The analytics-as-a-service market have shown significant traction and is projected to grow with a high CAGR of 37.6%, and expected to reach USD 23.49 billion by 2021. Increased ability of technologies to process huge workload through cloud, business intelligence maturation, and lower cost of ownership are driving the analytics-as-a-service market growth. The analytics-as-a-service market is projected to have an increasing growth owing to the rapid increase in growing demand of advanced analytics by large companies.
Analytics-as-a-service is witnessing a major technological change and is getting smarter with technological advancements. Analytics-as-a-service solution and services are expected to offer more enhanced real-time analysis and remote access as per user demand. Additionally, the advent of cloud-based technologies has provided cost effective analytical solutions to various organizations. The introduction of Internet of Things (IoT), Bring Your Own Device (BYOD), and cloud computing has increased the demand for cloud-based analytical solutions.
The analytical solutions such as HR analytics and outsourcing analytics have shown higher growth rate during the forecast period. HR analytics solutions enable organizations generate meaningful insights from workforce data to better predict the need for resources using various indicators such as performance, vacancy, and people movement. Along with this, the growing demand for advanced analytics in outsourcing industry has also contributed towards the high growth rate of outsourcing analytics.
Managed services provide an efficient model for delivering analytics-as-a-service solutions and services to organizations on demand. Managed services are expected to grow at the highest CAGR during the forecast period. With an increasing number of organizations adopting the virtualized (cloud-based) environment, managed services play a vital role in providing end-to-end services. Managed services help organizations increase efficiency and save costs for managing on-demand analytics-as-a-service solutions.
Among type, the predictive analytics are expected to grow at the highest CAGR during the forecast period. Organizations are deploying analytics-as-a-service solutions and services to perform predictive analytics to get better hold on future outcomes to avoid downturn. All the customer centric industries, such as retail, travel and hospitality, and media and entertainment, are using predictive analytics to optimize its customer relationship management systems.
The transportation and logistics sector is expected to grow with the highest rate from 2016 to 2021, in the analytics-as-a-service market. These solutions and applications provide businesses the benefits of faster and smarter business decisions with advanced analytics and improved customer satisfaction with on-time delivery performance. The proper analysis of the data generated in this industry (either through customers or traffic management), can provide commuter’s behavior, which in turn provides better decision taking abilities to the management.
APAC is estimated to grow at the highest CAGR during the forecast period. In APAC region, there is a tremendous demand for the analytics-as-a-service solutions and services due to the massive growth of data through various channels such as social media, mobile computing, and IoT.
