Operational Intelligence Market Report

Market Insights

The global operational intelligence market is expected to grow from USD 2.25 billion in 2022 to USD 5.09 billion by 2029 at a CAGR of 12.4% during the forecast period.

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What is Operational Intelligence?

Operational Intelligence (OI) refers to the use of real-time data analytics to gain insights into business operations and optimize decision-making. OI systems collect and analyze data from various sources, including sensors, machines, and applications, to provide a real-time view of operational performance.

This enables organizations to identify inefficiencies, bottlenecks, and other issues as they occur, allowing for proactive interventions and continuous improvement. OI can be used in a variety of domains, including manufacturing, logistics, healthcare, and finance. Some examples of OI applications include predictive maintenance, supply chain optimization, and fraud detection.

OI systems can also be used to monitor key performance indicators (KPIs) and provide real-time alerts when KPIs fall below pre-defined thresholds. By leveraging OI technologies, organizations can improve operational efficiency, reduce costs, and enhance overall performance.

Key Players

The major players operating in the global operational intelligence market are:

• Splunk Inc.
• Vitria Technology Inc.
• Starview Inc.
• Software AG
• Schneider Electric SE
• Rolta India Limited
• SolutionsPT Ltd
• IBENOX Pty Ltd
• Turnberry Corporation
• HP Inc.
• OpenText Corporation

Market Dynamics

Businesses are adopting operational intelligence software due to the pressing need for data quality management, data discovery, and visualization. On-premise ESB (enterprise service bus) and BPM (business process management) solutions are ideal for vertical scalability when integrating complex internal systems and architecture of an enterprise.

The market is being propelled by the growing adoption of Big Data Analytics and the Internet of Things (IoT) among end-users. The demand for operational intelligence (OI) and analytics tools has increased significantly in the last decade due to the emergence of Big Data and the need to make critical business decisions in a shorter timeframe. IBM reports that 62% of retailers claim that using information (Big Data and analytics) provides their organizations with a competitive advantage, while 63% of respondents from various industries share this view.

In addition, the Internet of Things (IoT) is rapidly gaining ground as it expands digital connectivity to devices and sensors in homes, businesses, vehicles, and other areas. This breakthrough allows almost any device to produce and transmit data about its operations, which can be analyzed to enable monitoring and various automated functions.

To support these functions, operational intelligence (OI) is essential for IoT. Companies like PTC Inc. are leveraging IoT to provide real-time insights into production performance and prevent issues before they occur through the delivery of insights into operational efficiency via the Industrial Internet of Things (IioT).

The market is being driven by the increasing demand for real-time data analytics. The importance of operational intelligence in a data-driven world is becoming more evident and is gaining significant traction. According to a study conducted by Accenture, which surveyed 460 enterprise operational executives from around the world, 96% of the respondents agreed that predictive decision-making based on real-time data is one of the most significant factors driving their business.

Segment Analysis

By Deployment Type: Cloud Accounts for Significant Market Share

Flexera's survey indicates that there is a growing focus on hybrid cloud strategy, rather than public or private cloud. Hybrid cloud has become the standard for businesses to deliver their products and services. The survey reveals that the penetration rate of hybrid cloud has risen from 51% in 2018 to 58% in 2019, as reported by Flexera.

In addition, more and more banks are shifting their data, processes, and infrastructure to cloud platforms to leverage the benefits of cloud implementation, which facilitates the integration of enterprise applications. For example, the State Bank of India, which has a network of 23,000 branches, opted for Office 365, a cloud-based productivity solution from Microsoft, to enhance communication and collaboration among its employees and transform itself into a modern workplace.

Additionally, in July 2020, Deutsche Bank and Google Cloud formed a strategic partnership with the objective of revolutionizing how the bank develops and delivers its financial services. Through this collaboration, Deutsche Bank can expedite its cloud transformation and capitalize on the engineering capabilities of both organizations.

As a result of this partnership, Deutsche Bank has obtained direct access to data science, artificial intelligence, and machine learning tools to enhance its customer service. The potential applications include assisting treasury clients with their daily operations such as cash flow forecasting, advanced risk analytics, and cutting-edge security solutions to safeguard their accounts.

Moreover, companies are integrating their solutions to offer a more efficient business and operational environment. For example, in June 2020, Honeywell and SAP SE collaborated to develop a joint cloud-based solution based on Honeywell Forge, the company's enterprise performance management tool, and SAP Cloud Platform. This integration aims to streamline and consolidate operational and business data to support better decision-making and drive greater efficiencies.

This new offering empowers facility managers and building owners to realign their portfolios by identifying cost savings and enhancing efficiencies, while simultaneously enhancing the tenant experience.

Regional Analysis: Asia-Pacific to Witness Significant Growth

Globally, operational intelligence solutions are experiencing rapid growth in the Asia-Pacific market. This region boasts one of the largest e-commerce markets in the world. In 2022, China's e-commerce market experienced a substantial 41% increase, according to Worldpay Group plc.

In China, online retail, social communication, and payments are effortlessly integrated, and consumers are eagerly anticipating the next wave of smooth and unobtrusive payment options. With the highest number of internet buyers in the world, China is poised for the future of frictionless payments.

In addition, the Banking, Financial Services, and Insurance (BFSI) sector continue to be a critical end-user segment in the Asia-Pacific region and holds enormous potential for the market. Furthermore, there has been a rapid acceleration in digital transformation in the region, as an increasing number of companies are adopting formal strategies to support their efforts. According to China Telecom, cloud computing represented only 3% of China's enterprise IT market in 2013, but it has grown significantly to reach 20% in 2020.

Additionally, Indian enterprises have recognized that Public Cloud alone cannot meet all their digital transformation needs. As a result, 91 percent of Indian enterprises are currently re-evaluating their Cloud strategy, compared to 73 percent globally and 76 percent in the Asia region, as reported by Nutanix.

Moreover, 42 percent of Indian enterprises intend to transition the majority of their IT deployments to Hybrid Cloud. This highlights the growing interest of Indian enterprises in adopting Hybrid Cloud, which provides them with cloud mobility, agility, and the capability to integrate multiple clouds, including both public and private clouds.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market Environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Product Portfolio, New Product Launches, etc.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com

Recent Developments

• In January 2023, Schneider Electric and BitSight entered into a partnership to improve detection of Operational Technology (OT) cybersecurity exposure.
• In December 2022, EY partnered with Software AG to help organizations digitize and transform using IoT, business process management, and integration platforms.