Financial Analytics Market

Financial Analytics Market Outlook (2024 to 2034)

Revenue from the global financial analytics market is expected to reach US$ 12.19 billion in 2024. Latest projections are that the market will increase at a CAGR of 8.8% to ascend to a value of US$ 28.34 billion by 2034.

Increasing consumer adoption of ubiquitous computing devices, advancements in storage capacity, and innovation in analytical tools are creating new business opportunities for industry participants, driving the growth of the global financial analytics market. Growing awareness among end users about the benefits of financial analytics solutions, especially for real-time data analysis and decision-making, is contributing to market expansion.

The persistent rise in cyber threats and data breaches poses a significant risk to sensitive consumer and corporate data, potentially hindering financial analytics market growth. On the other hand, the financial analytics market is poised for substantial development in emerging regions such as Latin America, the Middle East, and Africa, where financial analytics solutions and infrastructure are still in the nascent stages. Major firms are expected to find significant growth opportunities in these areas during the forecast period, contributing to the overall market expansion.

Financial analytics serves as a valuable tool for any corporation aiming to enhance business performance. These analytics enable users to analyze business statistics and gain deeper insights through comprehensive financial data analysis. Beyond the traditional scope, financial analytics can assess economic trends, set long-term business activity goals, and identify promising investment opportunities. The primary objective is to predict the company's future financial condition, aiding in investment growth and enhancing the growth trajectory of the financial analytics market.

The growing popularity of real-time analytics is helping businesses respond swiftly to market changes and make quicker decisions, which is a key financial analytics market trend. The increasing adoption of cloud-based solutions is attributed to their cost-effectiveness and scalability, allowing seamless integration and comprehensive data analysis. Prioritizing data security and privacy measures is crucial for firms handling sensitive financial data.

Forecasting and predictive analytics techniques are employed to anticipate future trends and improve financial planning. These trends highlight the importance of financial analytics for gaining a competitive edge and making informed decisions in today's corporate landscape.

Financial analytics plays a critical role in cost analysis, revenue generation, and detecting billing fraud in the healthcare industry. Governments and regulators use financial analytics to monitor financial markets, detect illicit activities, and ensure compliance with laws.

In supply chain management, financial analytics help determine optimal inventory levels, identify cost-saving opportunities, and improve purchasing decisions. In summary, financial analytics is a versatile tool used across various industries to maintain competitiveness, make informed decisions, and enhance efficiency.

Report Attribute	Detail
Financial Analytics Market Size (2024E)	US$ 12.19 Billion
Forecasted Market Value (2034F)	US$ 28.34 Billion
Global Market Growth Rate (2024 to 2034)	8.8% CAGR
Canada Market Growth Rate (2024 to 2034)	8.5% CAGR
China Market Value (2034F)	US$ 3.5 Billion
North America Market Share (2024E)	25%
East Asia Market Share (2034F)	26%
Key Companies Profiled	Oracle Corporation; IBM Corporation; SAP SE; Teradata Corporation; TIBCO Software; SAS Institute; Alteryx; Qlik; FICO; Infor Birst; Google LLC; Information Builders; Zoho Corporation; Domo Inc.

What are the Reasons Behind High Financial Analytics Market Growth?

“Growing Need for Data-driven Insights and Adherence to Regulations”

Businesses across various sectors, including BFSI, recognize the significance of data-driven decision-making. By leveraging financial analytics tools, organizations can gain insights into risk assessments, market trends, consumer behavior, and financial performance, enabling them to make informed decisions and achieve a competitive advantage.

In the financial sector, institutions are subject to stringent regulations such as Basel III, the Dodd-Frank Act, and IFRS 9, which require them to monitor transactions, manage risks efficiently, and maintain transparent reporting. Financial analytics technologies help mitigate the risk of non-compliance, automate compliance processes, and ensure regulatory adherence.

The financial analytics industry also benefits significantly from the widespread adoption of cloud computing. Cloud-based analytics solutions provide scalability, flexibility, and cost-effectiveness, allowing businesses to access and analyze vast amounts of data without substantial infrastructure investments. This trend opens numerous opportunities for growth within the financial analytics market.

“Risk of Economic Crisis Giving Rise to Need for Proper Financial Analysis”

Market growth is being driven to new heights by increasing risk factors associated with growing concerns over the economic crisis. Financial analytics provides critical insights into investments, is essential for any organization, and aids in projecting the company's future growth phases. Businesses focus on financial management and planning, key components of market expansion, as these help manage risk and uncertainty.

Financial analytics allows users to achieve desired results efficiently by consolidating all financial datasets into a single graph for quick analysis from multiple systems. Data-driven decision-making is becoming increasingly important for every firm.

Companies face significant challenges in data retention, and the growing need to use cloud-based services is boosting the financial analytics market share. Cloud computing facilitates the consolidation of data from various systems, enhances the evaluation of financial data sets, and improves the customer's experience with financial analytics.

What is Putting Market Players in a Difficult Position?

“Data Dispersal across Platforms and Complexity in Data Management”

Financial data is often dispersed across various platforms, systems, and formats, making it challenging to integrate and cleanse data from multiple sources. Organizations must invest in data quality management and integration capabilities, as incomplete or inaccurate data can compromise the reliability and effectiveness of financial analytics solutions. These factors are primarily impeding the expansion of the financial analytics market size.

Country-wise Analysis

The market in Japan is forecast to expand at a CAGR of 10.5% from 2024 to 2034. Japan is poised to occupy a financial analytics market share of 29.4% in East Asia by the end of 2034.

What’s Amplifying Growth Opportunities in the United States Market?

“High Volume of Financial Transactions and Focus on Comprehensive Property Management”

Attribute	United States
Market Value (2024E)	US$ 1.31 Billion
Growth Rate (2024 to 2034)	8.1% CAGR
Projected Value (2034F)	US$ 2.86 Billion

Application of analytics is enhancing financial management in the United States real estate sector. Over time, the concept of using digital solutions to leverage big data and streamline real estate workflows has gained traction.

Real estate organizations are increasingly employing advanced financial analytics software to monitor their daily business transactions due to the high volume of financial activities in this industry. Executives are urging their companies to maximize the potential of their extensive transaction records, property appraisals, asset management, and listings through financial analytics platforms.

How is the Market for Financial Analytics Shaping Up in China?

“Extensive Use of Big Data Analytics to Enhance Productivity”

Attribute	China
Market Value (2024E)	US$ 1.35 Billion
Growth Rate (2024 to 2034)	10% CAGR
Projected Value (2034F)	US$ 3.5 Billion

Due to significant investments in heavy industry, China's manufacturing sector has experienced remarkable growth over the past century, evolving from a minor player to a global leader in the last decade. This growth has naturally led to an increase in financial transactions. Authorities in the country have harnessed big data to enhance productivity, spurring a digital revolution across the sector and improving decision-making and performance. Investing in robust financial services and analytics systems is essential for manufacturing sector leaders to ensure operational continuity.

Category-wise Evaluation

Based on application, the IT & telecom segment is evaluated to expand at a CAGR of 6.4% from 2024 to 2034.

Which Deployment is Popular among Users in the Market?

“Adoption of On-cloud Services Gaining Rapid Traction”

Attribute	On-cloud
Segment Value (2024E)	US$ 8.5 Billion
Growth Rate (2024 to 2034)	9.6% CAGR
Projected Value (2034F)	US$ 21.3 Billion

On-cloud services are gaining popularity in the market. This trend indicates increasing confidence in on-cloud solutions and their myriad benefits. Consequently, on-cloud services are emerging as the preferred deployment method for organizations.

Where are Financial Analytics Most Widely Applied?

“Financial Analytics Facilitating Efficient Investment Planning in BFSI Sector”

Attribute	BFSI
Segment Value (2024E)	US$ 3 Billion
Growth Rate (2024 to 2034)	10% CAGR
Projected Value (2034F)	US$ 7.9 Billion

The banking, financial services, and insurance (BFSI) sector heavily relies on financial analytics for various critical applications. Financial analytics play a crucial role in investment planning, fraud detection, risk assessment, and gaining consumer insights within BFSI. This technology is indispensable for making informed decisions that ensure stability and foster sustained growth in the industry.

Market Competition

Due to the abundance of service providers, there is intense competition in the worldwide financial analytics industry. Key players in the financial analytics market are providing extremely creative software solutions, which might be linked to the quick digitalization of the world financial scene. Important growth tactics, including partnerships, collaborations, and mergers and acquisitions, are also dependent upon and are adapting themselves to evolving market trends such as cloud-based analytics and edge analytics.

• International technology giant Microsoft Corporation and business intelligence software provider Microstrategy Incorporated have extended their collaboration.
• Provider of business intelligence solutions QlikTech International AB recently purchased the data integration and management software developer Talend Inc.
• Alteryx has added enterprise-grade and self-service features to its analytics cloud platform to help its clients make choices about their businesses more quickly.

Fact.MR provides detailed information about the price points of key financial analytics service providers positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Key Segments of Financial Analytics Market Research

• By Component :

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

• By Application :

  • Financial Wealth Management
  • Financial Governance Risk & Compliance Management
  • Financial Forecasting & Budgeting
  • Customer Financial Management
  • Financial Transaction Monitoring
  • Financial Claims Management
  • Financial Fraud Detection & Prevention
  • Financial Stock Management

• By Deployment :

  • On-Premise
  • Cloud-Based

• By Organization Size :

  • SMEs
  • Large Enterprises

• By Vertical :

  • BFSI
  • IT & Telecom
  • Government
  • Energy Utilities
  • Manufacturing & Automotive
  • Healthcare & Pharmaceuticals
  • Retail & e-Commerce
  • Media & Entertainment
  • Transportation & Logistics
  • Other Verticals

• By Region :

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa