Business Intelligence (BI) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Business Intelligence (BI) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Business Intelligence (BI) Market is expected to grow at a CAGR of 12% over the forecast period. With the emergence of Big Data and the increasing need to make critical business decisions within a compressed timeframe, business intelligence (BI) and analytics tools have gained a substantial market share in the past decade. This trend is expected to increase steadily, along with the advancement of technology and growing investments, during the forecast period.

Key Highlights

• Data Visualization has become a standard for data analysts to convey information to decision makers in an easy and actionable way; combined with the analysts' skills and the steps taken to discover the data has become a critical aspect of the analytical process. Long-form storytelling formats through multi-stage dashboards or scrolling are becoming more pervasive, allowing the analysts to display a step-by-step approach to derivate insights. Data Visualization is transforming how enterprises use data and implement ideas. As a result, adopting business intelligence tools to leverage advanced analytical approaches helps businesses enhance data literacy to drive actionable insights.
• Furthermore, data visualization tools have been increasingly used for analytics in various organizations. They are used to design infographics and charts and build BI dashboards and performance scorecards. Business intelligence also uses advanced analytics, such as predictive analytics, statistical analysis, big data analytics, and text mining. Due to the enhanced capability of drawing valuable insights, the increased use of these tools drives the need for business intelligence across different industries. BI systems also help companies identify market trends and spot business problems that must be addressed.
• Another driver for BI is the emergence of IoT, integrating advanced analytics for Big Data with BI systems. Due to rapid technological advancements, cloud computing and big data analytics have gained traction in recent years. Advanced analytics and BI are highly complementary, as advanced analytics can provide a more in-depth and exploratory perspective on the data. In contrast, BI systems provide a more structured user experience regarding dashboard visualization, reporting, performance management metrics, etc. Also, there is a substantial increase in the need for data analytics and data visualization tools. For instance, according to the IBM Quant Crunch, up to 2.72 million jobs requiring data science skills will likely be posted by the end of 2022, making it one of the highest-demanded roles across industries.
• The cost of deploying BI Infrastructure is a primary concern for small and medium-sized businesses, which impedes market growth. Additionally, a lack of resources, including trained data scientists, consulting analysts, and IT professionals, may inhibit the expansion of the business intelligence market. However, it is anticipated that the problem of expensive infrastructure will vanish with the introduction of self-service.
• The COVID-19 pandemic has had an impact on all markets and consumer behavior. Due to the global lockdowns implemented, business intelligence products and service providers are seeing a slowdown in their growth. COVID-19 has had a minor influence on the healthcare, life sciences, and BFSI industries, which are still implementing business intelligence solutions. The pandemic also impacted the supply chains; business intelligence systems helped businesses reach the dead-end of their marketing and sales funnel to carry on their businesses with the same intensity. The opportunity provided due to the lockdown helped the business intelligence market to push the sales of business intelligence systems.

Key Market TrendsBFSI Industry is Expected to Drive the Market Growth

• The banking industry is rapidly expanding due to digitization and the pace at which various technological advancements have been embraced in recent years. The advent of technologies and tools, like business intelligence and data analytics, has helped banks reflect all required regulations and stay competitive while attending to today's modern customers' digital needs. These solutions aid financial institutions in making more intelligent financial and operational decisions.
• The BFSI sector is one of the critical infrastructure segments that suffers several fraud detections, owing to the large customer base that the industry serves and the financial information that is at stake. Financial service institutions have been four times more susceptible to fraud detection than other industries, which is expected to drive the demand for such solutions. For instance, according to NCRB Report, There have been 4,047 online banking fraud cases in 2021, which amounts to 1,384 trillion rupees. Using business intelligence tools like Power BI can help banks detect fraud in the early stages and prevent them from happening.
• The major challenge faced by the BFSI domain is risk management and changing customer demands. BI enables financial institutions to analyze vast amounts of customer data to gain actionable insights about the customers, which can be used to improve products and services. It also helps clients create dashboards to monitor their investments and returns. In addition to enhancing sales and marketing strategies and better building customer service programs, banks can reduce risk by creating more suitable risk management processes by employing a BI solution to evaluate organizational data.
• The growth in BI adoption in the BFSI sector can be attributed to numerous factors, such as the growing adoption of data analytics, an increase in data generation, increased adoption of cloud business intelligence (BI) by SMEs, and the improved efficiency of BI tools. With technologies such as AI, ML, and IoT, the dependency on data continues to rise, leading to a rise in the demand for BI tools. They help enhance the banking and financial sector operations by identifying, analyzing, addressing, and resolving issues in real-time.

North America to Hold Maximum Market Share

• The North American region dominates the business intelligence market. Major industry players such as Tableau Software, LLC, Oracle Corporation, IBM Corporation, and Microsoft Corporation are expected to boost market development in the region. Additionally, factors such as intense R & D activities in technology, increasing competition, and an evolving trend of data proliferation are aiding the market growth in North America.
• According to Cisco Systems, around 50% of ERP projects failed due to the lack of data integration. The limitations of ERP software have fueled the growth of BI tools across North America. This growth may continue to sustain as BI penetrates new verticals across industries.
• Many companies in this region are undergoing partnerships and alliances to enhance their productivity and optimize their operations using BI tools in their processes. For instance, in June 2022, Basis Technologies, a leading provider of cloud-based workflow automation and business intelligence software for marketing and advertising, announced the release of a data visualization solution that streamlines campaign reporting through live customizable dashboards. The feature simplifies time-consuming reporting processes and reduces repetitive manual tasks required to build and share digital advertising reports.
• Healthcare and retail sectors are expected to be essential in the North American region, with a push toward automation in these industries in recent years. Significant investments and supportive environments have transformed healthcare and retail, enabling these sectors to achieve complete digitization. With analytics becoming a core aspect of these industries, the demand for Business Intelligence tools is expected to rise exponentially in the coming years.

Competitive Landscape

The global business intelligence market is competitive with many healthy well-established players. The market players adopt strategic initiatives such as acquisitions, collaborations, mergers, and partnerships to get a competitive edge over other market players. Some of the recent developments in the market are:

• August 2022 - Information Resources Inc (IRI) completes a merger with NPD to create a global technology, analytics, and data provider to offer more than 7000 clients a comprehensive, accurate view of consumer behavior and total retail purchasing and consumption trends across a broad range of industries. The combined company will empower brands and retailers to collaborate, better serve their customers, respond to trends, and leverage more powerful insights to drive growth, according to the vendors.
• January 2022 - Fractal, a global provider of artificial intelligence and advanced analytics to Fortune 500 companies, announced the acquisition of Neal Analytics, a cloud, data, engineering, and AI Microsoft Gold consulting partner, to scale AI and power decisions. It also strengthens fractal's presence in Pacific Northwest, Canada, and India.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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