Business Intelligence Market

Business Intelligence Market Size

Business Intelligence Market is anticipated to grow at a CAGR of 9.3% in the forecast period (2024-2034), with the market size valued at USD 29.8 billion in 2023 and projected to reach USD 79.6 billion by 2034.

Business intelligence (BI) is various technologies and practices that are used by companies to analyse data and extract valuable insights. It involves the collection, processing, and interpretation of diverse data sets, such as sales figures, customer interactions, and market trends. Business intelligence tools and methods enable organizations to make informed decisions, identify opportunities, and address diverse challenges efficiently. Therefore, by utilizing data visualization and predictive analytics, BI empowers stakeholders to determine trends and correlations within their operations. Consequently, business intelligence facilitates data-based decision-making, along with improving strategic planning, and cultivates creating a competitive edge in the rapidly changing business ecosystem.

Market Highlights

Business Intelligence Market is expected to exhibit a CAGR of 9.3% during the forecast period, 2024-2034

Business Intelligence Market is anticipated to reach USD 79.6 billion, growing at a CAGR of 9.3% during the forecast period, due to the growing demand for data-based decision-making across various sectors. Moreover, advanced analytics, along with artificial intelligence and machine learning have emerged as important trends within business intelligence solutions. Cloud-based BI solutions have gained significance due to their scalability and cost-efficiency, which aligns with the needs of businesses for reliable analytics platforms. Additionally, with the expansion of big data and the Internet of Things, business intelligence providers are focusing on improving data integration capabilities and providing real-time analytics solutions. Thus, the business intelligence market remains highly competitive as vendors are continuously investing in innovation to distinguish their products and capture market share.

Source: Fatpos Global

Business Intelligence Market Segmentation

Large Enterprises segment will lead the industry owing to the easy availability of resources with them

Business Intelligence Market is segmented based on Enterprise Type into Small & Medium Sized and Large Enterprises. The large enterprises segment dominates the business intelligence market as these companies have huge financial resources, which allow them to invest in advanced business intelligence tools and platforms. Moreover, their large operations generate enormous data volumes across various departments, which demands advanced BI solutions for analysis and decision-making. Additionally, these enterprises require highly customizable business intelligence solutions that can address specific industry needs. Besides, despite the dominance of large enterprises within the business intelligence market, the easy availability of cloud-based BI solutions is making modern analytics more accessible to smaller and medium-sized enterprises, thereby bridging the gap between these enterprises.    

Cloud segment will dominate due to its scalability and affordable options

Business Intelligence Market is segmented based on Deployment into Cloud and On-premise services. The cloud segment is anticipated to lead the business intelligence market as cloud-based BI solutions provide scalability, that allows businesses to adjust resources based on demand. In addition, the subscription-based pricing model of cloud BI reduces initial investments and maintenance costs, thus making it accessible to businesses of all sizes. Cloud BI offers greater accessibility, that allows users to access data from anywhere with an internet connection and facilitate collaboration in real time. Therefore, these benefits collectively make cloud-based business intelligence solutions the preferred choice for businesses that are seeking cost-effective and innovative analytics solutions. 

Source: Fatpos Global

Market Dynamics

Growth Drivers

Increasing Data Volumes and Complexity Will Boost the Demand for Business Intelligence Solutions

Digitalization across various industries has stimulated an increase in the volume and complexity of data. Organizations are flooded with structured and unstructured data that are derived from social media, IoT devices, and interactions with consumers. This extensive amount of data is a double-edged sword, as it provides benefits and challenges. For instance, the data has the potential to provide essential insights into strategic decision-making and innovation but to successfully manage and analyse such complex data requires modern business intelligence solutions. Therefore, there is a growing demand for advanced business intelligence tools that can extract actionable insights from a variety of datasets to remain competitive and relevant in the market.

Adoption of AI and Machine Learning to Fuel the Growth of Business Intelligence Market

Integration of artificial intelligence and machine learning into business intelligence solutions represents a major shift in data analytics. AI and ML algorithms improve business intelligence systems by automatically detecting complex patterns and errors within vast datasets. In addition, by using AI-powered business intelligence tools, organizations gain the capacity to predict emerging trends and actively adapt to changing market conditions. Thus, businesses are using business intelligence tools more frequently as they realize how crucial AI and ML are in generating benefits and maintaining growth. This allows companies to create an innovative and adaptable culture in response to changing market conditions.

Restraints

Concerns About Data Security and Privacy Will Limit Industry Expansion

Rising digitization of business operations and dependence on cloud-based business intelligence platforms have raised worries regarding data security and privacy. The valuable data stored and processed by BI systems includes customer data and financial records, which present lucrative targets for cyber threats. Moreover, regulatory standards like GDPR and CCPA require strict protocols for data handling. These measures are essential for reducing the risks of data breaches and for ensuring compliance with regulatory needs. Consequently, as organizations plan to reap the benefits of AI-driven BI, ensuring data integrity and confidentiality is necessary for building trust and maintaining regulatory compliance.

Recent Developments

• In 2023, IBM acquired Instana to increase their monitoring capabilities in the BI market, while the company effectively partnered with Snowflake to increase cloud data warehouse integration and analytical workflow.
• In 2023, Tableau, launched Tableau 2023.3, with improved data preparation and AI-powered insights. The company also acquired AskData to strengthen its natural language query capabilities for data exploration.
• In 2023, Microsoft integrated its most powerful tool PowerBI with Teams to enable better data sharing and collaboration, while the company also launched a new AI Builder with PowerBI which simplifies AI integration for predictive analysis.
• In 2023, Oracle enhanced analytics for Oracle Cloud, which improves access to mobiles, data storytelling, and integration with Oracle applications. The company also acquired Rimini Street to expand its Oracle BI platforms and applications.
• In 2023, SAP released the SAP analytics cloud platform for enterprise BI, planning, and analytics. The company has formed a strategic partnership with Google Cloud, to offer SAP analytics cloud on Google Cloud Platform to provide better flexibility.

Business Intelligence Market

Key Players:

• IBM
• Tableau
• Microsoft
• Oracle
• SAP
• Qlik
• Domo
• Looker
• SAS
• Infor
• MicroStrategy
• Yellowfin
• TIBCO Software
• ThoughtSpot
• Zoho Analytics
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Business Intelligence Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The North American region holds the leading position in the market due to its strong economy which creates a culture of technological innovation and a favourable environment for the adoption of advanced business intelligence (BI) solutions. Moreover, with a strong focus on data-based decision-making, North American companies are actively demanding BI tools to extract important insights from datasets.

In contrast, Asia Pacific is emerging as a major player following North America's lead. The fast economic growth, along with expanding digital infrastructure is contributing to this growth of the Business Intelligence Market across the Asia Pacific region. Furthermore, businesses in Asia Pacific are increasingly investing in BI solutions to use data for strategic decision-making. These factors contribute to the growth of the business intelligence market in the Asia Pacific region.

Source: Fatpos Global

Impact of COVID-19 on Business Intelligence Market

COVID-19 pandemic has significantly impacted the market in several ways. Initially, it accelerated the adoption of digital transformation tools as businesses were looking to adapt to remote work and virtual operations. This led to a high demand for cloud-based business intelligence (BI) solutions to support remote data access. Moreover, the pandemic highlighted the importance of data-driven decision-making in navigating uncertainty and reducing risks. However, the economic downturn due to the pandemic led some organizations to delay their business intelligence investments, which impacted the growth of the market in the short term. Therefore, COVID-19 underscored the role of business intelligence in providing agility and better decision-making capabilities during the COVID-19 pandemic.

Business Intelligence Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Business Intelligence Market Scope and Segments:

Frequently Asked Questions (FAQ):