AI-Powered Analytics Tools Market Size, Share, Analysis, Trends, Growth, Forecasts, 2032

AI-Powered Analytics Tools Industry Prospective:

The global AI-powered analytics tools market size was worth around USD 1,874.32 million in 2023 and is predicted to grow to around USD 5,286.13 million by 2032 with a compound annual growth rate (CAGR) of roughly 8.20% between 2024 and 2032.

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AI-Powered Analytics Tools Market: Overview

Artificial Intelligence (AI)-powered analytics tools are an emerging segment of the analytics industry. It deals with the application of AI for processing, storing, visualizing, and communicating data. Analytical tools are developed to help users make informed and data-backed decisions. AI-powered tools are a step forward from traditionally used analytics tools as they are backed by one of the most advanced digital technologies in the form of Artificial Intelligence. Businesses and companies can achieve higher levels of automation across data-related fields. They can save a significant amount of time by deploying AI-powered analytical tools.

In addition to this, the AI feature of the systems offers improved features such as predictive analysis and anomaly detection. Natural Language Processing (NLP) is one of the most popular features of AI-powered analytics tools. During the forecast period, the healthcare, customer service, and business intelligence (BI) sectors are expected to emerge as the leading revenue generators. However, higher expenses and the risk of cybersecurity will impede the AI-powered analytics tools market growth expansion trend.

Key Insights:

• As per the analysis shared by our research analyst, the global AI-powered analytics tools market is estimated to grow annually at a CAGR of around 8.20% over the forecast period (2024-2032)
• In terms of revenue, the global AI-powered analytics tools market size was valued at around USD 1,874.32 million in 2023 and is projected to reach USD 5,286.13 million by 2032.
• The AI-powered analytics tools market is projected to grow at a significant rate due to the rising incorporation of analytical tools into healthcare.
• Based on enterprise size, the large enterprise segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the type, the predictive segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

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AI-Powered Analytics Tools Market: Growth Drivers

Rising incorporation of analytical tools in healthcare to promote market growth rate

The global AI-powered analytics tools market is expected to be driven by the rising use of the tools in the healthcare industry. Medical professionals and hospitals are steadily incorporating advanced digital systems to deliver improved patient care. AI-powered data analytical tools can assist medical professionals across various fields, ranging from diagnosis to developing personalized treatment plans.

For instance, AI-powered analytical tools have shown exceptional efficiency in diagnosing diseases at an early stage using data generated from lab results, scans, and patient records. In a recent event, researchers at the Nanyang Technological University in Singapore developed the Chromatin Interaction Neural Network (ChINN). It is a convolutional neural network used for predicting chromatin interactions with the aid of deoxyribonucleic acid (DNA) sequences.

The tools powered by AI and Machine Learning (ML) are now used across cancer histology & pathology analysis, advancing early cancer detection, circulating tumor nucleic acids analysis, and precision medicine. Early detection of cancer using AI-powered analytics tools has gained more momentum in the medical field.

Increased demand for data-backed decisions in the business industry will fuel market rate expansion

Businesses worldwide are facing tough environments influenced by several external and internal factors. For instance, the rising competition across industries fueled by the emergence of several new players and the changing regulatory environment has forced companies to utilize advanced analytical tools to learn and generate ongoing business trends from vast amounts of data. The information thus obtained is used to make data-backed decisions.

According to market research, more than 40% of companies globally are investing in exploring several applications of AI across business operations. The number is projected to improve further in the coming years. On the other hand, globalization and expansion into unknown markets as a means of business growth strategy will create more demand in the global AI-powered analytics tools market.

AI-Powered Analytics Tools Market: Restraints

Cost-related limitations will act as a growth barrier for the market players

The global industry for AI-powered analytics tools is expected to be restricted due to the several upfront and hidden costs associated with AI-based technologies. Artificial Intelligence is a sophisticated engineering marvel. Currently, only limited players are operating in the AI sector leading to higher costs of development, design, and implementation. In addition to this, companies may have to invest in training employees to leverage AI-powered analytics tools which further increases the overall associated cost.

AI-Powered Analytics Tools Market: Opportunities

Surge in new launches with improved and extensive applications will generate more expansion possibilities

The global AI-powered analytics tools market is projected to generate more growth opportunities in the coming years. The market growth trend will be positively impacted by the ongoing development of new solutions with extensive applications. In September 2024, the Indian Information and Broadcasting (I&B) Ministry announced the launch of an ML and AI-powered integrated dashboard.

The new system will be capable of analyzing recent stories and using the data to forecast emerging trends. In addition, the ministry is also focusing on developing a multilingual translation and voice localization platform for better information dissemination.

In September 2024, Copado, a US-based leader in DevOps with business applications, launched a novel suite called Copado AI, equipped with AI-powered DevOps agents. The platform is expected to facilitate automating, streamlining, and accelerating DevOps processes.

In addition to this, investments in AI development will further generate more opportunities for companies to leverage the technology and curate more powerful analytical tools. During the forecast period, the global AI industry is projected to grow at a CAGR of more than 25%.

AI-Powered Analytics Tools Market: Challenges

Dependency on data quality for result accuracy will challenge the market expansion rate

The global AI-powered analytics tools industry faces challenges due to the higher dependency of the tools on the quality of data used for result generation. In case the raw data is inaccurate or inconsistent, AI-powered tools will be unable to deliver the desired results. The monetary and non-monetary impact of poor decisions can be highly consequential. On the other hand, concerns have been raised over the resistance of AI-powered tools against cybercrimes and security threats.

AI-Powered Analytics Tools Market: Segmentation

The global AI-powered analytics tools market is segmented based on enterprise size, type, and region.

Based on the enterprise size, the global market segments are very large enterprises, large enterprises, medium-sized enterprises, small enterprises, and others. In 2023, the highest growth was observed in the large enterprises segment, followed by very large enterprises. These companies deal with massive amounts of data that require continuous filtering and analysis.

In addition to this, the growing importance of data-backed decisions for the company's future is driving the segmental demand. According to market research, companies spend around 2% to 4% of total revenue on IT infrastructure.

Based on the type, the global market divisions are prescriptive analysis, predictive analysis, and descriptive analysis. In 2023, the highest demand was observed in the predictive analysis. It deals with using digital solutions for analyzing data and predicting future trends. It relies heavily on historical information to allow companies to determine future prospects and make business decisions. Banking companies spent nearly 8% of their revenue on IT systems in 2023 as per market reports.

AI-Powered Analytics Tools Market: Report Scope

AI-Powered Analytics Tools Market: Regional Analysis

North America will generate the highest revenue during the forecast period

The global AI-powered analytics tools market will be led by North America during the forecast period. The US is the leading nation in terms of AI-based advancements. The country is home to some of the leading pioneers in the field of Artificial Intelligence-based innovations.

According to official records, 2023 registered a significant increase in US federal investments on contracts related to AI-based investments. In May 2024, US lawmakers appealed for approval of USD 32 billion for investments in AI research as the country leaders seek opportunities to stay ahead of China’s AI sector. In addition to this, the increasing launch of new solutions with extensive uses will promote regional market expansion. Europe is expected to generate massive growth opportunities during the forecast period.

European companies are increasingly adopting AI-powered analytics tools to further their expansion possibilities. In September 2024, SLB, a global energy technology company, announced the launch of Lumi™ data and AI platform. The tool is available across all major cloud service providers and adheres to recent industry standards. The increasing use of AI-backed analytics tools across healthcare and clean energy sectors will promote higher revenue over the forecast period.

AI-Powered Analytics Tools Market: Competitive Analysis

The global AI-powered analytics tools market is led by players like:

• TIBCO Spotfire
• IBM Watson Analytics
• ThoughtSpot
• Google Cloud AI
• Oracle Analytics Cloud
• Qlik Sense
• Microsoft Power BI
• RapidMiner
• Tableau (Salesforce)
• DataRobot
• SAS Viya
• Domo
• Alteryx
• Sisense
• H2O.ai.

The global AI-powered analytics tools market is segmented as follows:

 By Enterprise Size

•  Very Large Enterprises
•  Large Enterprises
•  Medium-Size Enterprises
•  Small Enterprises
•  Others

 By Type

•  Prescriptive Analysis
•  Predictive Analysis
•  Descriptive Analysis

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa