How Big Is the Business Intelligence Market? Here Are Trends to Expect By 2030

business-inteligence

The business intelligence (BI) market has rapidly expanded in recent years and is poised for sustained growth over the next decade. Fueled by developments in data management, analytics, visualization, and cloud computing, the capabilities and potential impacts of BI solutions have transformed how businesses operate.

An analysis of the historical development of the BI market from the 1960s and 1970s, when BI was mainly focused on basic reporting and data analysis, indicated significant growth. During that time, the focus was on data extraction and ETL processes to aggregate and prepare data for analysis, serving a niche market with limited technology capabilities.

However, in recent years, the BI market has grown sporadically and is currently valued at $27.11 billion. Projections indicate that the market will continue to scale, reaching $54.27 billion by 2030 at a compound annual growth rate [CAGR] of 9.1%. The growth of the BI market is accelerated by various factors, including technological advancements, increased availability of data, advanced analytics and artificial intelligence/machine learning (AI/ML), data visualization, and real-time and predictive analytics.

A Quick Look at What BI Entails

Business intelligence (BI) is a technology-driven system that collects and analyzes data to deliver comprehensible information that helps organizations make informed business decisions.

The BI process includes collecting data from both internal and external IT systems and creating data visualizations and dashboards by analyzing and running it through multiple queries to produce an extensive report that helps users and organizations in their strategic planning and operational decision-making process.

The key purpose of BI is to create comprehensive reports that organizations can leverage to increase revenue and enhance their workflow seamlessly. To attain that objective, BI employs an integration of reporting tools, data management, and other methodologies to manage and provide practical insights that allow businesses to streamline their operations, detect patterns, and foster expansion.

How COVID-19 Has Impacted the BI Market

The COVID-19 crisis has accelerated demand for business intelligence. As companies generate unprecedented amounts of data in pursuit of insights, BI tools are crucial to navigating uncertainty.

Cloud-based BI solutions, in particular, have enabled real-time visibility into operations and customer experiences amid remote work. At the same time, budgets remain constrained, forcing businesses to prioritize easy deployment and optimization over extensive functionality.

Despite these pressures, interest in data-driven decision making and analytics is at an all-time high. BI and advanced tools like AI/ML are reshaping how companies work, learn, and compete. Growth is inevitable as firms chase analytics advantage in an increasingly data-saturated world.

Trends Projected to Influence the Business Market in 2023

Streamlining Workflows Through Mobile BI

Mobile business intelligence transforms analytics. It delivers real-time insights anytime, anywhere, enhancing productivity, responsiveness, and competitiveness.

Monitoring metrics, trend alerts, data access—mobile BI achieves all with secure, intuitive tools and scalable infrastructure. Navigating fast change requires monitoring key KPIs, spotting patterns, and adapting quickly—mobile BI enables this.

Forging a data-first culture demands breaking silos, embedding insights in workflows. Mobile BI accomplishes this by putting information and analytics in users’ hands system-wide. It optimizes business, builds fluency, equips leaders with foresight.

Mobile BI reshapes industries by optimizing, empowering teams, and enabling opportunity-focused leadership. By delivering insights that strengthen relationships, improve outcomes, and advance innovation, mobile BI becomes strategy, not convenience.

Crucial in today’s fast, data-rich world, mobile BI gains competitive advantage through productivity, responsiveness, and real-time access. It facilitates optimized performance and maximum opportunity in the face of uncertainty.

Heightened Focus on Data Governance and Data Security

As the amount of data generated by organizations continues to grow, data governance and data security will become increasingly important in the BI market. Data governance involves establishing policies, procedures, and standards for data management, while data security involves protecting data from unauthorized access.

With the rise of data breaches and cyberattacks, businesses are becoming increasingly aware of the importance of data security. In response, BI vendors are investing heavily in data security features to help businesses protect their data. Additionally, businesses are increasingly hiring data governance professionals to help them establish and maintain effective data governance programs.

The Rise of Self-Service BI Drives Market Growth

Businesses managing sensitive data, such as those in healthcare and finance, prefer on-premise deployment due to its better security and speed. Cloud-based deployment is expected to have the highest CAGR due to increasing demand for data integration, data quality tools, sophisticated visualization, and data discovery.

Large Enterprises’ Expanding Investment in Digitization Will Fuel BI Industry’s Market Share

Major businesses generate the most revenue, and due to their focus on digitization and cutting-edge technologies, they hold the maximum market share in the BI industry. The adoption of BI by large organizations is also driven by increased investments in the Internet of Things (IoT), Artificial Intelligence/Machine Learning (AI/ML), and cloud-based solutions. Meanwhile, small and medium-sized businesses (SMEs) are expected to experience the highest CAGR over the projected period.

The IT & Telecom Sector Will Experience Increased Demand for BI Solutions

Diverse industries, such as BFSI, IT & telecom, retail and consumer goods, manufacturing, healthcare, and others, implement BI systems. In 2022, IT and telecommunications saw the greatest increase in revenue share, as BI enabled them to improve pricing strategies, target marketing initiatives, and enhance product servicing. Business intelligence in telecommunications enables:

•Network optimization

•Improved operational effectiveness

•Enhanced customer satisfaction

The banking, financial services, and insurance (BFSI) industry is projected to experience the fastest market growth over the forecast period.

The BI Market is Expanding Due to Heightened Use in Financial Performance and Strategy Management

BI systems have various applications, including supply chain analytics, CRM analytics, and production planning analytics. Financial performance and strategy management hold the largest market share and are anticipated to experience the fastest growth during the projected period. BI enables businesses to monitor and manage their financial requirements and overall performance, making it an invaluable tool for financial performance and strategy management.

Greater Adoption of Cloud-Based BI

By 2030, the BI market is expected to witness a greater adoption of cloud-based solutions. Cloud-based BI tools allow businesses to access analytics and insights from any location and device with an internet connection, providing greater flexibility to make informed decisions. Furthermore, cloud-based BI solutions offer a cost-effective alternative to building and maintaining an on-premise BI infrastructure, and they are more scalable, allowing businesses to expand their capabilities as their data needs grow.

Conclusion

The business intelligence market has tremendous potential for growth over the next few years and beyond. As more organizations realize the insights and strategic advantages BI can provide, adoption will continue to rise across industries.

At the same time, innovations in AI, cloud computing, IoT, and visualization tools will make BI even more powerful, flexible, and intuitive to use. Self-service BI will become the norm, enabling business users to easily uncover data-driven insights and make quick decisions.

With billions in investments and partnerships between tech companies, the BI industry is poised to truly transform how businesses work. BI will be fully integrated into how most companies operate in the next decade, helping leaders make astute business moves and stay ahead of the competition.

In a nutshell, the trends point to a huge and vibrant market with more opportunity ahead than ever before.

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