Key Market Overview:
Predictive analytics market size was valued over USD 13.5 Billion in 2022 and is estimated to exceed USD 44.3 Billion by 2030, registering a CAGR of 18.5% during the forecast period (2023-2030).
Predictive analytics belongs to the domain of sophisticated analytics that uses statistical modeling, machine learning, and data mining methods to forecast future outcomes based on historical data. Businesses use predictive analytics to detect patterns and trends within data to reveal potential risks and opportunities. Predictive analytics is typically linked with big data and the field of data science. Thus, organizations leverage such predictive analytics to achieve business objectives and increase profits.
Further, growing technological advancements such as machine learning, artificial intelligence, and others within several sectors are expected to boost the demand for predictive analytics during the forecast period. For instance, as per the United Nations Conference on Trade and Development, technologies such as IoT, AI, Big Data, 5G, and others represent a USD 350 billion market, which is anticipated to grow over USD 3.2 trillion by 2025. Thus, rising adoption of cloud-based predictive analytics solutions is estimated to create favorable circumstances for the implementation of predictive analytics among businesses without any upfront costs.
Predictive Analytics Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||44.3 Billion|
|CAGR (2023-2030)||18.5 %|
|By Solutions||Solution and Services|
|By Deployment Type||On-Premise and Cloud|
|By Enterprise Size||Small & Medium Enterprises, Large Enterprises|
|By End Use||Aerospace & Defense, Automotive & Transportation, BFSI, Healthcare, IT & Telecommunication, Media & Entertainment, Retail & E-commerce, Others|
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Cloud Software Group, Inc., Microsoft Corporation, Google Cloud, Augury Inc., CFD Research Corporation, Oracle, SAS Institute Inc., Siemens, IBM, ALTERYX, INC., Axtria|
The increased adoption of big data and advanced analytics drives the demand for predictive analytics solutions in various industries such as finance, healthcare, retail, and manufacturing for making data-driven decisions and improvements in business outcomes. Furthermore, growing competition among businesses in terms of customer experience fuels the market adoption among businesses to understand customer behavior and preferences, and needs and offer personalized recommendations, to enhance customer satisfaction and loyalty. Predictive analytics is also being used to manage risk more effectively. Also, large-scale usage by businesses to identify potential risks and take proactive measures to prevent the occurrence of such risks accelerate the market demand, especially in industries such as finance and insurance.
The risks of incomplete, inaccurate, or outdated analysis due to compromised quality of data hinder the adoption and growth of the predictive analytics market. Further, the high costs of predictive analytics solutions also limit the implementation of such analytics in small and medium-sized enterprises.
The rising expenditures on business optimizations to identify inefficiencies in business models and operations are expected to create lucrative opportunities for market growth during the forecast period in terms of cost savings, increased productivity, and higher profitability. Moreover, the increased scope of convenience for cloud computing is also anticipated to offer opportunities for market growth during the projected period for predictive analytics vendors to offer cloud-based solutions to customers for large amounts of data analysis.
Predictive Analytics Market Segmentation:
The component segment is bifurcated into solutions and services. The solution segment accounted for highest share contribution to the market growth in 2022. The ease of integrating multiple analytics modes within existing business architects to detect frauds, improve operations and reduce financial risks supports the demand for predictive analytics solutions to manage complex analytical processes of business. Moreover, the services segment is also anticipated to witness the fastest CAGR during the forecast period. The access to engineering data gained by predictive service projects by such analytics services is expected to support the segmental growth to keep up with the pace of evolving technology, especially with the help of simulations offered by service providers.
By Deployment Type
The deployment type segment is divided into on-premise and cloud. The cloud segment contributed the largest shares to the market growth in 2022 in terms of value. The factors such as collaboration and multi-tenancy, security, reliability, and maintenance accelerate the demand for cloud-based deployment of predictive analytics. Such deployment helps to cater to multiple geographies, languages, charging mechanisms, price points, currencies, time zones, and others. Furthermore, the on-premise segment is also estimated to support the market growth in terms of volume. The access to IT for server maintenance along with the ability to configure and customize certain elements based on the software licensing is anticipated to support the segmental growth.
By Enterprise Size
The enterprise segment is separated into small & medium enterprises, and large enterprises. The large enterprises segment accounted for the highest contribution to the predictive analytics market shares over 61.7% in 2022. The rising demand for predictive analytics to manage and analyze large volumes and types of data to identify potentially alarming behavioral patterns in real-time for reducing financial risks to such enterprises fuels the segmental growth. Also, the small & medium enterprises segment is estimated to witness the fastest CAGR during the projected period. Rising awareness and adoption of early detection of anomalies within business operations result in cost and resource savings, which is of great significance to such small & medium enterprises. Thus, increased focus by such enterprises on asset utilization, optimized performance, and processes and control is expected to support the segmental growth.
By End Use
The end-user segment comprises aerospace & defense, automotive & transportation, BFSI, healthcare, IT & telecommunication, media & entertainment, retail & e-commerce, and others. The BFSI segment is anticipated to witness the fastest CAGR of over 15.8% during the forecast period. The banks leverage data and AI to manage and reduce risks by the employment of scoring models to make informed decisions and reveal predictive insights in terms of offense, default, and pricing. Thus, the increased employment of big data tools and sophisticated algorithms to combat the increase in fraudulent cases fuels the adoption of predictive analytics in the BFSI industry. Also, the IT & telecommunication segment is estimated to contribute substantial shares to the market growth in terms of value and volume. Favorable adoption of predictive analytics, especially by the telecommunication industry, by using data to evaluate the credit risk of customers during the application stage, profile such customers\' typical or risky usage, and process at the time of account overdue during the collections is expected to boost the segmental growth.
The regional segment includes Asia Pacific, North America, Europe, Latin America, and the Middle East and Africa. North America accounted for highest share contribution to the market growth in 2022. The imposition of regulations such as GDPR and CCPA fueled the adoption of data-driven approaches among business organizations in terms of data privacy and security.
Further, Asia Pacific is expected to witness the fastest CAGR during the forecast period. The proliferation of digital devices and the internet among businesses and individuals due to the generation of large amounts of data is expected to help businesses and organizations use such data to gain insights into customer behavior, market trends, and other key metrics. Such analysis is estimated to support the growth of the predictive analytics market in the Asia Pacific in terms of the established presence of manufacturing facilities in several industries, especially the IT & telecommunication sector in India.
Facial Recognition Market Competitive Landscape:
The high competition in the market of predictive analytics results in increased focus by market players to develop solutions that are convenient, provide rapid insights, and offer real-time decision-making capabilities to maintain a competitive market position. Such players also expand the product portfolios through strategic partnerships, collaborations, and acquisitions to improve offerings and gain a competitive edge. Overall, the predictive analytics market is expected to witness significant growth during the forecast period due to the increasing need for data-driven decision-making across various industries. Following are market players with an established position in the latest market circumstances–
• Cloud Software Group, Inc.
• Microsoft Corporation
• Google Cloud
• Augury Inc.
• CFD Research Corporation
• SAS Institute Inc.
• ALTERYX, INC.
• In October 2022, Axtria, a prominent provider of cloud-based software solutions for the worldwide life sciences sector, showcased the comprehensive suite of software technologies at the MedTech Conference 2022 in Boston, Massachusetts. Such technology is aimed to cater to the intricate data management requirements along with commercial and sales cycle obstacles faced by the medical device industry.
• In December 2022, a core part of Microsoft Intelligent Data Platform named SQL Server 2022 updated the integration with Azure by incorporating Azure Synapse Link and Microsoft Purview. Such platform integration allows customers to obtain comprehensive insights, predictions, and governance from the data at scale. Also, the incorporation of Azure enables managed disaster recovery (DR) to Azure SQL Managed Instance and provides near real-time analytics for effortless data estate management for database administrators with reduced impact on the end user.
• In December 2022, IBM announced a collaboration with the Cloud Security Alliance, a global non-profit organization committed to establishing standards, certifications, and best practices for secure cloud computing. The partnership aims to enhance the security and risk management of cloud computing in the financial services sector. The IBM Financial Services Cloud Council expanded to over 120 members, which comprised over 70 banks, to assist in mitigating systemic risk in the industry.