The Market Research Boom Is Real, But Only If You Look Beyond the Headline

Consider this: the global insights industry grew about 8.0% in 2023, but the research software sector grew 12.4% that same year (ESOMAR via Research World). That gap is the story. If you're an industry analyst tracking market trends, you can't just look at the headline number. That single percentage point difference tells you where the value is migrating—and where your next competitive threat may come from.

My Thesis: The Growth Is Real, But It's Not Uniform

I've been in this game long enough to see trends come and go, but the current state of the insights industry is unique. Yes, the global market research industry was valued at about $76.37 billion in 2021 and projected to reach over $108 billion by 2026 (Similarweb / Research and Markets). ESOMAR's more recent estimate puts the entire insights industry—including software and reporting—at over US$140 billion in 2023 (ESOMAR via Research World). But here's my point: those aggregate numbers are misleading. They mask a structural shift. The traditional market research sector—the one that does surveys and focus groups—grew only 4.6% in 2023, while research software grew 12.4% (ESOMAR via Research World). If you're analyzing an industry that supplies insights, you'd better understand that shift or you'll be analyzing a dying business.

The Software Takeover Is Real—And It's the Trend to Watch

Let me be blunt: if you're not looking at the software layer, you're looking at the past. The data is clear. In 2023, the market research sector accounted for about US$54 billion, research software US$56 billion, and reporting US$33 billion (ESOMAR via Research World). That's right—software is already bigger than traditional research. And it's growing faster. The research software sector grew 12.4% in absolute terms, compared to 4.6% for market research (ESOMAR via Research World). This isn't a blip; it's a structural shift. AI is part of it. About 47% of researchers globally use AI regularly in market research, and 83% of market research professionals planned to invest in AI in 2025 (Similarweb / Research and Markets). That's a massive trend. If you're an industry analyst, you need to map how AI is reshaping the value chain—from data collection to analysis to reporting.

But Don't Ignore the Geographic and Sectoral Nuances

Now, the counter-argument: "Sure, software is growing, but the traditional research market is still huge, and there are regional booms." Fair point. Asia Pacific is the fastest-growing insights region globally, growing about 9.5% in 2023 compared to 8.0% globally (ESOMAR via Research World Asia Pacific). Within that, Kazakhstan grew almost 24%, Vietnam 17.2%, and India 14.8% (ESOMAR via Research World Asia Pacific). That's significant. But here's the thing: even in Asia Pacific, the market research sector turnover was revised upward from US$8.6 billion in 2022 to US$11.1 billion in 2023 (ESOMAR via Research World Asia Pacific). That's a sector that's growing, but it's still part of the slower-growing traditional bucket. The US holds the largest share of the global market research market at about 53% (Similarweb / Research and Markets), but even there, the growth is coming from software and AI adoption. So while I acknowledge the regional and sectoral nuances, the underlying trend remains: software and AI are the future.

What This Means for Your Industry Analysis

So, how do you use this in your own work? First, when you analyze any industry, don't just look at the top-line CAGR. Break it down by segment. Look at the software layer, the services layer, the reporting layer. Second, use tools like PESTLE to understand the macro trends driving these shifts—AI is a technological factor, but it's also political and social (Washington State University Libraries). Third, consider the competitive dynamics. The Herfindahl-Hirschman Index (HHI) can help you assess concentration (US DOJ Antitrust Division). If the software sector is consolidating, that matters. Finally, remember that all this analysis is pointless if you don't tie it back to strategy. Porter's Five Forces is still relevant—it helps you understand how the economic value in an industry is apportioned (Harvard Business School). But you need to apply it to the right segments.

Quick tip: When you read a market forecast, always ask: "What's the base?" ESOMAR's report covers countries representing about 80% of the global insights industry, with the rest estimated (ESOMAR via Research World). If the base isn't clear, the growth rate is meaningless.

Bottom Line

The single best move you can make as an industry analyst is to stop treating the insights industry as one monolithic market. Segment it by sector, geography, and technology. Track the software and AI adoption curves. That's where the growth is, and that's where your analysis will deliver real value.

Sources

• ESOMAR via Research World - https://researchworld.com/articles/drivers-of-our-142bn-insights-industry
• ESOMAR via Research World (Asia Pacific) - https://researchworld.com/articles/the-remarkable-ascent-of-asia-pacific-in-global-insights
• Similarweb / Research and Markets - https://www.similarweb.com/blog/research/market-research/market-research-stats/
• Washington State University Libraries - https://libguides.libraries.wsu.edu/c.php?g=294263&p=4358409
• Harvard Business School - https://www.hbs.edu/faculty/Pages/item.aspx?lang=en&num=34522
• US DOJ Antitrust Division - https://www.justice.gov/atr/herfindahl-hirschman-index