Cloud Analytics Market Size, Share, Forecast, & Trends Analysis by Offering (Solutions, Services), Type (Predictive Analytics, Diagnostic Analytics, Prescriptive Analytics), Deployment Mode, Sector (BFSI, Retail & E-commerce, Healthcare & Life Sciences), and Geography - Global Forecast to 2031

Cloud Analytics Market Size & Forecast

The Cloud Analytics Market is expected to reach $135.4 billion by 2031, at a CAGR of 19.8% from 2024 to 2031. The growth of this market can be attributed to several factors: the growing digitalization and the rise of big data technology, increasing connectivity through multi-cloud platforms, and the economic benefits of cloud-based solutions. Moreover, the growing need for cloud analytics solutions among SMEs and increasing focus on customized and managed cloud services are expected to offer growth opportunities for the players operating in this market.

Cloud Analytics Market Growth Drivers

Growing Digitalization and the Rise of Big Data Technology Drive the Growth of the Market

Growing digitalization and advances in big data technology have changed the global business landscape. The introduction of advanced technologies, including artificial intelligence, machine learning, IoT, and cloud computing, has improved the quality of data-driven solutions and created traction in the data analytics segment. Moreover, the proliferation of connected devices, growing smartphone penetration, and increasing usage of social media result in the generation of abundant unstructured data which needs to be interpreted and analysed for making effective business decisions. Growth in solutions integrated with these technologies has proved to be beneficial for various industries as access to quality information helps brands make data-driven decisions and develop better products for customers. Hence, the demand for data analytics solutions is growing across various industries as these solutions help businesses analyze large unstructured datasets to draw actionable insights.

Cloud analytics solutions give businesses access to engineered decision intelligence, enabling faster computing processes, efficient data exploration, validation, and interpretation, and integration of the latest technologies. Also, the flexibility of cloud-based solutions augments data analytics capabilities. Cloud computing resources are also cheaper compared to big data analytics resources, which is a key factor for the high adoption of cloud analytics solutions and services. Thus, growing digitalization and the rise of big data technology drive the growth of the cloud analytics market.

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Economic Benefits of Cloud-based Solutions Driving the Growth of Market

Cost benefits are the major factor driving the adoption of cloud computing technology among smaller market players. Using traditional infrastructure involves software bugs, endless server glitches, maintaining a team of employees, and costly routine updates. Shifting to cloud environments allows organizations to enjoy countless benefits, such as storing information in the cloud and using software hosted on the internet while only paying for visible resources. Thus, due to these economic benefits, numerous companies, especially SMEs, are shifting to cloud-based solutions for heavy applications such as data analytics, driving the growth of the cloud analytics market.

The major benefits of using cloud-based analytics solutions are as follows:

• Easy scalability as per business requirements
• Reductions in the carbon footprint and power costs
• Lower capital costs through higher utilization and scale
• Resilience without redundancy of computing resources

Cloud Analytics Market Trends

Wearable Medical Devices

Wearable medical devices, when integrated with cloud computing, offer numerous benefits for patients, healthcare providers, and researchers. These devices collect real-time health data, which is then transmitted to cloud platforms for analysis, storage, and accessibility. This integration facilitates better patient monitoring, data-driven decision-making, and advancements in healthcare research. Wearable medical devices, such as smartwatches, fitness trackers, and medical sensors, continuously collect various health-related data, including heart rate, blood pressure, temperature, activity levels, sleep patterns, and more. The collected data is wirelessly transmitted to cloud-based servers via secure communication channels, such as the Internet or mobile networks.

Wearable devices enable the continuous remote monitoring of patient's health metrics, allowing healthcare providers to detect early signs of health issues and intervene promptly. This is particularly beneficial for chronic disease management and post-surgery recovery. Cloud-connected wearables provide real-time data, enabling healthcare professionals to tailor treatment plans to patients' specific needs and responses. This personalized approach improves patient outcomes and satisfaction. Cloud-based analytics on aggregated wearable data can offer valuable insights into population health trends, disease prevalence, and treatment effectiveness. Researchers can use this data to support public health strategies and medical research. Wearables can potentially reduce healthcare costs by preventing hospitalizations through early detection of health issues, promoting adherence to treatment plans, and optimizing resource allocation. Cloud-connected wearables facilitate data sharing and collaboration among various stakeholders in the healthcare ecosystem, including patients, providers, researchers, and insurance companies. Thus, the benefits offered by wearable medical devices are increasing their significance in the cloud analytics market, and this trend is expected to grow rapidly in the coming years.

Cloud Analytics Market Analysis: Key Findings

By Offering: In 2024, the Solutions Segment to Dominate the Cloud Analytics Market

In 2024, the solutions segment is expected to account for the larger share of above 73.0% of the cloud analytics market. The segment’s large share is attributed to the growing adoption of customer analytics and sales & marketing analytics solutions, increasing R&D investment, rising focus on solution-centric capabilities, and economic benefits of cloud-based solutions. In addition, the benefits offered by the solutions segment, such as scalability, security & compliance, increased productivity, cost-efficiency, and improved customer insights, contribute to this segment's growth. Also, this segment is projected to register the higher CAGR during the forecast period of 2024–2031.

By Type: In 2024, the Descriptive Analytics Segment to Dominate the Cloud Analytics Market

In 2024, the descriptive analytics segment is expected to account for the largest share of above 57.0% of the cloud analytics market. The segment’s large share is attributed to the rising need for organizations to extract insights from historical data to make sustainable business decisions related to investments in new product launches, companies’ growing focus on data-driven technologies, and advancements in data science and analytics.

However, the predictive analytics segment is expected to grow at the highest CAGR during the forecast period of 2024–2031. The rising adoption of big data technologies, the advent of AI and ML technologies, increasing demand for real-time analytic solutions, and the rising adoption of predictive analytics in the manufacturing sector are factors attributed to the segment’s high growth.

By Deployment Mode: In 2024, the Public Cloud Segment to Dominate the Cloud Analytics Market

In 2024, the public cloud deployments segment is expected to account for the larger share of above 59.0% of the cloud analytics market. The segment’s large share is attributed to the rising shift of businesses towards a work-from-home culture and growing reliance on public cloud services among SMEs for effective management. In addition, the benefits offered by the public cloud, such as cost efficiency, agility, and flexibility, further augment the growth of this segment.

However, the hybrid cloud segment is expected to grow at the highest CAGR during the forecast period of 2024–2031. The rapid evolution of new avenues for cloud-based deployments, growing demand for scalability, the rising need for agile and cost-effective computing, and the rising demand for computational power are expected to support the growth of this segment.

By Sector: In 2024, the BFSI Segment to Dominate the Cloud Analytics Market

In 2024, the BFSI segment is expected to account for the largest share of above 14.0% of the cloud analytics market. The large market share of this segment is attributed to the rising need among banks and other BFSI organizations to deploy cloud-based solutions to efficiently manage regulatory compliance, growing digitalization and rise in big data analytics, growing number of fin-tech start-ups demanding cloud-based solutions, and integration of advanced AI/ML algorithm. Also, this segment is projected to register a higher CAGR during the forecast period of 2024–2031.

Geographical Analysis

In 2024, North America Region to Dominate the Cloud Analytics Market

In 2024, North America is expected to account for the largest share of above 43.0% of the cloud analytics market. North America’s large market share is attributed to the presence of prominent players offering advanced cloud analytics solutions to various sectors. Furthermore, the strong government support for the implementation and research & development of cloud computing technologies, significant advancements & innovation in analytics technologies, and the high acceptance & extensive adoption of cutting-edge technologies in the region. In addition, the presence of prominent players offering advanced cloud analytics solutions to support market growth.

However, the Asia-Pacific is projected to register the highest CAGR of 23.5% during the forecast period of 2024–2031. The rapid growth of this region is mainly driven by factors such as exerting efforts by market players to launch cloud analytics solutions, government initiatives and policies that support the adoption of cloud analytics solutions, and the growing adoption of cloud-managed services by small and medium-sized enterprises. Furthermore, rising government initiatives and market players’ efforts to launch advanced cloud analytics solutions are also supporting the growth of this regional market. For instance, in December 2023, NCS (Singapore) partnered with Google Cloud (U.S.) to accelerate the seamless integration of AI capabilities with cloud infrastructure that will be offered across Australia, Singapore, and the wider APAC region.

Cloud Analytics Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the cloud analytics market are Microsoft Corporation (U.S.), IBM Corporation (U.S.), Oracle Corporation (U.S.), Google, LLC (U.S.), SAP SE (Germany), TIBCO Software, Inc. (U.S.), Salesforce.Com (U.S.), SAS Institute, Inc. (U.S.), Amazon Web Services, Inc. (U.S.), Hewlett Packard Enterprise (U.S.), MicroStrategy (U.S.), Alteryx, Inc. (U.S.), Atos SE (France), Sisense (U.S.), and Cloudera, Inc. (U.S.).

Cloud Analytics Industry Overview: Latest Developments from Key Industry Players

• In March 2024, Qlik (U.S.) launched its first cloud region in Tokyo. This new cloud region strengthens the company’s ability to support the demand for more diversified data utilization while also allowing customers to adhere to increased regulatory and sovereignty requirements.

• In March 2022, Alteryx, Inc. (U.S.) launched its Alteryx Analytics Cloud, its first unified end-to-end analytics automation platform that helps businesses empower all users across the enterprise to make more informed decisions with their data.

Cloud Analytics Market Research Summary

Key questions answered in the cloud analytics market report: