The Global Operational Analytics Market size is expected to reach $26.4 billion by 2031, rising at a market growth of 13.7% CAGR during the forecast period.
The North America segment witnessed 36% revenue share in the operational analytics market in 2023. North American companies have been early adopters of these analytics to improve decision-making, streamline processes, and gain a competitive edge. Furthermore, innovation and the implementation of sophisticated analytics tools are expedited by the presence of significant technology companies and solution providers.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2024, IBM Corporation partnered with Telefónica Tech, a Spanish telecommunications company, to enhance AI, analytics, and data governance solutions in Spain. This partnership would develop an open, hybrid, multi-cloud platform, SHARK.X, featuring IBM's watsonx AI and Data platform. Moreover, In February, 2024, SAS Institute Inc. announced a partnership with Carahsoft, an IT company, to enhance SAS's analytics and AI solutions' accessibility to US government agencies. Under the partnership, Carahsoft would distribute SAS products through various government contracts, expanding SAS's public sector reach and supporting advanced data management and AI capabilities for improved decision-making and innovation.
Additionally, the increasing adoption of cloud technology is transforming the landscape of these analytics as organizations recognize the numerous advantages that cloud-based solutions bring to their data operations. It is estimated that global public cloud spending reached approximately $600 billion in 2023, a substantial increase from $490 billion in 2022. Therefore, the assistance of these analytics in a cloud environment is increasing their adoption.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
The Operational Analytics Market is dynamic, with smaller and mid-sized companies actively innovating to capture market share. Without top key players, competition intensifies among emerging vendors focusing on specialized solutions, cloud integration, and industry-specific analytics. Differentiation is largely driven by advanced data visualization, AI, and machine learning capabilities, enabling companies to offer tailored, cost-effective solutions that attract niche market segments.
The North America segment witnessed 36% revenue share in the operational analytics market in 2023. North American companies have been early adopters of these analytics to improve decision-making, streamline processes, and gain a competitive edge. Furthermore, innovation and the implementation of sophisticated analytics tools are expedited by the presence of significant technology companies and solution providers.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2024, IBM Corporation partnered with Telefónica Tech, a Spanish telecommunications company, to enhance AI, analytics, and data governance solutions in Spain. This partnership would develop an open, hybrid, multi-cloud platform, SHARK.X, featuring IBM's watsonx AI and Data platform. Moreover, In February, 2024, SAS Institute Inc. announced a partnership with Carahsoft, an IT company, to enhance SAS's analytics and AI solutions' accessibility to US government agencies. Under the partnership, Carahsoft would distribute SAS products through various government contracts, expanding SAS's public sector reach and supporting advanced data management and AI capabilities for improved decision-making and innovation.
KBV Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Product Launches are the forerunners in the Operational Analytics Market. In June, 2023, Microsoft Corporation signed a partnership with Moody’s, a financial services company. The partnership aimed to develop advanced data, analytics, and risk solutions using Microsoft Azure OpenAI Service. Companies such as Amazon Web Services, Inc., Oracle Corporation and IBM Corporation are some of the key innovators in Operational Analytics Market.
Market Growth Factors
The rapid growth of IoT and Big Data generates unprecedented data from a vast network of sensors, machines, and equipment across various industries. IoT devices collect continuous data streams, capturing real-time insights into operations, from tracking assets in logistics to monitoring energy usage in smart buildings. This influx of data has created a demand for these analytics tools to process and analyze these extensive datasets, transforming them into actionable insights for better operational decision-making and efficiency. Thus, as the adoption of IoT devices continues to grow, so will the demand for these analytics solutions that can transform raw data into valuable insights.Additionally, the increasing adoption of cloud technology is transforming the landscape of these analytics as organizations recognize the numerous advantages that cloud-based solutions bring to their data operations. It is estimated that global public cloud spending reached approximately $600 billion in 2023, a substantial increase from $490 billion in 2022. Therefore, the assistance of these analytics in a cloud environment is increasing their adoption.
Market Restraining Factors
However, Data breaches and cyber-attacks have increased significantly in recent years, exposing sensitive business and customer information. This rise in data breaches has made companies more cautious about data sharing, as they aim to avoid the risk of financial penalties, reputational damage, and loss of customer trust. Businesses now recognize that even a single data breach can have long-lasting consequences, impacting customer loyalty and the company's market position. Consequently, this hesitation to leverage data fully and the intricate compliance requirements are key factors that impede the rapid adoption and growth of this market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.
Driving and Restraining Factors
Drivers
- Rising Demand For Real-Time Data
- Exponential Growth In Iot and Big Data
- Rapid Rise In Cloud Adoption
Restraints
- Data Privacy and Security Concerns
- Substantial Complexity Of Data Integration
Opportunities
- Growing Focus On Customer Experience
- Increased Demand For Supply Chain Optimization
Challenges
- Lack Of Skilled Workforce
- High Costs Associated With Implementing Operational Analytics Solutions
Type Outlook
Based on type, the operational analytics market is bifurcated into software and service. The service segment procured 42% revenue share in this market in 2023. The service segment is driven by the need for specialized expertise to implement, integrate, and maintain these analytics solutions effectively. As analytics technologies become more sophisticated, organizations often require consulting, implementation, training, and support services to ensure they can leverage these tools to their full potential.Business Function Outlook
On the basis of business function, the operational analytics market is classified into information technology (IT), sales & marketing, finance, human resources (HR), and others. The sales & marketing segment recorded 24% revenue share in this market in 2023. The segment leverages these analytics to understand customer behavior, personalize marketing efforts, and optimize sales strategies. With consumer preferences shifting rapidly, sales and marketing teams use analytics to analyze purchasing patterns, customer feedback, and engagement metrics.
Application Outlook
By application, the operational analytics market is divided into predictive asset maintenance, risk management, fraud detection, supply chain management, customer management, and others. The risk management segment garnered 19% revenue share in this market in 2023. The risk management segment is propelled by the increasing complexity and interconnectedness of business operations, which makes risk identification and mitigation a critical priority. These analytics enables organizations to monitor real-time risk indicators, analyze data from diverse sources, and predict potential threats before they impact the business.Deployment Model Outlook
On the basis of deployment model, the operational analytics market is bifurcated into cloud and on-premises. The on-premises segment garnered 37% revenue share in this market in 2023. On-premises deployments give organizations direct control over their data and infrastructure, ensuring compliance with stringent regulatory standards and internal policies. Although on-premises solutions necessitate a more substantial initial hardware investment and ongoing maintenance, they enable organizations to customize the configuration to their unique requirements and store data locally.Industry Vertical Outlook
By industry vertical, the operational analytics market is divided into telecommunication, retail & consumer goods, manufacturing, government & defense, energy & utilities, healthcare, and others. The retail & consumer goods segment acquired 17% revenue share in this market in 2023. The retail & consumer goods segment is fueled by the need to understand consumer behavior, optimize inventory, and streamline supply chains. Retailers use these analytics to analyze purchasing patterns, forecast demand, and tailor marketing strategies.Market Competition and Attributes
The Operational Analytics Market is dynamic, with smaller and mid-sized companies actively innovating to capture market share. Without top key players, competition intensifies among emerging vendors focusing on specialized solutions, cloud integration, and industry-specific analytics. Differentiation is largely driven by advanced data visualization, AI, and machine learning capabilities, enabling companies to offer tailored, cost-effective solutions that attract niche market segments.
By Regional Analysis
Region-wise, the operational analytics market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment garnered 31% revenue share in this market in 2023. European organizations are adopting these analytics to meet stringent regulatory standards, especially in sectors like finance, healthcare, and manufacturing, where compliance is critical.Recent Strategies Deployed in the Market
- Mar-2024: SAP introduced innovations in data management, AI-driven planning, and analytics, including SAP Datasphere knowledge graph, SAP HANA Cloud vector engine, enhanced Collibra AI Governance, and closer integration between SAP Datasphere and SAP Analytics Cloud. These updates aim to streamline data insights, governance, and planning for businesses.
- Dec-2023: IBM Corporation took over streamsets, the Software AG's prominent data ingrestion platform. This acquisition enhances IBM's AI and hybrid cloud capabilities, adding data ingestion and integration tools to its portfolio.
- Nov-2023: Amazon Web Services, Inc. expanded its partnership with Salesforce, Inc., integrating products across data and AI and offering select Salesforce products on the AWS Marketplace. This simplifies data management and allows for the integration of advanced AI technologies into applications and workflows.
- Sep-2023: Oracle introduced new AI-powered features in Oracle Analytics Cloud, enhancing self-service analytics with generative AI, document understanding, contextual insights, and collaboration integrations. These capabilities simplify data interaction, enabling users to make better decisions without relying on data scientists, and include AI-generated avatars for more engaging data storytelling.
- May-2023: Google Cloud, a part of Google LLC, expanded its partnership with SAP SE, a German multinational software company, to introduce an open data offering aimed at simplifying data landscapes and unlocking business data potential. This enables customers to create an end-to-end data cloud, integrating SAP Datasphere with Google's data cloud to provide real-time access to their entire data estates, maximizing value from Google Cloud and SAP software investments.
List of Key Companies Profiled
- Microsoft Corporation
- Oracle Corporation
- SAS Institute Inc.
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Google LLC
- Hewlett Packard Enterprise Company
- IBM Corporation
- SAP SE
- Teradata Corporation
- TIBCO Software, Inc. (Vista Equity Partners Management, LLC)
Market Report Segmentation
By Type- Software
- Service
- Managed Services
- Professional Services
- Information Technology (IT)
- Sales & Marketing
- Finance
- Human Resources (HR)
- Other Business Function
- Predictive Asset Maintenance
- Risk Management
- Fraud Detection
- Supply Chain Management
- Customer Management
- Other Application
- Cloud
- On-premises
- Telecommunication
- Retail & Consumer Goods
- Manufacturing
- Government & Defense
- Energy & Utilities
- Healthcare
- Other Industry Vertical
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Operational Analytics Market by Type
Chapter 6. Global Operational Analytics Market by Business Function
Chapter 7. Global Operational Analytics Market by Application
Chapter 8. Global Operational Analytics Market by Deployment Model
Chapter 9. Global Operational Analytics Market by Industry Vertical
Chapter 10. Global Operational Analytics Market by Region
Chapter 11. Company Profiles
Companies Mentioned
Some of the leading companies profiled in this Operational Analytics Market report include:- Microsoft Corporation
- Oracle Corporation
- SAS Institute Inc.
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Google LLC
- Hewlett Packard Enterprise Company
- IBM Corporation
- SAP SE
- Teradata Corporation
- TIBCO Software, Inc. (Vista Equity Partners Management, LLC)
Methodology
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