Performance Analytics Market by Component (Software, and Services), Application (Financial, Sales & Marketing, IT Operations, Supply Chain Performance Analytics), Vertical, Analytics Type, Deployment, Organization Size, Industry – Global Forecast to 2021
The overall performance analytics market is expected to grow from USD 0.96 billion in 2015 to USD 2.59 billion by 2021, at a CAGR of 18.7% from 2016 to 2021. Performance analytics is a set of functionalities that help the organizations to automate performance analysis of various business functions. The user can easily map the performance of their organization against a standard pre-defined set of KPIs and identify the causes for variations. The users monitor, measure, and analyze the performance of business functions such as financial operations, sales, marketing, workforce, and IT operations in real-time with easy interactive dashboards and reports. The base year considered for the study is 2015, and the forecast has been provided for the period between 2016 and 2021.
Performance Analytics Market Dynamics
Drivers
- Need to generate insights from continually rising volume of the data
- Rising prevalence of metrics driven business performance assessment
- Technological advancements in computing power
Restraints
- Lack of awareness regarding positive impacts of performance analytics
- Concerns about positive ROI
Opportunities
- Emergence of advanced vendor offerings
- Increasing adoption of cloud-based performance analytics solutions
Challenges
- Privacy and data security concerns
- Lack of skilled analytical workforce
Need to generate insights from continually rising volume of the data would drive the performance analytics market growth
Today, the organizations across the world are flooded with structured and unstructured data with the tremendous growth in IoT and mobile devices adoption. This data describes central characteristics of an organization and is a pivotal part of business progression. To improve their market presence and build powerful product portfolio, organizations have started investing significant amount of capital on data analysis. Traditionally, the organizations were using legacy technology and operating multiple systems for data reporting. However, due to this fragmented data, the leader of the organization were forced to spend more time on reconciling and preparing data, which prevented them from identifying pain points and improving business performance. Performance analytics tools empowered the business users to create real-time business performance reporting, which helped them to make fact-based decisions.
Following are the objectives of the report:
- To define, describe, and forecast the performance analytics market on the basis of component, applications, analytics type, organization size, deployment models, industry verticals, and regions
- To provide a detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To analyze subsegments with respect to individual growth trends, future prospects, and contribution to the total market
- To analyze the opportunities in the performance analytics market for stakeholders and to provide the details of a competitive landscape for the major players
- To forecast the revenue of market segments with respect to all the major regions, namely, North America, Europe, Asia Pacific (APAC), Latin America, and Middle East and Africa (MEA)
- To profile key players and comprehensively analyze their recent developments and positioning
- To analyze competitive developments, such as acquisitions, new product launches, and research and development activities in the market
During this research study, major players operating in the performance analytics market in various regions have been identified, and their offerings, regional presence, and distribution channels have been analyzed through in-depth discussions. Top-down and bottom-up approaches have been used to determine the overall market size. Sizes of the other individual markets have been estimated using the percentage splits obtained through secondary sources such as Hoovers, Bloomberg BusinessWeek, and Factiva, along with primary respondents. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews with industry experts such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the market. The figure below shows the breakdown of the primaries on the basis of the company type, designation, and region considered during the research study.
BREAKDOWN OF PRIMARY PARTICIPANTS
Note: “Others” includes sales managers, marketing managers, and product managers. Tiers of the companies have been defined based on its total revenue as of 2017; Tier 1 = >USD 100 million, Tier 2 = USD 50 million – USD 100 million, and Tier 3 Tier 3 = < USD 50 million
To know about the assumptions considered for the study, download the pdf brochure
The performance analytics ecosystem comprises vendors, such as, IBM Corporation (US), Oracle Corporation (US), SAS Institute Inc. (US), SAP SE (Germany), Siemens AG (Germany), Adaptive Insights (US), Xactly Corporation (US), Optymyze (US), ServiceNow, Inc.( US), and Callidus Software, Inc. (US). Other stakeholders of the performance analytics market include application design and software developers, system integrators, IT service providers, consulting service provider, managed service provider, market research and consulting firms, and cloud service providers.
Major Performance Analytics Market Developments
- In June 2016, IBM partnered with Axciom to provide powerful analytics solutions to the customers for deriving accurate insights in a short period. This would help the data scientists and marketing analysts to understand customers and predict future behaviors of the customers.
- In February 2016, SAP acquired Roambi to provide mobile access to analytics solutions to everyone. Roambi’s mobile-centric analytics and visualization solution allow workforce to access critical information anywhere, any time.
- In February 2015, SAS and ICMA have been delivering its ICMA Insights to cities, towns, and countries across U.S. to compare their performance data with other participants’ data. The solution now has been delivered to more than 100 government entities to analyze and report performance.
Target Audience:
- Managed Services Providers
- Consulting Services Providers
- Cloud Services Providers
- Internet Services Providers (ISPs)
- Enterprises
- End-Users
Scope of the Report
The research report categorizes the performance analytics market to forecast the revenues and analyze the trends in each of the following subsegments:
By Component
- Software
- Services
- Managed services
- Professional services
- Support and maintenance
- Consulting services
By Application
- Sales and marketing performance analytics
- Financial performance analytics
- Supply chain performance analytics
- IT operations performance analytics
- Employee performance analytics
- Others (Engineering and R&D performance analytics)
By Analytics Type
- Predictive analytics
- Prescriptive analytics
- Descriptive analytics
By Deployment Model
- On-premises
- Cloud
By Organization Size
- Small and Medium Size Business (SMBs)
- Large enterprises
By Industry Vertical
- BFSI
- Telecommunications and IT
- Retail and e-commerce
- Government and defense
- Healthcare
- Manufacturing
- Energy and utilities
- Construction and engineering
- Others (Education, research, travel and hospitality, and outsourcing services)
By Region
- North America
- Europe
- Asia-Pacific (APAC)
- Latin America
- Middle East and Africa (MEA)
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product matrix which gives a detailed comparison of product portfolio of each company
Geographic Analysis
- Further breakdown of the North America performance analytics market
- Further breakdown of the Europe market
- Further breakdown of the APAC market
- Further breakdown of the MEA market
- Further breakdown of the Latin America performance analytics market
Company Information
- Detailed analysis and profiling of additional market players
The overall performance analytics market is expected to grow from USD 1.10 Billion in 2016 to USD 2.59 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 18.7% from 2016 to 2021. Simple to utilize and integrated business applications of performance analytics software will propel the growth of the market. Major driver of the performance analytics market is rising prevalence of metrics-driven business performance assessment.
Performance analytics platform is a user-driven process and is a part of business intelligence architecture, mainly aimed at creating interactive reports and exploring performance-based data. Data gathered from various back-end systems and sources, are utilized for analyzing and understanding historical performance, present performance, and provide recommendation to mitigate business risk through real-time view of KPI and future indicators from the data set. Performance analytics is a management discipline process that let companies have increased focus on supporting integrated management process on the operational, financial, and strategic level, and enabling companies to closely and effectively monitor their overall performance. The rising need for data-driven decision-making and understanding past performance and future performance pattern and trends that would assist the companies to maintain the require performance level has made performance analytics as a must needed technology on both business and IT sector of the organization. Performance analytics can contribute significantly towards interpretation and sharing of insights from thorough data analytics, enabling nontechnical SMBs to perform analysis in a self-directed manner.
The performance analytics market is segmented by component, professional service, application, analytic type, organization size, deployment model, industry vertical, and region. Performance analytics software are used widely by major industry verticals such as BFSI, retail & e-commerce, telecommunications & IT, energy & utilities, government, healthcare, manufacturing, construction & engineering, and others (hospitality services, education, and travel & hospitality), for different business needs.
Globally, performance analytics software and services have gradually started to take over traditional BI tools used for assessing the overall performance of the company, which could not be utilized and accessed without any help from the technical staff. The benefits offered by performance analytics software and service to enterprises includes better preparation for change, superior business management, connected business processes, strategic competitive advantage, timely actionable information, and overall reduced operational risk.
North America is expected to hold the largest market size in the overall performance analytics market, followed by Europe, owing to the technological upgradations in these regions. The adoption rate of performance analytics platform and software is increasing in APAC and Latin America due to the increasing amount of business data across various industry verticals in these regions.
PERFORMANCE ANALYTICS MARKET, BY REGION, 2021 (USD BILLION)
Increasing demand for sales and marketing performance analytics, financial performance analytics, and IT operations performance analytics drive the market growth
Sales and marketing analytics
Performance analytics software in sales and marketing assists companies with optimized marketing spend, not in the traditional sense of applying a marketing mix model, but in delivering optimization through strategy and efficiency at the marketing process level. Additionally, sales and marketing performance analytics application also incorporates the project management process and IT management in designing and delivering tailored marketing services. This approach helps companies with the quick delivery and tailored solutions that are scalable across different regions, business segments, and functions.
Financial performance analytics
On implementing performance analytics software along with financial performance analytics application, companies would be able to bridge the gap between their financial performance and operational performance drivers. Performance analytics software here supports companies to have highly accurate cash flow analysis, real-time view of the financial situation, enhanced alignment with operations, apart from helping them identify variances with corrective actions and track the difference between actual financial performances against planned financial performance. All this linked with operations would result in enhanced overall increase in sales and profitability.
IT operations performance analytics
Performance analytics enables IT operation performance analytics assist companies in efficiently managing their huge IT layer that consists of network, server & storage, and application and identifying where the fault is and providing the immediate fix that results in delivering the high quality services and applications to its end users. Network management, network traffic analysis, network configuration management, server performance management, storage device management, application performance management and end-user experience management are some of the major capabilities of performance analytics enabled IT operation performance analytics application.
Critical questions the report answers:
- Where will all these developments take the industry in the mid to long term?
- What are the upcoming industry applications for clickstream analytics?
Today, organizations are commonly transforming their business either through subsidiaries or acquisitions. This is leading to expansion of operations and teams that needs high-tech technology to solve the issues regarding data management and analysis of various business functions. For instance, the expansion of operations leads to several structural changes within sales and requires effective sales planning and review system to maintain the growth. However, the fear of losing ownership to some potential sales data, hinders the adoption of such tools. Thus, the sales teams continue to rely on older software and solutions and are reluctant to adopt the new technologies. Moreover, the business users have uncertainties about positive Return on Investment (ROI) post implementation of such analytical tools. Therefore, such misconceptions have restrained the adoption of performance analytics solutions among the organizations.
The performance analytics ecosystem comprises vendors, such as, IBM Corporation (US), Oracle Corporation (US), SAS Institute Inc. (US), SAP SE (Germany), Siemens AG (Germany), Adaptive Insights (US), Xactly Corporation (US), Optymyze (US), ServiceNow, Inc.( US), and Callidus Software, Inc. (US). Other stakeholders of the performance analytics market include application design and software developers, system integrators, IT service providers, consulting service provider, managed service provider, market research and consulting firms, and cloud service providers.
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