[Free Report] Analytics India Industry Study 2021

The Indian analytics market has seen considerable growth since Analytics India Magazine (AIM) began researching and studying the domain seven years ago. This report, which is now in its 7th year, provides insights into India’s state of the analytics industry across sectors and enterprises. The report analyses the direction in which the Indian analytics industry is headed.

The financial year of 2020-21 was not like any other since the world faced the Covid-19 pandemic, and India enforced one of the strictest lockdowns. Like every other industry, the analytics and data science industry was no exception and faced the brunt of the pandemic. Firms had to lay down their employees and freeze recruitments.

However, as the lockdown restrictions were slowly lifted, the post-pandemic world presented the analytics industry with favourable conditions that have ensured significant growth. The main factor was the increased digitisation that led to massive data resources among companies. As enterprises tracked digital transactions, consumer behaviour could be observed and analysed.

This analysis helped increase sales and improve customer satisfaction. Also, the need to avoid human intervention/contact amid the pandemic led to the accelerated adoption of intelligent automation or AI. This happened across every sector and for all business sizes. Suddenly, there was a surge in demand for an analytics workforce that could help enterprises grow in such difficult times.

The Indian analytics and data science industry will continue to grow and play a key role in decision-making across every sector and industry. The industry will also develop sophisticated and intelligent autonomous systems to help achieve tasks with greater precision, speed, and efficiency than their human counterparts.


As covered in our reports regarding the development of the data science domain in India, it is evident that the analytics and data science function has experienced significant growth over the last year, despite the pandemic. The rising trend in salaries across almost all parameters, the maturing of the analytics market in terms of experienced hiring and salaries offered, the significance of gender diversity in the Indian analytics function, and the $836.3 Mn investment in Indian AI and analytics start-ups in 2020, are self-explanatory in terms of the development and global standing of the Indian Analytics market.

This development has facilitated the increase in the current market size of the Indian analytics industry to $45.4 Bn. This signifies a growth of 26.5% in the market size y-o-y. Last year, the analytics function garnered $35.9 Bn in size. The analytics function experienced growth across almost all companies, industry types, services rendered, and geographies.

The analytics industry will continue to grow in the coming years. However, the pandemic has impacted the scale and the scope of the analytics industry. Some of these impacts are short-term, while others have permanently changed the way analytics teams will operate. In this report, we have analysed the various characteristics of the Indian analytics industry, such as size, demographics, and employees and how they were impacted by the pandemic.

Key Highlights

  • The market size for the analytics domain increased to $45.4 Bn in FY 2021 – a 26.5% growth in the market size over last year when it was $35.9 Bn.
  • The analytics domain accounts for 23.4% of the Indian IT/ITES market size in 2021. This proportion has increased from the 19.0% share last year. With the current expected CAGRs (21.2% for analytics; 8.1% for IT), the analytics industry will contribute to 41.5% of the IT/ITES market by 2026
    • The Indian analytics industry is predicted to grow to a market size of $98.0 billion by 2025 and $118.7 billion by 2026
  • While the revenues generated through analytics are not published separately by most IT firms, news reports in 2020 suggest that Infosys’ analytics unit has grown into a nearly $3 billion business. and TCS said in 2018 that the firm earns $2 billion dollars per year through its analytics business
  • The Banking, Financial Services, and Insurance (BFSI) sector contributes to approximately 13.9% of the total analytics market – the total includes the market share of IT/ITES and consultancy firms.
    • Excluding the market share of IT/ITES and consultancy firms, the enterprises across the BFSI sector contribute 34.0% of the market size – the maximum market share.
  • Bengaluru again led the way to the largest contribution to the analytics market among the major cities at 30.3%, followed by Delhi and Mumbai at 26.2% and 23.4%, respectively.
  • More than half (51.6%) of the market share of analytics services to foreign countries was garnered from the US.
  • The median work experience of analytics professionals in India marginally increased from 7.5 years in 2020 to 7.6 years in 2021. In 2019, the median was at 8.0.
  • Mumbai has the highest median employee experience at 8.4 years in 2021, followed by Bangalore at 8.2 years. The median employee experience for Chennai increased significantly to 8.2 in 2021 from 7.2 in 2020.
  • More than one in three (34.2%) analytics professionals in India are engineering graduates, and more than one in five (21.0%) are MBA post-graduates.
  • 28.1% of analytics professionals in 2021 are women.

Fill in the details below to download the free report.


Share This

Copy Link to Clipboard