Clickstream Analytics Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment (On-premise, Cloud), By Applications (Click path optimization, Website/application optimization, Customer analysis, Basket analysis and personalization, Traffic analysis), By Industry Vertical (BFSI, Telecommunications and IT, Travel and Hospitality, Retail and e-commerce, Government, Energy and Utilities, Media and Entertainment, Transportation and logistics, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Clickstream Analytics Market Size

The global clickstream analytics market size was valued at USD 1,158.7 million in 2022 and is estimated to reach USD 3,738.6 million by 2031, growing at a CAGR of 13.9% during the forecast period (2023–2031). 

As clickstream analysis benefits an online retailer by improving conversion rate through personalization and optimizing marketing campaigns, the market's growth is expected to boost significantly.

Clickstream analytics is the process of analyzing clickstream data. Clickstream data is generated from activities performed by a user over a web or mobile application. These activities include navigating pages, selecting items for details or descriptions, reading blog pages, etc. More precisely, clickstream is defined as data associated with a user's links, including the time when each one was clicked. The rise in data silos and the proliferation of connected devices that generate huge amounts of data associated with devices and user patterns is a major factor expected to propel the market's growth.

Clickstream Analytics Market Growth Factors

Rise in E-commerce

E-commerce is set for global domination in terms of online retailing. The advent of analytics in e-commerce is transforming online retailing with the rise in e-commerce dominance. With consumers' preferences toward e-commerce or virtual shopping experiences, the adoption of clickstream analytics is expected to rise significantly. As clickstream analysis benefits an online retailer by improving conversion rate through personalization and optimizing marketing campaigns, the market's growth is expected to boost significantly.

Adoption of Mobile Technology

High penetration of mobile devices that generate tremendous amounts of data is one of the major factors expected to drive the market's growth, as mobile technology helps gain deep insights into consumer behavior on the internet. Nowadays, almost all businesses operate online; thus, the need to gain insights into the browsing patterns of users has increased significantly. With the help of clickstream analytics, businesses can gain vital details such as the user's demographic information, browsing history, interests, and purchasing habits. This helps marketers create a virtual picture of their customers' online activities and helps them garner maximum out of their marketing strategy.

Restraining Factors

Data Privacy and Cyber Security

To gather clickstream data, a consumer must approve the terms and conditions of the marketer's data-gathering processes. Most consumers do not accept the policies due to the rise in concerns associated with the manipulation of data privacy, which in turn restrains the market growth. As marketers are thriving to gain competitive advantage, data privacy awareness has stagnated the growth of the data collection process. On the contrary, obtaining clickstream data from a user without permission violates privacy. Still, some volunteers agree to share their browsing history activity for market research. This has encouraged numerous Internet service providers to sell clickstream data to boost revenue.

Market Opportunities

Emerging Trend of Predictive Marketing

Predictive marketing is widely used with recommendation systems as advanced technologies are evolving with smart solutions. Clickstream analytics helps recommendation systems by providing sorted customer-specific data such as behavior analysis or shopping patterns. Moreover, marketers are inclined toward probabilistic systems that predict user interest and recommend a course of action. These systems primarily process clickstream data, which is expected to drive the market's growth. Furthermore, businesses that opt for online marketing and e-commerce are increasingly adopting analytics that process chunks of consumer data to cater to the exquisite experience of end users. Therefore, the emerging trend of predictive marketing is anticipated to provide lucrative growth opportunities for market expansion.

Regional Insights

North America: Dominant region with 12.9% market share

North America is the most significant global market shareholder and is estimated to exhibit a CAGR of 12.9% over the forecast period. The key factors driving the North American market include growth in demand for business intelligence and sales transparency and a rise in demand for real-time clickstream analytics. Further, the increase in ICT spending and the rise in the adoption of cloud-based analytics systems are aiding the growth of this market.

In addition, various developed economies, such as the U.S. and Canada, and an increase in focus on analytics R&D innovations and technology across industry verticals are expected to drive market growth in the region. The presence of major key players such as Microsoft Corporation, IBM Corporation, and Oracle Corporation and the proliferation of web analytics solutions in North America also resulted in the significant growth of the global market in the region.

Europe: The fastest growing region with 15% market share

Europe is anticipated to exhibit a CAGR of 15% over the forecast period. Europe has unexploited digitization opportunities, which are major factors expected to boost the growth of the global market. Moreover, continuous technological innovations in European countries are changing the demand for clickstream analytics services, which is projected to drive the market in the coming years. Moreover, businesses in Europe focus on leveraging innovative clickstream technology, and a high number of registered patents of clickstream software in Europe increases the revenue generation in the clickstream analytics market.

In Asia-Pacific, the rise in demand for analytics-based services and growth in several data centers are the main driving factors of the market. Furthermore, with growth in hybrid cloud and application services expected to deliver a rapid and accessible platform to organizations to support the business even during change and growth, the market is expected to grow significantly. In addition, the proliferation of e-commerce activities, coupled with an increase in the adoption of smart technologies and favorable government initiatives such as smart cities in developing countries, including China and India, drive market growth.

In LAMEA, the high adoption of analytics technologies and increased investments to develop IT infrastructure that helps businesses support growing needs across Latin America drive the market's growth. Furthermore, a rise in cloud investments in the region is also expected to boost the market's growth. 

• For instance, in Brazil alone, 67% of organizations increased their cloud investments by more than 5% in 2016, and 94% are expected to have cloud solutions by 2020.

Clickstream Analytics Market Segmentation Analysis

By Component

Based on the component, the global market is bifurcated into software and services. The software segment dominates the global market and is projected to exhibit a CAGR of 13.9% over the forecast period. The rise in the number of applications that reside on smartphones has driven the demand for analytical software, which is capable of gathering data from smart devices and providing insights into the user's behavior. This, in turn, helps companies optimize their product offerings and target their ads depending on the user's location. Moreover, clickstream tools dominate the global market as top players in the global market offer free basic versions of these tools, which drives the market's growth. For example, Google Analytics is a robust web analytics offering among almost all marketing and sales organizations. Hence, the software segment dominates the global market, owing to increased demand for clickstream analytical tools and platforms among various enterprises.

By Deployment

Based on deployment, the global market is segmented into on-premise and cloud. The on-premise segment dominates the global market and is predicted to exhibit a CAGR of 12.2% during the forecast period. Among proliferating data warehousing solutions, clickstream analytics has gained high momentum. It enriches the real-time clickstream data and offers insights determining parameters such as which marketing campaign brought the most traffic, conversion rates from different traffic source visitors, and most popular keywords. Moreover, availability of huge data silos across the globe with the advent of big data, enterprises are leading toward analytical solutions that derive insights from the stored data and ingest clickstream data to analyze customer activity with interactive visualizations of one's website.

By Application

Based on application, the global market is bifurcated into click path optimization, website/application optimization, customer analysis, basket analysis and personalization, and traffic analysis. The click path optimization segment owns the highest market share and is predicted to exhibit a CAGR of 13.5% over the forecast period. The high proliferation of e-commerce-based clickstream analysis is expected to drive the growth of the segment in the market. This is attributed to the ability of clickstream analysis to quantify a user's behavior/shopping patterns while on the website/application. In addition, it provides insights into how effective the site is at producing sales or retaining customers. Moreover, with stiff competition in the market for customer retention, marketers are focusing on inference for click path optimization to optimize click paths as per users' convenience. This, in turn, helps marketers recognize potential customers for their offerings.

By Industry Verticals

Based on industry verticals, the global market is divided into BFSI, telecommunications and IT, travel and hospitality, retail and e-commerce, government, energy and utilities, media and entertainment, transportation and logistics, and others. The telecommunications and IT segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 15.3% over the forecast period. Communication service providers (CSPs) are adopting clickstream analytics at a significant rate to track and analyze their customers' clicks to understand better their preferences and buying behavior. By collaborating or integrating diversified datasets, telecom providers are tapping new opportunities. For example, customer call logs, usage and customer satisfaction data, and social media data are integrated with clickstream data to better understand customers' preferences and behavior. In addition, collaborating datasets help make good recommendations to its end users, which provides cross-selling new services and optimizes pricing and marketing plans.

Recent Developments

• June 2023- Clicktale, a renowned provider of clickstream analytics and video recording systems, was acquired by Connexity. Due to this purchase, connexity will be able to enhance its clickstream analytics capabilities and provide its clients with a complete range of solutions.
• May 2023- Oracle Cloud Clickstream Analytics, a new clickstream analytics product, has been released. This technology uses machine learning to assist organizations in better understanding consumer behavior and making better decisions.