Window functions are a powerful feature in SQL that enable you to perform calculations over a set of rows related to the current row, without grouping the data. Unlike aggregate functions, which summarize data across groups, window functions operate on a set of rows defined by a window frame and return a value for each row in the result set. This allows for sophisticated analysis of data within a specific context, such as calculating running totals, ranking rows, or partitioning data. They are particularly useful for tasks like calculating moving averages, finding the top N performers, or identifying trends within a dataset. Window functions are a crucial tool for data analysis and reporting, enabling you to derive insights from your data that might be missed with traditional aggregate functions. They are especially helpful when you need to see how each row relates to the other rows in a set, without losing the individual row's data.