3

Global Business Analytics Market (2014-2019) $Billions

The industry sees a steady growth rate with an increase in revenue.

Source:Technavio Research
Note:
Footnote:
4

Porters Five Forces Model Analysis

Assessment of Competition in the market of IT Industry.

Source: Technavio Research

Note:
Footnote:
5

Market Segmentation By Application

These
The
global
sectors
business
in the
analytics
IT Industry
marketprovide
is segmented
a major
into opportunity
three:
for growth of a company in the future.

IT Industry
Data Warehousing

Market Segmentation by Application by 2014

Source: Technavio Research

Note:
Footnote:
7

Data Warehousing
Industry Overview
In BA, data needs to be acquired from different sources and requires cleansing and integration into a single accessible
database known as Data Warehouse.
Data warehouse transforms raw data into real-time information by converting data from various sources into a common
format.
DWs are used because they help in tasks such as data integration, advanced reporting and analysis, knowledge
discovery, support in decision making, and enhanced performance.
The global DW market was valued at $10.57 billion in 2014 and is expected to reach $16.27 billion by 2019, growing at a
CAGR of 9.01%.

Global DW Market 2014-2019 ($ billions)

Source: Technavio Research
Note:
Footnote:
8

Business Intelligence and Analytics

Industry Overview
BI and analytics are a series of applications that help in decision making by providing accurate, dependable, consistent,
and structured data and reports.
Organizations can use these data and reports to gain a competitive advantage.
It accounted for 62.48% of the market in 2014.
The global BI and analytics market was valued at $23.70 billion in 2014 and is expected to reach $46.75 billion by 2019,
growing at a CAGR of 14.55%.

Global BI and Analytics Market 2014-2019 ($ billions)

Source: Technavio Research
Note:
Footnote:
9

Enterprise Performance Measurement

Industry Overview

EPM is a business planning solution that evaluates and manages the performance of an organization.
EPM is used to review enterprise resources, and consolidate the data collected from various resources.
It enhances business processes, achieves performance goals and increases efficiency by providing feedback.
It accounted for a 9.65% share of the market in 2014.
The global EPM market was valued at $3.66 billion in 2014 and is expected to reach $5.79 billion by 2019, growing at a
CAGR of 9.61%.

Global EPM Market 2014-2019 ($ billions)

Source: Technavio Research
Note:
Footnote:
1

Global Business Analytics Market Segmentation by

Deployment Model
2014

Source: Technavio Research

Note:
Footnote:
1

Global Cloud-based Business Analytics Market

Industry Overview

Cloud based analytics is a service in which data analytics processes are provided through public or
private cloud based on subscription or utility pricing model.
The global cloud-based business analytics market was valued at $6.68 billion in 2014 and is expected
to reach $22.05 billion by 2019, growing at a CAGR of 26.96%.
There has been a somewhat linear growth in the sector but for the near future it has been predicted
that the growth rate will slump but there will be a significant improvement in revenues over the years.

Global Cloud-based Business Analytics Market 2014-2019 ($ billions)

Source: Technavio Research
Note:
Footnote:
1

Global On-premises Business Analytics Market

Industry Overview

The global on-premises business analytics market was valued at $31.25 billion in 2014 and is expected
to reach $46.76 billion by 2019, growing at a CAGR of 8.40%.
The on-premises segment is expected to see slower growth because of the implementation and
maintenance costs involved and the emergence of cloud based analytics capabilities and there is a
decline forecasted in the next financial year but after that a rise in the growth rate has also been
forecasted.
Overall, due to emergence of newer technologies, growth in on-premises analytics is uncertain and
depends on the market.

Global On-premises Business Analytics Market 2014-2019 ($ billions)

Source: Technavio Research
Note:
Footnote:
1

Geographical Segmentation

Source: Technavio Research

Note:
Footnote:
1

Market Growth Drivers

Increased use of Location
Analytics
Location analytics is the process to
gain
information
from
the
geographic component of business
data.
Location analytics provide a visual
method
of
interpreting
and
analyzing the data.
With expansion in businesses, the
need to correlate data with
geography and map it to enhance
insights into the data is increasing.
Location
analytics
offers
this
Need
to
Improve
Market
contextual insight, which is not
Responsiveness
possible with tables.
With analytics actionable real-time
information can be gathered which
helps organizations to avoid
processing delays and centralize
the management to improve
responsiveness to the market.
Many organizations are using these
tools to enhance sales by using the
information provided to update and
transform their marketing
strategies.

Growing Amount of Data Generated

from Enterprises
Enterprise
applications
are
generating large volumes of data
and it will only increase with tine.
Analytical tools help in retrieval and
analysis of this data to discover
significant weaknesses, develop
indicator
patterns
to
identify
opportunities and threats, and
optimize business decisions.

Improved Efficiency and Reduced

Overall Operational Costs
BA softwares collects, manages,
and optimizes the data acquired
through different sources.
It enables management of a
company centrally and utilize
enterprise-wide data for better
decision making, improving
performance and, thereby,
improving operational efficiency.

Enhanced Customer Interaction

Easy Access to Data

Customer relationship and

interaction is very important for
any company and is one of the
areas of focus for effective
generation of revenue.
Companies are trying to develop a
wider customer base.
BA helps enterprises make
informed decisions and personalize
customer experiences and exploit
newer opportunities.

Data warehousing collects and

centralizes structured and
unstructured data for clarity and
convenience.
This helps in better decisionmaking and lower turnaround time.
Data warehousing also makes the
data accessible and it is designed
to query and analysis of data.

Source: Technavio Research

Note:
Footnote:
1

Market Challenges
Lack of Expertise

Difficulty in Dealing with Unstructured Data

Newer technologies requires trained persons to handle

them but there is a shortage of trained professionals in
the market.
Older & traditional tools either lack trustworthy data or
have very little data available for analytical use.
Most of the revenue is generated from Western
countries.
Developing nations still lag behind in providing of
advanced analytics software as a stand-alone or
embedded offering.
Many companies which do provide the analytics do not
have expertise to provide actionable insights.
High Cost of Implementation

Not all data is sourced from proper channels and this

data is unstructured , more than 80% of available data is
unstructured.
The sources of unstructured data are e-mails, surveys,
employee feedback, corporate documentation reports,
analyst reports, product reviews, and other publications.
Since unstructured data cannot be stored in rows and
columns directly in the databases of enterprises,
management and analysis of this data is a very
challenging task.
Presence of Open-source Analytics Vendors

BA tools and implementation of these tools is very

expensive.
Implementation of a traditional BI solution can take
anywhere from a few months to a few years and can
hinder the immediate performance of the company.
This increases the importance of proper research before
deployment.
Once the deployment starts, carrying out changes
becomes very expensive as it requires additional
programming and infrastructure.

There are many Open-source Analytics vendors which

provide softwares at lesser cost.
A combination of multiple products from various opensource vendors can provide almost all the functionalities
provided by on-premises or on-demand which can be
very cost effective.
Open-source vendors provide query, reporting, analysis,
advanced analytics, and data warehouse generation
platforms.
This, in turn, has a negative impact on the market share
of business analytics vendors.

Source: Technavio Research

Note:
Footnote:
1

Market Trends
Growth in Advanced Analytics Market

Use of Cloud-based Business Analytics Solutions

Advanced analytics help organizations to enhance their

operational capabilities as it gains insights into
consumer behaviour from the data acquired.
They also help organizations in developing market
strategies which are customer driven.
Predictive and content analytics is also used for
developing insights on the behaviour of the customers.

There are two types of cloud based solutions: Public &

Private, companies prefer private cloud networks due to
security reasons.
Cloud based analytics solutions have lower costs and
better computational capabilities than on-premises
analytics solutions.
Cloud based solutions do not have extra overhead costs
as present in in-house solutions.
The quality of data is also improved as redundant and
duplicate data is removed and this leads to valuable
data insights for departments across the organizations.

Emergence of Interest among Organizations for

Supply Chain Visibility

Demand for Mobile Analytical Tools

Organizations want better control over their supply chain

and business analytics helps in monitoring, detection ,
and identification of unnecessary changes in the supply
chain.
It helps managers make more informed decisions as it
monitors the performance of the product by collecting
and analyzing data from different departments.
It helps to identify key performance areas of the product
responsible for increase or decrease in sales providing
visibility to the supply chain thereby reducing errors.

Mobile Analytics tools required by an organization should

offer more than just the capability to track performance
metrics.
This increase in the required mobility is due to
globalization as many employees are working in remote
locations and the organizations are providing work from
home options to reduce the costs and increase the
morale of the employees.

Source: Technavio Research

Note:
Footnote:
1

Trends and their impact

Source: Technavio Research

Note:
Footnote:
1

Key Vendor Analysis

IBM

IBM is one of the biggest vendors in the Global big data services market.
The company operates in five major segments: Global technology services, global business services,
software, systems and technology, and global financing.
IBM continuously focuses on innovative solutions and services to enhance the client productivity.
IBM is also expanding its operational and geographic presence in other nations by acquisitions and
associations with market leaders.
IBM has acquired Softlayer Technologies and Fiberlink Communications to expand its Cloud based
infrastructure and capabilities in 2013.
IBM also acquired Aspera in 2014 which develops Software transfer capabilities for business
organizations.
It also acquired Cloudant a Database as a service provider.
Announced plans to setup IBM Watson Group, a new business dedicated to commercialization and
development of cloud delivered cognitive innovations in 2014.

Source:
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Key Vendor Analysis

Microsoft

Source:
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