Business Intelligence Market By Component(Solution, Services), Deployment Model(Cloud-Based deployment, On-premise deployment, other), By Application(Financial Performance and Strategy Management, Supply Chain Analytic, Others), By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2023-2032

Report Overview

Business Intelligence Market size is expected to be worth around USD 40.7 Bn by 2032 from USD 21.9 Bn in 2022, growing at a CAGR of 6.6% during the forecast period from 2023 to 2032.

Business intelligence is a dynamic discipline that utilizes a variety of technologies, applications, and practices to collect, analyze, and present data for the purpose of making informed decisions. In today's data-driven business environment, where organizations strive to obtain a competitive edge, it plays a crucial role.

By utilizing business intelligence tools, companies can access and analyze the vast amounts of data generated by their operations, suppliers, and consumers in an efficient manner. This enables them to identify relevant trends, opportunities, and issues, resulting in improved decision-making and overall business success.

New technologies and innovations are constantly being introduced into the business intelligence market. Self-service analytics, machine learning, artificial intelligence, augmented analytics, and cloud-based solutions are recent developments. These innovations have considerably enhanced the speed, precision, and accessibility of business intelligence, making it easier for organizations of all sizes to utilize data for decision-making.

The increasing demand for business intelligence solutions has prompted significant market investments. Numerous companies have integrated business intelligence technologies into their products and services. For example, enterprise resource planning (ERP) and customer relationship management (CRM) systems now incorporate analytics functionality.

Driving factors

Increasing demand for decisions based on data

As businesses strive to obtain a market advantage, the demand for data-driven decision-making has increased significantly. Business intelligence (BI) equips organizations with the means to collect, analyze, and visualize data, allowing them to make decisions based on insights. This increasing demand for data-driven decision-making is a key factor driving the BI market.

Increasing complexity and volume of data

As a result of the proliferation of digital technologies and the Internet of Things (IoT), organizations are generating enormous amounts of data from a variety of sources. This data frequently comes in a variety of formats and is extremely complex. Business intelligence solutions enable organizations to effectively manage this vast quantity of data and extract valuable insights from it. The need to manage and derive actionable insights from massive amounts of data is a major force driving the BI market.

Increasing Adoption of Cloud-Based Business Intelligence (BI) Solutions

Cloud computing has revolutionized the access and utilization of technological resources by enterprises. The advantages of cloud-based business intelligence solutions include scalability, adaptability, and cost-effectiveness. As more organizations incorporate cloud technologies, cloud-based BI solutions are gaining popularity. As businesses seek more accessible and efficient methods to deploy and manage analytics infrastructure, this factor is driving the growth of the BI market.

Restraining Factors

Ineffective implementation of BI due to a lack of qualified professionals

The lack of a data center in the United States makes it difficult for the government to control the flow of data. Compiling and collecting data is one thing, but utilizing business intelligence dashboards for data analysis is an entirely different concept. Companies need qualified data analysts who can effectively analyze, manipulate, and interpret structured and unstructured data, identify patterns within the data, and provide timely and insightful insights.

To address this issue, organizations should invest in the recruitment, retention, and training of data analytics and business intelligence (BI) professionals. Priority should be given to the hiring of a professional and experienced individual who can independently implement and maintain a BI system.

Integration of multiple data sources for analysis is difficult

The complexity of effectively incorporating data sources is a further factor that hinders the successful implementation of BI. Frequently, companies capture data from multiple sources, such as the cloud, on-premise, ERP, CRM, social media, etc., and managing data integration between these sources can be a bottleneck. A well-designed ETL infrastructure capable of incorporating multiple data sources into the system is required for a BI integration process. Developing ETL pipelines typically requires a significant investment of time, money, and resources.

To overcome this challenge, organizations must analyze their operational and decision-making requirements and implement robust data governance and management strategies. To overcome this challenge, businesses can utilize ETL tools such as Apache Spark, Talend, or Amazon Web Services (AWS) Data Pipeline, which offer rapid data integration and processing capabilities.

Component Analysis

The Solutions Segment is presently dominating the business intelligence market, accounting for the largest revenue share. This segment includes a vast array of solutions and software applications designed to assist businesses with data analysis, reporting, and strategic decision-making. In recent years, the solutions segment has grown in popularity due to the need for businesses to obtain a deeper understanding of their operations and customers.

Emerging economies play a crucial role in propelling the adoption of the solutions segment of the business intelligence market. As businesses seek to acquire a competitive edge in their respective markets, the growth and development of these economies have generated an enormous demand for this technology.

The segment's contemporary success has also been significantly influenced by consumer trends and behavior. The proliferation of mobile devices and cloud computing has simplified consumer access to business intelligence solutions. These solutions have evolved into indispensable instruments for businesses seeking to optimize operations and enhance their decision-making abilities.

Deployment Analysis

With the largest revenue share, Cloud-based deployment is currently dominating the business intelligence market. Cloud-based deployment is the delivery of a solution or application over the Internet, allowing enterprises to access it from any location or device.

Similar to the solutions segment, the adoption of cloud-based deployment in the business intelligence market is being driven by emerging economies. As businesses strive to reduce infrastructure costs and increase their agility, the need for flexible and scalable solutions has increased the demand for cloud-based deployment.

In addition to consumer trends and attitudes toward cloud-based deployment, its current success is also due to these factors. With the ability to access solutions from anywhere and on any device, cloud-based deployment has become an attractive option for enterprises. In addition, the increasing availability of high-speed internet has made cloud-based solutions more accessible to enterprises.

Application Analysis

The financial performance and strategy management segment is presently dominating the business intelligence market, accounting for the largest revenue share. This segment consists of solutions and applications designed to assist businesses in analyzing their financial performance and formulating effective strategies.

Emerging economies once again play a crucial role in promoting the adoption of this business intelligence market segment. As businesses seek to develop and compete in a market that is constantly evolving, the need for effective financial performance management and strategic decision-making has increased in significance.

In addition to consumer trends and behavior, the current success of the financial performance and strategy management market segment is also attributable to the segment's popularity. Businesses are becoming increasingly aware of the significance of effective financial management and strategy development, and this segment provides them with the resources they need to succeed.

Key Market Segments

By Component

• Solution
• Services

By Deployment Model

• Cloud-Based Deployment
• On-premise deployment
• Hybrid deployment

By Application

• Financial Performance and Strategy Management
• Supply Chain Analytic Applications
• CRM Analytic Operations
• Others

Growth Opportunity

Advanced Predictive Analytics

The rising demand for predictive analytics is a major factor driving the growth of the BI market. Predictive analytics enables organizations to obtain valuable insights into potential future events, thereby empowering them to take proactive measures. This ability to predict outcomes and trends enables businesses to make well-informed decisions that produce superior results. Finance, healthcare, and retail, among others, are utilizing predictive analytics to drive growth and optimize operations.

Evolving Data Visualization Tools

The rapid development of data visualization tools is paving the way for new opportunities in the BI market. These tools allow users to create visual representations of data, which makes it more comprehensible and facilitates in-depth analysis. By leveraging the power of data visualization, organizations are able to identify trends and patterns in their data, resulting in more informed decisions. Moreover, these tools are becoming more intuitive, thereby increasing their accessibility and democratizing data insights.

Cloud-Based Business Intelligence Solutions

Increasing adoption of cloud-based BI solutions generates an abundance of new market opportunities. The advantages of cloud-based solutions over traditional on-premises solutions include flexibility, scalability, and cost-efficiency. With cloud-based BI, businesses can access their insights from anywhere and at any time, enabling them to make data-driven decisions on the go. The adaptability and accessibility of cloud-based solutions are propelling their pervasive adoption, resulting in the expansion and innovation of the BI market.

Latest Trends

Improving Corporate Performance and Productivity

Organizations are always looking for methods to enhance their performance and productivity. This includes refining processes to reduce expenses, boosting productivity, and making more informed decisions. This is due to the fact that BI enables organizations to collect and analyze data more efficiently.

The BI tools enable managers to monitor business processes, identify trends, and take the necessary measures to enhance performance. Dashboards, for instance, provide real-time data updates, while reports can assist management in identifying potential opportunities or improvement areas.

Enhancing Knowledge of Customer Preferences and Behavior

Understanding customer preferences and behavior is essential for businesses to remain competitive. BI can assist organizations in analyzing data on customer behavior and preferences, thereby revealing their wants and requirements.

BI tools enable businesses to analyze customer data, such as purchasing history, demographics, and preferences, in order to identify trends and patterns that can be used to create more targeted marketing strategies. The company's website states that the company's goal is to provide its customers with the best possible service.

Competitive advantage derived from efficient data management

Gaining a competitive advantage in the marketplace requires efficient data management. It is essential for businesses to have effective data management strategies in place, as the quantity of data generated daily continues to grow.

BI tools provide businesses with the capacity to effectively store, manage, and analyze data. This allows businesses to make more informed decisions and respond faster to market changes. Effective data management ensures that all data is accurate, current, and readily accessible, providing businesses with a competitive advantage.

Regional Analysis

Several factors have contributed to the rise of North America as the dominant force in the business intelligence market. The dominance of the region can be attributed to technological advancements, robust infrastructure, and a strong emphasis on data-driven decision-making.

The presence of significant technology hubs like Silicon Valley in California and Seattle in Washington is one of the primary reasons for North America's dominance. These centers attract top talent and foster innovation, resulting in the creation of innovative business intelligence solutions. Numerous business intelligence market leaders, such as Microsoft, Tableau, and IBM, are headquartered in North America, further consolidating the region's dominance.

In addition, North America has a well-developed and mature IT infrastructure, including high-speed internet connectivity and cloud computing capabilities. This infrastructure enables organizations to efficiently collect, process, and analyze vast quantities of data. Additionally, the region's sophisticated infrastructure supports real-time analytics and enables businesses to make timely decisions based on data.

Key Regions and Countries

North America

• US
• Canada
• Mexico

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

Power BI by Microsoft is one of the most popular business intelligence tools. It offers an intuitive interface, data visualization abilities, and seamless integration with other Microsoft products. Additionally, Microsoft offers Azure Analytics services for advanced analytics and data warehouses.

Tableau's intuitive data visualization and exploration capabilities are well-known. It enables users to create interactive dashboards and reports and offers an extensive selection of data connectors. Following its 2019 acquisition by Salesforce, Tableau has acquired further market momentum.

SAP offers an extensive suite of business intelligence solutions, which includes SAP BusinessObjects. It offers reporting, ad-hoc querying and analysis, data visualization, and data integration tools. Through its SAP Analytics Cloud platform, SAP also offers cutting-edge analytics capabilities.

IBM's business intelligence offerings include Cognos Analytics, which offers a comprehensive set of reporting, dashboarding, and data exploration features. IBM also offers Watson Analytics, an analytics platform powered by artificial intelligence that enables natural language querying and automated data insights.

Qlik offers the popular business intelligence and data visualization tools QlikView and Qlik Sense. The associative data engine of Qlik enables users to dynamically investigate data relationships, and its drag-and-drop interface simplifies data exploration and analysis.

Top Key Players in the Business Intelligence Market

• Microsoft
• IBM
• SAP
• Qlik
• Oracle
• Microstrategy
• GoodData
• Targit
• SAS
• Tableau Software

Recent Development

• In 2023, Tableau Software, a prominent provider of business intelligence and data visualization solutions, released Tableau. This new version introduces sophisticated AI-driven analytic capabilities, allowing users to discover more profound insights and make more efficient data-driven decisions.
• In 2022, Microsoft Corporation made substantial improvements to its business intelligence offerings. Power BI Premium Plus is an upgraded version of the company's popular Power BI platform. Power BI Premium Plus introduces sophisticated AI-driven data modeling capabilities, allowing users to detect relationships and patterns in their data automatically.
• In 2023, Salesforce, a prominent provider of customer relationship management (CRM) platforms, expanded its business intelligence capabilities by acquiring Tableau Software. This strategic acquisition enables Salesforce to provide its customers with a comprehensive suite of CRM and data visualization solutions, enabling businesses to gain a deeper understanding of consumer data and drive improved business outcomes.
• In 2023, Qlik Sense 2023 was introduced by Qlik Technologies, a prominent provider of business intelligence and data analytics platforms. This version introduces advanced capabilities for augmented analytics enabled by artificial intelligence and machine learning.

Report Scope