Industrial Analytics Market Size - By Analytics Type (Descriptive, Diagnostic, Predictive, Prescriptive), Deployment Model (On-premises, Cloud), Enterprise Size (SMEs, Large Enterprise), Component, End Use & Global Forecast, 2023 - 2032

Industrial Analytics Market Size - By Analytics Type (Descriptive, Diagnostic, Predictive, Prescriptive), Deployment Model (On-premises, Cloud), Enterprise Size (SMEs, Large Enterprise), Component, End Use & Global Forecast, 2023 - 2032

Industrial Analytics Market size is anticipated to expand at over 12% CAGR from 2023-2032 driven by the increasing smart manufacturing initiatives globally. With several industries embracing the principles of Industry 4.0, smart manufacturing is driving the integration of advanced technologies like IoT sensors, AI, and analytics into production processes, further escalating the need for industrial analytics solutions and services. Additionally, there has been significant rise in government and industry-driven initiatives for advocating smart manufacturing practices.

Furthermore, the ongoing advancements in analytics technologies, including ML and AI, are spurring the development of more sophisticated and powerful industrial analytics solutions, thereby supporting the industry growth. To cite an instance, in October 2023, AVEVA introduced AVEVA Advanced Analytics to leverage AI and ML technologies to enhance operational efficiency and achieve sustainability key performance indicators (KPIs).

The industrial analytics industry is segmented into component, analytics type, deployment model, enterprise size, end-use, and region.

Based on component, the market value from the software segment is projected to gain significant traction from 2023-2032. Advanced industrial analytics solutions enable real-time data analysis, predictive maintenance, and process optimization in manufacturing and industrial settings. Leading market participants in these sectors are actively acquiring other firms to augment their expertise and expand their software capabilities, boosting the segment growth. For instance, in August 2022, Infineon Technologies AG strengthened its software and services businesses in AI for predictive analysis involving machinery and industrial equipment by acquiring Berlin-based startup Industrial Analytics.

In terms of end-use, the industrial analytics industry from the manufacturing segment is set to generate considerable revenue through 2032. Manufacturing industries worldwide are increasingly leveraging industrial analytics to optimize production processes, improve efficiency, and reduce operational costs. Moreover, the growing prominence of Industry 4.0 principles will contribute to the rising integration of industrial analytics with many manufacturing businesses striving to stay competitive.

Regionally, the North America industrial analytics market held a sizable revenue share in 2022 and is poised to exhibit robust growth from 2023 to 2032. The presence of advanced manufacturing infrastructure, coupled with the strong emphasis on technological innovations across the region are driving the adoption of industrial analytics solutions. Furthermore, the presence of key industry players, R&D initiatives, and a proactive approach for adopting Industry 4.0 technologies in the U.S., Canada, and other major American countries will accelerate the industry growth.