While 2019 has been an extremely eventful year for data analytics, 2020 is predicted to be the year of data science! The rise and widespread adoption of this facet of data analytics, which includes machine learning and AI solutions, has skyrocketed data generation and the need for strong data analytics implementations and expertise.
The need for data science has manifested across all industries since almost every business is striving to establish a strong digital presence. The surge in spending for data science solutions, talent within the industry, and successful implementations demonstrate that companies understand the tremendous impact insights have on organizational performance.
Below we’ve gathered a few key takeaways for 2020 when it comes to data analytics and data science.
2020 Global Data Analytics Market
The Global Data Analytics Market has witnessed strong, continuous growth in the past few years and is projected to continue this same path.
With the help of data analytics, organizations can now leverage data to extract valuable insights, which are used to create actionable decisions. In the past few years, data analytics has been broadly used to empower organizations to make the most profitable business choices.
A recent market study shows that the Data Analytics Market is expected to grow at a CAGR of 30.08% from 2020 to 2023, which would equate to $77.6 billion. In 2019, the global analytics market was $49 billion worldwide, which is more than double the value four years ago.
Big Data & Business Analytics Market
The big data analytics market is driven by organizations that realize the operational advantages of using analytics solutions that empower organizations to better target consumers, continue vendor consolidation, and increase access to cloud-based models, enterprise-grade security, and data governance solutions offered by market vendors.
The global big data and business analytics market was valued at $168.8 billion in 2018 and is forecasted to grow up to $274.3 billion by 2022 at a CAGR of 13.2%.
In 2019, the big data and business analytics market generated $189 billion in revenue globally.
According to the same study, the key trends impacting the big data and business analytics market include Internet of Things (IoT) adoption and proliferation of data, big data fueling machine learning and AI growth, and data strategy becoming central to C-level business planning.
IoT Analytics & Wearables
The rapid expansion of data generated by IoT devices has uncovered an entirely new field of study for analysts. While web or app patterns are already enjoying the full attention of analysts, there are amazing opportunities in profiling patterns, behaviors, and understanding data from these new sources.
IoT analytics provides users with the tools and procedures to discover value from huge volumes of data generated by various devices. The IoT analytics market has been valued at $17.1 billion in 2019 and is expected to grow at a CAGR of 29.8% between 2020 and 2025 and reach $81.67 billion by 2025.
According to a new study, the increasing number of connected devices is one of the prominent factors driving growth in the IoT analytics market. For example, Ericcson’s mobility report states that there would be 1.5 billion IoT devices with cellular connections in 2022.
Factories in the industrial sector have also started adopting IoT analytics for streamlining production via automated robots. These robots (which are often networked together) enable manufacturers to use data to make better decisions for their business.
According to Statista, by 2021, the global cloud data center IP traffic is predicted to reach around 19.5 zettabytes. Connected IoT devices are projected to generate 79.4 zettabytes of data in 2025.
Fast-growing mobile data traffic, cloud computing traffic, as well as the rapid development of technologies such as AI and the Internet of Things (IoT) all contribute to the increasing volume and complexity of data sets.
Global BI & Analytics Software Application Market
While it is true that data is at the heart of any digital business today, data alone can not provide all of the answers organizations need. Companies require insights and actionable paths they can take to optimize and adjust the business for maximum results.
With companies collecting more and more data, business intelligence tools are gaining exponential traction. The size of the business intelligence and analytics software application market is forecasted to reach around $14.5 billion in 2022.
Digital Transformation & Automation
Digital transformation has been one of the hottest trends of 2019, and all evidence indicates that this will amplify in 2020. Managers, executives, and entrepreneurs around the world have digital transformation at the top of their agenda. Nowadays, it’s almost impossible to imagine how the businesses of the future will look like without mentioning digital transformation.
Every traditional business has been changed by the Internet, and more specifically by data. The rapid expanse and demand for digital transformation is strongly associated with the rise of the analytics services and solutions market.
Automation is another powerful by-product of businesses going digital. When companies decide to take their organization to the next level, they not only start generating a plethora of data, but with the right help, they can leverage that data and automate tasks.
Another emerging trend for 2020 is Robotic Process Automation (RPA). At its core, RPA is a form of business process automation technology based on metaphorical software robots (bots) or AI workers.
This is extremely powerful since RPA can drastically free employees’ time and help them focus on more important matters within their organization. Many products in the last few years, including our own, have helped thousands of analysts automate and streamline a lot of their work by importing data.
Machine Learning, AI & Predictive Analytics
Machine learning and AI are undoubtedly two of the biggest buzzwords of the last few years. Besides constantly redefining our experience with products across all ecosystems, they became the holy grail for many companies, marketers, analysts, and programmers around the world.
By 2022, the predictive analytics market is expected to reach nearly $11 billion in annual revenue as more businesses make use of predictive analytics techniques for everything from fraud detection to medical diagnosis, according to Statista.
Predictive analytics is already one of the most widely adopted intelligent automation technologies in the world, with more than 80% of major enterprises deploying smart analytics that include predictive analytics, according to new studies.
As business interactions around the world become increasingly digitized, massive amounts of data are created and can be evaluated through predictive analytics tools to give users a better understanding of market dynamics and underlying trends. Considering this, it is no surprise that predictive models rank as one of the top big data technology trends around the world, according to Statista.
The rise in connected and integrated technologies has provided a platform for predictive analytics software vendors to leverage this development and the unprecedented growth of the Internet.
Additionally, the e-commerce sector has modified the traditional shopping behavior of customers. Dedicated email campaigns, online/social media advertising, and behavioral analyses of customers are the key enablers driving sales and increasing customer loyalty, according to a study by Markets and Markets.
With connected devices coming to the forefront, retailers are focusing on real-time analyses of customer shopping behavior and cart analyses for analyzing consumers’ perception, which can be used for building tailor-made offers that increase customer retention. Similarly, the retail market is expected to have unprecedented growth opportunities for predictive analytics, according to the Markets and Markets study.
The wide expansion of businesses worldwide propelled a spike in data volume. This has prompted organizations to develop their data science expertise.
Challenges for 2020 & Beyond
We anticipate that one of the main challenges of the new decade is going to be finding talent. Data science is taking off, but the high demand for specialists is barely met by the new practitioners emerging in the job market. The data scientist role is already one of the hottest on the job market, and we’re certain this trend will continue for the next decade.
In 2020, machine learning and AI will be the main players when it comes to profiling and targeting users, with data playing a pivotal role in marketing and business endeavors. Successive breakthroughs in the field have enabled companies to develop reliable tools to tackle real interaction without the need for human assistance.
However, this means that humans will need to focus on more advanced jobs, such as uncovering insights and patterns through advanced analytics instead of just gathering and centralizing information.
Data will be collected in high volumes, and physical storage will be incrementally more expensive to maintain. Cloud storage options will skyrocket in 2020 and in the following years, which will provide companies the ability to expand as much and as fast as they need without being restricted by physical infrastructures.
Although there is plenty of data to dive into for the future of data analytics and trends seem clear at a glance, there is no crystal ball. Wild cards can always appear and disrupt the industry. We expect more evolutions in AI, which could disrupt the market and create new opportunities for analysts and the data science world.
We’re looking forward to seeing what unfolds in 2020 and what the new decade will bring for the data analytics and data science industry! Stay tuned to our blog, and we’ll keep you posted with everything you need to know.