Social Media Analytics Market - Forecasts from 2024 to 2029
The social media analytics market is projected to grow from US$12.684 billion in 2024 to US$26.680 billion in 2029 at a CAGR of 16.03%.
Social media analytics involves accumulating and analyzing data gathered through various social media platforms, namely Facebook, Instagram, Twitter, LinkedIn, and YouTube, among others, to support business decision-making and measure action performance. Such analytics differ from previews, retweets, and services that support marketing campaigns on Google Analytics or LinkedIn.
The growing digitization, investment in high-speed network bandwidth followed by favorable government policies, and investments to accelerate 5G technology access are anticipated to stimulate the demand for social media analytics by organizations in the coming years. Its concept of social listening and monitoring various channels for opportunities is driving its incorporation in enterprises both small & medium, and large.
Bolstering end-user growth, strategic collaborations among market players, and boosting smartphone culture and social media consumption are projected to drive market expansion. However, the stringent government regulations regarding social media platforms and their management are expected to act as an obstacle to market growth.
Social Media Analytics Market Drivers:
Booming 5G penetration is anticipated to drive the market expansion.
As time advances, the scope of modern innovations also increases, which provides new growth prospects. Investments in modern options, especially 5G networks and high-speed bandwidth, are on the rise, fuelled by rapid urbanization and growing demand for wireless infrastructure. Major economies, namely the United States, China, India, Japan, and EU nations, are actively participating in expanding their 5G networks.
As per Global Mobile Suppliers Association’s “Mobile Economy 2024”, in 2023, 5G subscriber penetration in China stood at 45%, and by 2030, the subscriber penetration is poised to reach up to 88%. Likewise, Europe’s 5G subscription reached 20% in 2023 and will grow to 81% by 2030. With the growing high-speed internet adoption, the scale of social media consumption will also experience an upward trajectory, thereby providing more scope for enterprises to understand customer dynamics and plan their strategies accordingly.
Growing smartphone consumption will stimulate market expansion.
Rapid urbanization and improving living standards have increased the demand for modern electronic devices, such as smartphones, which constitute a major medium for surfing social media platforms. With the booming smartphone penetration, the prevalence of social media consumption is also expected to increase, thereby driving the demand for and usage of various analytics solutions. According to “Ericsson Mobility Report – June 2024”, in Q1 of 2024, global smartphone shipment experienced a 6% increase. In 2023, the global smartphone subscription reached 6.93 billion, which signified a 5.48% growth over 2022’s 6.57 billion subscriptions. Hence, by 2029, the subscription volume is set to reach 8.10 billion.
Booming social media consumption will accelerate the market expansion.
Social media platforms such as Facebook, Instagram, and Twitter are forming an integral part of today's consumer behavior. Companies are developing their digital pages that provide necessary updates regarding their specific products and services, which assist consumers in making purchase decisions.
According to the Banker’s September 2023 press release, in 2022, Americans spent nearly US$71 billion on impulse buying of products they saw on social media, and the average impulse spending stood at US$754. The same sources further stated that millennials (aged 27 to 42 years) and Generation Z (18 to 26 years) social media users are most likely to engage in impulse buying. Hence, providing product updates enables companies to retain their customer loyalty.
Social Media Analytics Market Geographical Outlook
North America is the largest regional market.
Geographically, the global market has been segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The North American region is projected to hold a notable market share due to the early adoption of technology and well-established infrastructure. Moreover, the high internet penetration in the United States, Canada, and Mexico, followed by favorable investments in 5G technology, contributes to the regional market expansion.
According to the Canadian Internet Survey, in 2022, internet use among Canadians aged 15 years and older increased from 92% to 95%. Furthermore, as per the Mexican Internet Association, in 2022, there were 96.8 million internet users in the country, which signified a 93% annual increase over 2021. Additionally, the presence of key players in the market also supports market growth in North America.
The increasing penetration of social media platforms in major developing economies such as India, China, and Indonesia, coupled with a surge in the penetration of faster and cheaper internet along with a considerably larger number of social media users among other regions, is one of the key factors for the market to grow at a decent rate in the Asia Pacific region. According to the Internet and Mobile Association of India, in 2022, there were 759 million active Internet users, which represented 59% of the total population. The same source further stated that the number is expected to reach up to 900 million by 2025.
Social Media Analytics Market Key Developments
In April 2024, Hootsuite announced that it is set to acquire the AI-based social listening solution company Talkwalker. This will enable the former to bolster its services regarding social media relationships with its customers. The company will provide a social media performance engine to businesses that will turn decisions into actions on sight.
In March 2024, Sprout Social's virtual platform, The Arboretum, launched a new mentorship program for social media and marketing professionals. The program would facilitate the exchange of ideas and brand expansion, thereby providing professionals with a competitive advantage in a fast-paced industry.
The Social Media Analytics market is segmented and analyzed as follows:
By DeploymentOn-premise
Cloud
By End-UserRetail
Media and Entertainment
BFSI
Travel and Hospitality
Others
By GeographyNorth America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Italy
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
South Korea
India
Taiwan
Thailand
Indonesia
Others