The analytics industry in the country has grown phenomenally, largely because of the explosion in the number of internet users in the country. According to a World Bank report, the number of Internet users in the country has doubled from 20% in 2018 to 41% in 2019. By 2025, there are likely to be over 900 million Internet users.
What has significantly boosted the sector over the last two years is the Covid pandemic, which has altered many companies’ business models and made them adapt to the changed scenario. With employees forced to work from home, there was an increased need for tech-based solutions, including analytics and AI, according to the “Analytics India Industry Study 2022”.
The analytics industry has grown 34.5% year-on-year in 2022, and the value of the market has reached $61.1 billion. It is projected to reach $201 billion by 2027 with a CAGR of 26.9%.
Analytics is One of the Most Prominent Sectors of Current Times
The analytics industry helps customer companies better target their advertising and other promotions, improve customer analysis, develop personalized campaigns and provide better customer service, improving their profit margins.
The industry’s spurt is an indicator that the analytics needs of companies are maturing, which can be seen in the increase in median salaries of employees and fund flows of $1.108 billion to the sector-focused startups since last year.
Companies from the United States, which is the biggest market, contributed to 50.7% of the overall outsourced analytics business. The United Kingdom’s contribution increased from 9.7% in 2021 to 13.7% in 2022. At the same time, the business from Canada saw an uptick from 3.4% to 6.8% for the same period.
The Netherlands and Germany, too, have contributed to the growth. The market share from Mexico, Singapore, Sweden, Brazil and UAE has increased from 13.1% in 2020 to 14.9% in 2022.
IT companies TCS, Infosys, Wipro, and others have won large first-generation contracts, contributing to the growth.
In the non-IT sector, Banking, Financial Services and Insurance (BFSI) hogged the market’s significant share with 34.1%. On the other hand, the contribution of the Retail and eCommerce sector increased from 14.4% in 2021 to 18.7% in 2022. They were followed by Pharma and Healthcare sector (up from 8% in 2021 to 11.6% in 2022), Travel and Hospitality, which was the worst hit during the pandemic but has sprung back post-Covid, (2.3% to 6.8% – a three-fold increase), and Public Sector and Think Tank (4.7% to 4.9%).
But there was a decline in the share from sectors like FMCG, Engineering and Manufacturing, Telecom and Energy and Utilities.
Sectors such as data integration, data engineering, deep learning, computer vision and natural language processing will continue to be in demand. Robotic processes and marketing automation will also continue to dominate the space.
Though there has been a high demand for AI and related products, the study stated that this segment had not shown much growth as there is a shortage of required talent and a lack of scalability.
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