Wed. May 29th, 2024

The financial analytics market revenue totaled US$ 9.3 Billion in 2021 and is projected to register a Y-o-Y expansion rate of nearly 11% to reach US$ 10.3 Billion in 2022. During the 2022-2032 period of assessment, the market is poised to register a CAGR of 9.3% to be valued at US$ 25.1 Billion. Increasing financial transaction volumes across key verticals has led to increased uptake of efficient financial analytics tools.

Significant growth prospects are visible for the financial analytics industry, especially concerning wealth management. From 2015 to 2021, the wealth management segment flourished at a 10.1% value CAGR, while demand for financial analytics solutions grew at a CAGR of 10% during the same time period. Geographically, the U.S is poised to represent a dollar opportunity worth US$ 4.6 Billion until 2032.

Increasing number of data breaches, money laundering, and other financial crisis is underpinning the need for developing robust security and workflow optimization platforms. Also, growing usage of personal trading apps, mobile transactions, and online banking activities will boost the sales of financial analytics in the forthcoming years.

Besides this, financial institutes are improving measurement models, data architecture, data collection strategies to personalize the user experience and achieve optimal security. This is projected to drive investments in the financial analytics market.

Moreover, demand for management of financial operations through cloud computing in enterprises to detect anomalies, frauds and ensure financial security is increasing. This will continue to augment the sales in the market.

Key Takeaways:

  • Based on component, the financial analytics solutions segment is forecast to register growth at a CAGR of 8.8%.
  • By application, the wealth management segment is estimated to lead the market, exhibiting growth at 8.8% through 2032.
  • The U.K. financial analytics market is projected to account for 4.4% of the overall market share.
  • Sales in China financial analytics market are forecast to increase at a 9% CAGR through 2032, reaching nearly US$ 1.9 Bn.
  • Demand in the U.S. financial analytics market will surge at 8.8% CAGR, with total sales reaching US$ 8 Bn in 2032.

Prominent Drivers:

  • Growing awareness about the benefits of financial analytics such as real-time data analysis and assistance in decision-making will facilitate the growth in the market.
  • Surging demand for asset and liability management, compliance and risk management, and budgetary control in the BFSI, healthcare, and IT industries will boost sales.

Restraints:

  • Rising concerns related to privacy and data security are estimated to hinder growth in the financial analytics market.
  • Lack of skilled professionals such as data analysts for the collection and labelling of data is likely to restrain the demand for financial analytics.

Competitive Landscape:

Key players are focusing on improving their financial analytics solutions by integrating artificial intelligence and machine learning to expand their consumer base.

Some of the leading players are implementing inorganic business strategies such as partnerships, collaborations, mergers, acquisitions, and joint ventures to expand their global footprint.

For instance:

  • February 2022: Teradata Corporation partnered with Microsoft to merge its Vantage data platform with Microsoft Azure. This will help businesses advance their data analytics with reliability, flexibility, and security. Automated analytics are used by retailers providing personalized customer experiences and financial service organizations to track fraud.
  • November 2021: Oracle Corporation updated its Fusion ERP Analytics platform to help finance and operations leaders gain a better understanding of costs and assets. The update will offer clear visibility on metrics, dashboards, and Key Performance Indicator (KPIs) without the requirement of data expertise or coding.

Key Companies Profiled by Fact.MR

  • TIBCO Software
  • Oracle Corporation
  • SAP SE
  • IBM Corporation
  • Infor Birst
  • Zoho Corporation
  • Alteryx
  • Teradata Corporation
  • SAS Institute

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By Team MRRSE

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