Business Intelligence Market Size (2024 – 2030)

The Global business intelligence (BI) market was valued at USD 27.95 billion and is projected to reach a market size of USD 46.37 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 7.5%.

Market Overview:

Intelligence agencies employ diverse tools and methodologies encompassed within business intelligence (BI) to scrutinize corporate data. Historically, only a handful of enterprises could harness this technology due to restricted accessibility and high costs. Presently, with improved economic stability, a surge in cloud solutions adoption is witnessed, optimizing decision-making processes and furnishing invaluable insights for businesses. The forthcoming trajectory indicates substantial revenue generation within this market, attributed to a burgeoning focus on technological advancements in artificial intelligence and advanced analytics, projecting significant expansion in the forecast period.

Key Market Insights:

Business intelligence software market revenue is forecasted to hit USD 25.73 billion by 2023.

The anticipated average expenditure per employee in the business intelligence software market stands at $7.39 in 2023.

Mode secured the lead among global business intelligence (BI) software vendors in 2022, commanding a market share of 26 percent.

Microsoft Azure dominated the cloud-based business intelligence provider landscape in 2021, cited as critical by 69 percent of organizations, followed by Amazon Web Services and Google Cloud.

Business Intelligence Market Drivers:

Data exploration, coupled with complexity, is driving market growth.

Driving market growth is the confluence of data exploration and complexity, spurred by technological strides in artificial intelligence, machine learning, big data, cloud computing, data analytics, and the Internet of Things (IoT). This surge generates vast data volumes across industries like information technology, telecommunications, and healthcare, often intricate and challenging to interpret. BI tools are essential for deciphering, analyzing, and managing this data, facilitating informed decision-making, insights extraction, operational enhancements, profitability, reporting, and management. Cloud-based BI tools have become pivotal for 54% of enterprises, as reported by Dresner, indicating their critical role in present and future business initiatives.

Expanding Market Usage of BI Tools.

BI tools offer manifold advantages, unraveling customer insights, optimizing organizational efficiency, furnishing real-time data, and supporting enhanced marketing strategies. They aid in comprehending market trends via social media platforms and data analysis. Approximately two-thirds of global employees have access to at least one BI tool, underscoring their pervasive adoption, as per Towards Data Science.

Business Intelligence Market Restraints and Challenges:

Data security concerns, cost implications, data integration complexity, and the necessity for ongoing engagement pose substantial challenges. Data breaches, fraud, and cyber threats pose significant risks, while funding and maintenance costs present barriers to entry, particularly for smaller entities. Synchronizing with technological advancements and providing adequate training also remain impediments, compounded by the compatibility challenges between legacy systems and new technologies.

Business Intelligence Market Opportunities:

Innovations such as Power BI, Cloud BI, Self-Service BI, Data Governance, and advanced analytics present a gamut of opportunities within the market. These technologies, coupled with AI and ML, enable predictive analytics, empowering organizations to make informed decisions. User-friendly features, enhanced visualization, and an upsurge in customized solutions offered by consulting and management firms contribute to the expansion of this market.

BUSINESS INTELLIGENCE MARKET REPORT COVERAGE:

Business Intelligence (BI) Market Segmentation: By Component

• Software

• Services

In the realm of components, the software sector stands as the most rapidly expanding segment within this market. This growth owes itself to the escalating utilization and presence of major entities like Tableau Software, Sisense, Notion, and Microsoft. The allure lies in the operational efficiency, heightened productivity, accuracy improvements, and superior decision-making offered by these software components. Moreover, their increasing integration within end-user industries such as healthcare, IT, and BFSI contributes significantly to this segment's expansion. Concurrently, services emerge as the fastest-growing segment, driven by the burgeoning demand for installation, maintenance, upgrades, support, and deployment services. The increasing adoption rate further fuels this segment's rapid growth trajectory.

Business Intelligence (BI) Market Segmentation: By Deployment Mode

• On-premise

• Cloud-based

Within the deployment modes, cloud solutions reign supreme as the largest and most rapidly expanding segment in this market. Their ascendancy stems from their cost-effectiveness, scalability, flexibility, outsourcing capacity, and simplified installation processes. Additionally, the prevalent usage of cloud capabilities among major corporations fortifies the dominance of this segment.

Business Intelligence (BI) Market Segmentation: By Company Size

• Small and Medium-Scale Enterprises

• Large Enterprises

Regarding business size, large enterprises command the largest share in this market due to their amplified workforce, complex data needs, substantial investments, robust infrastructure, collaborative frameworks, and the heightened demand and accessibility of resources, collectively contributing to a market share exceeding 60%. Conversely, small and medium-scale enterprises (SMEs) emerge as the fastest-growing segment. Their growth trajectory is fueled by government support, escalating investments, strategic marketing maneuvers, acquisitions, rising incomes, and the ongoing trend of urbanization.

Business Intelligence (BI) Market Segmentation: By Industry Verticals

• BFSI

• Healthcare and Life Sciences

• IT and Telecommunications

• Government and the Public Sector

• Manufacturing

• Consumer Goods and Retail

• Media and Entertainment

• Others

In the landscape of industry verticals, BFSI stands as one of the largest segments, propelled by the imperative to streamline operations, manage costs and risks, garner insights, enhance customer satisfaction, improve performance, handle vast data volumes, and execute robust marketing strategies, culminating in a 30% market share. However, dominant categories also encompass IT, telecommunications, and manufacturing. Notably, healthcare and life sciences emerge as the fastest-growing segments, attributed to their global operations, expanding workforce, increased investments, research and development endeavors, substantial clinical data generation, and the burgeoning demand for personalized medicine, foreshadowing significant growth during the forecast period.

Business Intelligence (BI) Market Segmentation: Regional Analysis

• North America

• Asia Pacific

• Europe

• South America

• Middle East and Africa

In the regional context, North America retains its supremacy as the largest region, primarily driven by technological advancements, the presence of key companies, robust infrastructure, substantial investments, economic prowess, and widespread adoption across various end-user industries. The United States and Canada serve as pivotal contributors to the region's development, with the United States projected to generate the highest revenue ($13,150.00 million in 2023), capturing a 31% market share. Meanwhile, the Asia Pacific region, propelled by countries like China, India, and Japan, emerges as the fastest-growing region due to escalating funds, technological expertise, urbanization, rising incomes, burgeoning enterprises, government initiatives, and heightened demand, commanding a 22% share in this market. Europe also showcases substantial growth, notably in countries like Germany and the UK, solidifying its position among the leading regions.

COVID-19 Impact Analysis on the Global Business Intelligence (BI) Market:

The outbreak of the virus exerted a positive influence on the market dynamics. With lockdowns and movement restrictions becoming commonplace, remote work surged due to company closures, fostering a shift towards digitization. This transition augmented the demand for data-driven decision-making, crisis and risk management, supply chain optimization, online retail, and distance learning. Business intelligence tools played a pivotal role in addressing these challenges. Moreover, these tools witnessed increased utilization within the healthcare sector for analyzing diverse clinical records and patterns. These tools provided invaluable insights, aiding sales and marketing strategies. Post-pandemic, organizations increasingly embraced these solutions, as evidenced by a survey conducted by analytics platform provider Sinsense, revealing that 49% of companies now employ analytics to a greater extent than before the pandemic.

Latest Trends and Developments:

Companies in this industry are strategically leveraging alliances, investments, and acquisitions to bolster their market presence. They prioritize maintaining competitive prices while investing substantially in existing technologies and exploring novel avenues for expansion.

A recent trend gaining momentum is data storytelling, an art that creatively and visually presents data in easily comprehensible terms. Employing various mediums such as narration and interactive maps, data storytelling enhances understanding, facilitating informed business decisions.

Key Players:

1. Microsoft

2. Qlik

3. SAP

4. IBM

5. Oracle

6. MicroStrategy

7. Sisense

8. Domo

9. TIBCO Software

10. Yellowfin