The global analytics market has the potential to reach $6.5bn by 2020, a CAGR of 25% between 2014 and 2020, according to new research by Allied Market Research.
However, expensive analytics software and the lack of awareness among stakeholders about the advantages of text analytics in pivotal regions will impede the growth of the market.
The research indicates that predictive analytics is the most attractive application within text analytics, with a predicted CAGR of 21.3% during the forecast period.
The research suggests that wider acceptance of text analytics is found in North America, partly due to the early adoption of big data analytics in the region. North America holds 40% of the global text analytics market amongst all regions.
North America generated approximately 2.5 million gigabytes of data per day, with that number anticipated to double every 40 months. The substantial amount of data generated in the region is a gold mind for companies that understand the importance of historical data.
The upsurge in the adoption of social networking platforms, the rising adoption of cloud computing technologies and the ability of text analytics to move beyond sentiment analysis are predicted to be some of the major driving factors for the text analytics industry.
The study also showed that on-premise deployment of text analytics is most favoured by government organisations and small and medium businesses, due to a higher level of security compared to cloud based deployment models. However, the study predicts that on premise deployment is likely to subside withthe market to be driven by cloud based deployment models in the near future.