The global financial analytics market size is estimated to be worth USD 7.0 billion in 2020 and is expected to reach USD 17. 4 billion by 2026. The market is growing with a CAGR of 11.4% from 2021-2026.
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
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.
However, complications associated with the data and diverse language preferences for recording the data in the system create barriers in the financial analytics market.
Market Size Available
2020 – 2026
2021 – 2026
North America, Europe, APAC, Middle East & Africa (MEA), Latin America
The financial analytics market at the global level has been segmented and sub-segmented according to the following categories:
By component, the solutions segment is leading the financial analytics market growth during the forecast period.
By application, the governance, risk, and compliance management segment are scheduled to have witnessed quick growth in the financial analytics market.
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.
By organization size, the small and medium-sized enterprises (SMEs) segment accounts for the largest share in the financial analytics market.
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.
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 2020. 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
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.
Financial Analytics Market – Forecast (2021-2026)
Chapter 1. Financial Analytics Market – Scope & Methodology
1.1. Market Segmentation
1.3. Research Methodology
1.4. Primary Sources
1.5. Secondary Sources
Chapter 2. Financial Analytics Market - Executive Summary
2.1. Market Size & Forecast – (2021 – 2026) ($M/$B)
2.2. Key Trends & Insights
2.3. COVID-19 Impact Analysis
2.3.1. Impact during 2021 – 2026
2.3.2. Impact on Supply – Demand
2.3.3. Impact on Production Cost
2.3.4. Impact on Supply Chain
Chapter 3. Financial Analytics Market – Competition Scenario
3.1. Market Share Analysis
3.2. Product Benchmarking
3.3. Competitive Strategy & Development Scenario
3.4. Competitive Pricing Analysis
3.5. Supplier – Distributor Analysis
Chapter 4. Financial Analytics Market Entry Scenario
4.1. Case Studies – Start-up/Thriving Companies
4.2. Regulatory Scenario - By Region
4.3. Customer Analysis
4.4. Porters Five Force Model
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Powers of Customers
4.4.3. Threat of New Entrants
4.4.4. Rivalry among Existing Players
4.4.5. Threat of Substitutes
Chapter 5. Financial Analytics Market Landscape
5.1. Value Chain Analysis – Key Stakeholders Impact Analysis
5.2. Market Drivers
5.3. Market Restraints/Challenges
5.4. Market Opportunities
Chapter 6. Financial Analytics Market, By Component
6.1.1. Financial Function Analytics
6.1.2. Financial Market Analytics
6.2.1. Managed Services
6.2.2. Professional Services
Chapter 7. Financial Analytics Market, By Application
7.1. Wealth Management
7.2. Governanace, Risk, and Compliance Management
7.3. Financial Forecating and Budgeting
7.4. Customer Management
7.5. Transaction Monitoring
7.6. Claim Management
7.7. Fraud Detection and Prevention
7.8. Stock Management
Chapter 8. Financial Analytics Market, By Deployment Mode
Chapter 9. Financial Analytics Market, By Organization Size
9.2. Large Enterprises
Chapter 10. Financial Analytics Market, By Industry Vertical
10.1. Banking, Financial Services, and Inurance (BFSI)
10.2. Telecom and IT
10.4. Energy and Utilities
10.5. Manufacturing and Automotive
10.6. Healthcare and Pharmaceutical
10.7. Retail and eCommerce
10.8. Media and Entertainment
10.9. Transportation and Logistics
10.10. Others (Real Estate and Education)
Chapter 10. Financial Analytics Market, By Geography - Market Size, Forecast, Trends & Insights
10.1. North America
10.2.7. Rest of Europe
10.3. Asia Pacific
10.3.2. South Korea
10.3.5. Australia & New Zealand
10.3.6. Rest of Asia-Pacific
10.4. Rest of the World
10.4.1. South America
10.4.2. Middle East
Chapter 11. Financial Analytics Market - Company Profiles – (Overview, Product Portfolio, Financials, Developments)
11.1. Company 1
11.2. Company 2
11.3. Company 3
11.4. Company 4
11.5. Company 5
11.6. Company 6
11.7. Company 7
11.8. Company 8
11.9. Company 9
11.10. Company 10
Primary & Secondary Sources to Collect & Validate Data
Utilization of Both Top Down & Bottom Up Approach
Holistic Research Methodology
Scope & Introductory Research
In the initial stage of research, the scope for market is defined. In order to better understanding of the market, secondary focus is on different segmentations of the market. Preliminary research involves identifying key data points related to the market under consideration to estimate the market sizes to the best extent.
Based on the scope of the market and the key data points, a number of secondary sources are considered. This data collection stage consists of a team of analysts who gather data from various secondary resources, accessing proprietary databases and primary research by reaching out to key market participants and opinion leaders.
At this stage, collected data using several sources is arranged in structured format. The sources include industry participants, in-house models, key opinion leaders in the market ecosystem and databases. Historical data trends are established at this point, and compared to the current scenario. Based on the macro- and micro-factor prevailing in various geographies, proprietary data models are used to analyze key market countries. Key players in this market are listed based on their capabilities in revenue, sales, and development. The study also involves the identification of companies in the category of 'new entrants' and their potential effects on the market.
At this stage, the analyst team moves on to understand how the market has changed over the years. The total size of the market is gathered after an study of different business segments and end-users is done. An impact research is also done to see what factors will/may influence the market in the years ahead. The effect of various variables on the industry is often taken into account when forecasting market sizes.
Data verification is conducted at all research levels, however this stage is dedicated to more rigorous checking of the data points. At this stage, the estimated data is triangulated with company revenues and checked with industry experts including several senior executives and key opinion leaders in the market. The data is then summarized, and the findings are derived from the same for the report.
Quality Assurance & Report Preparation
Holistic research methodology is followed with combination of Top Down and Bottom Up approach to undertake the estimation and forecasting task in order to ensure quality of data. At this stage of the research process, a dedicated QA team checks the data and approves after several predefined checks. Each section is checked and questioned to make the report accurate and reliable. In case of discrepancy, a team of analysts reviews the issue, and the whole process is repeated again. That significantly improves the report's quality. After approval, all the parts of the report are brought together and is formatted by highly trained team thus making it ready to dispatch.