Cloud Analytics Market: Overview
The market size for cloud analytics was USD 23.5 billion in 2021, and it is projected to grow at a CAGR of 22.4 percent during the forecast period. The cost-effectiveness of cloud-based analytics solutions, the growing trend of digitalization, and the enormous rise in big data are the main factors enhancing the value of the cloud analytics offerings, which is anticipated to present opportunities for businesses operating in various cloud analytics market verticals. One of the biggest obstacles in the market for cloud analytics is traditional data warehouses and the challenges of operating input/output-intensive applications. In addition, worries about security and privacy for sensitive data are major commercial restraints.
As a superior option to on-premises analytics, cloud analytics has remained popular. While cloud analytics allows users to scale up and encourage cost reductions in the organization, on-premises analytics is challenging and expensive to manage. Additionally, the market for cloud analytics has shown to be a trustworthy choice for processing these enormous data sets and generating insightful information as a result of the need for handling massive data sets for enterprises. It has the capacity to forecast future events and generate insightful data that is useful to decision-makers. Furthermore, pay-as-you-go pricing and the utilization of data connectivity in hybrid and multi-cloud models give the user the added benefit of avoiding upfront infrastructure costs. In contrast, the cloud platform offers the advantage of public clouds with the potential for automatic, infinite scaling.
According to recent surveys, the majority of corporate businesses in a range of industries outside of IT and telecommunications do not have the IT personnel needed to handle the complexities of the cloud computing environment. Additionally, they do not want to buy pricey hardware equipment and other hardware-related instruments due to the significant capital commitment needed. These companies' best option for managing massive amounts of data without needing a lot of skilled IT personnel, equipment, or procedures is the cloud. Digitally transforming organizations (63%) are the main factor driving increased public cloud computing contact or adoption nowadays. While 66% of IT professionals say that when it comes to developing a corporate cloud computing strategy, security is their top concern.
Cloud Analytics Market: COVID-19 Impact
All facets of the technology sector would be impacted by COVID-19. By the end of 2020, it is predicted that global ICT spending would have decreased by 4% to 5%. Additionally, it is anticipated that the hardware sector would have the biggest influence on the IT sector. The expansion of the IT infrastructure has slowed down because of a decrease in production capacity and a slowdown in the supply of hardware. Businesses that offer solutions and services are also anticipated to temporarily slow down. However, in the remaining months of the year, the use of collaborative applications, analytics, security measures, and AI is expected to rise. The COVID-19 pandemic has significantly impacted economies and society in a short amount of time by changing markets and consumer behavior. Businesses are increasingly looking for technologies to help them through these challenging times, with offices, educational institutions, and manufacturing facilities closing for an indefinite period of time; major sports and events being postponed; and work-from-home and social distancing policies in place. Executives have requested the support of people with expertise in analytics, business intelligence, and more advanced analytics, such as AI and ML, to help them make business decisions about how to address the new business difficulties brought on by the COVID-19 outbreak.
Cloud Analytics Market: Drivers
Increasing Data Connection through Hybrid and Multi-Cloud Setups to Drive Market Growth
It is now feasible to swiftly scale up or scale down the IT infrastructure thanks to cloud computing environments, where the data is remotely stored in distributed storage systems. Pay-as-you-go models are also made possible by these ecosystems. As a result, businesses that need to process massive amounts of data and have high storage and processing demands do not need to invest in building out a sizable IT infrastructure. Instead, companies might license the storage and processing power they require and only pay for what they really use. As a result, the majority of major companies who work with massive amounts of data are using cloud computing's potential to provide their products to businesses. However, migrating data from an on-premises solution to the cloud for a business is a difficult and time-consuming procedure. Before the move is complete, the businesses must spend several weeks to months synchronizing their data sources and systems. These factors aren't preventing people from using cloud-based solutions; instead, they're fueling the trend toward hybrid and multi-cloud installations. While on-premises solutions continue to be very helpful for steady workloads, early users of the cloud are using their cloud storage for dynamic workloads. Businesses are implementing multi-cloud strategies so they may benefit the most from the numerous best-suited tools and solutions available in multiple deployment modes.
Rising Big Data Analytics and Increasing Digitalization Driving Market Growth
International businesses place a high priority on data analytics to gain a competitive edge in the market and improve their business process by making data-driven decisions. Making effective business decisions is further aided by the expanding popularity of connected devices, the penetration of smartphones, and the excessive use of social media, all of which produce large amounts of unstructured data that must be understood and analyzed. Because Big Data technology is largely responsible for the existence of cloud computing, cloud analytics solutions are widely used for extracting important trends from data and empowering users to efficiently edit, manipulate, or maintain their data. Big Data is also frequently produced by extensive, network-based systems. It may be in a conventional format or a non-conventional one. If the data isn't in a standard format, machine learning and artificial intelligence from the cloud computing provider might also be utilized to standardize the data. From there, the data can be accessed and used in a variety of ways via the Cloud Computing platform. It can, for instance, be searched for, updated, and used for upcoming insights.
Cloud Analytics Market: Restraints
Concerns about Confidentiality and Privacy to Hamper Market Growth
As cloud technology is increasingly adopted, corporate organisations working in and across a variety of industries worldwide are becoming more concerned about data security issues (such as data theft and loss of industry-specific information). In cloud analytics, data is transported from several cloud providers and shared by a wide range of different business enterprises on their multi-tenancy infrastructure. Instead of being used by only one line in an organisation, the cloud infrastructure servers are virtually accessed and shared across several lines. Numerous problems with data security are raised during this process. The biggest worry for cloud-based environments is cyber security breaches. If customers switch to competitors as a result of cyberattacks, this could signal the downfall and eventual demise of well-known brands.
Cloud Analytics Market: Segment Overview
Analytics Solutions Segment to Dominate Market due to Rising Demand for Dashboards
During the projection period, the analytics solutions segment is anticipated to hold a larger market share by solution. The large market share of analytics solutions is related to the rising demand for the dashboards offered by different suppliers, which aid organizations in retaining clients and spotting potential new markets for expansion. The global desire for providing improved customer service across key industries is driving the rising demand for cloud analytics solutions. Through the incorporation of numerous technologies, these solutions are also capable of producing an in-depth study of the data. These solutions assist companies in strengthening their capacity for commercial decision-making. It offers a platform with cloud-based analytical capabilities that aids various sectors in maintaining market competitiveness. Businesses need to build up more servers and other physical equipment, as well as highly qualified IT staff, to handle enormous data quantities from diverse data sources and to extract relevant informational insights from the data corpus.
With Increased Dependency on Data, Hybrid Cloud Category Dominated Market
Public cloud, private cloud, and hybrid cloud deployment models are available in the cloud analytics sector. A valuable resource for creating business strategies is data. Data is becoming increasingly important to organizations because it gives them a competitive edge. Organizations are putting more emphasis on coordinating and channeling important reference data. In order to facilitate access and improve data analysis, businesses have recently begun to invest in keeping a central repository of data. Based on their requirements for scalability and level of data security, businesses favor the deployment mode.
Cloud Analytics Market: Regional Landscape
North America to Dominate Market due to Growing Preference for Online Grocery Shopping
During the forecast period, North America is anticipated to have the biggest market share in the global cloud analytics market. Due to rising investments and a growing number of manufacturers researching the use of AI and NLP technologies for diverse applications, the US has emerged as the largest market. The US market widely utilises AI and NLP technology in its commercial settings and other industries, better serving clients and enhancing operational effectiveness. The nation has the cutting-edge ideas, technologies, and infrastructure needed to develop cloud analytics into reliable solutions with ground-breaking advantages.
However, during the projection period, the Asia-Pacific region is anticipated to develop at the greatest CAGR. The demand for cloud analytics solutions in the Asia-Pacific area is anticipated to rise as a result of the rising number of start-ups requesting and looking for cloud computing services to manage their businesses efficiently and the expansion and increased use of social media.
Global Cloud Analytics Market: Competitive Landscape
Teradata and Microsoft teamed together in February 2022 to integrate Microsoft Azure with the Teradata Vantage data platform. The alliance aims to modernize business data analytics workloads, carry out cloud initiatives, and jointly address data analytics difficulties. Moreover, the leading provider of cloud data management Informatica debuted its contemporary cloud analytics software on Microsoft Azure in November 2021. Customers who have a combined Microsoft and Informatica PowerCenter and who need to move their on-premise data warehouse and ETL workloads to IDMC on Azure and Azure Synapse Analytics are given access to the platform.
Few of the players in the Cloud Analytics Market include Microsoft (US), Google (US), Oracle (US), IBM (US), Salesforce (US), SAP (Germany), TIBCO Software (US), SAS Institute (US), Teradata (US), AWS (US), MicroStrategy (US), Hewlett-Packard Enterprise (US), Sisense (US), Atos (France), Cloudera (US), Hitachi Vantara (US), ThoughtSpot (US), Qlik (US), Domo (US), GoodData (US), Alteryx (US), Absolutdata (US), Infor (US), Yellowfin (Australia), Guavus (US), Looker (US), Board International (Switzerland), and Pyramid Analytics (Netherlands).
Regional Classification of the Global Cloud Analytics Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Cloud Analytics Market
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