As companies work harder to harness the right data sets and analyze information to make smarter business decisions, the market for SaaS-based business intelligence tools will soar. That’s the main takeaway from a report by Market Research, Inc., released just this month.
The results echo the findings from an October report released by the market research firm Technavio, which showed the SaaS-based business analytics market growing by $10.7 billion between 2021 and 2026. According to that report, growth momentum in the space is expected to accelerate at a CAGR of 14%, with the retail segment being the largest contributor to market growth.
Using primary interviews and secondary research techniques, analysts at Market Research, Inc. found that business intelligence tools that use the cloud-based distribution model—in which a third-party provider hosts tools in a secure online environment—will likely experience “stunning growth” from 2022 to 2030.
As more business happens online, business intelligence tools that retrieve, analyze, transform, and report data for companies, including data that has been previously stored in data warehouses or data marts, are increasingly useful for identifying new opportunities and competitive insights. These tools can be used across all departments and industries, accounting for the extraordinary market size.
While the market for SaaS-based BI tools has been expanding for years, recent forecasts show more explosive growth than many were expecting.
What’s behind the momentum?
The most obvious answer has to do with price, which companies are looking more closely at now than ever before. SaaS-based business intelligence solutions tend to be viewed as a less expensive option compared to on-premise software, since they often rely on flexible pricing tiers rather than one-time licensing fees.
Another factor at play involves the increasing adoption of cloud-based applications more broadly. As businesses grow more accustomed to using SaaS applications, and their tech stacks expand, the likelihood that they choose a cloud-based business intelligence solution increases.
Based on geography, Technavio found that North America will account for the lion’s share of market growth (34%) during its forecast period. Technavio also found that businesses are focusing on reducing maintenance costs and upgrading the software programs that are already installed, which is expected to further fuel the growth of cloud-based business analytics solutions.
Currently, the biggest players in the space are Cloud9 Analytics, IBM, SAP, Bime, SAS Institute, Jaspersoft, QlikTech, TIBCO Software, Actuate, GoodData, Oracle, Host Analytics, PivotLink, Indicee, and Birst.
While each solution is unique, the most popular cloud BI systems have a few key features in common. For starters, they almost all offer interactive visualizations, platform customization, and data visualization tools, like storyboarding, geospatial integration, barcode generation, infographics, and freehand SQL commands. They almost all provide users with the ability to run benchmarking analytics, predictive analytics, web analytics, geolocation analytics, data mining, machine learning, and profit analysis. Certain high-end solutions also offer decision services for managing regulatory compliance and fraud detection, with big data connectors for integrating third-party apps.
To view the complete report from Market Research, Inc. click here.
