Manufacturing Predictive Analytics Market Outlook-2026
The manufacturing predictive analytics market size was valued at $535.0 million in 2018, and is projected to reach $2.5 billion by 2026, growing at a CAGR of 21.7% from 2019 to 2026. Advent of Industry 4.0 boosts substantive recent innovations in manufacturing. Furthermore, increase in focus toward smoothing the operations in production plant or facility fuels the need for advancements in manufacturing systems. Emergence of technologies such as big data and analytics has transformed the way services were provided to end user. For example, in pharmaceutical manufacturing, deployment of predictive analytics can benefit the manufacturing facility by predictive maintenance, also the analytics can help in clinical trials to predict the outcomes of desired drug combination.
Emerging countries around the globe are adopting the smart factory initiative as a substantive recent innovation with hi-tech advancements in manufacturing industry. With high penetration of smart devices among manufacturing industry, large volume of data generation is evident. Manufacturing industry is on the verge of data exploration activities, which in turn fuels the demand for data analytics solutions among diverse manufacturing enterprises. Furthermore, rapid traction of connected devices due to low cost boosts the plethora of machine-to-machine communication systems. This has catalyzed the growth of Industrial Internet of Things (IIoT) across the manufacturing industry.
The software segment was the highest contributor to the manufacturing predictive analytics market in 2018 and is projected to remain dominant during the forecast period due to rise in software-centric approach in development of smart devices. In addition, rise in development of software applications such as mobile apps that provide ease of use and easy accessibility to the manufacturers is also supporting the growth of the software segment in the global market. However, the services segment is expected to witness significant growth due to increase in digital transformation activities among industries especially in the emerging economies. Owing to this, the major players are developing innovative analytics solutions to gain probable limitations that might occur in transformation process.
Software is projected as one of the most lucrative segments.
The on-premise segment dominated the manufacturing predictive analytics market in 2018 and is expected to continue this trend during the forecast period. The key factor driving the growth of the on-premises segment in the market is its ability to provide high security and improved performance. Moreover, the cloud segment is witnessing significant growth due to its ability to provide scalability of analytical solutions to manufacturing industry.
On-premise is projected as one of the most significant segments.
North America dominated the overall manufacturing predictive analytics market share in 2018, as several major players are operating from this region and availability of well-developed IT and manufacturing infrastructure. In addition, high IT spending capability of the countries in the North America is also supporting the growth of the market in this region. Moreover, Asia-Pacific is expected to grow at the highest rate in terms of CAGR during the forecast period. One of the major factors that drives the growth of the market includes major shift of the manufacturing industry toward smart facilities, which include smart devices such as robotic arms. In addition, emerging economies in Asia-Pacific region is propelling the convergence of legacy systems with emerging technologies, which in turn is expected to fuel the manufacturing predictive analytics market growth.
Machinery Inspection and Maintenance is projected as one of the most significant segments.
The report focuses on the growth prospects, restraints, and manufacturing predictive analytics market analysis. The study provides Porter’s five forces analysis of the manufacturing predictive analytics industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers.
The manufacturing predictive analytics market is segmented on the basis of component, deployment, application, end user, and region. Based on component, the market is categorized into software and services. Based on deployment, the market is divided into cloud and on-premise. Depending on application, it is categorized into demand forecasting, machinery inspection & maintenance, product development, supply chain management, and others. Based on end user, the market is divided into semiconductor & electronics, energy & power, pharmaceutical, automobile, heavy metal & machine manufacturing, and others. Based on region, the global market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Automobile is projected as one of the most significant segments.
The key players operating in the manufacturing predictive analytics market analysis include Alteryx, Inc., Bridgei2i Analytics Solutions, Cisco Systems, Inc., Fair Isaac Corporation, IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, SAS Institute, Inc., and Tibco Software, Inc. These players have adopted various strategies to expand its business, strengthen its product portfolio, and increase their market penetration, which in turn is expected to support the growth of the global market opportunities.
Asia-Pacific would exhibit the highest CAGR of 24.6% during 2019-2026.
Top Impacting Factors
Proliferation of big data solutions among manufacturing industry owing to rise in demand for technological advancements among enterprises is expected to drive the growth of the global market. Advent of Industry 4.0 that leverages cutting-edge digital technologies to harness, optimize, and automate production fuels the market growth during the forecast period. In addition, Industry 4.0 technologies have encouraged the adoption of cutting-edge technologies in production facilities to improve its operational efficiency. This in turn is expected to drive the growth of the manufacturing predictive analytics market in the coming years. However, dearth of skilled labor in predictive analytics is expected to hamper the market growth to a certain extent.
Key Benefits for Manufacturing Predictive Analytics Market:
- This study includes the market analysis, trends, and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities of the market.
- The manufacturing predictive analytics market size is quantitatively analyzed from 2018 to 2026 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of the buyers & suppliers in the market.
Manufacturing Predictive Analytics Market Report Highlights
By End User
Key Market Players
Microsoft Corporation, Cisco Systems, Inc., Alteryx, Inc., SAS Institute Inc., Oracle Corporation, International Business Machines Corporation, Fair Isaac Corporation, BRIDGEi2i Analytics, SAP SE, TIBCO Software Inc.
In accordance with several R&D and on-going industrial transformation-based activities, analytical technologies are gaining high traction from the past few years. Predictive analytics is future proofing the machine life-time cycle by providing predictive time-to-fail parameter and maintenance results due to which manufacturers are inclining toward emerging technologies. This inclination is expected to help production facilities to produce and manufacture enhanced products with reduced time-to-market. Moreover, predictive analytics is transforming industries to make them future ready by providing nearly accurate prediction of desired outcomes. Therefore, the global manufacturing predictive analytics market is expected to witness significant growth in coming years.
The major challenge for the manufacturers is to integrate advance analytics into existing legacy system infrastructure. Furthermore, manufacturers are demanding for all-in-one suite of analytics, which includes features such as sales pattern recognition, customer responses or purchases patterns, and product demand pattern to promote and gain cross-sell opportunities.
The global manufacturing predictive analytics market in North America and Asia-Pacific regions are witnessing rapid growth, owing to immense scope for enhancing efficiency of production facilities with the help of predictive analytics. In addition, majority of market players are operating North America particularly in the U.S. Furthermore, favorable government initiatives in Asia-Pacific that support Industry 4.0 and digitalization is expected to fuel the market growth. Major players in the global manufacturing predictive analytics market are increasingly developing exquisite predictive analytics solutions to reduce the dependence of technical expertise. This dependence of technical expertise lies in supporting and maintaining the existing systems after the downfall detected. In addition, players across the globe are advancing their product offerings to best fit their analytical solutions for diverse end users.
The key players operating in the global manufacturing predictive analytics market include Alteryx, Inc., Bridgei2i Analytics Solutions, Cisco Systems, Inc., Fair Isaac Corporation, IBM Corporation, Microsoft Corporation, Oracle Corporation, and SAP SE, SAS Institute, Inc., and Tibco Software, Inc. The key players have adopted various growth strategies to enhance and develop their product portfolio, strengthen their manufacturing predictive analytics market share, and to increase their market penetration.