Global Data and Analytics Software Market Outlook to 2030

Global Data and Analytics Software Market Overview

• The Global Data and Analytics Software Market was valued at USD 141 billion in 2023. This market growth is driven by the increasing demand for real-time data analytics, the shift towards cloud-based data platforms, and the integration of AI and machine learning in business intelligence processes.
• Major players in the global data and analytics software market include IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, and SAS Institute Inc. These companies lead the development of advanced analytics platforms, focusing on enhancing AI-driven data processing, predictive analytics, and cloud-based solutions to meet the growing need for data management and analysis.
• In 2023, Oracle Corporation expanded its Oracle Analytics Cloud platform by adding machine learning-driven analytics features that enable companies to derive predictive insights in real-time. This expansion is aimed at increasing the accessibility of data analytics for both large enterprises and SMEs, thereby boosting the market's growth.
• North America dominated the global data and analytics software market in 2023, primarily due to its advanced IT infrastructure, early adoption of AI and cloud computing technologies, and the presence of major market players. The region also benefits from strong investments in digital transformation initiatives across industries.

Global Data and Analytics Software Market Segmentation

The global data and analytics software market is segmented by region, component, and deployment mode.

By Region: The global data and analytics software market is segmented into North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. In 2023, North America led the market due to its early adoption of advanced analytics solutions and robust cloud infrastructure. APAC, particularly China and India, is expected to experience significant growth due to rising investments in digital transformation.

By Component: The market is segmented into software and services. In 2023, the software segment held the highest market share, driven by the growing demand for advanced analytics platforms that provide real-time insights and predictive analytics. Businesses prefer comprehensive software solutions that centralize data management and streamline analytics processes.

By Deployment Mode: The market is segmented into cloud-based and on-premise solutions. In 2023, the cloud-based segment dominated the market due to the increasing need for scalable, cost-efficient data analytics platforms that offer flexibility and remote access. Enterprises are moving towards cloud solutions to improve data accessibility and processing power.

Global Data and Analytics Software Market Competitive Landscape

• IBM Corporation: In its 2023 annual report, IBM reported revenues of $61.9 billion, reflecting a 3% increase at constant currency. The company noted a growing demand for its watsonx platform, which is integral to its AI and data strategies. This platform has reportedly doubled its book of business in generative AI from Q3 to Q4 of 2023
• Microsoft Corporation: In 2024, Microsoft expanded its Azure Data Factory capabilities to support more complex data integration processes, aimed at improving analytics for SMEs and large enterprises. This update allows users to process larger data sets more efficiently, further boosting Microsofts presence in the data analytics market.

Global Data and Analytics Software Market Analysis

Global Data and Analytics Software Market Growth Drivers:

• Rising Demand for Real-time Data Analytics Solutions: In 2023, businesses increasingly require real-time data analytics to enhance decision-making and operational efficiency. Sectors like finance, healthcare, and retail have invested in data analytics platforms to process and analyze vast volumes of data. For instance, in 2023, the healthcare sector alone saw an influx in analytics investments, aimed at improving patient outcomes through predictive analysis.
• Cloud Migration and Adoption of AI-Powered Analytics: A significant driver for the market is the migration of enterprise data to the cloud, paired with the adoption of AI-powered analytics tools. In 2023, enterprises globally spent over $21 billion on cloud-based analytics platforms, enhancing data accessibility and processing power. Large enterprises, such as Microsoft and Oracle, have invested heavily in expanding their AI-powered analytics offerings, fueling demand.
• Government Initiatives Supporting Digital Transformation: Government initiatives, such as the U.S. Federal Data Strategy and the European Digital Agenda, have encouraged the adoption of data analytics tools to improve operational efficiency and public services. These initiatives are expected to positively impact the global data and analytics software market.

Global Data and Analytics Software Market Challenges:

• Data Privacy and Security Concerns: As businesses increasingly rely on cloud-based platforms, concerns over data privacy and security have risen. Compliance with stringent regulations such as the GDPR in Europe is a major challenge for market players, adding to operational costs.
• Shortage of Skilled Data Professionals: The demand for skilled data professionals continues to outpace supply, creating a talent gap in the market. This shortage limits the ability of enterprises to fully leverage advanced analytics tools, particularly in emerging markets.

Global Data and Analytics Software Market Government Initiatives:

• European Union's Digital Europe Programme (2023): The EU launched its Digital Europe Programme in 2023, with a budget of 7.5 billion aimed at supporting digital transformation, including advanced data analytics. This initiative is designed to enhance data accessibility, cybersecurity, and cloud computing adoption across the region. It aims to create a robust digital ecosystem by building capacities in data analytics.
• Indias National Data and Analytics Policy (2023): India introduced its National Data and Analytics Policy in 2023, which is a government initiative aimed at leveraging data for public welfare. With an investment, the policy focuses on the use of data analytics for improving governance, healthcare, and education services. The policy's emphasis on big data solutions and cloud-based analytics presents significant growth opportunities for the software market.

Global Data and Analytics Software Market Future Market Outlook

The global data and analytics software market is expected to witness substantial growth through 2028, driven by advancements in AI and machine learning, increased demand for cloud-based analytics platforms, and the growing need for real-time data processing across industries.

Future Market Trends

• AI Integration in Data Analytics Platforms: By 2028, the integration of AI and machine learning into data analytics platforms will become increasingly common. AI-driven analytics solutions will enable businesses to automate decision-making processes and extract valuable insights from large data sets.
• Expansion in Emerging Markets: By 2028, the adoption of data analytics solutions in emerging markets, particularly in APAC and Latin America, is expected to grow significantly. Governments in these regions are investing in digital infrastructure, which will drive demand for data analytics tools.