Global Service Analytics Market Size, Share & Trends Analysis Report By Enterprise Size, By Component, By Application, By End Use, By Regional Outlook and Forecast, 2024 - 2031

Global Service Analytics Market Size, Share & Trends Analysis Report By Enterprise Size, By Component, By Application, By End Use, By Regional Outlook and Forecast, 2024 - 2031

The Global Service Analytics Market size is expected to reach $2.0 billion by 2031, rising at a market growth of 14.7% CAGR during the forecast period.

Service analytics are indispensable for optimizing operations and guaranteeing the efficient delivery of services in the BFSI sector due to the intricate nature of managing vast quantities of financial and customer data. Financial institutions leverage advanced analytics to improve decision-making, personalize customer experiences, and streamline fraud detection and claims management processes. Hence, the BFSI segment recorded 24% revenue share in the market in 2023. The segment's expansion can be attributed to its growing dependence on service analytics to improve customer service, mitigate risks, and guarantee regulatory compliance.

The major strategies followed by the market participants are Partnership as the key developmental strategy to keep pace with the changing demands of end users. For instance, In March, 2022, Cloudera, Inc. announced a global partnership with Kyndryl to accelerate customer data transformation projects across hybrid cloud environments. Additionally, In September, 2024, Oracle Corporation and Amazon Web Services (AWS) have unveiled Oracle Database AWS, a new offering that integrates Oracle’s Autonomous Database and Exadata Database Service within AWS. This strategic partnership aims to streamline cloud migration, simplify database management, and deliver a unified experience, thereby enhancing agility, security, and performance for enterprise workloads.

Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google LLC are the forerunners in the Service Analytics Market. In August, 2024, Microsoft Corporation entered into a partnership with Palantir Technologies to integrate Microsoft’s Azure OpenAI Service with Palantir’s AI Platforms, aiming to enhance analytics and AI services for the U.S. Defense and Intelligence Community in classified environments. Companies such as Cloudera, Inc. and Oracle Corporation are some of the key innovators in Service Analytics Market.

Market Growth Factors

It is becoming increasingly necessary for businesses to utilize the vast amounts of data they accumulate from a variety of sources, including operational metrics and consumer interactions, in order to make strategic decisions. Increasing pressure on companies to enhance operational efficiency is one of the primary factors driving this transition. Through service analytics, organizations can identify inefficiencies and implement corrective measures by analyzing performance metrics, including resolution rates, average response times, and resource allocation. Hence, these factors will aid in the growth of the market.

The proliferation of connected devices and the Internet of Things (IoT) is revolutionizing industries by producing massive quantities of real-time data that can be leveraged to enhance operational efficiency and service delivery. IoT devices are embedded with sensors that capture and transmit data, enabling organizations to monitor equipment, systems, and environments in real-time. According to the World Bank, in 2022, more than 13 billion IoT devices were in use. The integration of service analytics will remain a critical component in optimizing service delivery and enhancing operational efficiency, as indicated by official reports that corroborate the exponential growth in IoT adoption and its tangible benefits in industries such as healthcare and manufacturing. Thus, these factors will propel the growth of the market.

Market Restraining Factors

As businesses become more dependent on analytics tools to process large volumes of operational and consumer data, they must guarantee adherence to rigorous data protection regulations. Frameworks such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S. set strict standards for collecting, storing, and processing personal data. Failure to comply may incur severe penalties, which can tarnish a company's reputation and finances. Hence, these privacy and security concerns are key factors that slow down the overall growth of the service analytics market.

Component Outlook

Based on component, the market is bifurcated into solution and services. The services segment procured 42% revenue share in the market in 2023. This segment includes consulting, implementation, and support services, which are essential for helping organizations effectively deploy and integrate service analytics tools. As businesses seek to maximize the value of their analytics investments, there has been a rising demand for expert services that provide tailored solutions, training, and ongoing support.

Application Outlook

On the basis of application, the market is classified into field service analytics, customer service analytics, and IT service analytics. The IT service analytics segment recorded 35% revenue share in the market in 2023. IT service analytics is utilized to monitor system efficiency, manage helpdesk operations, and discover errors before they become big problems. This is done in response to the growing reliance that enterprises are placing on cloud-based solutions and digital technology. IT teams use these analytics tools to enhance service efficiency, reduce downtime, and improve overall IT service quality.

Deployment Outlook

By deployment, the market is divided into on-premise and cloud. The cloud segment witnessed 65% revenue share in the service analytics market in 2023. Businesses across various industries increasingly migrate to cloud-based service analytics platforms because they offer real-time insights, remote accessibility, and seamless integration with other cloud-based tools. The rise in remote work and the need for organizations to adapt quickly to changing business environments have further accelerated the adoption of cloud-based service analytics.

Enterprise Size Outlook

Based on enterprise size, the market is segmented into SMEs and large enterprises. The large enterprises segment procured 64% revenue share in the market in 2023. With their vast customer bases and complex service operations, large enterprises require advanced analytics solutions to manage customer interactions, streamline service processes, and optimize field and IT services. These companies often have the financial and technological resources to invest in sophisticated analytics tools that provide deep insights into their operations.

End Use Outlook

On the basis of end use, the market is divided into BFSI, retail, government, IT & telecom, healthcare, manufacturing, and others. The retail segment garnered 17% revenue share in the market in 2023. Retailers use service analytics to analyze consumer behavior across multiple channels, track product performance, and refine marketing strategies. With the increasing prevalence of omnichannel shopping and e-commerce, service analytics is essential for retailers to satisfy customer expectations, optimize operations, and drive sales growth.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment procured 37% revenue share in the market in 2023. This region's dominance can be attributed to several factors, including the high concentration of technology-driven industries, strong investment in AI and analytics tools, and a large base of enterprises adopting data-driven service models.

Recent Strategies Deployed in the Market

• Sep-2024: Domo, Inc. came into partnership with Hakkoda to leverage AI and analytics capabilities in conjunction with Snowflake’s Data Cloud. This collaboration is designed to streamline data management, enhance decision-making, and optimize analytics and visualization, delivering actionable insights and improved data utilization.
• Jun-2024: Cloudera has launched AI-driven assistants for SQL, BI, and ML, designed to accelerate data analysis, streamline AI application development, and simplify machine learning processes. These innovative tools enable enterprises to derive insights more efficiently, expanding AI capabilities for wider business applications and user accessibility.
• Apr-2024: Salesforce, Inc. has entered an expanded partnership with IQVIA. This collaboration integrates Salesforce’s Life Sciences Cloud with IQVIA’s OCE platform, aiming to deliver a comprehensive, AI-powered engagement solution for the life sciences sector. The partnership is set to transform healthcare interactions and analytics.
• Feb-2024: SAS Institute Inc. came into partnership with Carahsoft Technology Corp. to expand access to its AI and analytics solutions within the public sector. Under this agreement, Carahsoft will facilitate the distribution of SAS® Viya® and other advanced tools, enhancing government agencies' ability to make data-driven decisions and improve operational efficiency.
• Nov-2023: Salesforce, Inc. has entered an expanded strategic partnership with Amazon Web Services (AWS). This collaboration aims to enhance data management and AI capabilities by integrating Salesforce’s Data Cloud with AWS technologies, offering Salesforce products on AWS Marketplace, and improving customer experiences through AI-driven insights and secure data management.

List of Key Companies Profiled

• Cloudera, Inc.
• MicroStrategy, Inc.
• Microsoft Corporation
• Oracle Corporation
• Salesforce, Inc.
• SAP SE
• ServiceNow, Inc.
• SAS Institute Inc.
• Domo, Inc.
• Google LLC

Global Service Analytics Market Report Segmentation

By Enterprise Size

• Large Enterprises
• SMEs

By Component

• Solution
• Services

By Deployment

• Cloud
• On-premise

By Application

• Customer Service Analytics
• IT Service Analytics
• Field Service Analytics

By End Use

• BFSI
• IT & Telecom
• Retail
• Healthcare
• Manufacturing
• Government
• Other End Uses

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
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA