Industrial Analytics Market Size - By Analytics Type (Descriptive, Diagnostic, Predictive, Prescriptive), Deployment Model (On-premises, Cloud), Enterprise Size (SMEs, Large Enterprise), Component, End Use & Global Forecast, 2023 - 2032

Industrial Analytics Market Size - By Analytics Type (Descriptive, Diagnostic, Predictive, Prescriptive), Deployment Model (On-premises, Cloud), Enterprise Size (SMEs, Large Enterprise), Component, End Use & Global Forecast, 2023 - 2032

Industrial Analytics Market Size

Industrial Analytics Market size was valued at USD 35.2 billion in 2022 and is anticipated to register a CAGR of over 12% between 2023 and 2032. Increasing investments in advanced analytics solutions are driving significant growth in the market. Businesses across various sectors are recognizing the value of data-driven insights in enhancing operational efficiency and decision-making. For instance, in March 2023, SAS, a leading analytics company, announced a strategic initiative to dedicate USD 1 billion in funding over the next three years for the advancement of cutting-edge analytics solutions. This investment aims to cater to the unique requirements of industries such as manufacturing, energy, government, banking, insurance, healthcare, and retail.

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Industrial analytics solutions play a crucial role in monitoring and enhancing product quality for industries. By analyzing vast amounts of data from manufacturing processes, sensors & equipment, these solutions identify patterns and deviations. Real-time monitoring helps detect anomalies, ensuring timely intervention to prevent defects. Predictive analytics forecasts potential quality issues, enabling proactive measures. Through data-driven insights, industries can optimize production parameters, maintain consistent quality standards, minimize defects, and ultimately improve the overall product quality & customer satisfaction.
 

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Data quality and integration pose significant challenges in the industrial analytics market. Industrial data is often collected from diverse sources and in various formats, leading to inconsistencies & errors. Ensuring the accuracy, completeness, and reliability of this data is crucial for meaningful analysis. Additionally, integrating data from different systems, sensors, and devices within industrial environments is complex. Mismatched data formats and standards hinder seamless integration, making it challenging to derive cohesive insights and hindering the implementation of effective analytics solutions.

COVID-19 Impact

The COVID-19 pandemic has negatively impacted the industrial analytics market. Disruptions in global supply chains, reduced manufacturing activities, and economic uncertainties led many industries to curtail investments in analytics solutions. Businesses faced budget constraints, delaying, or cancelling planned analytics projects. Additionally, the focus shifted toward immediate cost-cutting measures, diverting attention and resources away from long-term analytics implementations. These challenges hindered market growth as industries grappled with the pandemic's economic repercussions.

Industrial Analytics Market Trends

Predictive maintenance solutions are driving lucrative growth in the industrial analytics industry by revolutionizing maintenance practices. These solutions utilize advanced analytics, IoT sensors, and machine learning algorithms to predict equipment failures. For instance, in September 2023, Rockwell Automation introduced a novel AI predictive maintenance solution called Asset Risk Predictor, developed in collaboration with Fiix (Rockwell’s cloud-based computer maintenance management system business). The product harnesses AI sensor data, machine recipes, and operational data to anticipate asset health. By enabling users to identify and prevent failures before they occur, it enhances maintenance efficiency & minimizes downtime.

The proliferation of Industry 4.0, characterized by the integration of smart technologies and data-driven automation into industrial processes, is driving the market. Industry 4.0 initiatives leverage IoT devices, big data analytics, and artificial intelligence to create intelligent, interconnected manufacturing systems. These advancements generate vast amounts of data, necessitating sophisticated analytics tools. By harnessing this data, industries can optimize operations, improve efficiency & enhance decision-making, thereby fuelling the demand for industrial analytics solutions and propelling market growth.

Industrial Analytics Market Analysis

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Based on component, the hardware segment accounted for 40% of the market share in 2022, propelled by the widespread adoption of IoT devices and the increasing need for seamless connectivity between industrial machines & systems. IoT devices including sensors and connected equipment drive the demand for hardware components, enabling data collection. Additionally, the emphasis on real-time data processing necessitates hardware solutions, such as gateways & communication modules, to support efficient connectivity. These advancements cater to the growing demand for data-driven decision-making, boosting the hardware segment's significance in the market.

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Based on deployment model, the on-premises segment held around 58% of the industrial analytics market share in 2022. Enhanced operational efficiency is driving the preference for on-premises deployment in the market. On-premises solutions offer tailored configurations and optimized performance, leading to faster data processing & analysis. For instance, in September 2023, SICK introduced an Industry 4.0 on-premises data intelligence platform, SICK Field Analytics, enabling manufacturing and logistics organizations to enhance their operational efficiency. The platform enables a swift setup, offering tailored condition monitoring and process insights specific to applications. Moreover, it operates independently of an organization's current machinery and systems, providing flexibility & easy integration.

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Asia Pacific industrial analytics market size dominated around USD 10 billion in 2022. Rapid industrialization in the Asia Pacific region has led to a surge in the adoption of industrial analytics solutions. This trend is bolstered by supportive government initiatives, promoting digital transformation and smart manufacturing practices. Industries in the region are embracing advanced analytics technologies including IoT & machine learning to optimize production processes and enhance operational efficiency. Owing to this factor, the Asia Pacific market for industrial analytics continues to expand. These efforts align with Industry 4.0 principles, fostering a dynamic ecosystem of technological innovation and growth in various industrial sectors.

Industrial Analytics Market Share

Major companies operating in the industrial analytics industry are

• HP Inc.
• IBM
• Intel Corporation
• Microsoft
• Robert Bosch GmbH
• Rockwell Automation
• Siemens

IBM, Intel Corporation and Microsoft are among the dominating players in the industrial analytics market with around 18% revenue share. Major companies in the industrial analytics industry are fiercely competing for market shares by integrating advanced AI systems and leveraging the proliferation of cloud technology. They focus on developing sophisticated analytics solutions, enhancing real-time data processing, and offering scalable cloud-based services to meet diverse industry needs, driving their competitive edge.

Industrial Analytics Industry News

• In February 2023, AVEVA, a pioneer in industrial software fostering innovation & sustainability, unveiled AVEVA Predictive Analytics. Specifically intended for the predictive monitoring of industrial assets in sectors such as manufacturing, chemicals, oil & gas, mining & minerals, and power, this software signifies a substantial advancement in predictive analytics technology.

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

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Market, By Component

• Hardware
  • Sensors & Actuators
  • Data Acquisition Systems
  • IoT
  • Edge Computing Devices
  • Others
• Software
  • Operational Analytics
  • Risk Analytics
  • Financial Analytics
  • Marketing Analytics
  • Customer Analytics
  • Workforce Analytics
• Service
  • Professional Services
  • Managed Services

Market, By Analytics Type

• Descriptive
• Diagnostic
• Predictive
• Prescriptive

Market, By Deployment Model

• On-premises
• Cloud

Market, By Enterprise Size

• SMEs
• Large Enterprise

Market, By End Use

• Construction
• Manufacturing
• Energy & Power
• Mining
• Transportation
• Others

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

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

Frequently Asked Questions (FAQ)

How big is the industrial analytics market?

The market size of industrial analytics reached USD 35.2 billion in 2022 and is set to grow at 12% CAGR from 2023 to 2032, due to the increasing investments in advanced analytic solutions by leading businesses worldwide.

Why is the industrial analytics market growing from hardware components?

The hardware component segment held over 40% of the market share in 2022, owing to the widespread adoption of IoT devices and the increasing need for seamless connectivity between industrial machines & systems.

What factors are influencing industrial analytics industry growth in Asia Pacific?

Asia Pacific market size was valued at USD 10 billion in 2022, attributed to the rapid industrialization and supportive government initiatives in the region.

Who are the key industrial analytics market players?

HP Inc., IBM, Intel Corporation, Microsoft, Robert Bosch GmbH, Rockwell Automation, and Siemens are some of the major industrial analytics companies worldwide.