Predictive Analytics Market Statistics: 2027
The global predictive analytics market size was valued at $7.32 billion in 2019, and is projected to reach $35.45 billion by 2027, growing at a CAGR of 21.9% from 2020 to 2027. Predictive analytics is the practice of using statistics and modeling techniques to extract information from current and historical datasets to predict potential future outcomes and trends. Rise in awareness among organizations about massive volume of data generated to predict future outcomes by using predictive analysis solutions is driving the growth of the market. In addition, increase in usage of internet coupled with the availability of several sources of accessing the internet has led increase in data generation. Thus, leveraging this data to make accurate business strategies and decisions optimizes the revenue, which is driving the demand for predictive analytics solutions.
Increase in the adoption of predictive modeling tools, surge in investments for Big Data supporting initiatives by governments, and rise in adoption of Big Data technologies are some of the major factors that are driving the global predictive analytics market growth. However, dearth of skilled IT staff and high implementation cost are anticipated to restrict the market growth. On the contrary, integration of IoT and AI in predictive analytics and rise in demand for predictive analytics by SMEs are anticipated to provide lucrative growth opportunities for the expansion of global predictive analytics market during the analysis period.
On the basis of component, the global predictive analytics solution segment is expected to dominate the overall predictive analytics market size in 2027. This is attributed to advantage of predictive analytics solution such as delivering business-critical insights into what may happen in future based on analysis of historic data, customer behavior insights, and fraud prevention. By predictive analytics solution type, the customer analytics segment is expected to lead the market during the forecast period, owing to need for analyzing rapidly generating massive volume of customer data through multiple sources such touchpoints and e-commerce sites.
According to industry vertical, the BFSI segment accounted for the highest predictive analytics market share in 2019, as regulatory framework has become more complex across the world. Moreover, predictive analytics in BFSI facilitates capital planning, financial analytics, credit risk management, and insurance risk management, which further fuel the growth of this segment.
Predictive analytics Solution segment is projected as one of the most lucrative segments during the forecast period.
In 2019, the global predictive analytics market share was dominated by the North America region, due to high spending on Big Data analytics and early adoption of modern technologies IoT & AI in this region. The need to analyze customer behavior & purchasing patterns, forecast the budget requirements, formulate effective marketing campaigns by analyzing historic trends act as the key driving forces of the North America predictive analytics market.
The emergence of COVID-19 is expected to have a trivial impact on the growth predictive analytics market. Innovations and advances in predictive analytics to track down and forecast surges in COVID-19 cases across different countries have further supported the market growth. Thus, use of predictive analytics in healthcare to analyze the virus spread, disease outcomes, and insight into COVID-19 risk is expected to propel the market growth. In addition, with the emergence COVID-19, the use of predictive analytics will enable enterprises to analyze business continuity scenarios and loopholes post COVID-19.
By Deployment Mode
Cloud deployment mode segment is projected to witness highest growth rate during the forecast period.
The report focuses on the growth prospects, restraints, and global predictive analytics market trends. Moreover, the study includes Porter’s five forces analysis of the 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 on the predictive analytics market growth.
The global predictive analytics market is segmented into component, deployment, enterprise size, industry vertical, and region. By component, it is divided into solution, and services. Solution segment is further sub categorized into customer analytics, financial analytics, marketing, network analytics, risk analytics, supply chain analytics, web and social media analytics, and others. Depending on deployment, it is categorized into cloud and on-premises. According to enterprise size, the predictive analytics market is segregated into large enterprises and small & medium enterprises. As per industry vertical, it is fragmented into BFSI, retail, IT & telecom, healthcare, government, manufacturing, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global predictive analytics market analysis include Alteryx, Inc., Fair Isaac Corporation, Information Builders, International Business Machines Corporation, KNIME, Microsoft Corporation, Oracle Corporation, SAP SE, SAS Institute Inc., and TIBCO Solution Inc.
By Enterprise Size
Large Enterprises accounted for the highest market share in 2019.
Top impacting factors
Increase in adoption of predictive modeling tools
The adoption of predictive modeling tools has amplified in recent years supplemented with interactive visualization and automation. These tools help in accelerating the methods of developing and analyzing predictive models that are used by organizations for conducting operations such as customer analytics, risk reporting, threat management, and product innovation. Furthermore, number of enterprises are streamlining their sales pipelines from lead generation to customer base by using a predictive analytics on large volumes of customer data. Moreover, the use of predictive modeling tools for social media advertising, e-mail campaigns, and cognitive analysis of customers are has led to growth in sales and increase in customer retention. In addition, by using predictive analytics to devise signals, IoT applications can enable the automation of business operations and processes across the supply chain to enhance consumer experience. Thus, as several industries such as BFSI, retail & e-commerce, and manufacturing are adopting predictive modelling tools, which is expected to contribute toward the predictive analytics market growth.
By Industry Vertical
BFSI industry is one of the most significant segments.
Rise in adoption of Big Data technologies
The volume of data captured by organization is continuously increasing due to rise in trend of Internet of Things (IoT), social media, and multimedia, which has produced a prodigious flow of data. Machine-based as well as human-generated data are witnessing 10 times faster growth rate than conventional business data. In addition, around 41 billion IoT devices are expected to be available in the global market by 2027, which will collect, analyze, and share this data. Increase in need to store, process, and analyze large volume of structured as well as unstructured datasets has driven many organizations and individuals to adopt advanced & big data analytics, which is likely to drive the growth of the market. Furthermore, due to massive amount of data generation in different industry verticals, investment in Big Data will increase, which, in turn, will fuel the growth of the predictive analytics market.
Emergence of modern technologies such as IoT and AI
Surge in penetration of connected devices has augmented the demand for predictive maintenance, which is expected to drive the growth of the predictive analytics market in the coming years. IoT environment is proliferating the adoption of predictive analytics, as it facilitates predictive maintenance leading to enhanced energy efficiency and higher levels of production uptime. In addition, numerous industries are demanding a solution that can predict when their machines are going to get damaged. They are implementing sensors that can analyze the patterns and predict the outcome or any anomaly in the operation of machines. This as a result enables industries to reduce the downtime of the machine and increase the productivity. This benefit is expected to boost the growth of predictive analytics industry in upcoming years.
Predictive analytics driven by AI can take the existing data and unlock immense value from it. AI-powered analytics can help in predicting which leads to score as potential customers, present insights on the competitors, and predict what target audiences want to buy and consume. Moreover, it can be used for anomaly detection by analyzing customers’ behavioral patterns. For instance, Rapidminer Company worked along with AI and data science engineers at PayPal to develop a system that could perform sentiment analysis for customer comments in over 150,000 text-based forms in several different languages, including 50,000 tweets and Facebook posts.
Asia-Pacific would exhibit the highest CAGR of 24.9% during 2020-2027.
Key Benefits for Stakeholders:
- This study includes the analytical depiction of the global predictive analytics market forecast and trends to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and predictive analytics market opportunity.
- The current market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the predictive analytics industry.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the predictive analytics market.
Predictive Analytics Market Report Highlights
By Enterprise Size
By Industry Vertical
Key Market Players
SAP SE, Fair Isaac Corporation, Information Builders, TIBCO Software Inc., International Business Machines Corporation, Oracle Corporation, Alteryx, Inc., Microsoft Corporation, KNIME, SAS Institute Inc.
Asia-Pacific countries are expected to witness high adoption of predictive analytics due to presence large number of end users and increase in Big Data adoption in the region. In future, predictive analytics models will play an integral role in business processes due to the immense economic value generated by it. With predictive analytics, organizations have the opportunity to take action proactively in a variety of functions. Fraud prevention in banks, disaster prevention for governments, and sublime marketing campaigns are some of the lucrative potential opportunities tangible with predictive analytics models.
Surge in penetration of smart devices and increase in internet connectivity in Europe and Asia-Pacific are further propelling the demand for predictive analytics in these regions. Moreover, rise in cloud adoption and upsurge in investment in Big Data analytics are expected to boost the growth of the predictive analytics market in the coming years. Moreover, the outbreak of the COVID-19 pandemic in 2020 has led to innovation of predictive analytics solution for combating the crisis and helping healthcare industry in tracking virus spread & anticipating the COVID-19 cases as well as resource demands.
The key players operating in the global predictive analytics market include Alteryx, Inc., Fair Isaac Corporation, Information Builders, International Business Machines Corporation, KNIME, Microsoft Corporation, Oracle Corporation, SAP SE, SAS Institute Inc., and TIBCO Solution Inc. These players have adopted various revenue and business growth strategies to enhance and develop their product portfolio, strengthen their market share, and increase their market penetration.