Financial Analytics Market Size (2022 – 2030)

The global financial analytics market size is estimated to be worth USD 7.0 billion in 2022 and is expected to reach USD 17. 4 billion by 2030. The market is growing with a CAGR of 11.4% from 2023 - 2030. 

Financial analytics is a set of tools that increases the company’s financial profitability. It is the process of investigating, monitoring, analyzing, visualizing, monitoring, and predicting the financial statements of an organization via the use of software-based programs. 

Financial analytics (FA) is used to tackle precise business-related operations and to prognosis future financial situations. The financial analytics 

MARKET DRIVERS

The focus on data-driven financial decisions over massive industry verticals, and the advent of big data has created the need for solutions that can handle enormous amounts of data and deliver valuable perceptions. Adopting cloud-based services is increasing enhances the financial analytics market growth. 

The public and private institutions invest in data management aid in supporting the financial analytics market growth globally. The assimilation of machine learning (ML) and artificial intelligence (AI) with financial analytics including advanced technologies from big data to warehouses and customer analytics have caused different firms to accept financial analytics solutions worldwide. 

MARKET RESTRAINS

However, complications associated with the data and diverse language preferences for recording the data in the system create barriers in the financial analytics market.

FINANCIAL ANALYTICS MARKET REPORT COVERAGE

Segmentation Analysis

The financial analytics market at the global level has been segmented and sub-segmented according to the following categories:

Financial Analytics Market - By Component

• Solutions
  • Financial Function Analytics
  • Financial Market Analytics
• Services ​
  • Managed Services
  • Professional Services

By component, the solutions segment is leading the financial analytics market growth during the forecast period. 

Financial Analytics Market - By Application

• Wealth Management
• Governance, Risk, and Compliance Management
• Financial Forecasting and Budgeting
• Customer Management
• Transaction Monitoring
• Claim Management
• Fraud Detection and Prevention
• Stock Management

By application, the governance, risk, and compliance management segment are scheduled to have witnessed quick growth in the financial analytics market. 

Financial Analytics Market - By Deployment Modes

• On-premises
• Cloud

By deployment mode, the on-premise segment dominates the financial analytics market. The cloud deployment mode is expected to witness healthy growth over the forthcoming years. The cloud-based financial analytical solutions market is driven by ease of scalability, speed of deployment, and 24*7 availability. 

Financial Analytics Market - By Organization Size

• Small and Medium-sized Enterprises (SMEs)
• Large enterprises

By organization size, the small and medium-sized enterprises (SMEs) segment accounts for the largest share in the financial analytics market. 

Financial Analytics Market - By Industry Vertical

• Banking, Financial Services, and Insurance (BFSI)
• Telecom and IT
• Government
• Energy and Utilities
• Manufacturing and Automotive
• Healthcare and Pharmaceutical
• Retail and eCommerce
• Media and Entertainment
• Transportation and Logistics
• Others (real estate and education)

By industry vertical, the BFSI segment is burgeoning the financial analytics market. Advanced technologies like Business Intelligence (BI), and big-data tools (BA) blooms the market growth globally. BFSI services aid in asset and liability, GRC, receivables, payables management.

Retail and e-commerce segments are experiencing quick growth in the financial analytics market growth throughout the timeframe period. 

Healthcare and pharmaceutical segment is promised to have tremendous growth in the market. The French National Health Insurance Fund (CNAM) has uttered great interest in combining with health tech players in addressing its target of creating a secure and personalized "digital health space" for every citizen. 

Regional Analysis

Globally, the North American market for financial analytics market is at the forefront contributing strongly. The high approval across multiple industries besides with a brisk technology adaptation rate. The United States and Canada are the major contributors to the financial analytics market. In the U.S, the small and medium enterprises segment accounted for more than 30% of the share in 2022. The continuous rise in the number of SMEs using digital technologies and business intelligence is upgrading the financial analytics market growth in the U.S. 

Europe is projected to have a generous and promising growth in the financial analytics market. The market is growing with a CAGR of 10.20% across the timeline period. The need for real-time data analytics and decision making and fast changes in business environments drives the financial analytics market growth. 

In Germany, the financial analytics market is on the wings to seize 25% of the share in terms of revenue. Wealth management firms are increasingly utilizing financial tools to pull the investor's attention and to stay competitive and submissive. 

Despite this, Asia-Pacific is hoped-for to observe the highest growth rate throughout the forecast period. The market growth connects with the rising growth in end-user industries. The region is said to account for about 20% of the global share in the financial analytics market. Investments in Artificial Intelligence (AI) technology are mounting and rising digitalization booms the market growth in the region.

China is playing a crucial role in the financial analytics market accounting for the highest share across the region. The country has invested more than 17% of its investments in data analytics and artificial intelligence. 

Latin America is scheduled to have massive growth due to the growing fraud cases of financing since the past and the growing applications of cloud computing. Technological advancements have automated certain day-to-day operations and their financial divisions. 

The Middle East and Africa are anticipated to create an abundant amount of share in the market over the period. The rising inclination for digitization with growing cloud computing adoption worldwide drives the market growth. The an increasing need to process huge amounts of formless information for making data-driven organizational decisions. The factor helps in supporting the market growth further. 

Key Market Players

Oracle (US), IBM (US), Teradata (US), TIBCO Software (US), SAP (Germany), SAS Institute (US), Alteryx (US), Qlik (US), FICO (US), GoodData (US), Birst (US), Google (US), Information Builders (US), Zoho Corporation (US), and Domo (US) are the top key players taking part in the global financial analytics market. 

Recent Market Developments

• On January 08, 2022, SAP SE announced its new SAP S/4HANA for financial products sub-ledger. The solution provides a central hub to manage data among operational and finance systems. Its ability to support finance and risk processes has become more difficult to manage as a result of fragmented data models in operational and finance systems.

 COVID-19 Impact on Financial Analytics Market

COVID-19 pandemic has increased the lockdown that has worsened the drop in employment situations. The world is containing the fight against the pandemic. More and more financial institutions are arriving, providing diverse digital financial services fighting against COVID-19 stress. 

Small and large enterprises have throughout the U.S are facing the stress of a fall in sales and lost market opportunities, amplified by the adverse effect of the endless COVID-19 pandemic.