The global predictive analytics market size was valued at $10.2 billion in 2023, and is projected to reach $63.3 billionby 2032, growing at a CAGR of 22.4% from 2024 to 2032.
Predictive analytics is the use of statistics and modeling techniques to predict potential results. Current and historical data patterns are reviewed and displayed to assess the possibility of such patterns being repeated. Businesses use predictive analytics to fine-tune their operations and decide whether new products are worth the investment.
Investors use predictive analytics to decide where to put their money. Internet retailers use predictive analytics to fine-tune purchase recommendations for their users and increase sales.Industries from insurance to marketing use predictive techniques to make important decisions. Predictive models help make weather forecasts, develop video games, translate voice-to-text messages, make customer service decisions, and develop investment portfolios.
Key market dynamics
The global predictive analytics market growth is attributed to several factors such as the widespread adoption of big data and other related technologies, growing use of predictive modeling tools, and increase in adoption of digital solutions. However, modifications to regional data laws necessitating a time-consuming redesign of prediction models act as restraints for the predictive analytics industry. In addition, rise in the use of linked and integrated technology and increase in adoption of the cloud are expected to provide ample opportunities for the market development during the forecast period.
The amount of data created has greatly increased as a result of the internet's widespread use and the accessibility of several methods to obtain it, thus expected to support the development and expansion of high-speed internet services. Global data creation is being accelerated by factors including globalization and economic expansion.
Technologies used in Global Predictive Analytics Market
Predictive analysis leverages a suite of advanced technologies to forecast future outcomes based on historical data. Utilizing these machine learning algorithms, businesses can make more accurate predictions and automate decision-making processes. Techniques such as regression analysis, decision trees, and neural networks are often utilized in predictive analysis. In addition, data mining processes extract valuable information from large datasets, while statistical modeling techniques help in making precise predictions. According to the data given by Informs in February 2023, Inferential statistical analysis such as linear regression (75%) , data mining (67%) , and spatial analysis and geographic information systems (GIS) (67%) are the main data analysis skills used in most of the small and large sized organizations. Machine learning (58%) and social/organizational network analysis (29%) were used less frequently.
FIGURE 1: TECHNOLOGIES USED IN PREDICTIVE ANALYTICS (%)
Market Segmentation
The predictive analytics market size is segmented into component, enterprise size, deployment type, industry vertical, and region. On the basis of component, the market is divided into solutions and services. As per enterprise size, the market is segregated into large enterprises and small and medium-sized enterprises. On the basis of deployment type, the market is bifurcated into on-premise and cloud. On the basis of industry vertical, the market is bifurcated into BFSI, retail, IT & telecom, healthcare, government, manufacturing, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa.
Regional/Country Market Outlook
The predictive analytics market sharein the U.S. is robust and rapidly expanding, driven by several key factors. Technological leadership and innovation capacity are pivotal in the country, with numerous established and emerging companies specializing in advanced analytics solutions. Also, the UK’s financial sector is a major adopter of predictive analytics, leveraging it for risk management, fraud detection, customer insights, and regulatory compliance. The financial services sector in China is increasingly adopting predictive analytics for risk management, fraud detection, customer segmentation, and credit scoring. Financial institutions use predictive models to analyze transaction patterns, assess credit risks, and personalize financial products.
In April 2024, Canadian Prime Minster included a $1.77 billion package of measures that invest in the country's artificial intelligence (AI) sector.
In April 2024, the Japanese government awarded five companies $470 millionto fund the development of an AI supercomputer to reduce the country’s reliance on the U.S. technologies.
Industry Trends:
In March 2023, Statistics Canada (StatCan) launched the Centre for Municipal and Local Data portal, designed to provide Canadians with more data and insights about the country’s economy, society, and environment at a local level.
In June 2022, the U.S. Federal Government is mobilized to enable data-driven decision making in a fast-paced, changing, and competitive world and national economy.
Competitive Landscape
The major players operating in the predictive analytics market share include IBM Corporation, SAP ERP, Microsoft Corporation, Siemens AG, General Electric Company, Schneider Electric SE, NTT Data Corporation, Oracle Corporation, SAS Institute, Inc., and Tableau Software, Inc.
Recent Key Strategies and Developments
In April 2024, Informatica partnered with Google Cloud and launched its Master Data Management (MDM) Extension for Google Cloud BigQuery, making it easier and faster to get trusted MDM data that can be leveraged for analytics and generative AI applications across industries such as retail, financial services, and healthcare.
In February 2023, AVEVA launched its latest AVEVA Predictive Analytics software release, purpose-built for predictive monitoring of industrial assets in oil and gas, power, chemicals, mining and minerals, and manufacturing. The software helps industrial operators achieve the highest possible levels of reliability and performance of industrial assets while improving sustainability and increasing workforce productivity.
In December 2023, Duck Creek Technologies launched Duck Creek ClarityTM, an innovative, cloud-native technology solution, and the successor to Duck Creek Insights, designed to empower insurers with advanced data management, reporting, and analytics capabilities.
Key Sources Referred
Discover Data Science
International Institute for Management Development
Tableau
Harvard Business School
Emeritus
Key Benefits for Stakeholders
This report provides a quantitative analysis of the predictive analytics market forecast segments, current trends, estimations, and dynamics of the predictive analytics market analysis from 2023 to 2032 to identify the prevailing predictive analytics market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the predictive analytics market forecast segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global predictive analytics Market Statistics.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global predictive analytics market trends, key players, market segments, application areas, and market growth strategies.
