Behavior Analytics Market Expected to Reach $19.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Behavior Analytics Market," The behavior analytics market was valued at $1.2 billion in 2021, and is estimated to reach $19.2 billion by 2031, growing at a CAGR of 32.4% from 2022 to 2031.

Behavioral analytics is a concept in business analytics that reveals insights into the behavior of customers on website, e-commerce, mobile app, chat, email, connected product/Internet of Things (IoT), and other digital channels. Moreover, Marketers use behavioral analytics to build cohort data that helps them get the most out of campaigns, optimize customer acquisitions, and maximize retention and conversions. 

Furthermore, integration of advanced analytics and machine learning algorithms into behaviour analytics and rising investments in security solutions is boosting the growth of the global behaviour analytics market. In addition, increase in insider security threats in organizations is positively impacts growth of the behaviour analytics market. However, lack of awareness about advanced cyber-attacks and increasing security concerns is hampering the behaviour analytics market growth. On the contrary, increase in demand for driver safety measures is expected to offer remunerative opportunities for expansion of the behaviour analytics market during the forecast period.  

Depending on deployment model, the on-premise segment holds the largest behavior analytics market size owing to, low risk of security breaches compared to cloud-based products. However, the cloud segment is expected to grow at the highest rate during the forecast period, as it provides cost effectiveness and constant advancement to enhance security of the cloud platform. 

Region-wise, the behavior analytics market share was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to rising adoption in healthcare sector in U.S. due to increase healthcare IT infrastructure and growing number of data breaches. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to high internet penetration rate and large number of mobile phone and application users. 

The behavior analytics market has witnessed significant growth in past few years, however, due to the outbreak of the COVID-19 pandemic, the market is projected to witness a slight downfall in 2020. This is attributed to implementation of lockdown by governments in majority of the countries and the shutdown of travel across the world to prevent the transmission of virus. The behavior analytics market is projected to prosper in the upcoming years after the recovery from the COVID-19 pandemic. Various organizations have initiated work-from-home culture for their employees, which is creating demand for the cloud-based big data analytics to manage critical information of organizations, thus creating lucrative opportunity for the behavior analytics market forecast.   

Surge in volume of data generated by different industries and the need to manage this data are the key factors that drive the growth of the market. In addition, governments of numerous countries have adopted behavior analytics to update real-time data of coronavirus and to make actionable insights from the data. Furthermore, behavior analytics is helping various researchers, healthcare workers, and scientists to aggregate and synthesize incident data on a regular and global scale. Moreover, companies have invented different search engines, which are expected to help countries to fight against the pandemic situation.   

Although COVID-19 has severely impacted various industries, the behavior analytics industry is expected to witness moderate impact of COVID-19, due to major shift toward digital transformation, increase in investments in data analytics, rise in demand for remote services as well as location data, and surge in need for tracking real-time information. For instance, in January 2023, Awareness Technologies partnered with Sectonics to launch Veriato’s workforce behavior analytics software in India helps to improve productivity and get ahead of issues in a remote and hybrid work environment. 

However, factors such as rise in trend of remote/virtual work environments, increase in virtual meetings, resultant decrease in in-person contacts, and surge in reliance on technology & data are expected to accelerate tech adoption, which, in turn, are likely to boost the adoption of behavior analytics tools.

Furthermore, they are focusing on offering continuous support to their customers and partners by complying with government directives. Moreover, companies such as Amazon and IBM have implemented different strategies and new behavior analytics products to improve their market size and to reduce the loss occurred due to the pandemic. For instance, in April 2022, BrainChip Holdings Ltd partnered with nViso SA (NVISO), the leading human behavioral analytics AI company helps to address the need for high levels of AI performance with ultra-low power technologies and also support AI’s demanding power/cost/performance needs for OEMs, even at mass production and scale, so they can benefit from faster and more efficient development cycles.  

KEY FINDINGS OF THE STUDY 

• By component, the solution segment accounted for the largest behaviour analytics market share in 2021. 

• Region wise, North America generated highest revenue in 2021. 

• Depending on industrial vertical, the Retail and E-commerce segment generated the highest revenue in 2021. 

The key players profiled in the behavior analytics market analysis are Exabeam ,Splunk Inc., IBM Corporation, Microsoft Corporation, Niara Inc., NTT Data Corporation, Oracle Corporation, SAP SE, TIBCO Software Inc., and Varonis Systems Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the behavior analytics industry.