The global embedded analytics market is now one of the most dynamic and fastest growing analytics markets. Last year it was valued at around $30.5 billion, and a recent market research forecasts it will reach $77.3 billion by 2025.
The same report estimates that the CAGR will be 14.2% between 2019 and 2025.
Embedded analytics is a technology designed to make data analysis and business intelligence more accessible by all kinds of applications.
In the past, traditional analytics solutions lacked integration and accessibility between data and users. As a result, it was difficult to obtain real-time autonomy, and data extraction and manipulation were done at a basic level.
Emerging from this need, embedded analytics was developed as a bridge, allowing engineers to develop analytics tools with real-time autonomy and self-service for data visualization. Embedded analytics solutions are used by companies to solve high-level analytics questions.
The embedded analytics market today
Today, embedded analytics is one of the most sought-after areas of development by companies around the globe. Embedded analytics extends beyond the scope of data visualization or analysis, and has applications in areas such as customer relationship management (CRM) and enterprise resource planning (ERP).
With the advance of IoT (Internet of Things) and the multitude of interconnected devices, companies now struggle to collect all that data, store it and analyze it.
“Multi-disciplinary data generated in organizations need to be processed efficiently and managed for which embedded analytics is preferred over traditional embedded analytics. This is the primary factor likely to fuel the embedded analytics market in the future. In addition, the emerging demand for connected electronics devices has increased the multidisciplinary data, which is anticipated to drive the embedded analytics market in the upcoming years”, according to the report.
Drawbacks of embedded analytics adoption
If something sounds too good to be true, then it probably is. The added complexity of embedded solutions comes at a cost. Replacing and integrating embedded analytics with legacy systems is very expensive and complex, making widespread adoption difficult.
However, as technology progresses, the costs will also be reduced, and companies will be able to integrate this technology if it serves their business goals.
Embedded analytics market by region
According to the report, North America is the most likely candidate to dominate the embedded analytics market in the future. This can be due to the presence of various prominent market companies, such as Microsoft, IBM, etc.in the region, which greatly invest in the technology.
Many European companies were among the early adopters of the technology, and the EU leads in the development and implications of the latest tech, therefore Europe will also to hold a substantial share of the global embedded analytics share in the future.
Projections reveal that Asia Pacific region will leverage the highest CAGR over the estimated timeframe. This can be attributed to multiple factors, including high enterprise mobility, high internet penetration rate, and increased demand for efficient data management.
If you need help building your data strategy and determining if whether embedded analytics is right for your organization we can help. Contact us to set up time with one of our data strategists