Global financial analytics market is expected to experience brisk growth over the forecast due to the high demand for enhanced technologies in business analytics and business intelligence across the world. Increased focus on data analytics in the organization around the world is presumed to propel the demand for financial analytics industry over the next eight year period.
Financial analytics is used to handle specific business related operations and to forecast future financial situations. Financial analysis software presents the monetary data in an executive dashboard and speeds up reporting by presenting the data in a graphical form that is easier to interpret and read rather than a spreadsheets series with pivot tables.
Financial analytics assist businesses organizations to integrate business intelligence (BI) from different departments and implement analytical tools to extract exact and correct insights from the collected data. Banking financial services and insurance (BFSI) sector is estimated to be a chief contributor to industry growth as these services assist in asset & liability management, GRC (governance and risk and compliance), receivables management, budgetary control, payables management, and profitability management.
The financial analytics market is expected to grow at a lucrative CAGR in the next few years due to its critical role in examining a company’s macro and microenvironments. Fundamental analysis is a collective term that involves a detailed analysis of a company’s performance, financial statement, competitive advantages, competitors, and market. Financial analytics has witnessed popularity in recent past and has been accepted widely for research related to corporate and equity bond markets.
Several contemporary business models viz. B2B (business-to-business), B2C (business-to-consumer), and B2E (business-to-employee) are projected to open many new opportunities for market growth. Technological advancement has automated several day-to-day operations and their financial divisions to enhance the business processes efficiency which in turn is presumed to drive industry growth over the forecast period. Growth in data intensity and awareness related to the financial analytics usage for competitive differentiation is estimated to boost the industry over the forecast period.
The requirement for addressing numerous business dimensions is expected to hamper the market demand over the forecast. Moreover, rising security issues are expected to hinder further industry growth over the next eight-year period. The increase in the application of cloud analytics in the near future is expected to contribute to financial analytics adoption. The cloud computing acceptance across several industries in the recent past is presumed to have a long-lasting positive influence on this industry. The increase in fraud cases related to financing over the last past and several other monetary risks associated with volatile economic markets are estimated to offer abundant opportunities for the industry vendors over the forecast period.
Based on the main verticals the industry is classified as BFSI, government, manufacturing, public sector, telecommunication & IT, travel & hospital, energy, healthcare & life science, media & entertainment, retail, transportation & logistics, and utilities. This industry can be classified as consulting & support services, database management system (DBMS), query, analytical solutions, data integration tools, OLAP & visualization tools, and reporting & analysis based on analytics type. Key deployment methods include on-premise and Cloud-based financial analytics. Major application areas include asset & liability management, general ledger management, receivable management, governance, compliance management, budgetary control management, payable management, profitability management, and risk management. The industry is further classified into SMBs (small & medium business) and large enterprises.
Key regional markets include North America, Europe, Central & South America, Middle East & Africa, and Asia Pacific. Europe and North America captured the largest share of the global market in the recent past. These regional markets are expected to show a similar trend over the forecast period. North America has accounted for the maximum revenue share in the global market due to high acceptance across multiple industries along with a quick technology adaptation rate.
Developing regions such as Asia Pacific is expected to experience positive growth in this industry owing to rising awareness and favorable government initiatives. Demand for information storage and analysis increase due to substantial information generation is expected to further boost industry growth in these regions shortly. Emerging economies are estimated to witness positive growth over the next eight-year period and lead the regional market.
The financial analytics market is highly cost-intensive and requires a substantial initial investment for installation and implementation. The industry is presumed to witness several mergers and acquisitions over the forecast period, with companies taking active measures to gain market share and to deliver diversified product portfolio to their customers. Prominent industry participants include Deloitte, Hitachi Consulting, Information Builders, Microstrategy, Rosslyn Analytics, SAS, Tableau Software, Tibco, Fico, IBM, Microsoft, Oracle, SAP, Symphony Teleca and Teradata Corp.
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In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance. On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. The report will account for Covid19 as a key market contributor.