“Global Service Analytics Market to reach a market value of USD 2.0 Billion by 2031 growing at a CAGR of 14.7%”
The Global Service Analytics Market size is expected to reach $2.0 billion by 2031, rising at a market growth of 14.7% CAGR during the forecast period.
Service analytics are indispensable for optimizing operations and guaranteeing the efficient delivery of services in the BFSI sector due to the intricate nature of managing vast quantities of financial and customer data. Financial institutions leverage advanced analytics to improve decision-making, personalize customer experiences, and streamline fraud detection and claims management processes. Hence, the BFSI segment recorded 24% revenue share in the market in 2023. The segment's expansion can be attributed to its growing dependence on service analytics to improve customer service, mitigate risks, and guarantee regulatory compliance.
The major strategies followed by the market participants are Partnership as the key developmental strategy to keep pace with the changing demands of end users. For instance, In March, 2022, Cloudera, Inc. announced a global partnership with Kyndryl to accelerate customer data transformation projects across hybrid cloud environments. Additionally, In September, 2024, Oracle Corporation and Amazon Web Services (AWS) have unveiled Oracle Database AWS, a new offering that integrates Oracle’s Autonomous Database and Exadata Database Service within AWS. This strategic partnership aims to streamline cloud migration, simplify database management, and deliver a unified experience, thereby enhancing agility, security, and performance for enterprise workloads.
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google LLC are the forerunners in the Service Analytics Market. In August, 2024, Microsoft Corporation entered into a partnership with Palantir Technologies to integrate Microsoft’s Azure OpenAI Service with Palantir’s AI Platforms, aiming to enhance analytics and AI services for the U.S. Defense and Intelligence Community in classified environments. Companies such as Cloudera, Inc. and Oracle Corporation are some of the key innovators in Service Analytics Market.
It is becoming increasingly necessary for businesses to utilize the vast amounts of data they accumulate from a variety of sources, including operational metrics and consumer interactions, in order to make strategic decisions. Increasing pressure on companies to enhance operational efficiency is one of the primary factors driving this transition. Through service analytics, organizations can identify inefficiencies and implement corrective measures by analyzing performance metrics, including resolution rates, average response times, and resource allocation. Hence, these factors will aid in the growth of the market.
The proliferation of connected devices and the Internet of Things (IoT) is revolutionizing industries by producing massive quantities of real-time data that can be leveraged to enhance operational efficiency and service delivery. IoT devices are embedded with sensors that capture and transmit data, enabling organizations to monitor equipment, systems, and environments in real-time. According to the World Bank, in 2022, more than 13 billion IoT devices were in use. The integration of service analytics will remain a critical component in optimizing service delivery and enhancing operational efficiency, as indicated by official reports that corroborate the exponential growth in IoT adoption and its tangible benefits in industries such as healthcare and manufacturing. Thus, these factors will propel the growth of the market.
As businesses become more dependent on analytics tools to process large volumes of operational and consumer data, they must guarantee adherence to rigorous data protection regulations. Frameworks such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S. set strict standards for collecting, storing, and processing personal data. Failure to comply may incur severe penalties, which can tarnish a company's reputation and finances. Hence, these privacy and security concerns are key factors that slow down the overall growth of the service analytics market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations & Agreements.
Based on component, the market is bifurcated into solution and services. The services segment procured 42% revenue share in the market in 2023. This segment includes consulting, implementation, and support services, which are essential for helping organizations effectively deploy and integrate service analytics tools. As businesses seek to maximize the value of their analytics investments, there has been a rising demand for expert services that provide tailored solutions, training, and ongoing support.
On the basis of application, the market is classified into field service analytics, customer service analytics, and IT service analytics. The IT service analytics segment recorded 35% revenue share in the market in 2023. IT service analytics is utilized to monitor system efficiency, manage helpdesk operations, and discover errors before they become big problems. This is done in response to the growing reliance that enterprises are placing on cloud-based solutions and digital technology. IT teams use these analytics tools to enhance service efficiency, reduce downtime, and improve overall IT service quality.
By deployment, the market is divided into on-premise and cloud. The cloud segment witnessed 65% revenue share in the service analytics market in 2023. Businesses across various industries increasingly migrate to cloud-based service analytics platforms because they offer real-time insights, remote accessibility, and seamless integration with other cloud-based tools. The rise in remote work and the need for organizations to adapt quickly to changing business environments have further accelerated the adoption of cloud-based service analytics.
Based on enterprise size, the market is segmented into SMEs and large enterprises. The large enterprises segment procured 64% revenue share in the market in 2023. With their vast customer bases and complex service operations, large enterprises require advanced analytics solutions to manage customer interactions, streamline service processes, and optimize field and IT services. These companies often have the financial and technological resources to invest in sophisticated analytics tools that provide deep insights into their operations.
On the basis of end use, the market is divided into BFSI, retail, government, IT & telecom, healthcare, manufacturing, and others. The retail segment garnered 17% revenue share in the market in 2023. Retailers use service analytics to analyze consumer behavior across multiple channels, track product performance, and refine marketing strategies. With the increasing prevalence of omnichannel shopping and e-commerce, service analytics is essential for retailers to satisfy customer expectations, optimize operations, and drive sales growth.
Free Valuable Insights: Global Service Analytics Market size to reach USD 2.0 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment procured 37% revenue share in the market in 2023. This region's dominance can be attributed to several factors, including the high concentration of technology-driven industries, strong investment in AI and analytics tools, and a large base of enterprises adopting data-driven service models.
The service analytics market is highly competitive, driven by the increasing demand for data-driven insights to enhance customer service and operational efficiency. Companies are focusing on integrating advanced AI, machine learning, and cloud technologies into their analytics platforms. As industries undergo digital transformation, the need for real-time data analysis and improved customer experiences fuels market growth, with strong competition among established players and innovative startups.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 698.3 Million |
| Market size forecast in 2031 | USD 2.0 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 14.7% from 2024 to 2031 |
| Number of Pages | 320 |
| Number of Tables | 543 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Enterprise Size, Component, Deployment, Application, End Use, Region |
| Country scope |
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| Companies Included | Cloudera, Inc., MicroStrategy, Inc., Microsoft Corporation, Oracle Corporation, Salesforce, Inc., SAP SE, ServiceNow, Inc., SAS Institute Inc., Domo, Inc., Google LLC |
By Enterprise Size
By Component
By Deployment
By Application
By End Use
By Geography
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