Financial Analytics Market

Global Financial Analytics Market Size (2024 to 2032)

The global financial analytics market size is expected to reach USD 9.27 billion in 2024 and USD 21.67 billion by 2032, growing at a CAGR of 11.20% during the forecast period.

Current Scenario of the Global Financial Analytics Market

Financial analytics is an important tool in any organization that helps improve its business performance. These analytics will give the complete analysis of financial data that enables the user to view the business analytics and can create broader insights. A financial analysis can do a lot more than expected for the organization. It can simply evaluate the economic trends from various data and plan the long-term goals for business activity accordingly, which can also bring out the companies for investment. The specific objective of financial analytics is to forecast the financial status of the company in the future, which helps in the expansion of the investments and will have a positive impact on the growth graph. In every organization, it is highly important to perform in-depth analysis, especially on finance data that accounts for profitability with good financial status.

MARKET DRIVERS

The financial analytics market size is driven by the growing number of IT companies and the rising prominence of the adoption of new tools for better growth of the organization in finance.

The rising risk factors due to increasing concern over the economic crisis leverage the growth rate of the market to the next level. Financial analytics helps in evaluating the future period of the company's growth and gives information about the investments, which is the most important for an organization. Companies focus on financial planning and management, which are also prominent factors in market growth. Forecasting the future of the organization's growth activities is highly important in dealing with uncertainty and risk factors. In the hectic schedule, the need to get all the financial datasets in one graph that accomplishes the brief analysis from various systems makes the user accomplish the view for better outcomes. The value of data-driven decision-making in every organization is growing, which is a key factor for the growth rate of the market.

In today's world, storing data is a big challenging factor for companies, and the need to deploy cloud-based services is accelerating, which further enhances the share of the financial analytics market. The use of cloud computing made it a little bit easier to analyze financial data sets by acquiring data from various systems into one that regulates the customer's experience in using the financial analytics tool.

MARKET RESTRAINTS

However, the lack of skilled professionals to analyze the data due to the lack of knowledge of the newly launched technical systems is limiting the growth rate of the financial analytics market.

People in undeveloped countries are less aware of the new technologies emerging in the world, which acts as a barrier to expanding the companies in these countries, slowly degrading the market size. Accordingly, the rising concern over privacy can hinder the market's growth rate. The data privacy concern arises due to the frequent implementation of new technologies and huge data collection from social media at regular intervals, which limits the usage of cloud computing, especially in financial analytics. The challenges often persist in companies where regulating the protection of data privacy is very tough, but IT professionals are seamlessly working to combat the risks in the coming years.

MARKET OPPORTUNITIES 

The launch of innovative technological developments in the IT industry is posing huge growth opportunities for the financial analytics market.

The Internet of Things is the most common word we hear in today's world. In general, IoT is a crucial part of the IT sector where a user can perform tasks from anywhere at any time. Financial analytics is also one of the internet-connected devices that allows users to get all the useful data from other systems. Cloud computing helps businesses to have this flexibility to analyze and make quick decisions that are ascribed to bolstering the share of the financial analytics market. High investments from both private and public organizations in the IT sector are also likely to fuel the growth rate of the market. In addition, the rising focus on the development of various research activities by analyzing all the aspects that promote the opportunities for the organizations to the next level is gearing up the market size.

MARKET CHALLENGES 

Cybersecurity threats have been increasing in the past couple of years. Increasing the ability to hack systems with the latest technology is posing serious challenges for organizations in protecting their data from breaches.

There is no point where the penetration of advanced technologies like artificial intelligence and machine learning does wonders in the financial sectors, but providing massive data with high quality gives accurate and desired outputs. Failing to provide highly accurate data will act as a big challenge for the finance analytics systems that directly impose a big challenge on the market key players.

Lack of huge support from the government through funds may inhibit the growth rate of the market. The high-quality decision in the organization needs quality support from the government authorities. Failing to get that support may quietly degrade the market share to some extent in the coming years.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Financial Analytics Market Analysis By Solution

Financial functions analytics is leading with the dominant share of the market, whereas financial market analytics is set to hold the highest CAGR throughout the forecast period. The priority is to analyze the financial data based on the history records of the organization to focus highly on the future aspects that reflect the growth rate of the market in the coming years. Financial marketing analytics solutions focus on emphasizing marketing campaigns. These two solutions have the potential to forecast and analyze the future of organizations in an easy way.

Global Financial Analytics Market Analysis By Application

The wealth management segment is likely to have the state's growth rate during the forecast period. In the present scenario, the need to reach the goals in the financial status can be achieved by developing effective strategies in financial management. Wealth management provides effective financial management services for individuals to grow and preserve their wealth. Growing digital transactions impels the growth rate of the transaction monitoring segment. The customer management segment is likely to grow at a steady pace in the foreseen years. Creating customized and effective financial analytics to ensure long-term growth can be manifested by customer management, which fuels the growth rate of the market.

Global Financial Analytics Market Analysis By Deployment

The cloud-based deployment segment is undoubtedly achieving the highest CAGR from the past few years. The rapid adoption of cloud storage facilities by every IT company is propelling the growth rate of this segment. Cloud-based deployment mode facilitates many advantage features for financial analytics that are inclined to show positive growth opportunities for the market in the coming period. The on-premises segment is owing to have a substantial share of the market. Small-scale industries rely on on-premises deployment due to a lack of funds from the higher authorities, especially in undeveloped countries.

Global Financial Analytics Market Analysis By Organisation

The large enterprises segment is gaining huge traction over the share of the market, whereas the SME segment is likely to have the dominant growth opportunities in the next foreseen years. Large-scale enterprises look for innovative strategies to sustain themselves in the competitive world and adopt new technological developments at a higher pace, which is anticipated to accelerate the growth rate of the market.  Transformation of business into digitalization using various technologies can surge the financial analytics market size.

Global Financial Analytics Market Analysis By Vertical

Healthcare segment is one of the major vertical that showcases highest growth opportunities for the financial analytics market. Finance management in healthcare has huge importance in collecting the revenue, pay bills, and analyze the complete transactions more accurately. This tool will enhance the healthcare organization's viability and future growth. Education segment is esteemed to have the substantial growth rate during 2024-2029.

REGIONAL ANALYSIS

North America's financial analytics market is gearing up with the highest share from the past few years and shall continue the same flow throughout the forecast period. High capital income and the presence of key companies in developed countries like the US and Canada are impelling the growth rate of the market in this region. The potential growth of the IT sector in North America promotes growth opportunities for the financial analytics market. A growing number of digital transactions through ATMs, internet banking, and online shopping, among others, makes the banking sector use the best of the financial analytics that evolve in leveraging the growth rate of the market in the US and Canada.

Asia Pacific is esteemed to have a significant growth rate in the foreseen period. Emerging countries like India and China are forecasted to have a high economic growth rate. Many companies are investing hugely in these countries, eventually creating growth opportunities for the financial analytics market in Asia Pacific. Estimating the possibilities of the organization's financial growth by tracking all the records and taking steps forward in investments surging the market size, especially in emerging countries. China is evolving hugely in various sectors by launching highly advanced technologies that dominantly seek future aspects of the organization's growth.

The financial analytics market size in Europe is next to North America owing to the rising per capita income. Quick adoption of the latest technologies like AI and Machine learning by the firms especially in consumer goods and services to deliver better insights enhances the growth rate of the market in European countries.

KEY MARKET PARTICIPANTS IN THE GLOBAL FINANCIAL ANALYTICS MARKET

The major companies operating in the global financial analytics market include 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), Domo (US), and others.

RECENT HAPPENINGS IN THE GLOBAL FINANCIAL ANALYTICS MARKET

• In February 2019, Oracle Financial Services Global Business Unit collaborated with Blue Prism, a robotic process automation (RPA) software vendor, to integrate the Financial Crime Management and Compliance Suite Services into Digital Workforce from Blue Prism.

• In January 2019, SAP announced the release of its new S / 4 Hana Large Ledger for Financial Products. The solution provides a central hub for managing data between operational and financial systems, streamlining accounting flows, and supporting increased transparency and control. It also helps organizations analyze data for financial steering.

DETAILED SEGMENTATION OF THE GLOBAL FINANCIAL ANALYTICS MARKET INCLUDED IN THIS REPORT

This global financial analytics market research report has been segmented and sub-segmented based on the solution, application, deployment, organisation, vertical, and region.

By Solution

• Financial Functions Analytics
• Financial Market Analytics

By Application

• Wealth Management
• Transaction Monitoring
• Customer Management

By Deployment

• Cloud-based
• On-premises

By Organisation

• SMEs
• Large enterprise

By Vertical

• Education
• Healthcare
• Media
• Government etc.

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa