The cloud analytics market is expected to see a huge increase in valuation over the next ten years, as more businesses make the investment in a business intelligence service to provide better insights and visualize data.
According to Future Market Insights, market size is expected to increase at a compound annual growth rate of 15.6% over the next ten years, with the valuation ballooning from an estimated $35 billion in 2023 to $171 billion in that time period.
The cloud analytics market is a large sector full of key names, some are connected to the major cloud service providers such as Amazon QuickSight, Microsoft Power BI, Oracle Business Intelligence, and IBM Cognos Analytics. Others are brands in and of themselves, such as Saleforce’s Tableau, Domo, Board, and ThoughtSpot, known primarily for their analytics services.
The majority of the growth in this market will be due to the growth in cloud adoption, and businesses leveraging more cloud tools to make use of their cloud investment. An analytics platform can make unstructured data flowing into the company’s storage become actionable insights, and when paired with an artificial intelligence program businesses can receive real-time insights.
An increase in the adoption of artificial intelligence among non leading-edge companies will also have knock-on effects on the usage of cloud analytics platforms, as the two applications tend to go hand-in-hand.
According to Future Market Insights, strategic alliances formed by key companies in the cloud analytics space, most usually a cloud service provider and analytics platform, is also enabling businesses to more easily integrate a full-stack cloud solution which deals with compute, storage, and analytics.
The United States is expected to remain the largest market for cloud analytics services, with a projected value of $51.3 billion by 2032, growing at a compound annual growth rate of 15.2% between 2023 and 2032. This is a small slowdown on the rate of growth between 2016 and 2022, which was 22.7%, according to the market research firm.
One of the reasons the US will remain the largest market is due to its adoption of artificial intelligence, which is occurring across many industries. In comparison to Europe and Asia, US companies are more likely to be exploring AI opportunities and integrating AI into their workflows.