The Evolution of the Data, Analytics and Insights Industry - A Critical Review of the Latest ESOMAR Report
- Tom Mostert
- Jun 25
- 5 min read
Key Takeaways from ESOMAR
The ESOMAR data suggests that the data, analytics, and insights industry continues to grow, with forecasts indicating significant expansion by 2026.
AI and emerging technologies will drive future trends, focusing on virtual research and analytics.
Their evidence leans toward increased investment, with venture capital playing a key role in industry ownership.
There is uncertainty around exact figures for 2026, but 2024 data indicates the industry is valued at over US$ 140 billion, and the report suggests continued growth.
Detailed Analysis and Supporting Information
The ESOMAR report on the "Evolution of the Data, Analytics and Insights Industry" is a forecast into 2026, speculating on the size, trends and forecasts of the industry, its main players, with commentary from the industry's leaders. It provides a detailed overview of the industry's trajectory, emphasizing growth driven by technological advancements, particularly AI and data analytics.
However, it seems to discount concerns about consolidation, the closure of smaller companies, the short lifespan of AI-focused startups, and a perceived decrease in professionals working in the industry. This raises important questions about the report's alignment with reality. Below, we analyze these trends, drawing on recent data to offer a critical review.
Industry Growth and Forecast
The ESOMAR report forecasts significant growth, with the industry value estimated at over US$ 140 billion in 2024, up from US$ 110 billion in 2021, representing a 30% increase over three years. This growth is expected to continue into 2026, driven by digital data analytics and established market research, with projections suggesting the advanced analytics market will reach US$ 139.92 billion by 2029, growing at a CAGR of 25.2% (Advanced Analytics Global Market Report).
However, there are many reports of consolidation and smaller companies closing down, suggesting a more nuanced picture. Recent data indicates 3,400 mergers and acquisitions in the data analytics ecosystem, reflecting a consolidation trend that may be impacting smaller firms, especially those using traditional methods (Data Analytics Market Report 2025). This aligns with the report's mention of 70% of the industry being owned by investment entities, indicating a shift toward larger, consolidated players.
Key Trends and Technologies
The report emphasizes AI and emerging technologies as key drivers, with 56% of companies investing in these areas in 2024 and 45% focusing on AI, reporting a 4.5% revenue increase compared to 2.5% for non-AI users (Key Findings from ESOMAR CEO Report 2024).
This focus on virtual qualitative research (52%) and online quantitative methods (48%) suggests a shift away from traditional techniques, which may explain the observation of smaller companies closing. The data analytics market in 2024 is driven by AI, machine learning, NLP, data mesh, edge computing, and cloud technologies, enabling faster processing and improved insights (The Future and Current Trends in Data Analytics Across Industries). This technological shift likely pressures smaller firms not adopting these innovations, supporting reports about widespread closures.
Investment and Ownership Dynamics
The report notes significant venture capital influence, with US$ 35 billion invested over the last decade and US$ 9 billion in 2021 alone, equating to 10% of sector revenues that year. By 2024, 70% of the industry is owned by investment entities, not corporations or individuals, due to venture capital and private equity investments (Global Private Markets Report 2025).
This consolidation trend aligns with observations of VC influence in the market, as smaller companies may be acquired or struggle to compete, especially given the high M&A activity (3,400 deals) (Data Analytics Market Report 2025). This suggests that while the industry is growing, the landscape is becoming more concentrated, potentially at the expense of smaller players.
Main Players and Market Share
The report highlights key players like IQVIA, Nielsen, and Kantar, with turnover data from 2024 showing strong regional leadership, particularly in the US (57% of total). These players dominate established market research, with the top 10 holding 58% market share in 2021, indicating a trend toward larger entities (ESOMAR 2024 Forecast Sample PDF). This is concerning, as smaller companies are closing down or being consolidated, because smaller firms may lack the resources to compete with these giants, especially in adopting AI and analytics.
AI Startups and Short Lifespans
There is a trend of AI-focused startups having short lifespans, either getting acquired or failing within a few years. This is consistent with cross-industry trends. The ecosystem comprises 6,800+ startups, including over 5,000 early-stage ventures, with 3,400 M&A activities indicating high acquisition rates (Data Analytics Market Report 2025).
This high turnover is typical in tech-driven sectors, where startups face rapid innovation cycles and competition, supporting your claim. However, this dynamism also fuels industry growth, as new startups tend to emerge to replace those that fail or are acquired, maintaining overall innovation.
Employment Trends and Skills Gap
The data also shows global employment in the industry at 4.7 million, with 430,000 new employees added last year (Data Analytics Market Report 2025).
However, this growth is concentrated in data analytics roles, with data scientists projected to grow by 36% and statisticians by 31% from 2021 to 2031, compared to 19% for market research analysts (US Bureau of Labor Statistics). This suggests that while the industry is growing, traditional market research roles may be declining, aligning with perceptions that many of these roles are being replaced by AI and technology.
Additionally, there is a growing skills gap, with 70% of organizations reporting a skills gap in 2024, driven by the need for AI and analytics skills (Skills Gap Trends 2024). This gap may contribute to the perception of a shrinking workforce, as professionals without these skills may be leaving the industry, requiring reskilling and upskilling initiatives.
Critical Review of the Report
The ESOMAR report captures the industry's growth trajectory, mainly driven by AI and data analytics, with detailed breakdowns of segments and key players. However, it may not fully address the challenges faced by smaller companies and traditional market research professionals.
Industry experts have expressed concerns about the extent of consolidation and the impact it will have, such as smaller companies closing, as evidenced by high M&A activity and the slower growth of "traditional" roles. The report's optimistic employment outlook may not reflect the reality for professionals in these traditional roles, who may be experiencing job displacement. While AI startups' short lifespans are a known risk, they contribute to the industry's dynamism, which the report highlights. Overall, the report provides a valuable overview but could benefit from a more nuanced discussion of disparities between traditional and tech-driven segments.
To Summarize
The ESOMAR report's findings align with the overall growth of the data, analytics, and insights industry, but there may be valid concerns about consolidation, smaller companies closing, and potential employment declines in traditional roles, supported by recent trends.
The industry is transforming at a rapid pace, with data analytics and AI driving growth, while smaller, traditional firms face significant challenges. Employment is increasing, particularly in tech-driven roles, but a skills gap requires attention to ensure professionals can adapt. This nuanced view suggests the report captures the big picture but may overlook specific struggles within the industry.
Key Citations
Comments