By Ajay Ram K in Business Intelligence & Analytics — 15 Mar 2025

Business Intelligence & Analytics: Latest Market Trends and Analysis

# Perimeter Weekly Report - Business Intelligence & Analytics Market Analysis

Market Overview & Key Metrics Here is a comprehensive market overview for the Business Intelligence & Analytics sector in 2025:

Market Size and Growth

The global Business Intelligence (BI) and Analytics market size reached $96.6 billion in 2024 and is projected to grow to $196.5 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 7.8% from 2025 to 2033[1]. The year-over-year growth rate from 2024 to 2025 is estimated at 9.6%[2].

The top 10 vendors command 60.6% of the total market share as of 2023[2]. The leading players and their market shares are:

Salesforce - 11.1%
SAS Institute
SAP
Microsoft
Oracle

Other major players include IBM, Qlik, Alteryx, Informatica, and Snowflake[2].

Key Market Drivers

Increasing volume and complexity of data driving demand for advanced analytics[1]
Rising need for data-driven decision making across industries[7]
Advancements in AI, machine learning and cloud technologies enhancing BI capabilities[7]
Growing adoption of self-service analytics and data visualization tools[5]
Demand for real-time analytics and insights[5]

Key Challenges

High implementation costs, especially for smaller enterprises[5]
Data privacy and security concerns[5]
Shortage of skilled data science professionals[7]
Integration complexities with legacy systems[7]
Ensuring data quality and governance[7]

Recent Regulatory Changes

EU AI Act: Set to be enforced from February 1, 2025, categorizing AI risk levels and banning harmful AI applications[3]

2. Digital Operational Resilience Act (DORA): Coming into effect on January 17, 2025, focusing on ICT risk management and operational resilience in the financial sector[3]

3. NIS2 Directive: Enforced from October 17, 2024, enhancing cybersecurity measures for critical sectors across the EU[3]

4. Updates to ISO/IEC 27001:2022: Must be implemented by October 31, 2025, with enhanced focus on risk alignment and new categories like threat intelligence[3]

5. PCI DSS 4.0: Fully enforced by March 31, 2025, with stricter requirements for multi-factor authentication and log retention[3]

Regional Market Distribution

North America: Largest market share at 40.3% in 2024, driven by advanced technological infrastructure and presence of key market players[5][10]

2. Europe: Second-largest market, with strong adoption in automotive, manufacturing, and logistics sectors[4]

3. Asia-Pacific: Fastest-growing region, projected to achieve the highest CAGR through 2032[9]. Key growth drivers include: - Government initiatives like China's "Digital China" and India's "Digital India" programs - Rapid digital transformation across industries - Increasing mobile technology and IoT deployments[9]

4. Latin America, Middle East, and Africa: Emerging markets with growing adoption rates, particularly in sectors like banking, telecommunications, and energy[4]

This overview highlights the robust growth and evolving landscape of the Business Intelligence & Analytics market, with significant opportunities across regions and industries, alongside regulatory and technological challenges that are shaping the sector's future.

This Week's Major Developments Here's an analysis of major developments in the Business Intelligence & Analytics sector from the past week:

New product launches and feature updates:

Google Cloud unveiled several new AI products and features in March 2025, including:
Gemma 3: A new collection of lightweight, open AI models designed to run on devices like phones and laptops[1]
Two new Gemini Robotics models for controlling robots[1]
AI Coach: A Gemini-powered tool to improve employee productivity[1]

Verint announced enhancements to its CX Automation platform, including new AI-driven capabilities for contact center automation[12]

2. Recent M&A activities and partnerships:

IBM announced its intent to acquire DataStax, an AI and data solution provider, to enhance IBM's watsonx portfolio (announced February 25, 2025)[16]

Sonar acquired AutoCodeRover, an autonomous AI agent platform for software development (announced February 24, 2025)[16]

NTT DATA signed a strategic partnership agreement with Databricks on January 22, 2025, aiming to enhance its data and AI platforms[2]

3. Notable customer wins:

Ally Financial is using Azure OpenAI Service to reduce manual tasks for customer service associates[3]

Aydem Energy and Microsoft partner Softtech used Azure OpenAI Service to create an AI assistant for WhatsApp[3]

BMW Group optimized customer experience by connecting 13 million active users to their vehicles with the MyBMW app on Azure[3]

4. Funding rounds and financial updates:

Omni Analytics Inc. closed a $69 million Series B funding round led by ICONIQ Growth, with participation from Snowflake Ventures and GV (announced March 13, 2025)[7]

Pyramid Analytics received a $50 million investment from BlackRock Capital Investment Advisors (announced November 25, 2024)[10]

5. Executive movements:

Snowflake appointed Gannon as the new Chief Revenue Officer, replacing Chris Degnan who retired (announced March 12, 2025)[17]

Asana CEO Dustin Moskovitz announced his retirement and transition to chair of the board, focusing on AI strategy and vision (announced March 9, 2025)[17]

These developments highlight the continued focus on AI integration, strategic partnerships, and investment in the Business Intelligence & Analytics sector, with major players expanding their capabilities and startups securing significant funding to drive innovation.

Competitive Landscape Update Based on the latest market data and competitive intelligence, here is an analysis of the current Business Intelligence & Analytics competitive landscape:

Market Leaders

### Microsoft Power BI

Microsoft continues to lead the BI market with Power BI, holding over 30% market share[1]. Key performance metrics include:

Over 100,000 organizations as customers[1]
30 million+ active monthly users[1]
13.74% market share in data visualization specifically[1]

Microsoft's strategy focuses on deep integration with other Microsoft products, AI-powered features, and expanding self-service capabilities. Their competitive advantage stems from the widespread adoption of Microsoft 365 in enterprises.

### Tableau (Salesforce)

Tableau remains a strong competitor with approximately 17% market share[1]. Key metrics:

100,000+ customer accounts worldwide[1]
16.99% market share in data visualization[1]

Since being acquired by Salesforce, Tableau has focused on tighter CRM integration and expanding its cloud-based offerings. Their strengths lie in data visualization capabilities and a loyal user base.

### SAP

SAP maintains a significant presence, especially in the enterprise market. Performance highlights:

400,000+ customers across 180+ countries[1]
€27.34 billion total revenue in 2020[1]
20.49% market share in analytics and BI platforms[1]

SAP's strategy centers on providing end-to-end business solutions, with BI tightly integrated into their ERP and other enterprise software offerings.

Emerging Challengers

### Snowflake

Snowflake has emerged as a strong challenger, focusing on cloud-native data warehousing and analytics. Their unique value proposition lies in separating storage and compute, allowing for more flexible scaling and pricing[5].

### Qlik

Qlik has been gaining traction with its associative analytics engine and focus on augmented analytics. Key metrics:

50,000+ customers worldwide[1]
4% market share in BI industry[1]

Qlik's differentiation comes from its associative engine that allows users to explore data relationships more freely than traditional SQL-based tools.

Recent Competitive Shifts

The BI market has seen increased focus on cloud-native solutions and AI/ML integration. Microsoft and Salesforce have strengthened their positions through strategic acquisitions and integrations. Meanwhile, pure-play BI vendors like Tableau and Qlik have had to evolve their offerings to compete with full-stack providers[5].

Product Differentiation Strategies

AI/ML Integration: Leaders are embedding AI capabilities for natural language querying, automated insights, and predictive analytics.

2. Data Preparation: Vendors are expanding their data prep capabilities to provide end-to-end solutions from data ingestion to visualization.

3. Collaborative Features: There's an increasing focus on features that enable better sharing and collaboration around data insights.

4. Industry-Specific Solutions: Providers are developing pre-built analytics solutions tailored to specific industries like healthcare, finance, and retail.

Pricing Model Evolution

The BI market has seen a shift towards more flexible, consumption-based pricing models:

Per-User Pricing: Still common, but often with tiered options based on functionality.

2. Data Volume Pricing: Some vendors charge based on the amount of data processed or stored.

3. Compute-Based Pricing: Cloud-native solutions like Snowflake charge based on actual compute resources used.

4. Hybrid Models: Many vendors offer a combination of licensing options to cater to different customer needs.

Market responses have generally been positive to more flexible pricing, especially among SMBs and organizations with fluctuating analytics needs. However, some enterprises still prefer predictable, fixed licensing for budgeting purposes.

In conclusion, the BI & Analytics market remains highly competitive, with established leaders facing pressure from innovative challengers. The key trends shaping the competitive landscape include cloud adoption, AI integration, and more flexible deployment and pricing options. Vendors that can offer comprehensive, easy-to-use solutions with advanced analytics capabilities are best positioned for growth in this evolving market.

Customer Trends & Implementation Insights Based on the search results and industry trends, here is an analysis of customer trends and buying patterns in Business Intelligence & Analytics:

Changes in Customer Preferences and Requirements

Customers are increasingly demanding more accessible and user-friendly BI tools that can be used by non-technical employees across organizations. Key trends include:

A shift towards self-service BI and analytics capabilities that empower business users to create their own reports and dashboards[3]
Growing demand for natural language interfaces and conversational analytics to make data insights more accessible[8]
Increased focus on mobile BI and analytics to enable access to insights on-the-go[8]
Rising interest in augmented analytics that leverage AI/ML to automate data preparation and insight generation[8]

For example, JPMorgan Chase onboarded thousands of analysts onto a modern BI platform by focusing on user engagement and self-service capabilities[8]. This allowed them to scale analytics adoption to over 30,000 users.

Implementation Challenges and Success Stories

Common implementation challenges include:

Low user adoption rates, with only 26% average adoption across organizations[18]
Difficulty integrating data from disparate sources[6]
Data quality and governance issues[6]
Lack of data literacy and analytics skills among employees[6]

However, there are also many success stories:

Starbucks used BI to tailor marketing campaigns and customize product offerings, resulting in increased customer loyalty and revenue[11]
Walmart leveraged BI to optimize inventory levels, reduce costs, and improve product availability[11]
AstraZeneca partnered with SAS to improve production efficiency, handling over 170 million rows of data daily across 26 global plants[4]

ROI Metrics and Business Impact Data

Organizations are seeing significant ROI from BI and analytics initiatives:

A property management company achieved 2600% ROI by using BI tools to optimize pricing strategy, generating $150,000 in increased revenue[17]
A company improved its Net Promoter Score from 40 to 55 after implementing BI capabilities, resulting in a 13,750% ROI based on customer value[17]
Univision achieved 80% growth in yield during the first quarter after implementing business intelligence[1]
Lotte.com increased sales by $10 million and improved customer loyalty after implementing customer experience analytics[1]

User Adoption Trends and Feedback

While BI adoption is growing, there is still significant room for improvement:

The current average BI adoption rate is 26%[18]
Larger companies (5000+ employees) are more likely to have adoption rates of 80% or higher[18]
On average, companies use 3.8 different BI solutions[18]
67% of BI professionals have access to more than one BI solution in their organization[18]

To drive adoption, organizations are focusing on:

Creating internal user communities and support networks[8]
Providing comprehensive training programs[8]
Implementing data literacy initiatives[8]
Embedding analytics into existing workflows and applications[8]

Industry-Specific Use Cases and Outcomes

BI and analytics are delivering value across various industries:

**Banking:** - Customer targeting and personalized offerings - Risk management and fraud detection - 50% Cloud BI adoption rate[18]

**Manufacturing:** - Demand forecasting and inventory optimization - Production efficiency improvements - 58% Cloud BI adoption rate (highest among industries)[18]

**Healthcare:** - Clinical trial optimization - Patient outcome analysis - Drug development acceleration

**Retail:** - Customer segmentation and personalization - Supply chain optimization - Pricing strategy refinement

In conclusion, while BI and analytics adoption continues to grow, organizations still face challenges in driving widespread usage and realizing the full potential of their data. However, those that successfully implement BI strategies are seeing significant ROI and competitive advantages across various business functions and industries.

Next Quarter Outlook Based on the latest market research and industry trends, here are some key forecasts for Business Intelligence & Analytics developments in the next quarter:

Expected product roadmap developments:

Microsoft Power BI is likely to release enhanced natural language querying capabilities, allowing users to ask more complex questions of their data in plain language. Expected in April 2025, this could increase Power BI adoption by 10-15% among non-technical users[1].

Tableau is anticipated to launch deeper integration with Salesforce Einstein AI, enabling more advanced predictive analytics directly within dashboards. Slated for May 2025, this could boost Tableau's market share in the CRM analytics space by 5-7%[2].

2. Anticipated market movements and consolidations:

There are strong rumors of Qlik acquiring a smaller data preparation vendor to bolster its ETL capabilities. An announcement is expected by June 2025, which could increase Qlik's competitiveness in the full-stack BI market[3].

SAP is likely to make a strategic investment in or acquire a cloud-native BI startup to accelerate its cloud transition. This move, expected in May-June 2025, could help SAP retain 10-15% of customers considering a switch to pure cloud vendors[4].

3. Emerging technology integration opportunities:

Integration of large language models (LLMs) into BI platforms will accelerate, with at least 3 major vendors expected to announce LLM-powered features by June 2025. This could potentially increase data exploration efficiency by 30-40% for early adopters[5].

Edge analytics capabilities will see increased focus, with IoT-focused BI vendors likely to announce new edge computing features. At least 2 major announcements are expected in this space by July 2025, potentially opening up new use cases in manufacturing and logistics[6].

4. Potential regulatory impacts:

The EU AI Act's implementation timeline is expected to be clarified in April-May 2025, which could impact BI vendors' AI and ML feature roadmaps. Vendors may need to allocate 15-20% more resources to compliance and documentation[7].

Stricter data privacy regulations in the US (potentially at the federal level) could be announced, impacting data sharing and analytics practices. Any announcements in Q2 2025 could lead to a 6-12 month adjustment period for BI vendors and users[8].

5. Investment focus areas:

Venture capital investment in AI-powered analytics startups is expected to grow by 25-30% in Q2 2025 compared to Q1, with a particular focus on sector-specific AI models for industries like healthcare and finance[9].

Enterprise spending on cloud-based BI and analytics solutions is forecast to increase by 15-20% in Q2 2025 compared to the same period last year, as more organizations accelerate their cloud migration strategies[10].

These forecasts suggest a dynamic quarter ahead for the BI & Analytics market, with AI integration, cloud adoption, and regulatory compliance emerging as key themes. Companies in this space should be prepared to adapt quickly to these evolving trends to maintain their competitive edge.

--- *Report generated on Saturday, March 15, 2025* *Data sources include market research, company announcements, regulatory filings, and industry analysis*