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Product Analytics Market Overview
The global product analytics market valued at $14,109.3 million in 2018, and is expected to advance at a CAGR of 18.8% during the forecast period (2019–2024). This can be attributed to factors such as rising digital disruption, growing number of mobile application users, evolution of artificial intelligence (AI) and predictive analytics, and growing social media usage, across the globe. Further, a rapidly increasing focus of product teams to engage with customers, and track their behaviors in order to customize and improve their product and service offerings is leading to boost the market growth.
Based on offering, the product analytics market is categorized into software and service. Of these, the software category held larger revenue share in 2018. This is attributed to the fact that a number of large and small market players are offering advanced and innovative software to end users as per their requirements and personalized needs. Whereas, significant demand for professional expertise and training regarding the usage and deployment of the product analytics solutions, in addition to the increasing requirement for engineering support, integration, and implementation services, is expected to result in faster growth in the service category, during the forecast period.
On the basis solution, the product analytics market is categorized into web-based and mobile-based solutions. The market for web-based solutions held a dominating share in 2018, owing to the fact that most of the internet consumers surf on web, which is relatively easier to keep track of their activities with the help of web analytics solution. Whereas, the mobile-based solution category is projected to exhibit faster growth during the forecast period, on account of increasing smartphone users. With an increasing smartphone penetration, the users leverage mobile applications for several tasks such as online shopping, gaming, banking, and socializing. This is expected to create opportunities for mobile-based analytics solution providers.
Based on enterprise size, the product analytics market is categorized into large enterprises and small and medium enterprises (SMEs). The large enterprises category held more than double the share of the SMEs category in 2018, owing to the substantial demand for advanced analytics tools from big firms to stay competitive and expand their market presence. However, with every year, it is being observed that the SMEs are also recognizing the benefits of product analytics for improving their portfolios. Further, the number of SMEs is also rising, especially in developing countries, such as China and India, leading to increasing prospects for the market within this category.
Product Analytics Market Dynamics
Digital engagement is increasingly evolving across the globe, where consumer-base of e-commerce, retail, e-gaming, banking, and numerous other digitally-available service providers is rising perpetually. Subsequently, customers’ expectation regarding fast, on-demand, and reliable services during digital interactions is also continue growing. This is leading to an increased demand for product analytics solutions in order to track the customers’ behavior and improve companies’ offerings accordingly. With an escalating digitalization, the companies are increasingly cultivating digital intelligence to adapt to the changing customers’ behavior, and offer personalized services with an increased level of interaction. These factors are substantially accelerating the growth of the product analytics market.
In current scenario, internet penetration in developed countries (such as the U.S., Australia, and Singapore) and developing countries (such as India and China) has a substantial role in the product analytics market growth. For instance, as per the Office for National Statistics, 90% of all households had access to internet in 2018, in Great Britain. From 2006 to 2018, the percentage of adults who used internet daily had grown from 35% to 86% in the country. Presently, with everything turning to digital, companies are switching towards digital means to engage with their clients, learn the needs of their clients, and improve their products and services.
In order to build a holistic understanding and to synchronize engagement optimization, product teams are focusing on customer engagement digitally, by procuring business intelligence technologies to deliver web analytics, mobile analytics, behavioral targeting (personalization) capabilities.
Product Analytics Market Competitive Landscape
In recent years, players in the product analytics market have particularly focused on offering innovative and advanced solutions. IBM Corporation, for instance, witnessed a growth in its ‘solutions software’ category, on account of the areas such as analytics and artificial intelligence (AI). Analytics appliances and data science offerings are displaying broad-based growth with continual innovation and enhancement in functionality in the company’s offerings. Moreover, a number of product launches and partnerships in the industry are also being observed. For instance, in June 2019, Salesforce announced that it is planning to acquire Tableu Software, for $15.7 billion, which is noted as the most significant acquisition by Salesforce till date. The company seeks Tableu’s capabilities to be combined with ‘Salesforce Einstein’, an AI platform, which would provide services within sales, marketing, service, and commerce areas to gain a competitive edge.
Some of the key players operating in the global product analytics market include Google LLC, Salesforce.com Inc., Teradata, SAP SE, IBM Corporation, Atlassian, Amplitude, and Adobe Systems Incorporated.