Predictive Analytics Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,China,Japan,Germany,UK - Size and Forecast 2023-2027

Predictive Analytics Market Forecast 2023-2027

The predictive analytics market size is forecast to increase by USD 2.16 billion at a CAGR of 22.24% between 2022 and 2027. The growth of the market depends on several factors, including the growing need to detect fraud and scams, the adoption of analytics to achieve customer centricity and the increasing data generation and the advent of big data. Predictive analytics is a branch of analytics that leverages advanced artificial intelligence (AI) and machine learning algorithms to make future predictions and assessments based on the analysis of historical data. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Predictive Analytics Market During the Forecast Period?

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Predictive analytics is a technological innovation that has revolutionized marketing strategies in various industries. This advanced form of analytics uses statistical algorithms and machine learning techniques to identify patterns and trends in data, enabling businesses to make informed decisions and predictions about future outcomes. In the context of marketing, it is used to analyze customer behavior, preferences, and trends to optimize marketing campaigns, improve customer engagement, and increase sales. Technologies like cloud, project management, and big data play a crucial role in the implementation in marketing. The digital economy has created a vast amount of data, and businesses must deploy advanced analytics tools to gain a competitive edge. The market is growing rapidly, driven by the increasing adoption of data-driven marketing strategies and the availability of affordable analytics solutions. The market is expected to continue its growth trajectory in the coming years, with a focus on improving customer experience and enhancing business performance.

Market Dynamics and Customer Landscape

Predictive analytics is a technological innovation that has revolutionized marketing strategies in various industries. This advanced form of analytics uses statistical algorithms and machine learning techniques to identify patterns and trends in data, enabling businesses to make informed decisions and predictions about future outcomes. In the context of marketing, it is used to analyze customer behavior, preferences, and trends to optimize marketing campaigns, improve customer engagement, and increase sales. Technologies like cloud, project management, and big data play a crucial role in the implementation of predictive analytics in marketing. The digital economy has created a vast amount of data, and businesses must deploy advanced analytics tools to gain a competitive edge. The market is growing rapidly, driven by the increasing adoption of data-driven marketing strategies and the availability of affordable analytics solutions. The market is expected to continue its growth trajectory in the coming years, with a focus on improving customer experience and enhancing business performance.

Key Market Driver

The growing need to detect fraud and scams is a major factor notably driving the market growth. The demand for fraud detection in the social and mobile world is driving the market. With advancing technology, fraud and scams are becoming more sophisticated and serious threats to data security and privacy. This has led to a rise in concerns about these threats, prompting enterprises across different industries to adopt predictive analytics in their business processes. By doing so, they aim to prevent future frauds and scams from occurring.

However, by combining multiple algorithms and analytics paradigms, these solutions can detect fraudulent activity patterns and prevent criminal behaviour. Predictive analytics can also be used to identify network security issues and vulnerabilities, leading to increased use cases across various sectors such as pharma, BFSI, and healthcare. For instance, insurance companies and underwriters in the BFSI sector can create predictive models to anticipate the likelihood of fraud during the claims process. These models utilize historical claims data to flag any present or future claims that resemble previous frauds or scams. Hence, the market is driven by the growing need to detect fraud and scams in today's business environment.

Significant Market Trends

Increasing adoption of real-time data analytics is an emerging trend shaping market growth. The market is experiencing a significant trend where real-time data-analytics and live stream analysis are becoming more widely adopted and accepted. Real-time data analytics involves analyzing data in motion using advanced ML and AI algorithms. Organizations are increasingly moving toward advanced analytics and cutting-edge techniques, resulting in a higher demand for real-time data and streaming analytics. It can be applied in countless use cases in the age of mobility and social media phenomenon. Furthermore, the increased use of advanced sensors and IoT is expected to boost the role of real-time data-analytics. For instance, predictive analytics can directly consume sky-drone data to conduct real-time analysis of the dataset and provide intelligent insights

However, live streaming on Facebook presents a unique opportunity for streaming analytics to gather valuable insights into human behaviour from vast amounts of unstructured data generated from each transaction. As there is an increased emphasis on enterprise data security, real-time and streaming analytics is expected to see greater acceptance in the IT security field. With the adoption of IoT and AI in various business processes, the need for advanced analytics solutions that can interpret complex and unstructured data produced across critical processes has grown. The market is being propelled by growing technological advancements such as advanced sensors and IoT, coupled with the widespread use of social media and mobility phenomenon, which is fueling the adoption of real-time data and streaming analytics worldwide

Major Market Restrain

Accessibility issues for quality and standardized data are a significant challenge hindering market growth. A significant obstacle in implementing and using these solutions is the lack of access to reliable historical data. To arrive at accurate predictions of future trends, predictive analytics solutions require high-quality historical data. The quality of the output is directly influenced by the quality of the dataset used. Relevant data is often spread across various databases, repositories, systems, and processes within an organization, which can lead to difficulty in accessing it. This issue is compounded by the inconsistency of the data and the existence of data silos.

Moreover, many enterprise data sets are filled with noise, and some don't meet the necessary quality and accuracy requirements for use in predictive modelling. This lack of uniformity across an organization results in added expenses for data cleaning and transformation. Additionally, the human bias involved in data collection and selection processes can decrease the effectiveness of predictive models, potentially hindering growth in the market during the forecast period. 

Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Market Segmentation

This market report extensively covers market segmentation by end-user (BFSI, retail and e-commerce, telecom and IT, transportation and logistics, and others), deployment (cloud-based and on-premise) and geography (North America, Europe, APAC, South America, and Middle East and Africa). Predictive analytics plays a pivotal role in various industries, with the BFSI sector leading the global market. This technology enables businesses to make informed decisions based on data interpretation and predictive models. In the healthcare sector, remote health monitoring using smart health-related wearable devices like Fitbit is a growing trend. Technology deployments, including advanced technologies such as cloud, IoT, and artificial intelligence, are essential digital infrastructures for data creation and processing. These solutions are integral to business ecosystems, offering consumer perception analysis and risk identification. Data scientists utilize data analytics platforms and professional services, including managed services, to ensure data integrity and create predictive models. The e-commerce sector and venture finance businesses also benefit from predictive analytics, enabling digitization of transactions and consumer behavior analysis using big data and algorithm-driven analytical software. Overall, it significantly impacts business performance in the digital age, with high-speed internet services and smart payment technologies being essential enablers.

By End-user

The market share growth by the BFSI segment will be significant during the forecast period. In 2022, the banking, financial services, and insurance (BFSI) industry held the largest market share in the global market. Predictive analytics supports banks and financial institutions to predict consumer behaviour and preferences.

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The BFSI segment was valued at USD 1.47 billion in 2017 and will continue to grow by 2021.  Understanding customer patterns gives businesses in the BFSI industry a competitive advantage in forecasting and making decisions, which allows these institutions to put client interests first. In addition, previous data allows business leaders in the market, such as Microsoft Corp., Oracle Corp., and others, to make informed decisions. Data analysis allows banks and other financial institutions to react to transforming market conditions, determine risks, make forecasts based on past consumer behaviour, and identify new opportunities for themselves and their customers. Therefore, predictive analytics will continue to play a significant role in the BFSI industry, driving the growth of the market during the forecast period.

Regional Overview

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North America is estimated to contribute 30% to the growth of the market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. For predictive analytics, North America holds the largest market share, mainly because it was an early adoption of advanced technology, and it is directing the intensive generation and consumption of data in the world.

In addition, the massive amounts of data produced in this region drive the market for advanced-analytics to consume the data and discover intelligent relationships and insights. Furthermore, the region is tech-mature, and the industrial sector across the region is completely developed, which is leading to the easy adoption of advanced software solutions to drive efficiency and productivity.

It plays a significant role in North America's business ecosystem, driven by the region's tech maturity and data-intensive economy. Advanced technologies, such as AI, ML, virtualization, and cloud computing, fuel numerous use cases in sectors like healthcare and finance. Remote health monitoring through wearable devices, such as Fitbit, and smart payment technologies are prime examples. Digital infrastructures and technology deployments facilitate data creation, which is then interpreted through predictive models using data analytics platforms and professional services. Predictive analytics software and services enable data interpretation for overall business performance, consumer perception analysis, and e-commerce sector growth. IoT, high-speed internet services, data scientists, and data processing technology are integral components. Venture finance businesses and the digitization of transactions further expand the market. Algorithm-driven predictive analytic solutions ensure data integrity and enhance business plans through deep-learning algorithms and artificial intelligence.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

 Altair Engineering Inc. - The company offers predictive-analytics namely Altair Knowledge Studio which brings transparency and automation to machine learning.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• 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.
• Nippon Telegraph and Telephone Corp.
• Oracle Corp.
• QlikTech international AB
• Salesforce Inc.
• SAP SE
• SAS Institute Inc.
• Teradata Corp.
• TIBCO Software Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

Predictive analytics is a technology that allows businesses to use data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. The market is experiencing significant growth due to the increasing volume, variety, and velocity of data being generated. Tech companies and organizations in various industries, including healthcare, finance, and marketing, are investing in predictive analytics to gain insights and make informed decisions. Predictive analytics can help businesses anticipate customer needs, optimize operations, and mitigate risks. The use of predictive analytics in marketing, for instance, can lead to personalized campaigns and improved customer engagement. The market's growth can be attributed to the increasing adoption of cloud-based solutions, the growing demand for real-time analytics, and the need for businesses to gain a competitive edge through data-driven insights.

The market is experiencing rapid growth driven by the increasing demand for data-driven insights across various industries. It leverages advanced techniques such as algorithm development and statistical modeling to forecast future trends and behaviors. With the proliferation of linked gadgets, data science and the Internet of Things (IoT), vast amounts of data are generated from diverse sources including transactional databases, device log files, images, videos, and multimedia content. In response, organizations are adopting predictive analytics solutions for various applications such as financial analytics, credit risk management, capital planning, insurance risk management, and digital payment systems, including cryptocurrencies. These analytics projects enable businesses to make informed decisions, optimize processes, and gain competitive advantages in the dynamic global marketplace.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook 
  • BFSI
  • Retail and e-commerce
  • Telecom and IT
  • Transportation and logistics
  • Others

• Deployment Outlook 
  • Cloud-based
  • On-premise

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Brazil
    • Chile
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	182
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 22.24%
Market growth 2023-2027	USD 2.16 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	20.44
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 30%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	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., Nippon Telegraph and Telephone Corp., Oracle Corp., QlikTech International AB, Salesforce Inc., SAP SE, SAS Institute Inc., Teradata Corp., and TIBCO Software Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Market growth analysis across North America, Europe, APAC, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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