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The Data Analytics Industry Presents Diverse Opportunities for Investors

4 Min Read

By Stephanie Merchant - Client Services Manager

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Rapid Technological Advancements, AI Enhancements, and Evolving Enterprise Needs Drive Strong Market Growth

The data analytics industry consists of companies that offer software and services for collecting, storing, and analyzing large datasets. By harnessing data analytics, businesses can uncover valuable insights that drive decision-making, optimize operations, and predict future trends. With a compound annual growth rate (CAGR) of 26.7%, the industry is projected to reach a value of $49.03 billion by 2030.1 The rapid growth of the data analytics industry presents compelling opportunities to invest in both analytics providers and data-driven companies that enhance operations and foster long-term success.

Burgeoning Technology, Enterprise Business Needs, and Online Shopping Trends Contribute to Growth


Current growth in the data analytics sector is propelled by several key factors, including:

  • The Adoption of Smart Devices: Used to track and analyze everything from soil moisture and chemical composition to blood pressure and school assignments, these devices generate massive amounts of new data. The agriculture, healthcare, education, and logistics industries all require support in managing and analyzing those collected findings.
  • Advancements in Artificial Intelligence and Machine Learning: With the help of these technologies, companies are now able to better handle vast quantities of data with greater speed and precision. Machine learning algorithms, for example, can identify patterns and trends hidden in datasets that are too complex for traditional data processes to notice.
  • Increasing Cloud Technology and Virtual Office Needs: Crucial to enterprise businesses, cloud storage, and virtual workspaces help streamline many office processes, goals, and activities. Big data analytics plays an essential role in supporting smart decision-making in these areas. For instance, in April 2022, Accenture acquired Ergo, an Argentina-based firm specializing in big data, analytics, and AI. With this acquisition, Accenture is better positioned to deliver human-centric design principles to clients, and ultimately build data solutions that guide smarter business decisions.2
  • Online Shopping and Individualized Consumer Experiences: Now the norm, online shopping needs data solutions to safely personalize, track, facilitate, and automate transactions. IBM’s recent acquisition of Databand.ai, a data observability platform, is reflective of this shift. The acquisition enhances IBM’s software portfolio across AI, data, and automation to help ensure that reliable data is placed in the hands of the right users.3

Data Analytics Industry Investor Insights

Sectors Driving Growth

Predictive analytics, security intelligence, and supply chain management represent critical segments propelling the expansion of the data analytics market. 

  • Predictive Analytics: With 32.4% revenue share, predictive analytics helps organizations identify and solve organizational problems. By providing accurate insights into marketing, decision-making, and fraud detection, this sector enables organizations to develop strong marketing strategies based on informed decisions.4
  • Security Intelligence: Capturing 35.1% of recent revenue share, security intelligence uses advanced analytics to counter fraudulent activities and data breaches. These solutions help organizations safeguard sensitive data more effectively.5
  • Supply Chain Management: With 30.5% of recent revenue share, supply chain management provides efficient data-driven production planning and resource management to help companies deliver products and services. Implementation of this tactic helps organizations be more efficient and cost-effective, leading to greater productivity and profitability.6

Data Analytics Market Landscape

Characterized by strong competition, the global players owning a significant market share in the data analytics sector are largely focused on rolling out new products as quickly as possible—or collaborating and merging with other competitors.  

As a result, the market is experiencing an increase in merger and acquisition activity, with keen attention to generative AI and other emerging technologies. In 2024 alone, Accenture acquired Impendi, Marlabs attained OneBridge, Snowflake took on TruEra, Databricks obtained Lilac, and Qlik secured Kyndi.7

Additional global competitors to watch in this sector include:8 

  • Amazon Web Services Inc.
  • International Business Machines Corporation
  • Looker Data Sciences, Inc.
  • Mu Sigma
  • Oracle Corporation
  • SAP SE
  • Sisense Inc.
  • Tableau Software LLC.
  • ThoughtSpot Inc.
  • Zoho Corporation Pvt. Ltd.

Challenges Impacting Market Growth & Success

The data analytics market, though poised for significant growth, operates in a complex landscape with several challenges.

  • Data Privacy: As data analytics heavily relies on extensive datasets, safeguarding personal and sensitive information becomes paramount. With data comprising financial records, medical information, and personal identifiers, there is a persistent risk of misuse and identity theft. Privacy concerns not only affect consumer trust but also necessitate stringent regulatory compliance, which can be resource-intensive.
  • Data Accuracy: The influx of big data from various sources can sometimes lead to inconsistencies and errors if not properly managed. Inaccurate data can lead to incorrect insights, adversely impacting decision-making processes within organizations. Therefore, companies must invest in robust data validation processes to maintain data integrity.
  • Data Processing and Analysis: The sheer volume of data generated, especially with the integration of AI and machine learning, can be overwhelming. Organizations often struggle to harness this data effectively to drive actionable insights—all while working within restrictive regulations. The need for advanced infrastructure and skilled personnel to process these large sets of data adds and stay within compliance can be complex and costly.
  • Predictive Data Analytics and Security Intelligence: Organizations must also address the technical challenges related to implementing these technologies. This involves integrating new analytics tools with existing systems, which can be both costly and time-consuming.

Making Smart Data Analytics Investment Decisions

The data analytics market presents immense opportunities for investment and growth, driven by technological advancements and the strategic activities of major industry players. To learn more about insightful investment trends, get in touch with us today.

Resources:
1Data Analytics Market Size, Share & Trends Analysis Report By Type (Prescriptive Analytics, Predictive Analytics, Customer Analytics, Descriptive Analytics), By Solution, By Application, By Region, And Segment Forecasts, 2023 – 2030. Grand View Research.
2Accenture Acquires Ergo to Expand Data & AI Capabilities and Accelerate Data-Led Transformation on the Cloud. Accenture.
3Data Analytics Market Size, Share & Trends Analysis Report By Type (Prescriptive Analytics, Predictive Analytics, Customer Analytics, Descriptive Analytics), By Solution, By Application, By Region, And Segment Forecasts, 2023 – 2030. Grand View Research.
4Ibid.
5Ibid.
6Ibid.
7Data Analytics M&A and Market Update (1H 2024). Solganick & Co.
8Data Analytics Market Size, Share & Trends Analysis Report By Type (Prescriptive Analytics, Predictive Analytics, Customer Analytics, Descriptive Analytics), By Solution, By Application, By Region, And Segment Forecasts, 2023 – 2030. Grand View Research