Financial Analytics Market Size - By End-Use (Retail & Consumer Goods, BFSI, Manufacturing, IT & Telecom, Government & Public Sector, Transportation & Logistics, Healthcare), Component, Deployment Model, Organization Size, Application & Forecast 2023 - 2032

Financial Analytics Market Size - By End-Use (Retail & Consumer Goods, BFSI, Manufacturing, IT & Telecom, Government & Public Sector, Transportation & Logistics, Healthcare), Component, Deployment Model, Organization Size, Application & Forecast 2023 - 2032

Financial Analytics Market Size

Financial Analytics Market size was valued at USD 10.2 billion in 2022 and is estimated to register a CAGR of 16.4% between 2023 and 2032. Monitoring financial trends is driving the growth of the market as businesses and institutions increasingly depend on data-driven insights. Real-time analysis of market shifts, investment patterns, and economic indicators enables informed decision-making.

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With the expansion of big data, financial analytics tools offer precise predictions, risk assessments, and strategic guidance, enhancing competitiveness and enabling proactive responses to dynamic financial landscapes. Furthermore, the growing integration of AI in BFSI is expected to drive the growth of the market.

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Prescriptive analytics is fueling the financial analytics market by providing actionable recommendations for complex financial challenges. By combining predictive models and optimization techniques, it helps in making optimal decision-making. Financial institutions, businesses, and investors benefit from personalized strategies that consider multiple variables and constraints. This proactive approach optimizes portfolio management, risk assessment, and resource allocation, fostering more informed choices. The demand for such sophisticated insights is driving the adoption of prescriptive analytics, propelling the market's expansion.

Ensuring the accuracy and reliability of financial analytics heavily relies on high-quality data. However, financial data can be scattered across various platforms and systems, leading to challenges in integration. Incomplete or inconsistent data can skew results, impacting the effectiveness of analytics models. Proper data governance and validation processes are essential to mitigate these issues and establish a solid foundation for meaningful insights and predictions in the market.

COVID-19 Impact

The COVID-19 pandemic has positively impacted the financial analytics market by highlighting the crucial role of data-driven insights during times of economic uncertainty. As businesses and financial institutions faced unprecedented challenges, the demand for accurate predictions, risk assessments, and scenario planning surged. This increased adoption of financial analytics tools for real-time tracking and strategic decision-making, further solidifying their importance and driving innovation in the market.

Financial Analytics Market Trends

The emergence of fintech analytics startups is driving the financial analytics industry by injecting innovation and competition. For instance, in July 2023, Dobin, a FinTech startup based in Singapore, has recently debuted as the pioneer in Southeast Asia to employ open finance and advanced data analytics. This innovative approach aims to provide users with a consolidated perspective of their financial matters, generate anonymized customer insights, and enable users to extract meaningful value from their financial data. These upcoming startups are creating competition among other financial analytics vendors and spurring overall market growth and encouraging more widespread adoption of sophisticated financial analytics solutions.

Financial Analytics Market Analysis

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The large enterprises segment held over 65% of the financial analytics market share in 2022. Partnerships are showing lucrative growth for large enterprises in the market. Collaborations between established management consultancy and technology providers allow for the integration of cutting-edge analytics solutions into existing systems.

For instance, in July 2023, Capco, the worldwide technology and management consultancy specializing in financial services, and Pyramid Analytics, a prominent provider of business analytics and decision intelligence platforms, have joined forces. Their partnership aims to assist financial institutions in streamlining decision-making using AI-enhanced, automated, and collaborative insights.

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The BFSI segment accounted for 28% of the financial analytics market share in 2022. With vast volumes of financial data generated daily, the industry requires precise insights for informed decision-making, risk assessment, fraud detection, and customer experience enhancement. Financial analytics solutions provide a competitive edge by enabling accurate predictions and strategic planning. As a result, the BFSI sector remains a driving force in the adoption and expansion of the market.

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North America financial analytics market with a major share of over 37% in 2022. Strategic partnerships among U.S.-based organizations are propelling the North American market. These collaborations leverage the expertise of established financial institutions, technology firms, and analytics providers.

For instance, in June 2023, Moody's Corporation and Microsoft have unveiled a fresh strategic collaboration. This partnership aims to provide advanced data, analytics, research, collaboration, and risk solutions tailored for both financial services and the global workforce engaged in knowledge-intensive tasks. The resulting synergy from these collaborations addresses the evolving industry needs which positions North America as a hub for market.

Financial Analytics Market Share

Major companies operating in the financial analytics market are

• Microsoft Corporation
• IBM Corporation
• Oracle
• Hitachi Vantara
• SAS Institute
• TIBCO
• SAP SE.

The market features intense competition, with numerous players offering diverse solutions leveraging data science, AI, and advanced technologies.

Financial Analytics Industry News 

• In July 2023, Bunker, a financial analytics platform headquartered in Singapore, has secured more than USD 5 million through successful pre-seed and seed funding rounds from a consortium of investors in the region. The startup intends to utilize the recently acquired capital to expedite its expansion and enhance its platform, which provides a wide array of comprehensive financial analytics solutions.
   

This financial analytics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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Market, By Component

• Solution
• Data Integration Tools
• DBMS
• Query, Reporting & Analysis
• OLAP & Visualization Tools 
• Services
• Professional Services
• Managed Services

Market, By Deployment Model

• On-premises
• Cloud

Market, By Organization Size

• SMEs
• Large Enterprises

Market, By Application

• General Ledger Analytics
• Wealth Management
• Budgetary Control Management
• GRC Management
• Customer Management
• Payables/Receivables Analytics
• Transaction Monitoring
• Others

Market, By End-Use

• Retail & Consumer Goods
• BFSI
• Manufacturing
• IT & Telecom
• Government & Public Sector
• Transportation & Logistics
• Healthcare
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Singapore 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• MEA
  • UAE
  • Saudi Arabia
  • Israel
  • South Africa

Frequently Asked Questions (FAQ)

How big is the financial analytics industry?

The market size of financial analytics reached USD 10.2 billion in 2022 and is set to register 16.4% CAGR from 2023 to 2032, due to global businesses and institutions becoming increasingly dependent on data-driven insights.

Why is the demand for large enterprise financial analytics growing?

The large enterprise segment recorded 65% of the market share in 2022, on account of rising collaborations between established management consultancy and technology providers.

What factors are influencing the financial analytics industry growth in North America?

North America registered over 37% of the market share in 2022, owing to the growing strategic partnerships among U.S.-based organizations in the region.

Who are the key financial analytics market players?

Microsoft Corporation, IBM Corporation, Oracle, Hitachi Vantara, SAS Institute, TIBCO, and SAP SE are some of the major financial analytics companies worldwide.