Product Analytics Market Size & Growth Report 2021, 28

Product Analytics Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Solutions and Services), Deployment (On Premise and Cloud-Based), Mode (Tracking Data and Analyzing Data), and Vertical (Retail and Consumer Goods, Food and Beverages, Healthcare and Pharmaceuticals, Energy and Utilities, Automotive, Manufacturing, and Others)

Publication Month : Jan 2022

  • Report Code : TIPRE00006175
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 187
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The product analytics market is expected to grow from US$ 9,165.5 million in 2021 to US$ 28,090.5 million by 2028; it is estimated to grow at a CAGR of 17.4% from 2021 to 2028.

Product analytics helps businesses analyze how users engage with products and services, enabling them to track and visualize user engagement and behavior information. Studying this data assist companies in optimizing their product offerings and increasing customer satisfaction. Product analytics tools provide product managers and teams with a quantitative understanding of user interaction with their products. The idea is to obtain an aggregated view of how many users use a feature, the number of times a user clicks a specific button, and what type of product and services they prioritize. There is a growing trend worldwide in which companies gather data from potential customers through surveys and interviews to learn about the risks and challenges before launching a new product in the market. The companies analyze the customer's behavioral data and validate their previous hypothesis on which they designed the product using this information.  A 2019 survey conducted by Microsoft reveals that data analytics implementation has skyrocketed in just a few years. Big data adoption observed a massive rise of 42% from 2015 to 2018. Advantages such as better decision-making are propelling the demand for product analytics market across the world. Product analytics uses data to help organizations make informed decisions and improve accuracy, efficiency, and response time. It also gives the product managers a clearer image of their goals and objectives. Businesses rapidly use data visualization to track their current and past performance against key performance indicators (KPIs). Other benefits offered by the product analytics tool include tracking trends, customer behavior, and market shifts that business owners and marketers can utilize while launching their products. This data allows them to build efficiency by identifying any breakdown in process in almost real-time and saving time, money, and resources. Immense pressure on the organizations to consistently gain new clients is augmenting the demands for product analytics to maximize customer experience and maintain a long-term relationship. By sharing valuable data, customers expect better and convenient products that offer smooth experiences on the consumer side. Customers use several channels to communicate with businesses. Product analytics enables businesses to incorporate both modern and traditional data sources to collect, store and analyze customer behavior and provide them with meaningful services in real-time.

Product Analytics Market ,

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Product Analytics Market: Strategic Insights

Market Size Value inUS$ 9,165.5 million in 2021
Market Size Value byUS$ 28,090.5 million by 2028
Growth rateCAGR of 17.4% from 2021 to 2028
Forecast Period2021-2028
Base Year2021
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Impact of COVID-19 Pandemic on Product Analytics Market

After witnessing a significant drop in 2020 due to the onset of COVID-19 outbreak, the global e-commerce market has begun witnessing a gradual recovery in consumer demand since the last quarter of 2020. Rapid recovery in online product sales is anticipated to boost the demand for product analytics software to manage and analyze customer interaction with products. According to the United Nations Conference on Trade and Development, the COVID-19 pandemic has led to a surge in e-commerce and digital transformation, amid slowing economic activity. Retailers are working to efficiently cater to the growing customer demand. Adjusting to the new normal, businesses and consumers are providing and purchasing goods and services online. Fluctuating consumer preferences and behavior due to the changing pandemic scenario would positively influence the product analytics market during the forecast period. Companies are investing significantly in technology during the current pandemic. The emergence of COVID-19 outbreak has accelerated the role of data analytics platforms enabling them to make significant business decisions. Growth in the unprecedented level of sharing, collaboration, and openness among customers, in response to the COVID-19 pandemic, would help global companies to better prepare for new scenarios, provide options to customers, and maintain the speed of business by analyzing the up-to-date data. All these factors are bolstering the product analytics market growth.

Lucrative Regions for Product Analytics Market

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Product Analytics Market Insight

Rise in Usage of Advanced Technologies

Companies can no longer control the product analytics market with only one product due to rapid technological improvements and diverse customer expectations. Many industrial and retail companies are pushed to implement various business strategies, such as technological convergence, to flourish in this fast-changing market. Artificial intelligence improves the functionality of business intelligence applications by allowing organizations to better understand the value of smaller components in a larger picture by breaking down large volumes of data into granular insights. Amazon Go, for example, is disrupting the traditional retail experience by leveraging analytics to increase sales and customer loyalty. Product analytics adds value to that data by merging all available data sources into a single, sorted-out picture, which might help obtain small bits of knowledge.

Product Analytics Market, Deployment Segment Insights

Based on deployment, the product analytics market is bifurcated into on-premise and cloud-based. The cloud-based segment led the market with a share of 68.2% in 2020 and is expected to hold 70.9% share by 2028. The cloud-based segment is also anticipated to register a higher CAGR during the forecast period. The market growth for the cloud-based segment is attributed to the growing demands for data collection, tracking, and analysis on systems hosted in the cloud. Cloud-based analytics tools allow companies to analyze large data sets with ease and improve business results. Smartlook offers a cloud and mobile-based quantitative analytics solution to businesses of all sizes to help them with user behavior and insights on every user action. The solution includes features such as visitor recordings, event tracking, funnels, and heatmaps. Smartlook’s product analytics solution also provides video sessions options to identify customers and features a visitor journey module. There is a growing demand for event tracking among businesses to know how visitors perform certain tasks and their thoughts about a product. Smartlook is primarily used in industries, such as travel, gaming, health care, education, and media. Also, it integrates with many platforms and tools such as Google Analytics, Zendesk, Instapage, Intercom, Shopify, Gambio, Blogger, Magento, and Google Tag Manager. Kissmetrics is another cloud-based customer engagement solution that helps businesses understand website visitors through behavior-based analysis. Pricing is available via monthly subscription, and support is provided through online methods.

Product Analytics Market, by Deployment (% Share)

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Product Analytics Market, Component Segment Insights

Based on component, the product analytics market is bifurcated into solutions and services. The solutions segment led the market with a share of 73.1% in 2020 and is expected to account for 74.8% of the total product analytics market by 2028. Product analytics solutions empower product teams to gain insights into the features and customer actions that lead to outcomes. It helps them gain a deeper understanding of how customers experience digital products. Many benefits offered by product analytics solutions such as analyzing behaviors, identifying personas, tracking engagement, and enabling teams to easily see the complete picture and take faster action are propelling the growth of the product analytics market for the solutions segment. Product analytics solutions turn data into actionable customer scores to drive impactful, cross-functional action. It also enables users to identify root causes of problems and quickly solve them and combine digital and human engagement to enhance processes. Amplitude offers its product analytics solutions to more than 1,400 customers and 26 of the Fortune 100 to analyze how customers use their products and use these insights to maximize business outcomes. Similarly, Gainsight provides tools for the in-depth analysis of customer experience data to uncover customers’ demands. It also helps collect feedback from any part of the customer journey by bringing all of the structured and unstructured data into a single view, such as surveys, meeting notes, and online reviews. Heap Inc helps Software as a Service (SaaS) companies to understand their users, get advanced signals on customer behavior, and build better products. The product analytics solution automatically captures all user data from every click, swipe, pageviews, and fill and helps organizations make data-driven decisions.

Product Analytics Market, Vertical Segment Insights

Based on vertical, the product analytics market is segmented into retail and consumer goods, food and beverages, healthcare and pharmaceuticals, energy and utilities, automotive, manufacturing, and others. The retail and consumer goods segment led the market with 26.5% share in 2020 and is expected to account for 28.3% of the total market share by 2028. The market for the retail and consumer goods segment is anticipated to observe significant growth during the forecast period. Owing to various benefits such as better decision making, cost reduction, and revenue growth, the adoption of product analytics tools by eCommerce companies is expected to increase during the forecast period. Increasing capital investments in analytics by eCommerce companies to drive improved decision making is also propelling the market growth for the segment. There is a growing demand for acquiring new customers at a lower cost and retaining them for maximizing product sales. Thus, companies in the retail sector are implementing product analytics tools and services to study how their users and customers are engaging with their retail products. Product analytics enables them to track the digital footprint of their users to collect information of their preferences along with the product line that they engage with or return., Inc’s product analysis software tracks inventory and stores the performance of the business. It monitors and breaks down customer satisfaction scores across stores and regions and analyzes trends over time. This helps retail companies easily understand how marketing directly affects leads by analyzing growth opportunities across regions, segments, and products.

The product analytics market players focus on new product innovations and developments by integrating advanced technologies and features to compete. In December 2021, Heap raised $110M Series D round to fund the future of digital analytics. Heap will use the funds to expand its global operations and speed up research and development of the industry’s most comprehensive digital analytics platform for product builders, growth marketers, and fast-moving analytics teams. Heap’s quick product creation will be aided by the latest funding, which will see the firm release Illuminate, a data-science-powered solution that solves the difficulties of legacy solutions that are ill-equipped to respond to the increasing complexity of the modern customer journey. In December 2020, Pendo announced that it will begin its expansion into Asia-Pacific with operations in Tokyo and Sydney. Japan and Australia have solid technological ecosystems, aggressive digital transformation goals, and enormous talent pools, all of which support Pendo’s entry into these markets.

Based on mode, the global product analytics market is bifurcated into tracking data and analyzing data. Based on component, the market is bifurcated into solutions and services. Based on vertical, the product analytics market is segmented into retail and consumer goods, healthcare and pharmaceuticals, energy and utilities, food and beverages, manufacturing, automotive, and others. Based on deployment, the market is bifurcated into cloud-based and on-premise. Based on geography, the global product analytics market is segmented into five regions—North America, Europe, Asia-Pacific, the Middle East and Africa, and South America.

Amplitude; Gainsight; Heap Inc.; IBM Corporation; Kissmetrics; Mixpanel; Pendo.Io; LogRocket, Inc; Smartlook, and Useriq are a few major companies operating in the product analytics market.

Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Component, Deployment, Mode, and Vertical

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions

Which country has the largest market share in the Product Analytics market?

US held the largest Product Analytics market share in year 2020 on the basis of factors such as increasing technological advancements and the rising number of market players in the country.

What is the future trend for Product Analytics market?

Cloud computing environments, where data is kept remotely in distributed storage systems, allow IT infrastructure to be scaled up or down quickly. Pay-as-you-go arrangements are also facilitated in these contexts. This means that businesses that need to process massive amounts of data and have a lot of storage and processing capacity do not have to invest in an extensive IT infrastructure. Instead, companies can license the storage and processing capacity they require and pay only for their use. As a result, most large companies that deal with significant amounts of data are turning to cloud computing to supply their solutions to businesses. However, migrating data from an on-premises solution to the cloud is complicated and time-consuming. Before the data migration is complete, businesses must sync their data sources and platforms for several weeks to months. These factors are not preventing people from using cloud-based solutions. Instead, they are encouraging them to use hybrid and multi-cloud installations.

Who are the major vendors in the Product Analytics market?

Key companies in the Product Analytics market include Amplitude; Gainsight; Heap Inc.; IBM Corporation; Kissmetrics; Mixpanel; Pendo.Io; LogRocket, Inc; Smartlook; Useriq

Which component-based segment has the largest Product Analytics market share in 2020?

Based on component, the global Product Analytics market is segmented into solutions and services. The global Product Analytics market is dominated by solution segment in 2020, which accounted for ~73.1%, and it is expected to account for 74.8% of the total market in 2028.

What are the driving factors responsible for the growth of Product Analytics market?

Increasing Need for Enhanced Customer Behavior
1. Management Services
2. Rise in Usage of Advanced Technologies

What is the market opportunity for Product Analytics market?

The growing demand for product analytics and intelligence tools in post-pandemic era is anticipated to offer ample future growth opportunity to the product analytics solution providers over the forecast period of 2021 to 2028. Data management and analytics technologies are becoming essential in coping with the current disruption and ushering in the new normal. The data on the COVID-19 status of each country and region is publicly available. Even municipal-level data can be found on the internet. Product analytics may link this data with supply chain information to identify risk areas and estimate a region's duration to resume normal operations. By monitoring the liquidity status of client companies through a real-time cash liquidity view, all of this data can assist financial institutions in minimizing risks. Companies in the energy business can use IoT to monitor equipment remotely and give data for preventative and predictive maintenance, eliminating the need for staff to travel to remote areas. More enterprises are going to the cloud in the post-COVID-19 era to maximize insights from data and big data analytics, which has become a requirement for businesses. In the coming years, product analytics is expected to play a significant role in business development as it allows companies to correlate more data, such as government health data, to predict the demand.

The List of Companies - Product Analytics Market

  1. Amplitude, Inc.
  2. Gainsight
  3. Heap Inc.
  4. IBM Corporation
  5. Mixpanel
  6., Inc.
  7. LogRocket, Inc
  8. Smartlook

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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