Predictive Analytics Market by Deployment and Geography - Forecast and Analysis 2022-2026

The predictive analytics market share is expected to increase to USD 17.00 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 21.36%.

This predictive analytics market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. The predictive analytics market report also offers information on several market vendors, including Altair Engineering Inc., Alteryx Inc., Amazon.com Inc., Board International SA, Cloudera Inc., Domo Inc., Fair Isaac Corp., Hewlett Packard Enterprise Co., Hitachi Ltd., International Business Machines Corp., KNIME AG, Microsoft Corp., Oracle Corp., QlikTech International AB, RapidMiner Inc., Salesforce.com Inc., SAP SE, SAS Institute Inc., Teradata Corp., and Vista Equity Partners Management LLC among others. Furthermore, this report extensively covers predictive analytics market segmentation by deployment (cloud-based and on-premises) and geography (North America, Europe, APAC, South America, and Middle East and Africa).

What will the Predictive Analytics Market Size be During the Forecast Period?

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Predictive Analytics Market: Key Drivers, Trends, and Challenges

The requirement of advanced analytics for operational efficiency is notably driving the predictive analytics market growth, although factors such as data assumptions in the case of a predictive model may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the predictive analytics industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Predictive Analytics Market Driver

One of the key factors driving the global predictive analytics market growth is the requirement of advanced analytics for operational efficiency. There is a growing realization of data as an asset for process enhancement, productivity, and operational proficiency. Predictive analytics enables the leadership of an enterprise to make sense of data and make strategic decisions in an effective, accurate, and quick manner. With its superior utilization and analysis of historical data, it drives competitive advantage for organizations in the modern world. Some of the critical use cases for predictive analytics are process optimization, failure point identification, scam detection, fraud mitigation, customer retention strategies, and strategic decision-making. Predictive analytics solutions provide both operational and cost reduction advantages, and in the current data-driven economy, they are continuously being perceived as instruments for gaining a competitive advantage. All these factors will drive the market growth during the forecast period.

Key Predictive Analytics Market Trend

Proliferation of advanced technologies, AI, and IoT is one of the key predictive analytics market trends that is expected to impact the industry positively in the forecast period. Increased acceptance of innovations and technological advances, such as AI, ML, blockchain, cloud computing, advanced analytics, big data, IoT, virtual assistants, automated vehicles, as well as augmented and virtual reality, is expected to pave the way for the adoption of predictive analytics throughout enterprises and industries. Due to the advent of IoT, there is a high rate of data production across every business process, which results in an increasing demand for sophisticated analytical capabilities provided by predictive analytics. For example, the IBM Predictive Customer Intelligence is required for churn reduction across the telecom sector. Such factors will further support the market growth in the coming years.

Key Predictive Analytics Market Challenge

One of the key challenges to the global predictive analytics market growth is the data assumptions in the case of a predictive model. Assumptions such as a linear relationship between the predicted and predictor variable may not be reasonable in every scenario. However, non-linear relationship assumptions lead to more challenging model implementation. The other key limitation of a predictive model is the absence of valid data for any predictive transaction. Data must be appropriate and sufficient for the model to work correctly and deliver meaningful insights. This generally leads to an increasing amount of noise being consumed by the predictive model leading to a phenomenon known as data overfitting, which results in the failure of the predictive analytics solution. Limitations of the model include decisions pertaining to the appropriate use of targeted variables, predictors, transformation, validity testing, and acceptable complexity of the predictive model. All this may limit the market growth in the coming years.

This predictive analytics market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Who are the Major Predictive Analytics Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Altair Engineering Inc.
• Alteryx Inc.
• Amazon.com Inc.
• Board International SA
• Cloudera Inc.
• Domo Inc.
• Fair Isaac Corp.
• Hewlett Packard Enterprise Co.
• Hitachi Ltd.
• International Business Machines Corp.
• KNIME AG
• Microsoft Corp.
• Oracle Corp.
• QlikTech international AB
• RapidMiner Inc.
• Salesforce.com Inc.
• SAP SE
• SAS Institute Inc.
• Teradata Corp.
• Vista Equity Partners Management LLC

This statistical study of the predictive analytics market encompasses successful business strategies deployed by the key vendors. The predictive analytics market is fragmented and the vendors are deploying growth strategies such as the expansion of product portfolios to compete in the market.

Product Insights and News

• Altair Engineering Inc. - The company offers a Predictive Analysis solution which is a Knowledge Studio for data scientists and business analysts that help generate actionable insight from their data. 
• Altair Engineering Inc. - Through the software segment, the company offers software and related services. Software products offered by the company include solvers and optimization technology products, modeling and visualization tools, data analytics and analysis products, high-performance computing, software applications and hardware products, IoT platform, and analytics tools  

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The predictive analytics market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Parent Market Analysis

Technavio categorizes the global predictive analytics market as a part of the global data processing and outsourced services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the predictive analytics market during the forecast period.

Which are the Key Regions for Predictive Analytics Market?

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45% of the market's growth will originate from North America during the forecast period. The US is the key market for predictive analytics in North America. Market growth in this region will be faster than the growth of the market in Europe.

The increased digitization and the early adoption of sophisticated technology will facilitate the predictive analytics market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

During the COVID-19 pandemic in 2020, the healthcare industry was under tremendous pressure to improve and distribute personal protective equipment (PPE), ventilators, and preventive and antiviral medications all across the world. Since the outbreak of COVID-19, the use of predictive analytics in the healthcare industry has increased to improve chronic disease management, patient care, hospital administration, and supply chain efficiencies. Furthermore, increasing recovery rates, reviving economy of the region, and the shaping industries will foster the demand for predictive analytics in the region.

What are the Revenue-generating Deployment Segments in the Predictive Analytics Market?

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The predictive analytics market share growth by the cloud-based segment will be significant during the forecast period. The growth is attributed to the preference for this model by vendors as it offers effective quality control, intuitiveness, and easy maintainability. Some of the most widely used cloud offerings include Salesforce, Amazon Web Services (AWS), Google Drive, One Drive, and Office 365.

This report provides an accurate prediction of the contribution of all the segments to the growth of the predictive analytics market size and actionable market insights on post COVID-19 impact on each segment.

Predictive Analytics Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the predictive analytics market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

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What are the Key Data Covered in this Predictive Analytics Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive predictive analytics market growth during the next five years
• Precise estimation of the predictive analytics market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the predictive analytics industry across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of predictive analytics market vendors

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