Global Financial Analytics Market Size, Share & Industry Trends Analysis Report By Component, By Deployment Model (On-premise and Cloud), By Organization Size, By Vertical, By Regional Outlook and Forecast, 2022 - 2028

Global Financial Analytics Market Size, Share & Industry Trends Analysis Report By Component, By Deployment Model (On-premise and Cloud), By Organization Size, By Vertical, By Regional Outlook and Forecast, 2022 - 2028

The Global Financial Analytics Market size is expected to reach $17.1 billion by 2028, rising at a market growth of 11.3% CAGR during the forecast period.

Financial analytics is the process of creating ad hoc analyses in order to answer unique business problems and forecast possible financial scenarios in the future. In addition, financial analytics aims to shape business strategy using trustworthy and verifiable information rather than intuition. It gives diverse viewpoints on a company's financial data, providing insights, which can help with strategic decisions and actions that enhance the company's overall success.

Along with that, financial analytics can be characterized as an assessment of a company's viability and profitability. It is carried out by professionals who use data from financial accounts and other reports to make decisions. Forecasting possible future financial scenarios are one of the most significant applications of financial analytics. Additionally, financial analytics software is used to accelerate the process and show the data in a form that the clients can understand. Developments in business analytics tools, as well as greater usage of cloud-based solutions, are driving the industry forward. Financial analytics necessitates a significant investment and is influenced by changes in the environment. The market's growth is being fueled by firms' ability to utilize the prospect of big data analytics for the telecom industry, as well as the prospect of increased revenue for service providers via financial analytics.

Financial analytics is a way that provides several perspectives on a company's financial data. It assists in obtaining in-depth knowledge and, as a result, taking deliberate decisions to improve a company's overall presentation. Also, financial analytics is a subcategory of business intelligence and enterprise performance management, and it has an impact on every aspect of a company's operations. Companies can use financial analytics to improve their income statements and company practices.

Covid-19 Impact

The COVID-19 pandemic has had a beneficial impact on the financial analytics industry since increased volatility and rising uncertainty in the company have led to the implementation of financial analytics software that helps organizations stay up with financial decisions in many end-user verticals. The financial analytics business has had substantial growth in recent years, but due to the breakout of the COVID-19 pandemic, the market will experience a dramatic fall. This is due to governments enforcing lockdown in the majority of countries and halting international travel to contain the virus's spread.

Market Growth Factors

Capabilities of artificial intelligence and machine learning to boost the market growth

Different AI-based solutions' capabilities will aid in leveraging massive amounts of data to uncover commercial value. Artificial intelligence use in the financial sector has the potential to increase the financial ecosystem's trust, precision, and resiliency. Machine learning and artificial intelligence capabilities are being used by several verticals to enhance investment decision-making procedures, improve compliance frameworks, and enhance fraud detection and harm minimization capabilities.

Higher use of cloud technology and the Internet of Things

The demand for financial analytics systems is increasing as a result of the emergence of cloud-based technology. Cloud-based technologies enable consistent data management and result-oriented production. These programs, on the other hand, boost business efficiency by updating details in real-time. IoT enables more personalized products and services for the organizations. This means that services and products can be considerably more tailored to the consumer's needs and expectations.

Market Restraining Factors

Several problems related to security

Information management and security at the highest levels of business are gaining popularity. Organizations deal with massive amounts of data of many kinds. Data comes in through a variety of external and internal channels, making it difficult for many businesses to understand where it comes from, how it flows, and how it is managed. In reality, cloud environment is 100 percent secure and every environment has some sort of vulnerability and weakness. The hackers or intruders of current generation are very clever and carry sophisticated intrusion tools and techniques which is used to breach any kind of comparatively vulnerable cloud environment.

Component Outlook

Based on Component, the market is segmented into Solution and Services. The services segment procured a substantial revenue share in the financial analytics market in 2021. Financial Analytics services offer a unique perspective on a company's financial data. It provides information to aid strategic decisions that enhance the company's overall success. Financial analytics has an impact on every area of an organization, playing a crucial part in profit calculation, answering business issues, and allowing future business forecasting. Misuse or incorrect interpretation of financial analytics can result in significant revenue losses over time.

Deployment Model Outlook

Based on Deployment Model, the market is segmented into On-premise and Cloud. The On-Premise segment acquired the highest revenue share in the financial analytics market in 2021. The On-Premise solutions are best in terms of level of security, and due to which numerous organizations are heavily investing onto On-Premise solution, so that organization don't have to worry about potential security concerns.

Organization Size Outlook

Based on Organization Size, the market is segmented into Large Enterprises and Small & Medium-sized Enterprises (SMEs). The small and medium-sized enterprise segment garnered a significant revenue share in the financial analytics market in 2021. Financial analytics aid in the formation of potential business plans. This aids in the development of the company's decision-making strategy. It allows users to focus on evaluating and controlling the company's real assets, like cash and equipment. It provides a complete analysis of the company's financial situation and improves cash flow, competitiveness, and valuation. Consumer profitability analytics, predictive sales analytics, cash flow analytics, product profitability analytics, shareholder value analytics, and value-driven analytics, and are all examples of financial analytics.

Vertical Outlook

Based on Vertical, the market is segmented into BFSI, Manufacturing, Government & Public Sector, Telecom & IT, Retail & Ecommerce, Healthcare & Life Sciences, and Others. The BFSI segment recorded the maximum revenue share in the financial analytics market in 2021. It is due to the rapid adoption of financial analytics software by different banking and fin-tech institutions for offering personalized service and automated voice systems to customers. The need to record and analyse financial activities, manage plant-level strategies, production data, is driving the growth of financial analytics market in forecast period.

Regional Outlook

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America segment emerged as the leading region in the financial analytics market with the largest revenue share in 2021. Growing awareness of analytics solutions' applications, a strong emphasis on innovation, and an organizational focus on improving customer experience are some of the primary drivers for market growth in this region. Retail and healthcare are the other important verticals supporting the growth of the financial analytics market in North America, in addition to banking and financial services. Financial analytics solutions are being used by businesses to improve financial forecasts and wealth management procedures.

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporations are the forerunners in the Financial Analytics Market. Companies such as Oracle Corporations, IBM, and SAP SE are some of the key innovators in the Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Tibco Software, Inc. (Vista Equity Partners), Rosslyn Data Technologies, Harman International Industries, Inc. (Samsung Electronics Co., Ltd.), Teradata Corporation, SAP SE, Oracle Corporation, Microsoft Corporation, IBM Corporation, Deloitte Touche Tohmatsu Limited, and Hitachi Vantara LLC (Hitachi Ltd.)

Recent Strategies Deployed in Financial Analytics Market

Partnerships, Collaborations and Agreements

Mar-2022: Microsoft entered into a partnership with FD Technologies, a leading provider of products and consulting services. This partnership aimed at Microsoft to expand the reach of its KX Insights streaming data analytics platform as many companies seek to develop the data infrastructure for real-time decision-making.

Feb-2022: Microsoft extended partnership with The Qatar Financial Center Regulatory Authority (QFCRA), an independent regulator of the QFC, incorporated to authorize and regulate firms and individuals conducting financial services in or from the QFC. This partnership aimed Microsoft to explore a dedicated path for solutions that enhances Artificial Intelligence (AI) and data analytics to obtain actionable information via social media analytics, Robotics Process Automation (RPA), AI-powered knowledge mining, chatbots, and to transform digital objectives.

Jul-2021: IBM joined hands with SAP, a German multinational software corporation located in Walldorf, Baden-Württemberg that develops enterprise software to handle business operations and customer relations. This collaboration aimed to aid the companies to deal with the industry's strict compliance, resiliency, and security needs while assisting business transformation and innovation for financial services institutions.

Jun-2021: Oracle came into a partnership with Deutsche Bank, one of the world’s largest financial services organizations. This partnership aimed to upgrade the bank’s database technology and fasten its digital transformation. Under this partnership, Deutsche Bank would upgrade its present database systems and move the bulk of the Oracle Database estate to Oracle Exadata Cloud Customer, an on-premises deployment option of the Oracle Exadata Cloud Service, to assist applications that either would not move to the public cloud or may in the future.

Apr-2021: SAP came into a partnership with Dediq, an entrepreneurial investor focused on digital business and information technology. This partnership aimed to deliver enterprise-grade solutions and help the customers to get more flexible through digital business innovation and cloud technology. This partnership would extend the current FSI portfolio to cover banking and insurance processes end to end.

Acquisitions and Mergers

Jul-2021: Microsoft took over Suplari, a Seattle startup that utilizes AI to aid companies to understand and get a handle on spending. This acquisition aimed to aid customers to enhance financial visibility by using AI to automate the analysis of existing data and historical patterns from numerous data sources.

Jun-2021: Hitachi Vantara took over Io-Tahoe, a data management innovator, and a subsidiary of the UK energy company Centrica. This acquisition aimed to improve the organization's aspiration and strategy to be the leader in the digital transformation of important social infrastructure sectors like transportation, energy, healthcare, financial services, and manufacturing.

Jan-2021: TIBCO Software took over Information Builders, services in the field of Data Integration, Business Intelligence, and Data Quality solutions. This acquisition aimed to enable TIBCO Software to concentrate on business structure, and resource mapping for the ongoing health and assistance of the global partner network and expanded customer base.

Product Launches and Product Expansions

Nov-2021: Oracle expanded its product line with new capabilities in Oracle Fusion Cloud Enterprise Resource Planning (ERP) Analytics. This product expansion aimed to allow finance and operations leaders to have higher visibility into costs and assets and fasten decision-making. Oracle Fusion ERP Analytics would provide the insights required to easily analyze working capital and procurement, revenue, payment performance, and profitability.

Feb-2021: Oracle expanded its product line by updating its Oracle Sales, Oracle Marketing, and Oracle Service platforms. This product expansion aimed to fasten users' sales cycles, solve buyer inquiries and issues and create interacting customer loyalty programs. This product expansion would enable salespeople to use the CRMs, link with buyers in the preferred channels, and view buyer quotes quickly.

Scope of the Study

Market Segments covered in the Report:

By Component

• Solution
• Services

By Deployment Model

• On-premise
• Cloud

By Organization Size

• Large Enterprises
• Small & Medium-sized Enterprises (SMEs)

By Vertical

• BFSI
• Manufacturing
• Government & Public Sector
• Telecom & IT
• Retail & Ecommerce
• Healthcare & Life Sciences
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Tibco Software, Inc. (Vista Equity Partners)
• Rosslyn Data Technologies
• Harman International Industries, Inc. (Samsung Electronics Co., Ltd.)
• Teradata Corporation
• SAP SE
• Oracle Corporation
• Microsoft Corporation
• IBM Corporation
• Deloitte Touche Tohmatsu Limited
• Hitachi Vantara LLC (Hitachi Ltd.)

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