What Has Been the Growth of the Product Analytics Market So Far?
The product analytics market has seen considerable growth due to a variety of factors.
• The market size for product analytics has seen significant growth in the past years. It is projected to expand from a value of $12.46 billion in 2024 to reach $14.89 billion in 2025, recording a compound annual growth rate (CAGR) of 19.5%.
This substantial increase during the historical phase can be ascribed to a greater focus on data-driven decisions, the emergence and growth of e-commerce and digital products, heightened competition in the market, technological advancements in data collection methods, and a heightened demand for insights into user behavior.
What Are the Future Growth Projections for the Product Analytics Market?
The product analytics market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of product analytics is predicted to experience a rapid surge in the upcoming years and is anticipated to reach $33.86 billion by 2029, expanding at a CAGR of 22.8%.
The projected growth during the forecast period is a result of the increased focus on personalized and contextual analytics, the rise in IoT and connected devices analytics, an emphasis on predictive product analytics, and improved cooperation between product and data teams. The key trends during the forecast period are expected to be real-time product analytics, integration of cross-platform analytics, the adoption of a/b testing and experimentation, mobile app analytics for boosting user engagement, and a shift towards privacy-centric analytics solutions.
What Are The Core Factors Supporting Growth In The Product Analytics Market?
The surge in the use of product analytics tools by eCommerce companies is set to boost the evolution of the product analytics market. eCommerce businesses, which operate online stores to buy and sell goods and services using smart devices and internet, are gradually embracing product analytics, also known as e-commerce analytics. This adoption is due to the several advantages it offers, including optimization of product pricing, enhanced customer engagement, provision of a customized shopping experience for customers, and amplification of marketing strategies, among others. For instance, a study by FlexJobs' Career Pulse, a U.S based platform supplier to the freelance community, gathered information from 4,000 participants between July and August 2022. This study showed that 65% of surveyed individuals strongly favored permanent remote work, while 32% preferred a combination of office and remote work. The staggering statistic of 97% suggests most workers desire some form of remote work option. As such, the increased use of product analytics tools by eCommerce companies is fueling growth in the product analytics market.
What Are The Major Segments Within The Global Product Analytics Market?
The product analytics market covered in this report is segmented –
1) By Components: Solutions, Services
2) By Mode: Tracking Data, Analyzing Data
3) By Organization Size: Large Enterprises, Small And Medium Sized Enterprises
4) By Deployment Mode: Cloud, On-Premises
5) By End-Use: Automotive, Retail And Consumer Goods, Food And Beverage Manufacturing, Machinery And Industrial Equipment Manufacturing, Healthcare And Pharmaceuticals, Energy And Utilities
Subsegments:
1) By Solutions: Data Analytics Software, Product Performance Analytics, market Research Tools, Customer Analytics Software, Product Lifecycle Management (PLM) Solutions, Other Solutions
2) By Services: Consulting Services, Implementation Services, Support And Maintenance Services, Managed Services, Other Services
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Which Trends Are Expected To Transform The Product Analytics Market?
The prominence of product innovation is a rising trend in the product analytics market, with major companies prioritizing research and development in order to enhance their products. This is being done with the intention of offering superior solutions and securing their marketing standings. For example, in May 2022, Amplitude Inc., a firm based in the US which offers software for tracking user behavior, launched the first-ever customer data platform driven by insights, named Amplitude CDP. This unique platform, which incorporates product analytics, significantly reduces the time it takes to gain insights and doesn't require integration with third-party analytics services, as it is capable of collecting and analyzing data on its own. Amplitude CDP has also found applications in improving audience discovery.
Who Are the Key Players in the Product Analytics Market?
Major companies operating in the product analytics market include:
• Google LLC
• International Business Machines Corporation
• Oracle Corporation
• Adobe Inc
• Salesforce Inc
• Mixpanel Inc.
• Amplitude Inc.
• Heap Inc.
• Pendo Inc.
• Optimizely.
• Hotjar Ltd.
• Crazy Egg Inc.
• Freshworks Inc.
• FullStory Inc.
• Quantcast Corporation
• Gainsight Inc.
• MoEngage Inc.
• Appsee Ltd.
• Smartlook
• Inspectlet Inc.
• WalkMe Ltd.
• UserTesting Inc.
• Plytix Inc.
• UserLeap Inc.
• Matterport Inc.
• GoSquared Ltd.
• Snowplow Analytics Ltd.
• SessionCam Ltd.
• Full Circle Insights Inc.
• ContentSquare
• Appcues Inc.
What Is The Most Dominant Region In The Product Analytics Market?
North America was the largest region in the product analytics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the product analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
