The Web Analytics Market is projected to grow from USD 5.84 billion in 2021 to USD 18.33 billion in 2027 and is expected to register at a CAGR of 15.2% over the forecast period. The global web analytics market is anticipated to gain momentum from the steady rise in marketing automation and online shopping trends. The increasing awareness about the effective utilization of large chunks of unorganized, random data and improving the performance of web analytics solutions are expected to create enormous opportunities in the market.
- Web analytics provides real-time consumer behavior data and reveals insight buried in every interaction's data. Furthermore, the number of online consumers worldwide is increasing significantly, especially in emerging economies, where according to ASSOCHAM, online shopping is expected to witness an annualized growth of over 115%. The growing demand for online shopping trends is significantly driving the development of the web analytics market. Web analytics plays a crucial role in providing personalized product recommendations and identifying the shopping trends of the users and also helps marketers to run successful marketing campaigns.
- The growing importance of mobile analytics solutions is another trend in the studied market. With the penetration of smartphones on the rise, website traffic through various mobile devices is witnessing high growth. The retail sector, especially e-commerce operations, is expected to be the significant demand for mobile analytics solutions, closely followed by the banking sector. Increasing demand for automation in the BFSI sector and efforts of e-commerce companies to create personalized shopping experiences are expected to draw considerable revenues to the web analytics market globally.
- The market is also being influenced by the growing integration of artificial intelligence (AI) into web analytics, which has the potential to offer more effective processed information from web portals. AI automatically processes weblogs and other data sources to identify trends and patterns and can be used to develop web analytics tools and create custom reports and dashboards.
- Data privacy, specifically, is emerging as a critical concern for the market. Data breaches drive public awareness of privacy, and people begin to learn that this is a rabbit hole that seems to have no end to where it all leads. Tracking customers has always been a challenge, but the challenge has been made even more complicated in recent years owing to an increasing focus on data privacy and new regulations such as the European Union's GDPR. On the other hand, the industries are increasingly turning to cookieless analytics and attribution platforms which overcomes data privacy.
- COVID-19 has changed the field of Web Analytics. With the outbreak of COVID-19, there is a surge in digital traffic, driving the market demand. For instance, Contentsquare's analysis which is based on 5.2 billion sessions and 25 billion page views during the last 12 weeks of 2021, shows a 6.9% increase in traffic, 11.8% increase in page views, 12.4% increase in transactions, and a 3.6% increase in conversion rates. Moreover, web analytics has become essential for businesses as organizations look forward to optimizing their digital processes to meet their business goals flawlessly.
Key Market Trends
Retail Sector to Dominate the Web Analytics Market
- The retail market has drastically changed from physical stores to online sales platforms. With the advancement of the internet and the freedom to access it from anywhere, brick-and-mortar stores have turned into digital retailers, and a new breed of e-retailers has emerged. This new e-retailing option provides users access to a virtual mall at their fingertips. This rapid digitization urges retailing sectors to reach out to mass audiences and customers and provide worldwide access to products and brands.
- The emergence of modern technology has enabled retail companies to incorporate data analytics to create a better understanding of the customer's needs based on this purchasing history. In addition, the analytics model helps the retail business attract and gain potential customers by improving operational activities. Therefore, several companies are adopting analytics to forecast inventory and manage existing resources.
- Retail is one of the largest sectors to implement advanced technologies such as artificial intelligence, Blockchain, machine learning, and others. AI offers improved data management, personalized experience, predictive analysis ability, and real-time assistance. Other applications of AI, such as chatbots, virtual assistants, and more, support the retailer to stay connected with the customers. This technology streamlines the business workflow by handling several requests automatically and improves companies' profitability by informing customers about promotions and sales. AI has enabled personalized customer experience by collecting data from purchase history and analyzing it to help retailers make a better customer experience which drives the need for web analytics solutions.
- Wipro Limited collaborated with a leading brand-name apparel company, Levi Strauss & Co., to enhance user experience and customer satisfaction through its solution and expertise in the retail sector. The store to implement all the AI-based retail tools from Wipro across all its channels.
- According to the US Census, the e-commerce boom revolutionizing the retail sector is expected to boost retail sales significantly. According to the US Census Department, US retail sales rose by 0.5%, and online sales increased by 7.3% in Q2, 2022. The growth in e-commerce retail sales is expected to increase the need for automated marketing procedures. A similar trend has been observed in the developing nations in the Asia- Pacific region, with growing e-commerce space.
- Web Analytics is extensively used to understand Customers' interests, buying habits, and past interactions to give the sales teams a pool of data to analyze and filter down the likely targets that have made marketing more efficient and enabled companies to build highly-targeted content. Such measures help the business reduce the operational cost of acquiring new customers by maintaining better customer retention.
North America to Lead the Market
- In North America, the emergence of online data-driven businesses, the rapid rise in the e-commerce market, and the trend towards marketing automation are all driving demand for web analytics solutions. As the region is at the forefront of the digital revolution, there is high demand for advanced web analytics solutions.
- The high penetration of smartphones and other mobile devices in North America and the significant increase in website traffic from these mobile devices are also enhancing the importance of analyzing mobile data, thus raising the demand for web analytics solutions. Also, the growing use of social media platforms is leading to the increasing use of web analytics solutions for analyzing website traffic on such platforms. The growing marketing services investment and an enormous social media presence make the country a lucrative hub for the market studied.
- Moreover, some of the significant factors, such as the growing adoption of SaaS cloud services, increasing demand for data integration services, and expanding 5G network coverage, are estimated to provide a massive scope for the market studied in the region.
- Further, the region's increasing investments in AI and machine learning are integral to future marketing automation products. Companies like Amazon and Apple leverage artificial intelligence to conduct voice-based marketing through devices like Alexa and Siri. This is further expected to enhance the development of the market.
The market is mildly concentrated, with many players working within national and international boundaries. The players adopt strategies like product innovation and mergers and acquisitions in the market to stay ahead of the competition. The major players in the market are Google, Microsoft Corporation, Facebook Inc., and Adobe Systems, among others. Some of the key developments in the market are:
- In February 2022, Amplitude, Inc., the digital optimization company, launched new and improved integrations across the technology stack to enable organizations to unify, analyze, and act on customer data. Amplitude now integrates with Adobe Launch, AWS Redshift, Google BigQuery, Google Tag Manager, and MailChimp, and improved integration with HubSpot. Customers can import data into Amplitude and create customized marketing campaigns because of the new integrations.
- In June 2021, Nielsen Consumer LLC launched a retail analytics customer intelligence platform, Byzzer, for emerging and small consumer packaged goods (CPG) enterprises. The platform offers trending CPG brand needs and actionable retail insights to enhance growth.
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