Dark Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The dark analytics market is poised to register a CAGR of 24.9 percent during the forecast period. As data security becomes a more significant focus, companies are exploring new ways to analyze data, such as dark data that isn't typically used in business analysis, to ensure it doesn't create security risks. According to a survey, IBM estimated that about 90% of the data generated by sensors and analog-to-digital conversations needs to be utilized.

Key Highlights

• Vast amounts of data are collected from various sources, including the internet, social media, and other IoT systems. This data is expanding exponentially, but it is not organized or examined for potential consequences; instead, it is merely maintained for historical purposes. According to IBM, 60% of this gathered data loses its usefulness immediately.
• The main thing that is driving the growth of the dark analytics market is getting insights for making decisions by analyzing real-time data from key business processes like sales, production, and distribution trends.
• This dark data, if used appropriately, can generate a lot of revenue. For example, with the help of data analytics, the marketing division can understand which products are most demanded by particular target groups and thus look for promotions and offers to sell them to increase their performance.
• In 2022, Ocient polled 500 IT managers to find out what they thought about data analytics.62% agreed that data analysis is essential for business planning and company strategy. 64% of these already use hyperscale datasets to draw insights and use them in decision-making. 78% of this group realized faster data analytics generates higher revenue. The data should be analyzed quickly to stay ahead of the competition and adapt to changing market needs.
• The application of dark web intelligence benefited from COVID-19. The pandemic encouraged organizations to look into various commercial expansion options. Businesses believed they could extract useful information from this underutilized data to help with revenue development. For instance, unstructured customer geolocation and sentiment data were used to assist business and marketing strategy after it was analyzed for traffic patterns.
• This dark data can pose significant dangers to data protection procedures and accrue unanticipated expenditures if not managed. Recent studies show that almost 50% of a company's data is unstructured or never structured, which adds to an annual storage cost of $26 million.

Dark Analytics Market Trends

Retail and E-commerce to Hold Significant Growth

• During the time frame of the forecast, the retail and e-commerce vertical is expected to grow quickly.In retail industries, data is generated through multiple customer touchpoints. Also, as e-commerce sales have grown due to digitalization, a significant amount of dark data has been produced. For retailers, this dark data may hold crucial information. Retailers may develop and improve their presence in the competitive environment by analyzing this dark data, which also offers growth potential.
• Nearly all retailers acknowledge how the digital shift has changed consumer shopping and behavior. Retailers have started investigating various strategies for creating digital experiences. Some companies are even examining hitherto unexplored customer digital life data to gain insights into how to target better and personalize customer experiences in retailing, marketing, customer service, and even product development strategies.
• To keep track of their customers' preferences and purchases based on their regularity, Kroger Co., the largest grocery operator in the US with over 2700 shops throughout 35 states, uses advanced analytics. The only retailer to embrace computerized scanners and checkout software more quickly than any other supermarket chain was Kroger. Kroger was able to determine that rising inflation has caused most consumers to choose private labels over national brands thanks to its data analytics capabilities. It consequently introduced 239 new private-label goods in Q1 2022.

North America to Hold Largest Share

• North America is estimated to account for the largest share of the dark analytics market in the forthcoming years. Countries in the region are early adopters of dark analytics technology. Analytics providers have a significant presence in the area, which contributes to the market's expansion. IBM Corporation, Microsoft Corporation, and SAS Institute, Inc. are a few examples.
• In North America, various dark analytics startups provide services to multiple industries. In addition, leading analytics and cloud service providers are based in this region. The emergence of machine learning and AI technology, widespread adoption of IoT, and rapid growth in business applications are other vital factors fueling the global dark analytics market.
• In July 2022, Dataiku tied up with and joined the Deloitte US Data and AI Alliance Ecosystem to help enterprises build reusable AI projects that deliver value at scale. Together, the companies will help businesses deploy AI solutions to thousands of users, make ML pipelines more efficient, handle risk and governance, and improve the quality of data.

Dark Analytics Industry Overview

The dark analytics market has been gaining traction in recent years. The companies in the market have been strategically innovating and partnering to provide insights into the dark data present. The vendors in the market have added AI and machine learning capabilities through mergers and acquisitions or by partnering with such companies in the value chain. Such strategic approaches are expected to drive the market towards closer collaboration to develop a better solution and may impact the market structure.

In January 2023, AWS launched the Data Lab Program in India. The program will benefit enterprises by building internal data analytics skills, upskilling current staff through on-the-job training and different training courses, and partnering with organizations. PayU Finance uses AWS Data Lab to move away from legacy infrastructure and build a scalable data platform suited to its business requirements.

In November 2022, the data analytics company KNIME launched the KNIME hub. This will hasten skill development and make data-driven decisions simple to adopt throughout any firm. Users can view, download, and share their solutions via the KNIME data hub application. They can also deploy their workflows as data apps and services that can be made available to more significant businesses.

Amazon Web Services announced the launch of HealthLake in November 2022. HealthLake is a service for medical imaging and analytics that uses new technologies. The company says that HealthLake Imaging can help health systems save up to 40% on the total cost of storing medical images. For instance, Radical Imaging, a Boston-based company, is providing customers with zero-footprint, cloud-capable medical imaging applications using an OHIF project that is built on HealthLake Imaging APIs.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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