During these past few months, the demand for digital transformation significantly increased, driving investments in analytics and prompting more companies to adopt smart analytics solutions.
As a result of COVID-19, the global analytics market is expected to grow from $25.4 billion in 2019 to $33.8 billion by 2021, at a CAGR of 15.5% during the forecast period, according to a new study.
What’s Boosting the Analytics Market?
There was already an upward trend in the growth of the global analytics market, but recent events and shifts in the following are occurring:
- Consumer behavior
- Customer expectations and demands
- An accelerated digitization process across multiple industries
Other major factors boosting the analytics market include the increased demand for remote services and location data, as well as the need for real-time tracking and monitoring of businesses.
The COVID-19 impact spreads across all industries, but not all analytics sectors are impacted equally. According to the MarketsandMarkets study, the healthcare analytics market is expected to grow at the highest rate of all the business sectors.
Healthcare organizations are using advanced technologies, such as analytics, AI, and machine learning to analyze the complex data around COVID-19 to monitor and reduce the impact of the virus.
The analytics as a service industry is also expected to experience rapid growth during the forecast period. The growth of this industry can be attributed to the increasing deployment of analytics solutions, which lead to the growing demand of pre- and post-deployment services. This involves everything from the due diligence before an implementation – planning, strategizing, and testing – to the monitoring and reviewing happening after the analytics implementation.
Geographical Shifts in the Analytics Market
Regarding the geographical impact of analytics and COVID-19, Asia-Pacific, and Latin America are expected to record the highest growth rate during the forecast period. Digital transformation prompted increased data demands, which compelled organizations to act and significantly increase their analytics investments and implementations.
There are two major growth avenues that boost APAC and Latin America.
- The emerging economies are starting to experience significant shifts from traditional business models, making it a booming market for analytics solutions providers. The increased internet usage, the widespread adoption of data science, and increased digitization are providing great value to consumers and businesses and prove a significant growth driver for analytics.
- The developed countries in these regions are already providing analytics solutions to developing countries around the world, further increasing the analytics market size in their respective regions.
North America is expected to hold the highest market share during the forecast period. The widespread adoption of analytics solutions due to pressing data requirements, such as storing, managing, and analyzing data, boosted industry growth in verticals other industries such as banking, financial services, retail, and e-commerce.
Business Impact from COVID-19
The virus has impacted businesses at all touchpoints. Everything from simple tasks such as paying bills, shopping online, getting groceries delivered, or attending conferences and online courses have become part of the new normal, already expected by consumers.
In this new paradigm, companies started pursuing other business avenues, powered by data science and data analytics solutions, to ride the ever-increasing wave of consumer digital-demands and further boosting the global analytics industry.
Data science-driven tools such as chatbots, software robots, recommendation engines, imagery analysis, forecasts, and predictive analytics are amazing solutions to leverage for competitive advantage, especially during this time.
There is no surprise that the global analytics market is booming in times of crisis as well. Organizations are realizing how much they rely on making decisions backed by data to deliver insights into their customer and marketing analytics.
The ability to track your business performance with extensive dashboards, use data-driven resource-allocation software to tackle challenges or leverage predictive analytics models for forecasts are just a few options that can help companies thrive during the global pandemic while also investing in the future.
According to an analysis by one of our esteemed Partners, Contentsquare, the coronavirus period shows a clear surge in traffic metrics compared to the reference period: 6.9% increase in traffic, 11.8% increase in pageviews, 12.4% increase in transactions, and a 3.6% increase in conversion rates.
The same analysis also revealed a high discrepancy between industries, some rapidly expanding while others are struggling. The reason why some industries are surging and others aren’t are mostly attributed to just an increase in demand.
The most successful industries are adapting to create smarter digital marketing campaigns to support their customers by building a foundation focused on measurement, segmentation, profiling, optimizing conversion, and more.
If you want to leverage data science or analytics solutions for your business, contact us, and our experts can help you build the strong foundation needed to adapt and succeed. Having strong analytics implementations and data science technologies working for your business is paramount, especially during this time where gaining a competitive advantage can make or break your business.