According to a recent report published by Allied Market Research, titled, "Predictive Analytics Market by Component, Deployment, Enterprise Size, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2020-2027," the global market 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. Predictive analytics uses various statistical techniques, including automated machine learning algorithms, data mining, deep learning, and AI, to generate predictive models, which extract information from datasets, identify patterns, and offer a predictive score for an array of organizational outcome.
Factors such as rise in adoption of Big Data analytics, increase in use of predictive modeling to deliver optimum performance, big data supporting initiatives taken by government across the world, and upsurge in spending on Big Data infrastructure are driving the growth of global predictive analytics market. Furthermore, the need to gain competitive advantage is boosting the growth of this market.
The solution segment is anticipated to garner the majority of the predictive analytics market share in 2027, due to the factors such as rise in need for analyzing historic data to formulate more accurate business decisions, increase in demand for analyzing customer purchasing patterns, need for predictive maintenance.
The BFSI segment accounted for the highest share in the predictive analytics market in 2019, owing to its critical use cases such as fraud detection, collections management, cash liquidity planning, risk hedging, and targeted marketing. However, the healthcare and retail industries are expected to witness high growth rates, due to increase in use for developing precision medicine, predicting virus spread, model patient or customer flow patterns, and managing the supply chain.
Region wise, the predictive analytics market size was dominated by North America in 2019. Factors such as major the presence of leading market vendors developing predictive analytics in North America and high spending on Big Data technology in this region are the major drivers for the predictive analytics market growth. In addition, the deployment of predictive analytics has increased in each stage of the retail process to predict market demands, understand the customer behavior, and optimize the pricing, which is anticipated to significantly contribute toward the market growth.
The outbreak of COVID-19 is anticipated to have trivial impact on the growth predictive analytics market. This is attributed to increase in adoption of predictive analytics-based solutions to track the spread of coronavirus and forecast demand for healthcare resources, while working with healthcare institutions. Furthermore, market vendors are innovating products, which utilize predictive analytics in the healthcare industry to help in tackling the COVID-19 crisis. For instance, Cleveland Clinic and SAS have created innovative models that help hospitals to anticipate patient volume, bed capacity, and ventilator availability. Such innovations are further expected to offer lucrative opportunities for predictive analytics market post COVID-19.
Key Findings of the Study:
- By component, the solution segment dominated the predictive analytics market size. In addition, the customer analytics solution type is expected to garner highest share during the forecast period.
- On the basis of predictive analytics deployment, the on-premise segment accounted for the highest predictive analytics market share in 2019.
- Depending on enterprise size, the large enterprises segment registered the highest growth in 2019.
- As per industry vertical, the BFSI segment led the predictive analytics market in 2019.
- Region wise, North America accounted for the highest revenue in 2019; however, Asia-Pacific is anticipated to exhibit highest growth during the predictive analytics market forecast period.
The key players operating in the global predictive analytics industry 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. This study includes market trends, predictive analytics market analysis, and future estimations to determine the imminent investment pockets.