Business Intelligence Software Market Size, Share & Trends Analysis Report By Technology, By Function (Executive Management, Finance), By Tool, By Deployment, By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global business intelligence software market size was valued at USD 24.9 billion in 2018 and is expected to witness a CAGR of 10.1% from 2019 to 2025. Large organizations have adopted the “Big Data” approach to organizing internal and external datasets. Owing to technological proliferation, and growing usage of IoT and analytics, companies can now track and compile behavioral data with a clear purpose.

Business intelligence software enables businesses to make informed decisions based on logical facts involving market trends and consumer buying patterns. For instance, data exists in several systems across the large organization as they own CRM and ERP applications. Hence, the primary step to utilize BI is to prepare an inventory of the data produced by the business. Furthermore, the increasing adoption of data analytics in end-use industries to analyze the data and make more informed business decisions is expected to drive demand for the BI software.

The market is majorly driven by extensive use of e-commerce and an increase in the adoption of data-oriented business models by small, medium, and large organizations. For instance, restaurant chains such as Wendy’s and Ruby Tuesday in the U.S. are significantly using BI software to enhance customer relationships. The BI approach enables the companies to implement strategic decisions in a way such that it brings out a positive transformation resulting in high-quality customer service. Moreover, increasing the use of data and business analytics software backed by continuous investments in business intelligence and tools is generating high revenue growth.

Growing demand for cloud-based business solutions in the SME sector is driving the market. Rising awareness for several benefits offered by BI software enables a high scope for organizations to target their customers and enhance user experience. Data scalability is a prominent feature of BI software and applications. For instance, options such as subscription, pay-per-use, and pay-as-you-go are some of the prominent techniques that help an organization to scale its data. Also, a BI software helps in tracking the KPIs, which consists of an umbrella of tools that uses big data and develops highly useful metrics for evaluation of feedback.

On the contrary, significant cost incurred in-licensing and installing a BI software is expected to pose a challenge to the market growth. The licensing prices of BI software are not entirely based on software development costs but are largely influenced by the market conditions at the time of purchase. Furthermore, the organizations are already benefitting from the traditional BI tools and are skeptical about adopting the advanced BI software. Even though the advantages of adopting BI software are plenty, the initial investment of buying a suitable BI platform or software, implementing it in the organization, and training the employees on utilizing it is high.

Technology Insights

Based on technology, the BI software market is segmented into cloud business intelligence, mobile business intelligence, social business intelligence, and traditional business intelligence. The cloud business intelligence segment accounted for a significant market share as cloud solutions offer predictive maintenance for clients, which covers the expenses for hardware and software problems. Furthermore, cloud business intelligence software is easy to install in the existing business operations and allows enterprises to focus on their core business. The software allows users to access data from a mobile, tablet, laptop, desktop, and other devices connected to the network. This is further expected to drive demand for the cloud business intelligence software over the forecast period.

Social business intelligence is an important aspect of the BI industry, wherein the growing number of individuals within a domain produces massive amounts of information for future access. For instance, in healthcare, social business intelligence can provide key insights that can enhance outcomes for patient’s treatment, analysis of treatment plans, and minimizing hospitalization expenses. Rising usage of social media sites such as Twitter, Facebook, LinkedIn, YouTube, and Instagram are also expected to drive the demand for the social business intelligence segment to manage the rapidly growing user data.

Function Insights

Based on function, the market is segmented into executive management, finance, information and deployment, and sales and marketing. The finance function segment dominated the market in terms of revenue in 2018 and was valued at USD 7.6 billion. The extensive use of financial tools for collecting, processing, and analyzing financial data in real-time environments that help in making in better business decisions, is expected to drive the growth of the finance segment. BI tools enable the finance department within an organization with key insights about future trends, subsequently allowing the company to calculate risk.

Executive management is anticipated to witness remarkable growth over the forecast period. The rise in the adoption of BI software for strategical decision making by organizations is expected to drive demand for the executive management segment. The necessity of BI for organizations stems from decision support systems wherein managers use computer applications to test their decisions. In recent years, digital applications such as online analytical processing (OLAP), executive information systems (EIS), predictive analysis, and data mining have gained traction in the information industry.

Tool Insights

Based on tools, the market is segmented into dashboards and scorecards, OLAP and visualization tools, predictive analytics, and query reporting, and search tools. The query reporting and search tools segment dominated the market in 2018. Transporting raw data and conducting an in-depth analysis enables consumers to gain insights for their business by employing the information assets as and when needed. Therefore, the search tools can help consumers to impart significant learning about the product/service they wish to opt for.

The dashboards and scorecards segment is expected to witness remarkable growth over the forecast period. BI enabled dashboards and scoreboards to allow businesses to analyze the data to enable corporate staff and end-users with more informed business decisions. Dashboards and analytical tools relay a significant level of focus on measurements that are important for business decisions. It provides a visual representation of key performance indicators (KPI) in the form of charts, graphs, and maps, which allow businesses to make more informed decisions.

Deployment Insights

Based on deployment, the business intelligence (BI) software market is segmented into hosted and on-premise. On-premise deployment is easy to configure and easily integrated with existing IT and operational systems. This is expected to drive demand for on-premise deployment segment over the forecast period. Although, cloud hosting being a preferred strategy, many vendors opt for an on-premise BI strategy. Major advantages of on-premise implementation include a high degree of customization and resultantly incurs lower costs if there are any additional resources.

Cloud deployment enables business applications to be scaled quickly, can be easily integrated with third-party applications, and provides security at all levels of the enterprise IT architecture so that these applications can be monitored remotely. Furthermore, deploying cloud-based BI software allows businesses to concentrate on their core activities rather than managing their IT environment. The small and medium enterprises are increasingly adopting cloud BI software owing to its cost-effectiveness. These factors are further expected to boost the growth of the cloud deployment segment over the forecast period.

Enterprise Size Insights

Based on enterprise size, the market is segmented into large enterprises and small and medium enterprises. Both large and small and medium enterprises are increasingly adopting BI software to strengthen the internal as well as external business processes. The use of real-time data compilation tools and advanced analytical engines are driving the demand for BI software in large enterprises. The high emphasis on resource allocation and strategic decision-making is further expected to drive the growth of large enterprises segment.

BI software allows small and medium enterprises to analyze their corporate data and to make decisions to drive profitability and growth in the market. BI software also gathers customer data from various online channels and allows small and medium enterprises to identify buyers and bring their products and services to their target market. These factors are expected to further drive demand for BI software in small and medium enterprises segment.

End-use Insights

Based on end-use, the market is segmented into BFSI, government, healthcare, IT and telecom, manufacturing, media and entertainment, and others. BFSI is the leading end-use segment in 2018 accounting for a high revenue share. This dominance can be attributed to increased deployment of BI software to enable constant access to the client database, secure transactions, and enhanced client experience. The BI software allows financial institutions to analyze large amounts of customer data to gain insights about their customers, which can be used to improve products and services.

Manufacturing is the leading segment that has witnessed significant changes in recent years due to a rise in global competition, which results in eradicating the traditional approach and creating a data-oriented structure. As manufacturing costs are growing rapidly following a decline in profit margins, government regulations are also thickening for the manufacturing sector all across the globe. In this background, the manufacturing industry is subject to a demand for a data-driven business model. Growing adoption of the Internet of Things (IoT) in the production process and Industry 4.0 initiative are making the conditions ideal for the manufacturing industry to opt for BI software.

Regional Insights

North America dominated the market in 2018 and was valued at USD 8.2 billion. This dominance can be attributed to the rise in the adoption of BI applications and digitalization across various domains. The high adoption of cloud strategy has doubled the rate of usage for business intelligence. The presence of major players in cloud BI software in North America is expected to propel the regional growth of the market.

The Asia Pacific is expected to emerge as the fastest-growing region owing to the rise in demand in emerging economies such as China and India. Significant adoption of BI software and tools, outsourcing activities for cloud deployment, and demand for customer insights are some of the major highlights for the growth of the Asia Pacific regional market. Organizations in the region are focusing to enhance their management system and increase overall efficiency to stay competitive in the market. This is expected to provide lucrative business opportunities for BI software industry participants over the forecast period.

Key Companies & Market Share Insights

The key players in the market are Cloud9 Analytics; Google, Inc.; IBM Corporation; Informatica; Microsoft Corporation; Oracle Corporation; SAP SE; SAS Institute, Inc.; and Tableau Software. High penetration of e-commerce mainly in emerging economies such as India, China, and Brazil is anticipated to create lucrative opportunities for business intelligence software industry participants during the forecast period.

The market players are increasingly undertaking initiatives such as new product launches and product updates, to stay competitive in the market. The companies are also heavily investing in research and development activities to develop advanced BI software. For instance, in 2018 Microsoft Corporation invested USD 14.7 billion in research and development to develop advanced products and services, which helped the company to maintain a competitive advantage over its competitors.

Business Intelligence Software Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global business intelligence (BI) software market report based on technology, function, tool, deployment, enterprise size, end-use, and region.

• Technology Outlook (Revenue, USD Billion, 2014 - 2025)

  • Cloud Business Intelligence

  • Mobile Business Intelligence

  • Social Business Intelligence

  • Traditional Business Intelligence

• Function Outlook (Revenue, USD Billion, 2014 - 2025)

  • Executive Management

  • Finance

  • Information and Deployment

  • Sales and Marketing

• Tool Outlook (Revenue, USD Billion, 2014 - 2025)

  • Dashboards & Scoreboards

  • OLAP & Visualization Tools

  • Predictive Analysis

  • Query, Reporting & Search Tools

• Deployment Outlook (Revenue, USD Billion, 2014 - 2025)

  • On-premise

  • Hosted

• Enterprise Size Outlook (Revenue, USD Billion, 2014 - 2025)

  • Large Enterprises

  • Small & Medium Enterprises

• End-use Outlook (Revenue, USD Billion, 2014 - 2025)

  • BFSI

  • Government

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Media & Entertainment

  • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • MEA