Business Intelligence Statistics: State of the Market in 2023
There are several business intelligence statistics and trends that you should be aware of in 2023. Perhaps the most important trend is the increasing volume of generated data.
More data comes with more opportunities for your business, giving actionable insights for a competitive edge.
However, simply having access to data is not enough. You need to be able to effectively analyze and interpret it to make it meaningful.
That's where business intelligence software and strategies come into play, as they can help your organization to make better decisions, improve operational efficiency, and drive growth.
Let’s dive into BI statistics.
Key Business Intelligence Statistics
- By 2028, the global business intelligence market size is expected to grow to $43.03 billion.
- The biggest market for BI software is in North America.
- The market for mobile business intelligence may be worth $28.86 billion by 2027.
- Cloud analytics is the BI segment that is expanding the fastest, with a CAGR of 23%.
- In the US, a business intelligence analyst has an average pay of about $70,000.
General Business Intelligence Statistics
1. The phrase “business intelligence” first appeared in 1865.
The term was first used by Richard Millar Devens in 1865 to describe a banker named Henry Furnese. He had an advantage over his competitors by gathering data and making informed decisions before the competition.
In 1958, “business intelligence,” as we know it today, was created. Hans Peter Luhn, an IBM computer scientist, published a groundbreaking article in which he mentioned the advantages of collecting and analyzing data to be ahead of the competition.
What is business intelligence?
Business intelligence (BI) is a method of automatically collecting, encoding, and processing data for any industrial, scientific, or governmental institution. Its adoption accelerated in the late 1990s.
2. The sectors that benefit the most from BI tools are the retail, telecommunication, fashion, and HR industry.
Most industries can benefit from using a business intelligence software. But the four that benefit the most, according to Zyte, are the following:
- Retail Sector: Retail businesses can benefit from BI software by using it to manage the organization's inventory. The software enables real-time monitoring of inventory levels for businesses per storage location or warehouse.
- Telecommunications Sector: The telecommunications industry gets large amounts of data on a daily basis, which is why data management plays a significant role.
- Fashion Industry: The use of business intelligence tools in the fashion industry can help increase sales. The software can deliver reports on the effectiveness of sales staff and their efforts to sell the company's products. Decision-makers will then gain insight into the sales staff's performance with this information.
- Human Resources Sector: Organizations that provide HR services require a strong tool for managing candidates. The software can help the management store and organize the data about each candidate's identity, and the team can retrieve the information with a mouse click.
3. The most common concern for businesses using BI is the query performance being too slow.
Although 40% of companies do not report considerable problems, business analytics can sometimes get challenging.
Business intelligence usage statistics from BI-Survey show that 12% of firms have issues with poor data quality and poor governance, and 10% of respondents point to limited training in the field.
Up to 13% of business users lack interest in using the BI tool.
4. Data discovery and visualization are the 4th among BI and analytics trends in terms of importance in 2023.
The more important trends are MD/DQ management (1), establishing a data-driven culture (2), and data governance (3).
Here’s why most business owners find data visualization tools crucial for their daily business operations:
Business users can utilize these tools to understand their massive data sets. They can use them to spot trends and data irregularities to propel their companies forward.
5. It is challenging to measure the ROI of business intelligence.
More than 50% of companies have never conducted research on the ROI of implementing business intelligence. However, about 53% agree that business intelligence provides many intangible benefits, such as improved operational efficiency, customer service, and increased revenue.
6. More than 75% of respondents believe that data preparation is important.
More businesses view data preparation as essential to their operations, as seen on the image below, and this percentage is forecasted to grow.
7. During COVID, small businesses used data to increase productivity in 55% of cases.
Smaller businesses use BI for a variety of reasons. For instance, 47% of companies use it to enhance client interactions, and 45% utilize data analysis to forecast the results of business decisions they make.
A third of businesses utilizing analytics consider migrating their data to the cloud.
8. 73.4% of businesses believe that embracing big data is difficult.
Adopting BI is difficult despite many advantages. For instance, according to business intelligence usage statistics from New Vantage Partners, just 37.8% of respondents could create a data-driven company.
Only 26.8% of them think they have successfully created a data culture. 90.9% of businesses say that process and people challenges are the major obstacles to becoming a data-driven company.
Because of that, business intelligence technologies like data visualization and customer database software are crucial in assisting staff with low data literacy to manage large volumes of data with ease.
9. Customers can expect to see a 40% to 60% improvement in order process efficiency after the implementation of an ERP system.
The NetSuite ERP survey also recorded a 40% to 55% reduction in reporting times, which demonstrates how powerful these systems are.
10. 88% of data employees still use spreadsheets to handle data operations.
(3 Pillar Global)
They spend around 60% of their working hours on manual processes.
Data diversity, complexity, and volume are some of the main problems for data workers, according to statistics on business intelligence.
The study from Three Pillar Global also showed that most employees lack the analytical data skills necessary for decision-making.
How do they compensate for it?
35% look for data analysts, 44% turn to IT for assistance, 11% go with their gut feeling, and 4% of people conduct their own research.
BI is well-liked by large corporations.
Corporation intelligence is data that is crucial for operating a business and maximizing revenues.
Walmart, Starbucks, Chipotle, Coca-Cola, Netflix, Tesla, Twitter, American Express, and Delta Airlines are some of the businesses that employ business intelligence.
Actually, Starbucks uses data from your behavior to offer you discounts and guess what you might like to buy next. Netflix uses similar practices with movie commercials.
Business Intelligence Adoption Statistics
12. The global BI adoption rate is roughly 26%.
However, this represents an average rate for all businesses and professional services.
On the other hand, if we dig a little deeper and compare it by firm size, the findings reveal something intriguing.
13. BI adoption rates increase with firm size.
If we take the companies with < 250 employees, more than 50% of firms have an adoption level from 20% to 40%.
On the other hand, about 60% with > 5000 workers indicate the adoption from 40% to more than 80%, and only 2% of them have a rate below 20%.
14. In 2020, most businesses adopted business intelligence as a result of Covid-19.
The majority of organizations chose online work, marketing, and selling only because of COVID, according to business intelligence trends. Businesses also increased their efforts to implement digital operations in the same year to survive the difficult environment.
They were seeking fresh, creative approaches to keep their staff members engaged and productive, and business intelligence tools were the solution.
Thanks to the technology, employees could access all the information in one location and make better decisions.
Additionally, BI enabled companies to monitor worker performance and give actionable insights on areas that required improvement.
15. A core component of the business strategy used by more than 46% of eCommerce companies already includes a BI tool.
This BI tool can be for:
- Cleaning up data
- Predictive modeling
16. On average, businesses utilize 3.8 distinct BI technologies.
In addition to an increase in the number of companies adopting business intelligence and analytics software, businesses also appear to be employing several products at once.
It is not surprising. According to business intelligence trends from Microsoft Power BI, practically all business leaders want to deploy business intelligence tools like project reporting tools and business management software. They are starting to see the advantages of using various solutions because of additional options for data analysis.
In our data-driven world, companies should use more than one BI tool in their business operations.
Cloud-based BI Statistics
17. In 2022, 54% of firms claimed that cloud-based BI was vital to their existing and upcoming operations.
Businesses are becoming aware of the advantages of cloud analytics, including its scalability, flexibility, and affordability.
The cloud also enables data sharing and real-time collaboration. Because of this, more companies are utilizing the cloud to their advantage.
18. 65.9% of money spent on application software will go towards cloud technologies in 2025.
Statistics from the business intelligence market indicate that cloud technologies adoption has increased and will continue to do so. Its growth in revenue will amount to a whopping 124-138 billion between 2023-2025 in comparison to traditional IT solutions (around 30 billion).
19. The manufacturing industry had a 58% adoption rate for cloud BI solutions in 2020.
The manufacturing industry was the leader in using cloud BI tools in 2020. The next industry on the list, with a 40% adoption rate, was the financial sector.
Education had the most ambitious cloud adoption objectives despite having the fewest users.
20. More than 60% of higher education institutions believed cloud BI tools were very important in 2020.
2020 saw a massive increase in cloud business intelligence and enterprise software vendors across universities due to the new remote learning trend.
21. According to 47% of IT managers, their data warehouses were hosted in the public cloud.
The BI stats from G2 indicate that just 18% of IT managers claimed to have on-site data warehouses.
The research from G2 also states that 53% of IT executives believe multi-cloud and hybrid data warehouses have recently become more significant.
The use of cloud storage for data warehouses has increased over the past few years. Their widespread use is mainly due to the cloud's adaptability.
Business Intelligence Market Statistics
22. The biggest market for BI software is in North America.
Unsurprisingly, the largest market for business information technologies is in North America.
The North American region has risen to the top of the global BI industry due to the large demand for software able to visualize and understand data.
23. By 2025, the size of the global business intelligence market is forecasted to reach $33.3 billion.
By 2028, the global business intelligence market size is expected to grow to $43.03 billion. It is anticipated to expand at a CAGR of 8.7% from 2021 to 2028. (Fortune Business Insights)
The spread of e-commerce and digitization drive this growth.
24. Cloud analytics is the BI segment that is expanding with a CAGR of 23%.
Business intelligence trends from MarketsandMarkets show that the cloud analytics market is growing with a CAGR of 23%. Its market value is projected to increase from $23.2 billion to $65.4 billion by 2025.
Nations like China, Japan, India, and other Asia-Pacific countries (APAC) are expected to see the most significant CAGR by 2025. This is projected to happen due to the rising acceptance of cutting-edge technologies and the commercialization of IoT technology.
This expansion in the cloud analytics industry can be attributed to usability, adaptability, and scalability. Furthermore, there are no restrictions on the number of industries you can collect data from.
25. The leading BI market players were SAS (US), Salesforce (US), and SAP (Germany) in 2021.
Several other leading companies sell business intelligence software are the following:
- Microsoft (US)
- AWS (US)
- MicroStrategy (US)
- Teradata (US)
- DOMO (US)
- TIBCO (US)
- Information Builders (US)
- Sisense (US)
- Qlik (US)
- Google (US)
- Yellowfin (Australia)
- IBM (US),
- Board International (Switzerland)
- Infor (US)
- Dundas (US)
26. The market for mobile business intelligence may be worth $28.86 billion by 2027.
(Research And Markets)
According to Research And Markets, the market will grow from $9.81 billion in 2021 to $28.86 billion in 2027 at a CAGR of 19.7%. The mobile business intelligence (MBI) industry is primarily driven by the increasing need for big data analytics to make important business decisions quickly.
The continual development of technology and the growing acceptance of the “bring your own device” (BYOD) trend among businesses both encourage this. The deployment of MBIs has also received significant funding from the public and private sectors.
Additionally, it is projected that the widespread adoption of the Internet of Things (IoT) will increase the deployment of MBI tools by pushing the amount of data generated. IoT enables mobile devices to communicate, analyze, and share data via cloud-based software platforms and networks.
Some other factors contributing to the growth of the market:
- The rising sales of mobile phones and wearable technology.
- The proliferation of e-commerce sites.
- The rapid advancement in banking sector automation.
Business Intelligence Importance
27. In the US, a business intelligence analyst has an average pay of about $70 000.
Data analysts' pay varies according to their experience level, where they work, and some other criteria. According to the data from Payscale, the top 10% earn about $97,000, while the bottom 10% make around $52,000 annually.
28. To succeed in 2023, 50% of chief digital officers will need to take on the role of CDO if their companies don't have one.
Data analytics is essential to a company's long-term success. The function is crucial in generating data-driven decisions without which no business can function.
Business intelligence stats show that half of the companies that don't employ chief data officers or CDOs may not survive in the long run.
29. Only 24% of corporate leaders worldwide have demonstrated data literacy.
The capacity to use data in various ways is called data literacy. One example is the ability to read, evaluate, interpret, and interact with data.
According to business intelligence stats, an organization is deemed data literate once its employees can confidently work with data and turn it into valuable insights and outcomes.
30. Poor data quality costs the US economy $3.1 trillion annually.
One of the main forces behind the current commercial data-driven environment is the United States. Business intelligence statistics demonstrate that the US economy experiences substantial losses because of poor data quality.
Self-Service Business Intelligence Statistics
31. Firms must be aware that they have already deployed self-service business intelligence.
That's a result of incorrect classification and probably fading marketing buzz. These days, most BI software includes self-service features. Businesses need to be aware that they are utilizing such technologies.
32. The industries that get the most value from self-service BI are finance (67%), sales (61%), and marketing (60%)
According to BI market statistics from Forbes, these industries deal with information in real time the most.
Decisions can be made quickly and accurately with the correct data at hand. BI self-service:
- Provides your company with additional market control.
- Enhances resource allocation to more profitable trends.
- Ensures that only pertinent info is sent.
33. 91% of users in small businesses use BI to view tasks.
The percentage is a bit higher for larger companies (up to 95%). Viewing is closely followed by navigation (78-87%). The more employees the firm has, the more this task is used. The image indicates that the least popular task is Model/Enrich, with about 25-30%.
34. 62% of companies considered BI self-service important in 2020.
Self-service business intelligence is essential for business initiatives and operating tasks, which is why research and development departments value it.
Business Intelligence FAQ
Precedence Research reports that the business intelligence market value was 27.24 billion in 2022. The figure is projected to expand at an 8.7% CAGR to reach $43.03 billion by 2028, according to Fortune Business Insights.
Statistics point to a significant increase in e-commerce and digitization, which are some reasons for the upward trend in the BI market.
Various departments of a firm, as well as different industries, require business intelligence.
According to business intelligence market stats, the sectors that find it the most valuable include HR, finances, procurement, sales, IT, marketing, customer service, and management.
Growing Your Business With Business Intelligence
We hope these business intelligence statistics have helped you see things more clearly. Technologies like BI have a lot to offer in today's crisis-ridden world.
They can give your business the ability to comprehend the issues you face, evaluate the gaps in your systems and processes, restructure operations, make informed decisions, and ensure long-term growth and profitability.
Below are three of the best BI tools you should start using:
- Zoho Analytics has a free plan with data visualization functionalities. You get a drag-and-drop dashboard and an analytical assistant called Zia. Lastly, you can connect to various data sources with just a few clicks.
- BIG EVAL is a high-end BI software to improve the quality of data for any project. The tool gives you comprehensive analytics and can carry out automatic quality checks through the test algorithms.
- Yellowfin is well-known for data storytelling, which helps you visualize your data and create stunning presentations. The solution has a mobile app that you can use to log in to your account anywhere with an internet connection.
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