Web Analytics Market

Market Overview

The global web analytics market size was valued at USD 5,243.46 million in 2022. It is estimated to reach USD 24,715.28 billion by 2031, growing at a CAGR of 18.8% during the forecast period (2023–2031). The increase in the demand for mobile analytics and the increase in the shift to data-driven businesses stimulate the global market.

The measurement, gathering, analysis, and reporting of web data to comprehend and improve web usage is known as web analytics. Web analytics is a procedure that may be used to analyze website traffic, conduct market and commercial research, and evaluate and enhance the performance of websites. Applications for web analytics can also assist businesses in evaluating the success of conventional print or broadcast advertising efforts. It can be used to predict how website traffic will vary if a new advertising campaign is launched. Web analytics can be used to develop user behavior profiles or statistics on the number of visits and page views to a website. It aids in determining popularity and traffic trends, which is helpful for market research.

Market Dynamics

Global Web Analytics Market Drivers

Increase in the Demand for Mobile Analytics

One of the key drivers anticipated to propel the market's growth is the high proliferation of mobile devices, which produce enormous amounts of data. Mobile technology enables an in-depth understanding of consumer online activity. Since practically all organizations operate online, there is a great

er need to understand people's surfing habits. Using web analytics, businesses can learn important information about customers, like their demographics, number of page views, duration of visits, browsing history, interests, and purchasing patterns. This assists marketers in building a virtual portrait of their customers' online behaviors and enables them to get the most out of their marketing approach.

The amount of data created by desktop and mobile web app users has expanded with the introduction of big data analysis and mobile analytics. Web analytics, including metrics like page views and behavior-related metrics like repeat, unique, and new users become increasingly popular due to this. Especially in the industries of eCommerce and gaming, analyses based on patterns produced by user cohorts are in great demand because they solve complex workflow issues, enable the reduction of churn, and enhance conversion.

Additionally, using smartphones to communicate with businesses via mobile browsers and apps has increased mobile traffic and generated more mobile data. When people browse online material using a mobile browser or application, websites that are compatible with mobile devices collect data. This information is utilized to comprehend the functionality of mobile sites, as well as mobile-specific dimensions and reports, among other things. So, a significant rate of market growth is anticipated.

Increase in Shift to Data-Driven Businesses

The present era of data analytics has been ushered in by significant technology advancements and improved analysis techniques that enterprises are increasingly using. Businesses continuously record, log, analyze, and use business data through a digital transformation to open new business prospects, inform business choices, and promote corporate success. With digital data growing so quickly, developments in internet technology, IoT, big data analytics, cloud computing, and AI significantly impact the marketing sector. As a result, data-based decision-making models are essential and aid firms in enhancing performance. Web analytics also assists companies in enhancing the efficiency of their service or product and encouraging product innovation. This is then anticipated to fuel the expansion of web analytics among data-driven businesses worldwide.

Global Web Analytics Market Restraint

Lack of Skilled Workers

One of the main factors limiting market expansion is the lack of qualified analytical skills. The technology used in analytics is too new and complicated to be quickly incorporated into a person's skill set. The analytical, business, and engineering flows should also be familiar with the web analytics models. Additionally, web analytics provides a wide range of tools and applications tailored to meet the demands of various businesses, including customer analytics, clickstream analytics, marketing analytics, and many more. This is then anticipated to impede the development of the workforce across the board for web analytics platforms. Skilled labor scarcity exists in the global web analytics market because of this. However, as the business matures, this problem should be resolved.

Global Web Analytics Market Opportunities

Increase in Cloud Adoption Trend

Cloud technologies have become more prevalent, and people are becoming more aware of their advantages, including scalability, flexibility, security, and recovery; cloud migration operations have increased significantly over the past few years. These cloud-based platforms are evolving because they provide consistent API-driven provisioning of networking, computing, and storage resources, preceded by often automatable processes. As a result, IT firms have greatly automated workflows to boost their agility and better meet the always-rising demands of the company. Additionally, the demand for agility and efficiency has propelled cloud platforms to replace traditional data centers and greatly increased the adoption of cloud-based analytical tools. This, in turn, represents a significant potential opportunity for the global market.

Regional Analysis

Based on region, the global web analytics market is bifurcated into North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global web analytics market shareholder and is estimated to exhibit a CAGR of 17.3% over the forecast period. The rise in demand for business intelligence, sales transparency, and demand for real-time web analytics are the main drivers of the North American market's expansion. Additionally, the rising use of cloud-based analytics systems and ICT investment drive this market's expansion. Additionally, several developed economies like the U.S. and Canada and an increase in end-user attention on analytics RandD innovation and technology are some of the factors anticipated to propel the market's expansion in the region. Due to significant important players like Microsoft Corporation, IBM Corporation, Google LLC, Facebook Inc., and others, North America is anticipated to dominate the market. The market in North America experienced tremendous growth due to the proliferation of web analytics solutions in the continent.

Europe is anticipated to exhibit a CAGR of 18% over the forecast period. The rise in big data analytics initiatives among various end users and the rise in demand for omnichannel sales and marketing are the main factors driving the growth of the web analytics market in this area. The necessity to automate data management procedures across various industry verticals and the rise in demand for omnichannel sales and marketing are two factors fueling the expansion of the market in this region. Untapped digitalization potential exists in Europe, which is one of the key drivers of the expansion of the worldwide industry. Additionally, the need for analytics services is shifting due to technological advancements in European nations, which are expected to fuel market expansion over the next several years.

Asia-Pacific accounted emerged as one of the fastest-growing regions in the global market. Due to the fast adoption of technology by enterprises and the industrial sector, this region is predicted to grow at a high rate, positioning it as a major global competitor in the years to come. The Asia-Pacific market is primarily driven by an increase in demand for analytics-based services and a rise in data centers. In addition, the market is anticipated to expand due to the emergence of hybrid cloud and application services, which are anticipated to give organizations a quick and accessible platform to support their operations even during times of change and expansion. Additionally, the market is being driven by the proliferation of e-commerce activities along with an increase in the use of smart technology and beneficial government programs, such as smart cities in developing nations like China and India.

LAMEA is a developing market with sluggish adoption of web analytics services. The market is expanding due to the widespread use of analytics technologies and rising IT infrastructure development expenditures that enable enterprises to meet regional demand increases. Additionally, the increase in cloud investments in the area is anticipated to accelerate market expansion. For instance, 94% of firms are anticipated to have cloud solutions by 2020 in Brazil alone, while 67% of businesses boosted their cloud investments by more than 5% in 2016.

Segmental Analysis

The global web analytics market is bifurcated into deployment, application, and end-user.

Based on the deployment, the global market is bifurcated into on-premises and cloud. 

The on-premises segment dominates the global market and is projected to exhibit a CAGR of 16.4% over the forecast period. On-premises web analysis collaborates with digital marketing and search engine optimization (SEO) to provide a single suite of services that uses on-premises data. These programs act on locally stored data and streamline website operations. Web analytics has gained significant traction among the numerous data warehousing solutions because it enriches real-time web data and provides insights that help determine factors like which marketing campaign attracted the most traffic, visitor conversion rates from various traffic sources, and most popular keywords. Businesses choose on-premises web analytics solutions to ensure user privacy and obtain full data ownership.

Furthermore, with the emergence of big data, businesses are rushing toward analytical solutions due to the availability of enormous data silos worldwide. Ingesting web data and using interactive website visualizations to study customer behavior within data-sensitive models aids businesses in gaining insights from their stored data.

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Based on application, the global market is bifurcated into social media management, targeting and behavioral analysis, display advertising optimization, multichannel campaign analysis, and online marketing.

The targeting and behavioral analysis segment owns the highest market share and is predicted to exhibit a CAGR of 17.1% over the forecast period. Targeting and behavioral analysis enable businesses to highly personalize their interactions and communications with customers, which provides information on engaging customers, boosting sales, and enhancing customer experiences—these tailored web analytics assist in providing specific prospects and clients with actionable insights. Businesses in the online business area strive to achieve high conversion, visibility, and usability rates because of the surge in need for rapid access to websites and applications and the growing demand for website speed optimization.

Web analytics offers insights to meet high-performance websites with frequent return visits, high engagement, greater conversions, higher rankings in organic search, lower bounce rates, and better user experiences, consequently fueling the segment's growth in the market. Mobile technology makes obtaining detailed insights into consumer behavior easier anywhere on the internet. Since practically all organizations operate online, there is a greater need to understand people's surfing habits. Web analytics also assists recommendation systems by supplying sorted customer-specific data, including behavior analysis or purchase trends, and aids businesses in focusing marketing efforts.

Based on end-users, the global market is divided into banking, financial services and insurance (BFSI), retail, healthcare, government, travel and hospitality, IT and telecommunications, media and entertainment, and others.

The retail segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 19.9% over the forecast period. Real-time web analytics systems offer vital information about customer demographics, conversion rates, foot traffic in stores, and employee effectiveness. Additionally, by assisting them in making data-driven decisions regarding store layouts, staff management, and merchandising, these platforms provide retailers with intelligent retail data analytics solutions that unleash the full potential of a retail store. Due to the rise in e-commerce activities across all regions and the increased need for evaluating real-time data from diverse e-commerce sources, the retail and e-commerce industry is predicted to see the greatest CAGR during the forecast period.

Additionally, predictive analytics uses web data to direct recommendation systems that forecast demand for resources, inventory, supplies, and equipment with an intuitive user interface, further predicted to fuel industry expansion.

Recent Developments

• February 2023- The leading provider of digital experience platforms (DXPs), Optimizely, reveals that Google has chosen them to work with on a connection between its web experimentation platform and Google Analytics 4 (GA4). This statement comes after Google decided to stop supporting its previous web analytics and testing software, Google Optimize.
• April 2023- The Amazon Web Services branch of the international e-commerce corporation introduced the Titan range of large-language computers. Amazon joins well-known rivals like Microsoft and Google in the race for an edge in generative artificial intelligence (AI). The company has announced technologies geared toward its cloud computing users and a marketplace for other companies' artificial intelligence (AI) tools.