Industrial Analytics Market by Offering (Platform, Services), Type (Descriptive, Diagnostic, Predictive, Prescriptive), End-use Industry (Oil & Gas, Automotive, Food & Beverage, Semiconductor & Electronics, Others), and Geography - Global Forecasts to 2031

Industrial Analytics Market Size & Forecast

The Industrial Analytics market is expected to reach $78.8 billion by 2031, at a CAGR of 19.1% from 2024 to 2031. Rising investment in Industry 4.0 technologies, growing need for real-time data analytics, increased acceptance of IoT and IIoT devices, and government measures to promote industrial automation are some of the primary reasons driving the market's growth. Furthermore, the increased demand for industrial analytics platforms by SMEs, as well as the growing requirement to rapidly analyze huge amounts of data generated from different sources, are likely to provide substantial potential prospects for this market. However, it is vital to note that a lack of integration with organizational culture and complex analytical processes can limit the growth of this sector. Security and privacy concerns, as well as a shortage of experienced personnel, represent additional challenges to market growth.

Industrial Analytics Market Growth Drivers

Growing Demand for Real-Time Data Analytics

Delays in decision-making and operations cost businesses money. Real-time analytics resolves this challenge by allowing business leaders to make decisions with immediate and informative insights drawn from data. This means that businesses can prevent costly delays, take hold of opportunities and preclude problems in advance. The demand for real-time analytics among businesses is growing not only to make better decisions and achieve efficient resource allocation but also to improve customer satisfaction, thereby reassuring the audience about the benefits of industrial analytics.

Industrial analytics is a powerful technology that can provide organizations with new insights extracted in real-time. It turns the data generated by machinery and software systems into valuable information that helps to boost productivity, increase efficiency, improve security, minimize waste, and generally optimize all business operations across the whole business cycle. This reassures the audience about the potential of industrial analytics to transform business operations.

Automated industrial analytics systems can also be used to control various manufacturing processes, optimize throughput, and increase yield. Analytical solutions based on advanced ML-based algorithms can track high-speed manufacturing processes in real-time, generating insights and solutions that will help lower production costs and optimize yield when integrated into facility operations. Therefore, the growing demand for real-time analytics is expected to drive market growth during the forecast period.

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Rising Investment in Industry 4.0 Technologies

Industry 4.0 technologies offer enhanced productivity, efficiency, knowledge sharing & collaborative working, flexibility, agility, and reductions in production costs. These benefits have encouraged public and private sector players to invest heavily in transforming their manufacturing facilities. Industry 4.0 has increased the adoption of digital technologies, such as automation, data analytics, and IIoT, transforming economies, production systems, and delivery of goods & services. This transformation significantly impacts industrial development, skill requirements, and global value chains.

In March 2022, the World Economic Forum announced adding 13 new sites to its Global Lighthouse Network, a community of 103 world-leading manufacturing facilities and value chains using Fourth Industrial Revolution technologies to increase operational performance and environmental sustainability. In 2021, India's manufacturing sector invested approximately USD 6.5 billion in its Industry 4.0 transformation. Similarly, in February 2021, Singapore announced plans to provide USD 18.1 billion over the next three years to help local businesses innovate and build the capabilities needed to take them through the next transformation phase with the adoption of emerging technologies, including 5G, artificial intelligence (AI) and cybersecurity.

In Industry 4.0, data analytics plays a role in a few areas, including smart factories, where sensor data from production machinery is analyzed to predict the time for maintenance & repair operations. Through its application, manufacturers experience production efficiency and understand their real-time data with self-service systems, predictive maintenance optimization, and production management automation. Thus, rising investment in Industry 4.0 drives the industrial analytics market growth.

Government Initiatives to Promote Industrial Automation

Major economies across the globe are implementing Industry 4.0 technologies, including IoT, artificial intelligence, robotics, cloud, and analytics, to transition to smart manufacturing. Incorporating industrial IoT technology improves connectivity, output, and resource utilization, resulting in higher efficiency. Therefore, governments worldwide are encouraging the adoption of disruptive technologies to promote industrial automation. Initiatives such as tax benefits, R&D investments, and the organization of promotional ventures & platforms are some of the several steps taken by governments worldwide to promote industrial IoT technology.

Considering the potential of IoT, governments are increasingly adopting the technology for various applications. The Indian government has undertaken numerous initiatives, such as Digital India, Make in India, and smart city projects, stimulating the adoption of emerging technologies, including the IoT. These initiatives have encouraged several organizations to develop innovative and advanced-technology-enabled IoT solutions for commercial and industrial applications, driving the growth of the industrial analytics market.

Industrial Analytics Market Analysis: Key Findings

By Offering: The Platforms Segment to Dominate the Industrial Analytics Market in 2024

Based on offering, the industrial analytics market is segmented into platforms and services. In 2024, the platforms segment is expected to account for a larger share of 72% of the global industrial analytics market. This segment’s large market share is primarily attributed to the rising adoption of industrial analytics platforms by different industry verticals to improve operational efficiency, along with the increasing need for superior monitoring technologies. Moreover, the segment is also expected to record the highest CAGR during the forecast period. The growing focus of companies operating in the market on product development and enhancement is anticipated to drive segment growth.

By Type: The Predictive Analytics Segment to Dominate the Industrial Analytics Market in 2024

Based on type, the industrial analytics market is segmented into descriptive analytics, diagnostic analytics, predictive analytics, and prescriptive analytics. In 2024, the predictive analytics segment is expected to account for the largest share of 32% of the global Industrial analytics market. This segment’s large market share is attributed to the surge in the adoption of big data technologies and predictive analytics tools, the growing demand for deriving the maximum potential from the rising enterprise data, and the increasing number of IIoT applications.

Moreover, the predictive analytics segment is also expected to record the highest CAGR during the forecast period. Factors such as rising awareness among organizations about the massive volume of data generated to predict future outcomes by using predictive analysis solutions, a rise in the adoption of big data technologies, and an increase in the adoption of predictive modeling tools contribute to the market’s growth.

By End-use Industry: The Oil & Gas Segment to Dominate the Industrial Analytics Market in 2024

Based on end-use industry, the industrial analytics market is segmented into oil & gas, automotive, food & beverage, semiconductors & electronics, chemicals & materials, consumer goods, mining & metals, power, pharmaceuticals & biotech, machines & tools, paper & pulp, aerospace & defense, other end-use industries. In 2024, the oil & gas segment is expected to account for the largest share of 14.4% of the global industrial analytics market. The large share of this segment is mainly attributed to the rising digitalization in the oil & gas sector, growing reliance on data and the need to move frontiers in the research and production processes, increasing incorporation of big data & machine learning technologies, the growing focus of government in shaping the next generation of oil & gas innovations.

However, the automotive segment is estimated to record the highest CAGR during the forecast period. Industrial analytics solutions help organizations predict events in the production process and allow proactive planning. Additionally, the data collected from vehicle sensors, real-time health monitoring systems, automated maintenance scheduling systems, seatbelts, anti-drowsiness solutions, and in-lane position control mechanisms help the user understand the vehicle better, thus ensuring predictive maintenance. Thus, automotive manufacturers tend to prefer industrial analytics as the technology provides real-time data, enabling smooth decision-making during product development.

Geographic Analysis

Based on geography, the industrial analytics market is segmented into North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 36% of the Industrial analytics market. Factors such as favorable government initiatives, technological innovation, growing industrial organizations, and the increasing adoption of IoT devices to optimize operational efficiency drive the growth of the industrial analytics market in this region.

Asia-Pacific is the manufacturing hub for various sectors, including automobile, electronics, consumer goods, pharmaceuticals, and several other products, which is a major factor in adopting automation technologies in the region. Industrial analytics solutions are witnessing adoption in Asian countries, including China, Japan, South Korea, and India, due to manufacturing facility transformation initiatives. Moreover, the Asia-Pacific region is expected to register the highest CAGR of 10.3% during the forecast period. The rising focus on enhancing process efficiencies and reducing costs in the production process is driving market growth.

Industrial Analytics Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the industrial analytics market are General Electric Company (U.S.), Hewlett Packard Enterprise Company (U.S.), IBM Corporation (U.S.), Microsoft Corporation (U.S.), PTC, Inc. (U.S.), SAP SE (Germany), SAS Institute, Inc. (U.S.), Bridgei2i Analytics Solutions (India), Cisco Systems, Inc. (U.S.), Intel Corporation (U.S.), Oracle Corporation (U.S.), Tibco Software, Inc. (U.S.), Alteryx, Inc. (U.S.), Hitachi, Ltd. (Japan), AGT International (Switzerland), ABB (Switzerland), and Robert Bosch GmbH (Germany).

Industrial Analytics Industry Overview: Latest Developments from Key Industry Players

• In February  2024, Seeq Corporation (U.S.) unveiled the Seeq AI Assistant, a generative AI (GenAI) resource embedded across its industrial analytics platform. The Seeq AI Assistant provides real-time assistance to users across the enterprise, empowering them to accelerate mastery of the Seeq platform, build advanced analytics, machine learning, and AI skills and knowledge, and accelerate insights to improve decision-making in pursuit of operational excellence and sustainability.
• In February  2023, AVEVA (U.K.) launched its latest predictive analytics software release, purpose-built for predictive monitoring of industrial assets in oil & gas, power, chemicals, mining & minerals, and manufacturing. The software helps industrial operators achieve the highest possible levels of reliability and performance of industrial assets while improving sustainability and increasing workforce productivity.
• In April 2022, TrendMiner (Belgium), a Software AG company, launched the next-generation production client for industrial analytics. TrendMiner NextGen, the 2022. The R1 release provides a seamless user experience. It enables an extended pool of operational experts to make data-driven decisions and optimize their operations to meet business, environmental, and safety ambitions.
• In September  2021, KX (U.K.), a worldwide leader in real-time streaming analytics, partnered with Telit (U.K.), a global enabler of the Internet of Things (IoT), to deliver an end-to-end, enterprise-grade industrial analytics platform that combines KX’s real-time streaming analytics capabilities with Telit’s deviceWISE® Industrial IoT platform.

Industrial Analytics Market Research Summary

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