The global predictive analytics market which was valued at approximately $3.49 billion in 2016 is expected to reach approximately $10.95 billion by 2022, growing at a CAGR of around 21% between 2016 and 2022, said a report. According to Zion Market Research, predictive analytics is the advanced form of analysis which is used to predict future events. It takes new and historical data to identify patterns and forecast future activity, behavior, and trends. It uses many techniques like data mining, statistical algorithms, machine learning and artificial intelligence to identify the likelihood of future outcomes based on historical data. In business, predictive analytics models explore patterns found in transactional data to identify risk and opportunity for future. These models capture relationships among many factors to allow assessment of risk or potential associated with a particular set of conditions, guiding decision-making for candidate transactions.
Zion Market Research said,pPredictive analytics helps in the optimization of the marketing campaigns and understanding the customer behavior for boosting the end-user response. Predictive analytics have been adopted by many industries such as BFSI, IT, telecommunication, retail, healthcare, food & beverage and government to survive in an era of cut throat competition.Across different end-use sectors, banking and financial services, government and insurance emerged as leading markets.
The banking sector is data intensive with massive and unused credit and ATM processing data. Financial institutions and banks are increasingly adopting inventive models of proactive risk management such as predictive analytics. Different application areas for predictive analytics include sales and marketing, customer & channel, finance & risk and others. Finance & risk emerged as largest application segment with over 40% market share of total revenue generated in 2016. This is due to benefits of predictive analytics model for analyzing fraud vulnerabilities and security breach.
According to Zion Market Research, constant technology changes, high competition, and artificial intelligence are the key drivers of predictive analytics market. The other drivers have increased usage of Big Data and cloud by organizations and growing need for product differentiation driving introduction and adoption of new technologies. As a result, predictive analytics market is anticipated to emerge as the very profitable market in near future.
Zion Market Research said, north America dominated the global predictive analytics market in 2015. North America represents the largest regional market for predictive analytics in Big Data, as supporting Hadoop architectures are used by some major e-commerce giants like Wal-Mart and eBay among others to store and manage the daily generated unstructured data. North America was followed by Europe and APAC. The adoption level of predictive analytics is anticipated to increase in developing regions such as the asia pacific, due to high demand in BFSI, IT, telecommunication, retail, healthcare, food & beverage and government sector. However, Asia Pacific is expected to experience comparatively moderate growth throughout the forecast period owing to low awareness and lack of skilled workforce which can operate such advanced tools.
The predictive analytics market is segmented on the basis of deployment into cloud-based & on-premises installation. The cloud-based segment accounted for the largest market share in 2016. This segment is expected to exhibit significant growth in the years to come due to increasing IT priorities among different enterprises over the past couples of years. Cloud-based predictive analytic solutions have a much faster time to value than its alternatives which represent a critical advantage for the approach. Based on software solutions, predictive analytics market has been classified into financial intelligence, customer intelligence, financial intelligence, decision support systems, data mining and management, fraud and security intelligence and others.
The predictive analytics market is also segmented on the basis of end-use which includes banking, IT, financial services & insurance, government, retail, public administration & utilities, telecom, healthcare, manufacturing, and others including energy, media & entertainment, etc. Among all segment, banking, financial services & insurance accounted for major share and predicted to continue this trend over the forecast period. Financial institutions and banks are increasingly adopting inventive models of proactive risk management such as predictive analytics.
Major players in predictive analytics market offering services and solutions globally are Tableau Software Inc., Information Builders, Fair Isaac Corporation (FICO), and TIBCO Software Inc SAS Institute, Teradata Corporation, Acxiom Corporation, SAP SE, Microsoft Corporation, IBM Corporation and others.