product analytics Market

The global 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.

Market Overview

Effective customer service plays a crucial role in the success of a company, as 70% of purchasing decisions made by customers are influenced by the quality of service they receive. To ensure customer satisfaction and provide efficient solutions, organizations place significant emphasis on predicting customer needs. Successful businesses utilize product suggestion engines that analyze consumer behavior to offer personalized service and optimize marketing efforts, resulting in increased potential returns. A Harvard Business Review study revealed that personalization can result in a five to eight times return on marketing investment and increase sales by at least 10%. Predictive recommendations can enable retailers to send tailored offers to the correct shopper at the ideal time, resulting in higher conversion rates and more revenue per transaction. Studies have shown that personalized product suggestions can contribute to up to 31% of eCommerce site revenue by providing natural opportunities for upselling and cross-selling. Product recommendation tools analyze customer behavior and history to provide relevant recommendations, which can turn small transactions into larger ones and create a desire to make a purchase where there was none before. This highlights the significance of product analytics in understanding customer behavior.  

Regional Overview

The adoption of product analytics is significant in the Asia Pacific (APAC) region, as informed buying decisions are essential for successful businesses. To provide personalized service to customers, companies in the region rely on product recommendation engines, which can increase potential RoI by optimizing customer service efforts. Product analytics tools help retailers offer the right products at the right time, generating up to 31% of eCommerce site revenue from personalized product recommendations. As a result, there is a growing demand for product recommendation tools that match customer behavior with suitable suggestions automatically. Product analytics market players in the Asia Pacific region are being enabled by government investments and public-private partnerships to revolutionize product development teams. This, combined with hyper-focused strategies that deliver maximum customer value, is driving market growth. By focusing on designing solutions that help understand how users engage with websites and apps, companies can access valuable data insights and accelerate improvements in the customer experience. The Asia Pacific product analytics market is seeing a significant rise in leading providers with best-in-class UI and product-led growth strategies, along with offering free product analytics certification courses to educate attendees on their solutions and services. In December 2020, Pendo, a platform that helps drive digital product adoption, established offices in Tokyo and Sydney to expand in the APAC region. The company's expansion is motivated by the strong technology ecosystems, digital transformation, and skilled workforce in Japan and Australia. Pendo's product analytics, in-app guidance, and product planning and feedback tools are expected to help companies improve employee productivity and customer satisfaction.

Key Companies

Amplitude, Gainsight, Heap Inc., IBM Corporation, Kissmetrics, Mixpanel, Pendo.io, LogRocket Inc., Smartlook, and Useriq are the prominent players in the Product Analytics market. The report also includes secondary research on other companies that hold a substantial share in product analytics market.  

The product analytics market size has been determined through primary and secondary research. Initially, extensive secondary research was conducted using internal and external sources to gather qualitative and quantitative information on the product analytics market. The research aimed to obtain a forecast and overview of the product analytics market across all segments of the region. Additionally, several primary interviews were conducted with industry experts, including business development managers, VPs, market intelligence managers, and national sales managers. External consultants such as key opinion leaders, research analysts, and valuation experts also provided analytical insights into the topic to validate the data.