The Global Financial Analytics Market size is expected to reach $17.1 billion by 2028, rising at a market growth of 11.3% CAGR during the forecast period.
Financial analytics is the process of creating ad hoc analyses in order to answer unique business problems and forecast possible financial scenarios in the future. In addition, financial analytics aims to shape business strategy using trustworthy and verifiable information rather than intuition. It gives diverse viewpoints on a company's financial data, providing insights, which can help with strategic decisions and actions that enhance the company's overall success.
Along with that, financial analytics can be characterized as an assessment of a company's viability and profitability. It is carried out by professionals who use data from financial accounts and other reports to make decisions. Forecasting possible future financial scenarios are one of the most significant applications of financial analytics. Additionally, financial analytics software is used to accelerate the process and show the data in a form that the clients can understand. Developments in business analytics tools, as well as greater usage of cloud-based solutions, are driving the industry forward. Financial analytics necessitates a significant investment and is influenced by changes in the environment. The market's growth is being fueled by firms' ability to utilize the prospect of big data analytics for the telecom industry, as well as the prospect of increased revenue for service providers via financial analytics.
Financial analytics is a way that provides several perspectives on a company's financial data. It assists in obtaining in-depth knowledge and, as a result, taking deliberate decisions to improve a company's overall presentation. Also, financial analytics is a subcategory of business intelligence and enterprise performance management, and it has an impact on every aspect of a company's operations. Companies can use financial analytics to improve their income statements and company practices.
The COVID-19 pandemic has had a beneficial impact on the financial analytics industry since increased volatility and rising uncertainty in the company have led to the implementation of financial analytics software that helps organizations stay up with financial decisions in many end-user verticals. The financial analytics business has had substantial growth in recent years, but due to the breakout of the COVID-19 pandemic, the market will experience a dramatic fall. This is due to governments enforcing lockdown in the majority of countries and halting international travel to contain the virus's spread.
Different AI-based solutions' capabilities will aid in leveraging massive amounts of data to uncover commercial value. Artificial intelligence use in the financial sector has the potential to increase the financial ecosystem's trust, precision, and resiliency. Machine learning and artificial intelligence capabilities are being used by several verticals to enhance investment decision-making procedures, improve compliance frameworks, and enhance fraud detection and harm minimization capabilities.
The demand for financial analytics systems is increasing as a result of the emergence of cloud-based technology. Cloud-based technologies enable consistent data management and result-oriented production. These programs, on the other hand, boost business efficiency by updating details in real-time. IoT enables more personalized products and services for the organizations. This means that services and products can be considerably more tailored to the consumer's needs and expectations.
Information management and security at the highest levels of business are gaining popularity. Organizations deal with massive amounts of data of many kinds. Data comes in through a variety of external and internal channels, making it difficult for many businesses to understand where it comes from, how it flows, and how it is managed. In reality, cloud environment is 100 percent secure and every environment has some sort of vulnerability and weakness. The hackers or intruders of current generation are very clever and carry sophisticated intrusion tools and techniques which is used to breach any kind of comparatively vulnerable cloud environment.
Based on Component, the market is segmented into Solution and Services. The services segment procured a substantial revenue share in the financial analytics market in 2021. Financial Analytics services offer a unique perspective on a company's financial data. It provides information to aid strategic decisions that enhance the company's overall success. Financial analytics has an impact on every area of an organization, playing a crucial part in profit calculation, answering business issues, and allowing future business forecasting. Misuse or incorrect interpretation of financial analytics can result in significant revenue losses over time.
Based on Deployment Model, the market is segmented into On-premise and Cloud. The On-Premise segment acquired the highest revenue share in the financial analytics market in 2021. The On-Premise solutions are best in terms of level of security, and due to which numerous organizations are heavily investing onto On-Premise solution, so that organization don't have to worry about potential security concerns.
Based on Organization Size, the market is segmented into Large Enterprises and Small & Medium-sized Enterprises (SMEs). The small and medium-sized enterprise segment garnered a significant revenue share in the financial analytics market in 2021. Financial analytics aid in the formation of potential business plans. This aids in the development of the company's decision-making strategy. It allows users to focus on evaluating and controlling the company's real assets, like cash and equipment. It provides a complete analysis of the company's financial situation and improves cash flow, competitiveness, and valuation. Consumer profitability analytics, predictive sales analytics, cash flow analytics, product profitability analytics, shareholder value analytics, and value-driven analytics, and are all examples of financial analytics.
Based on Vertical, the market is segmented into BFSI, Manufacturing, Government & Public Sector, Telecom & IT, Retail & Ecommerce, Healthcare & Life Sciences, and Others. The BFSI segment recorded the maximum revenue share in the financial analytics market in 2021. It is due to the rapid adoption of financial analytics software by different banking and fin-tech institutions for offering personalized service and automated voice systems to customers. The need to record and analyse financial activities, manage plant-level strategies, production data, is driving the growth of financial analytics market in forecast period.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 8.3 Billion |
| Market size forecast in 2028 | USD 17.1 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 11.3% from 2022 to 2028 |
| Number of Pages | 258 |
| Number of Tables | 453 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Deployment Type, Organization Size, Vertical, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America segment emerged as the leading region in the financial analytics market with the largest revenue share in 2021. Growing awareness of analytics solutions' applications, a strong emphasis on innovation, and an organizational focus on improving customer experience are some of the primary drivers for market growth in this region. Retail and healthcare are the other important verticals supporting the growth of the financial analytics market in North America, in addition to banking and financial services. Financial analytics solutions are being used by businesses to improve financial forecasts and wealth management procedures.
Free Valuable Insights: Global Financial Analytics Market size to reach USD 17.1 Billion by 2028
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporations are the forerunners in the Financial Analytics Market. Companies such as Oracle Corporations, IBM, and SAP SE are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Tibco Software, Inc. (Vista Equity Partners), Rosslyn Data Technologies, Harman International Industries, Inc. (Samsung Electronics Co., Ltd.), Teradata Corporation, SAP SE, Oracle Corporation, Microsoft Corporation, IBM Corporation, Deloitte Touche Tohmatsu Limited, and Hitachi Vantara LLC (Hitachi Ltd.)
By Component
By Deployment Model
By Organization Size
By Vertical
By Geography
The global financial analytics market size is expected to reach $17.1 billion by 2028.
Higher use of cloud technology and the internet of things are driving the market in coming years, however, several problems related to security growth of the market.
Tibco Software, Inc. (Vista Equity Partners), Rosslyn Data Technologies, Harman International Industries, Inc. (Samsung Electronics Co., Ltd.), Teradata Corporation, SAP SE, Oracle Corporation, Microsoft Corporation, IBM Corporation, Deloitte Touche Tohmatsu Limited, and Hitachi Vantara LLC (Hitachi Ltd.)
The Solution segment acquired maximum revenue share in the Global Financial Analytics Market by Component in 2021, thereby, achieving a market value of $11.5 billion by 2028.
The Large Enterprises segment is leading the Global Financial Analytics Market by Organization Size in 2021, thereby, achieving a market value of $10.9 billion by 2028.
The North America market dominated the Global Financial Analytics Market by Region in 2021, and would continue to be a dominant market till 2028.
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