AI Analytics Market

AI Analytics Market Outlook for 2024 to 2034

The AI analytics market is projected to register an exceptional CAGR of 22.60% during the forecast period, valued at USD 29.11 billion in 2024, and is estimated to reach USD 223.32 billion by 2034. The market is evolving due to the demand for analytics solutions helmed by technological improvements such as rapid speech and natural language processing.

Consumption Analysis of the AI Analytics Market

• Recorded data availability, next-generation computing architectures, and learning and artificial intelligence (ANN) advancements propel innovation in various industries, including manufacturing, automotive, healthcare, and aerospace.
• Digital technologies and internet promotions are propelling the AI analytics industry expansion, with tech giants investing in research and developing predictive analytics solutions for industry planning and development.
• Analytical solutions such as SaaS provide integrated finance, resources, and project management solutions helmed by containerization, virtualization, and edge computing, boosting demand in the forthcoming decade.
• Analytics solutions, such as SaaS and Google Analytics, are gaining traction due to their integration of project management, resource optimization, documented data comparison, compelling demand, and sales of AI analytics solutions.
• Increased cloud-based investment by end-user organizations is anticipated to boost the growth of the AI analytics industry.

Attributes	Details
Market Value for 2024	USD 29.11 billion
Market Value for 2034	USD 223.32 billion
Market Forecast CAGR for 2024 to 2034	22.60%

Historical Performance and Future Growth Prognosis of the AI Analytics Market

The demand for AI analytics is divined to develop at an impressive pace. The historical CAGR of 21.80% was recorded for the market and a 22.60% CAGR is calculated up to 2034.

Attributes	Details
Market Historical CAGR for 2019 to 2023	21.80%

The AI technology sector faces obstacles due to limited data availability, complex models, and the black box effect. The lack of AI talent in developing countries is also a significant impediment.

Acute aspects that are anticipated to influence the demand for analytics solutions through 2034 include:

• Organizations need to promote data-sharing collaborations, invest in data collection and preprocessing, and establish industry-wide standards to improve data availability and quality.
• Opportunities exist to develop demand for AI analytical solutions by devising chronological algorithms with updated data encryption protocols to protect against cyberattacks.
• Introduction of analytical solutions framework and data privacy has paved the way for extending the AI sector.

Key Trends Influencing the AI Analytics Market

Analytical Solutions Derived from AI Help Streamlining Efforts in the BFSI Sector

• In the BFSI sector, AI technology uses semantic and natural language applications for predictive analytics, detecting patterns in data that traditional technology couldn't, revealing untapped sales opportunities.
• Globally, banks are embracing AI solutions to meet customer demands and expectations. Despite internal challenges such as legacy systems, data silos, asset quality, and limited budgets, banks are striving to become customer-centric, thus boosting the demand for AI analytics solutions.
• Innovative AI and banking software development companies help streamline data collection and analysis in banking institutions, improving user experience, fraud detection, and credit decision-making. Thus a surge in demand for AI analytics is observed.

AI Analytics Industry Aid in Widespread Adoption of Virtual Workplaces

• AI analytics guides personalized learning paths for job requirements, assessing current knowledge and suggesting roadmaps. It simplifies information search, acts as a smart librarian, and tracks progress, providing insights for adequate learning in the workplace. Thus, the demand for virtual workplaces is developed.
• Technologies such as AI and VR are revolutionizing the workplace by promoting continuous learning and growth. This is also enhancing personal, effective, and enjoyable learning experiences, and creating a supportive working ecosystem.

Adoption of Data Analytics Helps in Widening Scope of Tourism Industry

• Data analytics aids in accurate forecasting by analyzing documented booking data, seasonal patterns, and events, promoting tourism companies to optimize pricing strategies and minimize under-booking. Thus, AI resources for data analytics are getting a boost from the tourism sector.
• Tourism industry adopts AI analytics to monitor social media channels, gauge customer sentiment, identify trends, and promptly address complaints, enhancing marketing and service strategies.

Category-wise Insights

The following part offers in-depth analyses of sections of the AI analytics market. The demand for predictive analytics is significant whereas the demand for the tool from large enterprises is prominent in 2024.

Predictive Analytics Set to Record Almost 49% of Market Share

Attributes	Details
Top Analytics Type	Predictive Analytics
Market Share in 2024	49%

The demand for predictive analytics is expected to eat up 49% of the market share in 2024 due to augmented awareness of the vast amount of data generated for future events.

Increased internet usage and accessibility have led to a rise in data creation, enhancing business planning and decision-making, thereby boosting demand for predictive AI analytics solutions.

The E-commerce industry enhances customer experiences through social media marketing, consumer perception analysis, and real-time analytics for increased sales and personalized offers.

Smartphone usage has especially improved data volume, compelled by globalization, economic progress, and affordable high-speed internet services, resulting in increased AI output in various countries.

Corporate enterprises are anticipated to rapidly improve AI data generation due to the ease of data capture, with in-house teams of scientists and analysts handling internal and external data, boosting demand for predictive analytics.

Large Enterprises Cultivate Around 36.6% of Market Share

Attributes	Details
Top Enterprise Size	Large Enterprises (500 to 999 employees)
Market Share in 2024	36.6%

Large enterprises with 500-999 employees are increasingly utilizing AI analytics tools to improve labor productivity, with a market share of 36.6% anticipated in 2024, indicating that AI is envisioned to replace human workers but will not render the human workforce obsolete.

The global adoption of AI technologies in enterprises has more than doubled since 2017, with major Indian and Chinese companies leading the way, indicating promising future growth.

Country-wise Insights

Based on the data, industries in Germany and Japan are posited to develop positively but not extraordinarily in the upcoming decade. Simultaneously, the analytics solutions industries in the United States and China are hitting the roof. ANZ’s AI analytics sector is anticipated to climb sharply among these countries in the upcoming decade.

Countries	CAGR from 2024 to 2034
United States	19.50%
Germany	8.10%
China	23.10%
Japan	6.40%
Australia and New Zealand	26.10%

The United States Paves Way for Growth of AI Technology

The AI technology industry in the United States is witnessing a wave of change, with the market predicted to have a CAGR of 19.5% through 2034, with a focus on collaboration to improve AI technologies such as chatbots and machine learning platforms.

• The development of artificial intelligence in diverse applications is anticipated to aid the growth of several market players in the United States.
• The emerging tech startups in the United States are anticipated to revolutionize the analytics solutions industry.

Germany’s Automobile Industry Develops Demand for Big Data Analytics

Demand for AI data analytics solutions in Germany is estimated to develop at a CAGR of 8.1%. Automobile companies are developing rigid analytics solutions alongside the German government.

• Germany-based technology firms are developing novel chatbots, digital payment advisors, and biometric fraud detection mechanisms for the betterment of the industry's platforms.
• The progression of Germany's automobile industry demonstrates the betterment of software-operated driving simulations for vehicle improvements.

China’s BFSI Sector to Kickstart Novel Opportunities for AI Analytics

The demand for the analytics solution in China is anticipated to highlight a CAGR of 23.1% between 2024 and 2034. This is because China's developed banking, financial services, and insurance hubs standing on the grounds of rigid development of digital analytical solutions.

• The government and companies are developing their nation's artificial intelligence to protect from emergent cyber threats and improve applications.
• China's financial data protection operations follow a rigid infrastructure of analytical solutions derived from artificial intelligence and thus the market grows through the BFSI sector avenue.

Companies Advance Artificial Technology Capabilities in Japan

Japan's AI analytics demand is anticipated to extend by 6.4% CAGR from 2024 to 2034, manipulated by emerging AI solutions and analytical trends.

• Several companies in Japan are foreseen to aid in the development of artificial intelligence with the help of cloud computing and other technologies.
• The demand for artificial intelligence analytics solutions in Japan is significant as it advances businesses' technology research and development.

Australia and New Zealand’s AI Solution Industry to Shoot Up

The demand for artificial intelligence analytics in Australia and New Zealand is projected to grow at 26.1% CAGR through 2034.

• The education technology sector of Australia and New Zealand is anticipated to thrive on the rigid infrastructure of the analytics solution system, which advances with artificial intelligence.
• The development of the artificial intelligence sector in the ANZ region aids the demand for novel technologies such as cloud data backups, cloud storage, and machine learning.

Market Players Shaping the Outlook of the Global AI Analytics Market

The AI analytics market is segmented, with traditional tech giants and new start-ups accounting for a substantial footprint in the business environment. Market players are forming strategic mergers, acquisitions, joint ventures, and partnerships to ensure long-term market viability.

The artificial intelligence analytics market is encountering an elevated shift due to prompt technical refinements in machine learning algorithms, big data availability, and increasing computing power. Innovative AI analytics applications frequently materialize, disrupting existing enterprises and assembling new endeavors.

Leading players are engaging in high levels of merger and acquisition activity, helmed by the desire to access new AI technologies and talent, the need to consolidate in a rapidly growing market, and the increasing strategic importance of artificial intelligence.

Recent Developments in the AI Analytics Market

• In April 2024, GIS, a field pioneered by Clark University, used satellite data to detect greenhouse gases, map polar ice, and quantify disaster impacts. AI is now being used to interpret this data, transforming scientific research and decision-making.
• In March 2024, Helika, an AI-powered analytics firm, launched Helika Accelerate, an accelerator program backed by venture capital firms. The program aims to support studios in developing blockchain games and sustaining growth in users and revenue, guiding tokenomics, chain selection, data analytics, and marketing.
• In March 2024, Searce and UBIX AI announced a strategic partnership to transform Google Cloud customers' AI and analytics landscape, advocating for migration from traditional platforms to open-source solutions. The partnership aims to democratize AI for every type of business.
• In March 2024, AuditBoard introduced new AI, analytics, and annotation capabilities to enhance corporate risk, compliance, and assurance teams' collaboration, efficiency, and timely insights, enabling them to navigate dynamic market environments.
• In December 2023, Indian IT firm Infosys developed an omnichannel digital analytics platform for Australia-based Spotlight Retail Group, enabling a hyper-personalized online shopping experience. The platform has led to a 113% customer base growth and a 93% transaction volume increase, enabling scalability and improved inventory management.

Key Companies in the AI Analytics Market

• IBM
• Microsoft
• Google (Alphabet Inc.)
• Amazon Web Services (AWS)
• SAS Institute Inc.
• Oracle Corporation
• SAP SE
• Intel Corporation
• Nvidia Corporation
• Tableau Software (now part of Salesforce)
• Palantir Technologies
• Splunk Inc.
• Teradata Corporation
• Qlik Technologies Inc.
• Databricks

Key Coverage in the AI Analytics Industry Report

• Growth Analysis of AI Analytics in the United States
• Growth Analysis of the AI Technology Sector
• Emerging Trends in AI Operations Market
• Growth Overview of AI Testing Market in the United States
• Market Dynamics and Comparative Assessment of AI Data Analytics Market and AI Inference Market

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
• 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Tools
  • 5.1. Time Series Forecasting Tools
  • 5.2. Predictive Modelling Tools
  • 5.3. Data Visualization Tools
  • 5.4. Natural Language Processing (NLP) Tools
  • 5.5. Speech Recognition Tools
  • 5.6. Others
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Deployment
  • 6.1. Cloud-Based
  • 6.2. On-Premises
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Enterprise Size
  • 7.1. Small & Medium Enterprises (SMEs)
  • 7.2. Large Enterprises
• 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Industry
  • 8.1. BFSI
  • 8.2. IT & Professional Services
  • 8.3. Telecom
  • 8.4. Retail
  • 8.5. Manufacturing
  • 8.6. Healthcare
  • 8.7. Others
• 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
  • 9.1. North America
  • 9.2. Latin America
  • 9.3. Western Europe
  • 9.4. Eastern Europe
  • 9.5. South Asia and Pacific
  • 9.6. East Asia
  • 9.7. Middle East and Africa
• 10. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 11. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 12. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 13. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 14. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 15. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 16. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 17. Key Countries Market Analysis
• 18. Market Structure Analysis
• 19. Competition Analysis
  • 19.1. IBM
  • 19.2. Microsoft
  • 19.3. Google
  • 19.4. Amazon Web Services (AWS)
  • 19.5. SAS
  • 19.6. Alteryx
  • 19.7. Salesforce
  • 19.8. Qlik
  • 19.9. DataRobot
  • 19.10. Talend
  • 19.11. Sisense
• 20. Assumptions & Acronyms Used
• 21. Research Methodology