The financial analytics market is expected to increase due to the increasing demand for cloud-based solutions and financial analytics services across various industries and organizations. Additionally, the development of big data, the need for solutions that can deal with large amounts of data, and the increasing emphasis on data-driven financial decisions in several end-user verticals are a few of the additional factors supporting the growth of the financial analytics market in the forecast period. However, it is expected that during the forecast period, the need for addressing common business factors will further restrain the growth of the financial analytics market.
COVID-19 IMPACT
Unexpected effects of COVID-19's spread on the international industry. The market for financial analytics is now experiencing some issues. Implementing technology in this environment is challenging. The reduction in output is another restriction on this industry. Lockdowns and social exclusion hamper the deployment and other market operations. The market is currently improving its financial operations. Market participants take use of this chance to develop new technologies. Higher-end features will be the outcome of market advancements.
DRIVING FACTORS
Digital Technology Integration Is Accelerating Financial Analytics Adoption
Every industry is on the verge of a revolution as Industry 4.0 and digitization take over business practices. The world of finance is no exception to this. Designing strong security and workflow optimization platforms has become more important as the volume of digital financial transactions grows. When the COVID-19 pandemic was at its worst, this need was felt more keenly. Unprecedented shifts in human behavior occurred throughout the pandemic. Key industries were forced to permanently transition to the virtual domain, which resulted in a drastic change in working paradigms. Mobile transactions increased dramatically, with personal trading apps registering high transaction volumes.
RESTRAINING FACTORS
Several Security-Related Issues are Preventing Businesses from Expanding to Limit Market
The company's top echelons are becoming increasingly interested in information management and security. Organizations handle many different types of huge amounts of data. Numerous internal and external channels are used to collect data, making it challenging for many firms to comprehend where the data originates from, how it moves, and how it is maintained. In reality, no environment, including a cloud environment, is completely secure; every environment has some weaknesses. The hackers or invaders of the modern era are quite cunning and have advanced intrusion tools and strategies to enter any relatively vulnerable cloud environment.
SEGMENTATION
By Component
The financial analytics market is segmented based on components: solutions and service. The service category dominated the market in 2021 due to its expanding use across important businesses. With the aid of these services, businesses may better understand their past, present, and future performance and project future growth trajectories. The industry will grow due to significant demand for solutions that assess financial problems across enterprises and improve overall business performance.
By Deployment Mode
By deployment mode, the market is segmented into on-premise and cloud. The cloud category dominated the market in 2021 due to the variety of advantages cloud accounting systems provide. Cloud accounting enables users to work from any location, with up-to-date information and constant business access, and it helps a firm run more effectively. The market dynamics for cloud deployment will change due to the quickly developing automation and digitalization trends and the rising demand for contemporary, scalable, time-saving, and cost-effective accounting solutions.
By Organization Size
By organization size, the market is segmented into large enterprises and small & medium sized enterprises. The small & medium-sized enterprises category dominated the market in 2021. Due to new demands to accommodate the rising global workforce, the growth of SMEs has become a top concern for many governments worldwide. More government incentives, such as easier access to loans and more advantageous tax treatment, will assist in keeping SMEs in operation and growing the financial analytics sector.
By Industrial Vertical
By industrial vertical, the market is segmented into BFSI, IT and telecom, manufacturing, retail and e-commerce, government, healthcare, and others. The IT and telecom category is anticipated to grow at a significant rate. The continual technology developments aimed at providing better analytical services and solutions are what is driving the industry expansion. IT and telecom will become a significant market due to the rising need for better KYC management, VoIP, customer management, cloud-based payment systems, telecommunication merchant accounts, and other services.
REGIONAL INSIGHTS
North America is projected to hold the largest share of the financial analytics market over the forecast period. Some main factors driving market expansion in North America are rising awareness of the applications for analytics solutions, a strong emphasis on innovation, and an organizational focus on enhancing the customer experience. Along with banking and finance, major verticals driving the growth of the financial analytics market in North America include retail and healthcare. Businesses use financial analytics technologies to enhance financial forecasting and wealth management procedures.
On the other hand, the Asia Pacific financial analytics market is anticipated to grow significantly over the forecast period due to greater awareness and suitable government programmers. Additionally, due to increased data generation, there is a growing need for information storage and analysis, which is anticipated to fuel the expansion of the financial analytics market in the region during the forecast period. The two most important main participants in the market are China and India. Big data technology is also in high demand in China. The main force behind this industry is the demand for data-driven analytical technology. In India, the market for financial analytics is rapidly expanding.
LIST OF KEY COMPANIES PROFILED:
- Deloitte LLP
- Hitachi Vantara Corporation
- International Business Machine Corporation
- Microsoft Corporation
- Oracle Corporation
- Rosslyn Data Technologies
- SAP SE
- Symphony Teleca Services, Inc.
- Teradata Corporation
- TIBCO Software Inc.
KEY INDUSTRY DEVELOPMENTS:
- March 2022: Microsoft and FD Technologies, a well-known supplier of goods and consulting services, have partnered. With so many businesses attempting to build the data infrastructure for in-the-moment decision-making, Microsoft sought to broaden the reach of its KX Insights streaming data analytics platform through this agreement.
- July 2021: IBM partnered with SAP, a Walldorf, Baden-Württemberg-based global software company that creates enterprise software to manage customer connections and business operations. This partnership sought to support business transformation and innovation for financial services institutions while aiding the companies in meeting the sector's demanding compliance, resiliency, and security needs.
| Attributes | Details |
| Study Period | 2016-2028 |
| Base Year | 2021 |
| Estimated Year | 2022 |
| Forecast Period | 2022-2028 |
| Historical Period | 2016-2020 |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Component, By Deployment Mode, By Organization Size, By Industrial Vertical, and By Geography |
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