The Indian analytics software market generated revenues of USD 144 million in 2014 and is expected to grow at a CAGR of ~17 per cent going forward. With ~400 companies, India is quickly emerging as an analytics products hub - Over 10 per cent of all start-ups in India focus on analytics. The lion’s share is taken by enterprise BI platforms - at almost half of the analytics products market - but close on its heels, are marketing analytics (social media, campaign and customer lifecycle management) and niche solutions (visualization and dash-boarding, risk, mobile and security analytics). Early adopters are seen in sectors like Telecom, BFSI, and e-commerce. The growth is driven by multiple needs such as better decision making, revenue growth, process transformation, and gaining deeper customer insights which lead to targeted marketing. At this point, it looks like cloud-based predictive analytics solutions will dominate future trends.
Funding has been bullish too, especially in niche solutions and marketing analytics. Overall, the market attracted close to 400 million USD in 2014 alone. Globally, a swathe of M&A deals involving data analytics start-ups has given an added push, leading to a rise in valuations. A challenging enough journey where the temptation to give in to services based income can be an overpowering one. Nonetheless, a continued focus on product development is required to ultimately hone products to perfection.
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