Southeast Asia Data Analytics and Business Intelligence Market Research Report: Forecast (2023-2028)

Market Definition

Data Analytics is referred to as an exploration of the data to gain critical insights, which is further used by the end-user industry to make rational financial decisions. The rising digital adoption by enterprises in the different industry verticals is leading to the usage of these services across the region. Business intelligence is referred to as technology-driven solutions comprising data mining, data cleaning, data pre-processing, etc., to provide business organizations with critical market insights.   

Market Insights & Analysis: Southeast Asia Data Analytics and Business Intelligence Market (2023-28)

The Southeast Asia Data Analytics and Business Intelligence market is projected to grow at a CAGR of around 7.25% during the forecast period, i.e., 2023-28. The factors attributing to market expansion are the surging adoption of digital technologies like artificial intelligence, internet of things (IoT), etc., by small-scale & medium-scale enterprises to stay ahead of the competitive organizations. These services provide the organizations with data concerning the functioning of the firms, which helps the enterprises to improve their operational efficiency. Owing to this, enterprises are actively looking for these services to streamline the production or manufacturing process in the industries, minimize costs associated with the production process, and improve overall efficiency.

In addition, the rising internet penetration in the southeast countries is also encouraging firms to seek digital solutions to improve the consumer experience. Furthermore, the survey conducted by the tech giants Google, Temasek & Bain in 2022 revealed that Southeast Asian countries have more than 400 million internet users, and the number of internet users keeps growing by approximately 20 million yearly. The surge in internet users across the region is driving the demand for data analytics and business intelligence services across the region since the companies harness the data regarding their consumers, competitors & market to analyze their financial records & gain a competitive advantage over other players in the market.

Moreover, the prevalence of startups & tech companies in countries like Singapore, Indonesia, etc., is driving the demand for data analytics and business intelligence since these companies operate in fast-paced, agile environments where decisions can be made quickly & with a high degree of accuracy. Thus, the companies rely on these solutions which provide real-time insights & enable the companies to make informed decisions promptly. According to the startup ranking 2020, Indonesia acquired the 5th position in the world with the highest number of emerging startups during the historical period. Similarly, the countries such as Singapore & others also witnessed a hike in the tech-startups. Thus, the emergence of startups & tech companies in the region is enhancing market growth in the following years.

Southeast Asia Data Analytics and Business Intelligence Market Key Driver:

Growing E-commerce Platform in the Region to Amplify the Market - Individuals in the Southeast Asian region are gradually inclining towards e-commerce platforms to make purchases of the necessary commodities owing to the rise in net disposable income. Consumers are spending quality time on e-commerce websites like Lazada, Shoppee, etc., surfing about the goods the companies are offering, generating a lot of data concerning consumer behavior. Owing to this, it becomes necessary for e-commerce companies to opt for data analytics and business intelligence services to gain valuable business insights & help the organizations make informed decisions about marketing strategies, inventory management, pricing, and other pivotal areas of their operations. According to the organization 'web retailer' in 2022, the e-commerce platform Shoppe recorded yearly traffic of around 342.8 million users.

The significant adoption of e-commerce platforms by individuals owing to the advantages like flexibility, availability of global brands, etc., it offers over traditional shopping methods is enhancing the growth of the e-commerce platforms in the region. The evolution & expansion of e-commerce platforms in Southeast Asian countries is further propagating the use of these services to gain a competitive advantage over other players in the market & expand their consumer base by providing end-users with the products of their choice. Thus, the application of these services to make informed decisions about consumer purchases is driving the market in the ensuing years.

Southeast Asia Data Analytics and Business Intelligence Market Possible Restraint:

High Cost & Prevalence of Data Breaches in the Region to Limit the Market Growth - The surge in data breaches incidents in Southeast Asian countries like Singapore, Indonesia, etc., has led business organizations to limit the usage of data analytics and business intelligence services since it puts critical data like financial information, consumer data, etc., of the company at the potential risk. Thus, firms & organizations restrain themselves from selecting these services to safeguard organizations from sensitive data leak situations. According to the Smart Nation and Digital Government Office (SNDGO), in 2021, the public sector in Singapore reported over 178 data breach incidents.

Similarly, in 2020, the e-commerce organizations called 'Tokopedia' & 'Bukalapak' reported data breach incidents that exposed the information of about 100 million users. As a result, organizations are skeptical about amalgamating digital technologies into the traditional infrastructure of the organization & opt for these services, thus limiting market growth.

Moreover, the cost for these services is comparatively higher since the generated data is substantial in volume & thus requires expensive hardware & infrastructure, such as servers & storage devices. As a result, the cost of enactment of data analytics and business intelligence is exorbitant for small- & medium-scale enterprises. Thus, these business organizations do not look out for these digital services, posing a challenge to the market.

Southeast Asia Data Analytics and Business Intelligence Market Growth Opportunity:

Government-led Initiatives for Digitalization to Amplify the Demand - The government of countries like Vietnam, Indonesia, etc., are essentially focusing on boosting the advanced economy of the nation by creating the framework of the country & by empowering digital innovations such as artificial intelligence (AI), the internet of things (IoT), etc., in both the open & private segments. Digitalization across the region would help the government to streamline its services & improve their accessibility for the citizens of the country, thereby enhancing the delivery of public & private services & improving citizen engagement in the country. In 2018, the government of Indonesia launched an initiative, 'Making Indonesia 4.0,' to develop automated manufacturing units & digital technologies by 2030.

Similarly, Philippine Digital Transformation Strategy 2022 was set in motion to encourage digital adoption in the country. Therefore, the surge in the adoption of digital technologies owing to these government-led initiatives would further propel the usages of data analytics and business intelligence in the forthcoming years since it enhances & improvises the operational efficiency of business organizations.

Southeast Asia Data Analytics and Business Intelligence Market Key Trend:

Rising Data Democratization & Integration of the AI Gaining Traction - Business firms & organizations across the Southeast Asia region are democratizing their data to make it related to the organization, market, and the customers, which is accessible by their employees, leading them to make data-driven decisions. This has also led to the emergence of self-service analytics since employees analyze the data about consumer behavior or financial reports based on their understanding & make user-friendly reports & dashboards. Moreover, the amalgamation of the technologies like AI, ML, etc., within the data analytics and business intelligence framework is gaining traction since these technologies help organizations to make predictive decisions based on consumer behavior during the historical period.

In addition, the growing volumes of data have led enterprises to adopt these services since they pre-process the data accurately, leading to improved decisions & results. Thus, the advent of technology would further result in the surging adoption of data analytics and business intelligence to enhance the efficiency of business operations in the forthcoming years.

Southeast Asia Data Analytics and Business Intelligence Market (2023-28): Segmentation Analysis

The Southeast Asia Data Analytics and Business Intelligence Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the Industry Vertical, and Deployment the market has been further classified as:

Based on Industry Vertical:

• Healthcare
• E-commerce & Retail
• Information Technology (IT) & Telecom
• Banking, Financial Services & Insurance (BFSI)
• Hospitality
• Others (Media & Entertainment, Manufacturing, etc.)

The surge in the volume of data generated, owing to the rising number of telephone users & surging internet penetration across the Southeast Asian region, has led the IT & Telecom Industry to gain a significant share in the historical years. According to the Global System for Mobile Communications Associations (GSMA), in 2021, the 4G connections account for nearly 52% of the total mobile connection & are likely to rise more than 71% by 2025. The spike in mobile connections is generating enormous data, as a result, the telecom industries are seeking the application of data analytics to pre-process & analyze the data to provide consumers with excellent quality service, thus driving market growth.

Moreover, the BFSI is also emerging as a prominent end-user in the market since banking & other financial institutions are incorporating these services to minimize fraud & mitigate risk & improve customer service. Thus, the growing bankable population in Southeast Asian countries such as Indonesia, Vietnam, etc., and the adoption of e-wallets would further supplement the demand for data analytics services & business intelligence services in the forecast years.

Based on Deployment:

• On-premises
• Cloud

The numerous benefits like flexibility, scalability, and easy operability offered by the Cloud over conventional on-premise deployment have led the cloud-based segment to acquire a notable share in the historical years. Cloud-based deployment works with an internet connection, thus the surging 4G connection across the region & faster internet speed in the countries like Singapore & others are propelling the end-user industries like IT & telecom, BFSI, etc., to opt for cloud-based deployment.

Along with it, the cloud-based deployment involves third-party involvement, as a result, the end-user organizations do not have to hire additional staff to analyze the data. This minimizes the need for an organization to manage hardware or complex IT infrastructure. Therefore, the companies opt for this deployment, further enhancing the market share of this segment.

Moreover, digitalization across regional countries due to government-led initiatives is compelling businesses & enterprises to seek digital solutions, generating an enormous amount of data & necessitating cloud storage. Hence, the rising digital adoption across the countries would further enhance the market share of cloud-based deployment in the forthcoming years.

Southeast Asia Data Analytics and Business Intelligence Market Regional Projection

Geographically, the market expands across:

• Philippines
• Singapore
• Indonesia
• Malaysia
• Thailand
• Vietnam
• Rest of Southeast Asia

Singapore witnessed a surge in internet penetration over the past few years, which compelled enterprises to digitalize their business operation with the help of advanced technologies such as artificial intelligence, machine learning, etc. The integration of these technologies by the firms also enhanced the demand for data analytics and business intelligence for the companies to optimize their business operations & improve overall efficiency. Moreover, the prevalence of the tech-giants in countries & emerging startups are also enriching the requirement for these services in the different end-user industries in the country.  

Further, there has been an emergence of e-commerce platforms in Indonesia owing to the surge in the net disposable income of individuals. Therefore, to pre-process & clean the data & use it to improve customer service & make rational financial decisions, these platforms are utilizing these services. Hence, the inception of the e-commerce platform in Indonesia would further propagate the market in the forecast period.

Southeast Asia Data Analytics and Business Intelligence Industry Recent Developments 

• 2023: The company Alteryx Inc, launched a new cloud analytics platform to help the end-user industries like IT & Telecom, BFSI, and others to make informed & intelligent decisions concerning the overall growth of the organizations. 

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