Are you interested in becoming a business analyst, or are simply curious about how this industry works?
Even if you’re already running a business, you should find the following business analyst statistics and demographics interesting and useful.
After all, a business analyst studies data to understand and improve a business’s services and products.
You don’t need to be an analyst to understand this is beneficial.
- There are over 272,000 business analysts in the US alone
- 53.9% of business analysts are men
- 67.7% of business analysts are white
- 11% of business analysts are LGBT
- 90% of business analysts feel their role is essential
- 48% of businesses using business analysts saw improved levels of customer satisfaction
- 66% of business analyst directors have a bachelor’s degree
- 15.1% of business analysts focus on finance
- The average salary for a business analyst with a master’s degree is $129,418
- Hourly wage for business analysts varies between $37 and $75
- SQL knowledge is considered a serious and important hard skill for business analysts
- Businesses using analysts have reported an average 10% increase in revenue
- Use of cloud–based analytics has increased by 12.5%
- The business analytics market is worth $82.8 billion
- Over 60% of the business intelligence and analytics software market is controlled by 10 vendors
- Business analysts are more likely to work at public companies
- Women earn 95% of men in the industry
Top Business Analyst Statistics and Demographics in 2024
1. Over 272,000 Business Analysts Exist In The US Alone
Being a business analyst is a popular choice.
It allows individuals to assess business performance and give advice regarding how systems can be improved.
At present, records indicate there are 272,851 people employed as business analysts in the US alone.
Of course, it’s possible there are more performing this role within small businesses without the proper accreditation.
It’s worth noting that, according to recent LinkedIn statistics, there are 9.8 million people across the globe with the title “business analyst”.
Alongside this, there are 4.4 million people referred to as “senior business analysts”, and an impressive 23.3 million people who include business analyst as part of their skill set.
2. 53.9% Of Business Analysts Are Men
The latest survey by Zippia reveals that 53.9% of business analysts are men, and 46.1% are women.
The survey looked at men and women in the US with the title business analyst.
Naturally, the figures are a little different in other countries.
The balance is roughly the same between men and women in the Western World, but moves more in favor of men in the rest of the world.
It’s worth noting that the percentage of women doing this job has seen a large increase in recent years.
For much of the last decade, the number of females in the industry has been in decline.
In 2010 just 31.08% of business analysts were women.
By 2013 this had dropped to 29.49%, a figure which stayed largely static until 2017.
However, in 2018, it jumped, with 43.67% of business analysts being women.
As of 2021, it’s 46.13%. Experts predict this number will continue to rise.
3. 67.7% Of Business Analysts Are White
It’s probably not surprising that the majority of business analysts are white.
That’s not to say it’s a good thing.
According to Zippia’s latest research, 67.7% of the industry is white. Just 12% of business analysts are Asian, and 8.8% are Hispanic or Latino.
An even smaller share of business analysts are black or African American.
Only 6.2% of workers fall into this ethnic group and 0.6% are classified as American Indian or Alaskan native.
That leaves 4.7% of business analysts with an unknown ethnicity.
The statistics haven’t changed much over the last decade, although there is a slow and steady decline in the number of white business analysts.
For example, in 201070.09% of business analysts were white.
By 2015 this had dropped to 69.4%, and in 2021 it shows as 67.73%.
The ethnic group which has benefited most from this decline is the Asians.
In 2010 they had 10.78% of business analyst jobs. By 2021 this ethnic group represented 11.99% of analysts.
Hispanics and Latinos have also seen small increases in their percentages.
However, black and African American numbers have dropped, from 9.39% in 2010 to just 6.24% in 2021.
4. 11% Of Business Analysts Are LGBT
According to the latest research by Zippia, 11% of business analysts are LGBT.
Naturally, this figure may be higher as many people are still not comfortable identifying themself as such.
It is interesting to note that a recent survey by Investopedia found that 5.9% of the US workforce identifies as LGBT.
That means a higher than average percentage have chosen the profession of business analyst.
Prior to 2020, it was possible to fire an employee simply because of their sexual orientation.
The 2020 Supreme Court ruling prohibits discrimination against LGBTQ+ workers solely based on their sexual orientation or gender identity.
It’s only since the ruling that some LGBTQ+ people have felt comfortable sharing their status, in many cases they still aren’t.
In short, stating that 11% of business analysts are LGBTQ+ could be a low estimation.
5. 90% Of Business Analysts Feel Their Role Is Essential
Feeling that your job is important is a good way to gain satisfaction from your role and helps to motivate you to perform better.
In a recent survey, 90% of business analysts felt their role didn’t just matter, it was instrumental in keeping the business profitable.
The facts back up their belief. Business analysts study all the processes affecting a business, internal and external.
This allows them to streamline processes, identify issues, and help locate solutions.
In other words, a business analyst can help any company get and maintain a competitive edge in their chosen market.
If your business doesn’t yet have a business analyst, it needs one.
6. 48% Of Businesses Using Business Analysts Saw Improved Levels Of Customer Satisfaction
The role of business analyst is not a new job, it’s been an important part of business management for years.
The recent rise in digital technology and big data has changed the role and made it more prominent.
Naturally, some businesses are dubious regarding the effectiveness or benefits of this role.
However, in a recent survey by Intellipaat, it was found that nearly half of all businesses which have a business analyst saw an improvement in customer satisfaction rates.
This is a good indication that the role of a business analyst is essential in the modern business world.
After all, customer satisfaction translates to loyal customers and more recommendations to friends and family.
It’s worth noting that the survey also found that 57% of businesses using a business analyst have streamlined their decision-making process.
The process has become more efficient and more focused on data.
7. 66% Of Business Analyst Directors Have A Bachelor’s Degree
It’s not essential to have a bachelor’s degree but it will help you understand the concepts and secure the best jobs.
In many cases, a Bachelor’s degree is seen as the lowest qualification you need, but it is possible to succeed with experience alone.
The latest research shows that 66% of business analysts have a Bachelor’s degree.
In contrast, 26% of analysts have a Master’s degree, while just 3% went a step further and got a Doctorate.
Just 1% of business analysts have an Associate degree, while 4% of them are listed as having other degrees.
It’s interesting to note that the college you attend does have a slight effect on the starting salary.
For instance, if you went to the University of Georgia then, six years after graduation, the average salary is $45,200 a year.
In contrast, graduates from the University of Wisconsin-Madison can expect average earnings of $49,600 six years after graduating.
8. 15.1% Of Business Analysts Focus On Finance
As with any career, business analysts will usually have a speciality.
That’s the field they have focused on more during their education and subsequent career.
The most popular sector to focus on is simply business.
An impressive 19.2% of analysts focus on business as their speciality.
Coming in a close second is finance with 15.1% of business analysts choosing to study this field.
Other specialities which do fairly well include electrical engineering: 8.2% of analysts choose this field.
That’s the same percentage as those who choose accounting.
Mechanical engineering takes 6.8% of candidates, while 5.5% of specialists choose management science. The same percentage choose psychology.
Finally, 4.1% of analysts choose Information systems, the same amount choose Economics, and the amount is also equaled by computer science.
If you’re considering being a business analyst, you may want to choose a speciality to help you get ahead of the competition.
9. The Average Salary For A Business Analyst With A Master’s Degree Is $129,418
The higher the qualification the greater the salary you can command.
This is standard in most industries and definitely applies to Business analysts.
Of course, your geographical location also makes a difference.
For example, business analysts with a Master’s degree can earn as much as $132,082 in San Francisco, just $110,694 in Seattle, and $105,966 in New York City.
The fifth spot on our list belongs to Boston where you can earn $99,677 per year.
Naturally, despite a Master’s degree, the business analytics director will be better paid.
Their salary can vary between $78,000 and $158,000.
The average for the business analytics director in the US is $111,815.
Again, the actual salary for a business analyst director will vary depending on what state you are in.
For example, in California, the salary is, on average, $127,272. In Oregon, it’s a little lower at $126,753, while Washington offers $125,629.
Idaho with $118,667, and Rhode Island, offering $116,769, complete the top five states by pay.
Add in a Master’s degree and your average wage in the US becomes $129,418.
If you have a Doctorate, you may be able to command $134,690.
10. Hourly Wage For Business Analysts Varies Between $37 and $75
In most cases, business analysts are paid an annual salary.
However, it can be useful to see how this breaks down at an hourly level.
Working as a business analyst returns a healthy wage.
According to a recent survey, a business analyst can earn between $37 and $75 an hour.
The difference in hourly rate is controlled by qualifications/experience, and the industry each business analyst chooses to work in.
It’s worth noting that business analysts get paid the most if they work in the technology sector.
Wages are also increasing, the average salary for a business analyst has increased by 3.7% between 2022 and 2023.
The average hourly rate is higher if you’re a senior business analyst.
In this instance, the average is $96.96 per hour.
11. SQL Knowledge Is Considered A Serious And Important Hard Skill For Business Analysts
To become a business analyst you need training and to develop the right skills.
It’s a complicated field but the following can be helpful.
The latest surveys show that 15.7% of business analysts state they have SQL knowledge.
This appears to be the most popular and important hard skill for this type of analyst.
Other skills which are instrumental to success as a business analyst include visualization.
Reports show that 13.3% of business analysts list this skill on resumés.
13.2% list Tableau, and 8.6% reference Power BI as essential skills.
Business intelligence, SAS, and data analysis are also seen as important and held by many business analysts.
Alongside hard skills, the three most commonly found soft skills appear to be creativity, analytical abilities, and interpersonal/communication skills.
12. Businesses Using Analysts Have reported An Average 10% Increase In Revenue
Adopting analytics is a choice that every company needs to make.
However, the following may help anyone who hasn’t yet decided.
According to the latest research, businesses that utilize analytics to improve the production and supply processes are seeing as much as 10% additional revenue and the associated increase in profits.
The role of business analyst has been helped by the dramatic increase in the generation of data.
This is a byproduct of an increasingly digital society.
Of course, the data needs to be processed, which is why there are so many business analysts!
Companies can see the benefit of an analyst and are keen to attract business analysts, ensuring all their data is thoroughly checked.
13. Use Of Cloud–Based Analytics Has Increased By 12.5%
The cloud has made it much easier for businesses and individuals to store information without needing to spend a small fortune on upgrading memory and hardware in your local servers.
All businesses need to do is connect to the cloud and back up their data regularly.
With this in mind, it’s not surprising that an increasing number of businesses have started to move data and the associated analysis to the cloud.
Between 2021 and 2022, the use of the cloud for analysis and associated analytical solutions has increased by 12.5%.
That’s an impressive growth in one year and one that experts believe will continue.
By 2025, it’s estimated that 75% of businesses will be using the cloud for storage and its analytic solutions.
This trend is happening across all industries, although healthcare, finance, retail, and manufacturing are seeing the biggest growth.
14. The Business Analytics Market Is Worth $82.8 Billion
As of 2022, the business analyst market is said to be worth approximately $82.8 billion.
That’s the result of years of steady growth.
However, the market has seen a significant increase in popularity and growth in recent years.
Experts predict that this increase in value will continue.
By 2028, it’s believed the business analytics market will be worth a staggering $132.1 billion.
That’s a growth rate of 8% over five years.
This projection will likely fall short of the actual rate of growth as businesses are becoming increasingly aware of how business analytics can help them and their business grow and succeed.
15. Over 60% Of The Business Intelligence And Analytics Software Market Is Controlled By 10 Vendors
The business analytics market is extremely competitive as businesses see an opportunity to secure a corner of the market.
This has led to just 10 firms controlling over sixty percent of the market.
In fact, a report in 2019 placed the figure at 62.5% of the market.
That’s a market worth over $23 billion in 2020 and one that is still growing rapidly every year.
The combined revenue for the top ten vendors is nearly $15 billion.
While that does leave room for more players, it emphasizes just how competitive this industry has already become.
Some of the best analytical businesses currently trading are AbsolutData, Latent View, and MU Sigma Analytics.
Whether you’re looking at the competition or looking for a little help, you could benefit from checking them out.
16. Business Analysts Are More Likely To Work At Public Companies
All businesses can benefit from a business analyst.
It’s no longer the size of the b business that matters, it’s the amount of data which can be accessed.
Thanks to the internet, there has never been so much data available.
The right analyst can locate all the streaks of data, compile them, analyze them, and then present their findings.
This should lead to savings in production costs, streamlining, and other efficiencies.
Even a small business can benefit from this and improve their customer service and market share
However, as we have already seen, the average salary for a business analyst is reasonably high.
That means many smaller businesses can’t afford to employ a business analyst.
The result, as recent surveys have shown, is that significantly more business analysts work for large public sector companies instead of smaller private companies.
It’s unlikely that this trend will change significantly in the near future.
That leaves smaller businesses reliant on apps and other software to help them understand and make the most of their data.
17. Women Earn 95% Of Men In The Industry
In a perfect world we would never need to look at the wages of different people doing the same job in the same industry.
However, it is still commonplace for women to be paid less than men, even though they are completing the same job.
A recent survey highlighted that this is an issue in the business analytics industry.
According to the most recent survey women earn 95% of what men do.
While that figure is significantly closer than many other industries, it still highlights a discrepancy which shouldn’t be there.
The good news is the gap is closer and, perhaps, the rate will match men within the next few years.
Perhaps the most obvious fact demonstrated by the above Business analyst statistics is that this is a rapidly growing industry.
The reasons are obvious, businesses are realizing how useful these skills are to them and their future success.
There is little doubt that data has become a key factor in business success.
We live in a world where there are huge amounts of data on every process you can think of.
Alongside this, data allows companies to understand their customers better.
As such, businesses need professionals who understand the figures.
It’s the reason business analysts have become so popular and will continue to be in demand.
The gradually increasing salaries are simply a reinforcement of the new reality, business analysts are here to stay.