Global Behavioral Analytics Market Research Report: Forecast (2023-2028)

Market Definition

Behavioral Analytics involves the examination and interpretation of human behavioral patterns by leveraging data from various sources, such as digital interactions, social media, and online activities. This field typically merges statistical techniques and data analysis with principles from psychology, enabling a more profound comprehension of human behavior. Ultimately, this enhances the effectiveness of decision-making processes.

Market Insights & Analysis: Global Behavioral Analytics Market (2023-28)

The Global Behavioral Analytics Market is valued at USD 1.5 billion in 2023 and is projected to grow at a CAGR of more than 40% during the forecast period, i.e., 2023-28. Such soaring growth can be predominantly attributed to the rapid technological advancements in developing a high-tech landscape for the Internet of Things (IoT), coupled with the growing need to strengthen the security system of organizations due to the increasing cases of cyber threats.

Moreover, the rising need to distinguish between genuine customers and fraudsters, particularly across the banking sector, and prevent potential financial risks also augments the behavioral analytics software's demand. Besides, increasing insider attacks across organizations is another crucial aspect expected to drive the market in the coming years. Likewise, the rising number of regional behavioral analytics start-ups, coupled with strategic partnerships & acquisitions, shall also create lucrative opportunities for the key market players in North America during 2023-28.

Global Behavioral Analytics Market Drivers:

A Swift Surge in Number of Unnoticed Cyberattacks - The market is expected to experience significant growth from 2023 to 2028, primarily driven by the escalating number of unnoticed cyberattacks. In today's digital landscape, organizations recognize the importance of implementing security tools that analyze user behavior within their networks and endpoints to identify anomalies. However, the mounting prevalence of under-the-radar cyber threats presents a considerable challenge in effectively detecting, diagnosing, and responding to these attacks.

As a result, the demand for behavioral analytics solutions has reached unprecedented levels as organizations strive to enhance their cybersecurity posture and proactively defend against evolving threats. This aspect is anticipated to continue driving the growth of the market in the coming years.

Global Behavioral Analytics Market Challenges:

Lack of Awareness Surrounding the User-Centric Approach to Behavioral Analytics - Despite the promising growth prospects for the Global Behavioral Analytics Market, several key factors pose potential obstacles to its expansion. One such factor is the lack of awareness surrounding the user-centric approach to behavioral analytics. Many organizations still need to familiarize themselves with the benefits of analyzing user behavior to gain valuable insights. Additionally, low budget allocations for behavior analytics solutions can impede market growth as organizations may prioritize other investment areas.

Constraint On Data Storage and Analysis Capabilities Exhibited by SMEs - The incapability of small and medium-sized enterprises (SMEs) to store and manage massive volumes of data required for effective behavioral analytics presents a significant challenge. SMEs often face limitations in terms of infrastructure and resources, which can hinder their ability to leverage such analytics to its full potential. This constraint on data storage and analysis capabilities may restrain the market's growth, particularly within the SME segment.

Global Behavioral Analytics Market Trends:

Popularity of Work-from-Home or Remote Working - During and after the COVID-19 Outbreak, most industries moved swiftly toward remote working, creating the need to secure data as working from home exposes an organization to critical threats. As a result, the market witnessed a surge in its adoption, which, in turn, increased the market size.

Besides, the contagious nature of the Covid-19 virus propelled the requirements for behavior-based technologies like voice recognition & gait analysis, offering accurate solutions to identify people, both in-person & online, while resisting the spread of the virus.

Global Behavioral Analytics Market (2023-28): Segmentation Analysis

Global Behavioral Analytics Market report by Markntel Advisors includes segmentation analysis based on Component, Deployment Type, Organization Size, and Industry Vertical. This breakdown allows businesses to identify specific market segments and tailor their marketing and product strategies accordingly, maximizing their chances of success in the Market.

Based on the Organization Type,

• Small & Medium-Sized Enterprises
• Large Enterprises

In recent years, large enterprises have increasingly become major players in the market, among others. Their dominance owes principally to the consistent demand for behavioral analytics solutions across various sectors, including banking, retail, healthcare, manufacturing, service, and e-commerce. These sectors possess significant IT budgets and deal with vast customer data, making them highly susceptible to cyber threats. As a result, large enterprises have acknowledged the importance of investing in behavioral analytics solutions to monitor and predict customer behaviors effectively. By adopting this proactive approach, they have gained a substantial market share and positioned themselves as the leading segment in the market.

Based on the Industrial Vertical,

• Banking, Financial Services, and Insurance (BFSI)
• IT & Telecommunication
• Manufacturing
• Healthcare
• Retail & Ecommerce
• Others (Energy & Utilities, etc.)

According to the report, the healthcare sector is expected to witness the fastest growth in demand for behavioral analytics among all industrial verticals from 2023 to 2028. This surge can be attributed to numerous factors, such as healthcare institutes often lacking robust cybersecurity infrastructure makes them vulnerable to insider attacks. Likewise, the increasing threat of data breaches poses significant financial risks to these institutions.

Moreover, the healthcare industry has experienced a rise in instances of stolen patient data for insurance fraud, prompting healthcare companies to prioritize enhancing their security infrastructure. These factors collectively drive the healthcare sector's need for behavioral analytics solutions, giving a swift push to the industry for the projected time frame.

Global Behavioral Analytics Market (2023-28): Regional Analysis

Geographically, the Global Behavioral Analytics Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

North America acquired most of the market share and is projected to dominate the market through 2028. The market across the region is primarily driven by the solid foundation of cloud platforms generating the need to curb cyber threats. North America is the largest regional spender on IT services with substantial adoption of cloud platforms. Approximately 50% of companies here have partially migrated to cloud deployment. Moreover, Various small & medium-sized organizations are also focusing on the capabilities of Cloud Computing & its benefits like cost-effectiveness, scalability, & flexibility, elevating the market size.

Further, the demand for behavioral analytics solutions across North America has been pushed by the US. It owes to the preemptive adoption of advanced technologies like Artificial Intelligence (AI), Machine Learning (ML), advanced predictive analytics solutions, etc., to enhance customer experiences & eliminate suspicious activities using these solutions, contributing to the increased client base.

Global Behavioral Analytics Industry Recent Development:

• In April 2023, UserTesting, a prominent player in experience research and insights, introduced product enhancements to their UserTesting Human Insight Platform. The updated platform incorporates machine learning advancements, swiftly empowering businesses to obtain deeper insights into their customers. These enhancements enable companies to grasp the context for effectively comprehending and meeting user needs.

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