Financial Analytics Market worth over $18bn by 2027
Published Date: August 24, 2021 Authors: Preeti Wadhwani, Smriti Loomba
Financial Analytics Market size is set to surpass USD 18 billion by 2027, according to a new research report by Global Market Insights Inc.
The financial analytics market growth is attributed to the rising demand for minimizing planning & budgeting cycles and increasing awareness about diverse applications of financial analytics solutions. To ensure improved financial performance, organizations are utilizing data analytics for improved visibility into revenue, expenses, and resource utilization. The adoption of financial intelligence tools provides insights into financial efficiency, operational Key Performance Indicators (KPIs), and product & customer profitability.
Increasing use of data from heterogeneous sources is supporting the market demand for data integration solutions
Data integration solutions are expected to witness 15% growth rate through 2027 led by their capability of providing greater control over the data volume and variety. There has been a massive amount of the financial data generation from multiple systems in various organizations. Data integration has allowed enterprises to visualize this disparate data as consolidated information in a consistent manner. The technology has provided a unified and consistent view to enterprise data, ushering new industry growth opportunities.
Growing demand for enhanced control over data ownership is augmenting on premise financial analytics market progression
The on-premise segment dominated more than 65% of revenue share in 2020. These tools can be used to gather, display & organize important financial data using an enterprise’s own IT infrastructure, allowing organizations to keep their crucial data secure and within their control. As financial analytics often deals with high-value information, many companies have stayed on premise due to the concerns over information security and privacy in the cloud.
Browse key industry insights spread across 320 pages with 504 market data tables and 36 figures & charts from the report, “Financial Analytics Market Size By Component (Solution [Data Integration Tools, Database Management System (DBMS), Query, Reporting & Analysis, Online Analytical Processing (OLAP) & Visualization Tools], Service [Professional Services, Managed Services]), By Deployment Model (On-premise, Cloud), By Organization Size (SME, Large Enterprises), By Application (General Ledger Analytics, Wealth Management, Budgetary Control Management, GRC Management, Customer Management, Payables/Receivables Analytics, Transaction Monitoring), By End-use (Retail & Consumer Goods, BFSI, Manufacturing, IT & Telecom, Government & Public Sector, Transportation & Logistics, Healthcare), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Rising spending on AI-powered solutions and business intelligence across large enterprises to buoy financial analytics acceptance
The large enterprises segment in the financial analytics market is poised to reach USD 8 billion in 2024, driven by the growing investments of large enterprises in financial analytics, to strengthen the development of AI-based applications and incorporate financial intelligence across decision making. With a stiff market competition between large enterprises across all industry sectors, the demand for advanced data analytics technology integration in financial operations has been on a steep rise, leading to an expanding market size.
Increasing digitalization across the BFSI sector is supporting the financial analytics market value
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BFSI sector captured 25% of the market share in 2020. BFSI institutes are moving through a phase of technology disruption by embracing new technologies, such as big data, AI, and analytics, to increase their operational efficiency and provide a better customer experience. The increasing competition from fintech companies is promoting the banks to opt for more advanced and intelligent solutions & services to customers. Financial analytics provides BFSI enterprises with an opportunity to expand their products & services while monitoring their financial KPIs in sync with the dynamic market conditions.
High digitalization and rising AI investments across Europe are anticipated to propel the market revenue
Europe financial analytics market will account for USD 3 billion in 2023 impelled by the increasing digitalization and growing investments in AI. For instance, Huawei’s AI Ecosystem Program in Europe aims at investing USD 112 million by 2024 to accelerate innovations in data analytics, AI, and machine learning solutions across various industry verticals. Amazon Web Services also announced the investment of USD 2.3 million in Max Planck Institute for Intelligent Systems, a Germany-based AI research center for the development of AI & robotics technology, which is estimated to have a significant impact on the industry expansion.
Focus on strategic acquisitions is the key strategy adopted by the leading industry players
Some of the Companies operating in the market are Alteryx, Inc., Datapine GmbH, Domo, Inc., Fair Isaac Corporation (FICO), GoodData Corporation, Hitachi Vantara Corporation, IBM Corporation, Information Builders, Microsoft Corporation, MicroStrategy, Inc., Oracle Corporation, QlikTech International AB, Rosslyn Data Technologies, Salesforce.com, Inc., SAP SE, SAS Institute, Tableau Software LLC., Teradata Corporation, TIBCO Software, Inc., and Zoho Corporation. Industry leaders are focusing on strategic acquisitions to strengthen their digital payment businesses.