Business Intelligence Market

The Global Business Intelligence Market is valued at USD 23.5 Billion in 2021 and is projected to reach a value of USD 35.6 Billion by 2028 at a CAGR (Compound Annual Growth Rate) of 6.90% over the forecast period.

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Business Intelligence is a technology-driven process for analyzing data and presenting information that managers, corporate end users, and executives may use to make business decisions. BI includes a wide range of techniques, instruments, and software programs that enable administrations to collect data from external sources and internal systems, analyze it, enhance and monitor queries, and produce reports, dashboards, and data visualizations for use by operational staff and corporate decision-makers. The primary goal of Business Intelligence is to help businesses grow by enhancing data collection and utilizing that data effectively to increase productivity. Businesses that use BI techniques have converted their newly created data into insights about their operational procedures. Strategic company decisions are made using the information to boost output and revenue and quicken growth.

The Business Intelligence industry is driven by rising demand for cloud-based business solutions in the SME sector. Raising awareness of the benefits of BI software, such as data scalability and tracking key performance indicators (KPIs), helps enterprises improve user experience. However, the high cost of licensing and implementing BI software is projected to limit the growth of the Business Intelligence market. Furthermore, the global Business Intelligence market will benefit from integrating advanced analytics for Big Data with BI systems. Numerous constraints and obstacles will impede overall market growth considerations. Growing data security concerns and a need for more competent specialists limit the markets progress.

Additionally, vendors of business information and analytics have significant integration challenges. This industry confronts challenges in integrating various analytics software, Master Data Management (MDM), Business Intelligence, big data, and analytics solutions. These are the primary restraints to the global Business Intelligence Markets overall growth.

Due to rapid technological breakthroughs, cloud computing and big data analytics have recently gained popularity. Advanced analytics and Business Intelligence are extremely complementary since advanced analytics can provide a more in-depth and exploratory view of the data. On the other hand, BI solutions give a more structured user experience in terms of dashboard visualization, reporting, performance management measures, and so on. In addition, there is a significant increase in the need for data analytics and data visualization technologies. According to IBM Quant Crunch, up to 2.72 million positions requiring data science skills are expected to be advertised by the end of 2022, making it one of the most in-demand roles across industries.

Top Market Trends

1.

Increasing adoption of cloud computing and big data

2. Increasing penetration of natural language processing among enterprises:

3. Rising demand for data visualization to improve the dashboard:

4. Growing usage in the BFSI industry:

Market Segmentation

The Business Intelligence Market is segmented based on the segmentation categories-

Component,

Deployment Mode, Organization Size,

Business Function,

Vertical

Region

Based on Components

Solutions had Dominated the Market Due to its Wide Range of Offerings by Industry Players.

The solutions segment dominated the market and accounted for the largest global revenue share in 2021. Enterprises employ SAP Analytics Cloud & SAP BusinessObjects Lumira, Yellowfin BI, Tableau (Server, Desktop, Online, Prep), and QlikSense & QlikView, among others, to derive actionable insights by tracking real-time and historical business performance. Furthermore, integrating artificial intelligence-driven analytics solutions with the Business Intelligence platform is expected to generate demand for enhanced visualization. Similarly, augmented reality-based BI Augmented Analytics would ensure the long-term transformation of these technologies. Services such as advising, implementation and integration, and support and maintenance are expected to develop significantly in the future years. The industrys need for more data science experts and IT professionals is projected to fuel demand for BI services.

Based on the Deployment Modes

The Cloud Deployment is Set to Witness Higher Growth Over the Coming Years Due to Increasing Adoption by Enterprises

Cloud deployment is expected to expand at the fastest CAGR during the forecast period. Cloud deployment enables organizations with on-premises applications to expand their use of storage, networking, tools, and analytical capabilities. Cloud deployments allow the firm to manage its apps by outsourcing the BI infrastructure. This element assists the company in increasing productivity, reducing operational costs, and optimizing implementation schedules. As a result, cloud deployment is likely to rise rapidly.

Based on Organization Sizes

Small & Medium-Sized Enterprises (SMEs) Dominated the Market Due to Increased Demand from Small Businesses

Small & Medium-Sized Enterprises (SMEs) accounted for the largest share of the market in 2021. Through focused marketing initiatives and promotions, SMEs are encouraged to use Business Intelligence Solutions to grow market share and customer satisfaction. In addition, resource efficiency and ongoing productivity review are two more drivers that drive SMEs' demand for advanced BI solutions. Automation is made possible by BI Software, saving SMEs time they would have otherwise spent on data input and other manual operations that are equally prone to human mistakes. Thanks to BI technologies, employees can spend more time on other duties that call for creativity and critical thinking by spending less time on boring, repetitive chores. The top Business Intelligence tools for SMEs include Tableau, Looker, Cluvio, and others, which are effective, make data analysis more approachable, and speed up the process of arriving at important conclusions.

Based on Business Functions

Human Resource Segment Will Grow at Higher CAGR during the Forecast Period as It is Widely Used in Talent Management Among the Organizations

The increased requirement for workforce management is expected to cause the HR business function segment to develop faster during the projection period. To help HR managers make decisions about their staff in real-time, many businesses are implementing Business Intelligence tools. It enables businesses to effectively comprehend and foresee talent availability, talent shortage, employee lifecycles, and attrition rates. Companies utilize analytics for hiring new employees to manage retention and retirement plans, monitor safety and learning, and evaluate performance. Business Intelligence solutions also give HR managers immediate access to the cost, availability, effectiveness, and caliber of the worlds labor force.

Based on Verticals

BFSI is Prime Revenue Contributor in the Market Due to Increasing Adoption by Banking Industry

The BFSI vertical accounted for the largest share of the market in 2021 due to the sensitivity of financial data and the requirement to coordinate with several other industries. Some reasons for the BFSI verticals adoption of Business Intelligence include establishing new investment plans, lowering risks, and improving marketing strategies and client retention policies. The healthcare and life sciences vertical is anticipated to have the highest CAGR over the projection period. The use of Business Intelligence solutions in the healthcare and life sciences industry is driven by the increasing complexity of the healthcare industry vertical and the demand for remote and real-time insights from unstructured clinical data.

Based on Region

North America is the Largest Revenue Contributor Due to the Presence of a Huge Consumer Base

North America dominated the market and is accounted for a 43.9% share of the global revenue in 2021. The presence of major industry players such as Tableau Software, LLC, Oracle Corporation, IBM Corporation, and Microsoft Corporation are projected to drive market growth in this region. Furthermore, factors such as rigorous R&D in technology, increased competition, and an evolving trend of data proliferation are assisting market expansion in North America. Many organizations in this region are forming alliances and collaborations to boost efficiency and optimize operations by using BI technologies in their processes. On the other side, Asia-Pacific is predicted to grow fastest over the projection period, driving demand for Business Intelligence products and services. The market is projected to proliferate due to the commercialization of IoT technology and the increased use of advanced technologies in nations like China, Japan, and India.

Competitive Landscape

The global Business Intelligence market is dominated by companies such as Microsoft Corporation, Tableau Software LLC, and IBM Corporation because of their unique products, financial stability, strategic advances, and global reach. The participants are focusing their efforts on promoting R&D. Additionally; they support strategic expansion activities, including product launches, joint ventures, and partnerships to expand their client base and boost their market position. Some of the major players in the Global Business Intelligence Market include- Cisco Systems Inc. (U.S.), to name a few.

Recent Market Developments

● In August 2022, the partnership of Information Resources Inc (IRI) with NPD resulted in a global technology, analytics, and data provider that can give more than 7000 clients a thorough, accurate understanding of consumer behavior and overall retail purchase and consumption trends across a variety of industries. According to the vendors, the combined organization will enable brands and retailers to work together, provide better customer service, address trends, and use more potent data to spur growth.

● In January 2022, the acquisition of Neal Analytics, a cloud, data, engineering, and AI Microsoft Gold consulting partner by Fractal, a global provider of advanced analytics and AI to Fortune 500 enterprises, will grow AI and drive AI decision-making. Additionally, it boosts the influence of fractals in the Pacific Northwest, Canada, and India.

Segmentation of the Global Business Intelligence Market