Predictive Analytics Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud, and On-premise), By Enterprise Type (Large Enterprises and Small and Medium Enterprises (SMEs)), By Application (Demand Forecasting, Financial Risk Forecasting, Pricing Personalization, Predictive Maintenance, and Others), By End-user (BFSI, Automotive, Telecom/Media, Healthcare, Life Sciences, Retail, Energy & Utility, Government, and Others), and Regional Forecast, 2023 – 2030

The global predictive analytics market size was valued at USD 12.10 billion in 2022. The market is projected to grow from USD 14.71 billion in 2023 to USD 67.66 billion by 2030, exhibiting a CAGR of 24.4% during the forecast period.

Predictive analytics software is a powerful data analysis tool that utilizes historical and present data to forecast future trends and outcomes. This software employs sophisticated statistical and machine learning algorithms to uncover patterns and relationships within the data, enabling it to make accurate decisions about future events. It has applications in diverse industries, including finance, marketing, healthcare, and manufacturing. It assists businesses in making informed decisions, optimizing processes, and gaining a competitive edge by leveraging the insights derived from their data.

COVID-19 IMPACT

Increased Adoption of Data-driven Strategies Propelled the Market Expansion amid the Pandemic

The COVID-19 pandemic had a notable impact on the market. While the crisis posed challenges for various industries, it also created opportunities and demands for these solutions. The pandemic highlighted the critical role of predictive analytics in enabling businesses and governments to respond effectively to unprecedented challenges. It accelerated the adoption of data-driven strategies and reinforced the importance of leveraging predictive insights for strategic planning and decision-making in the phase of disruptions.

LATEST TRENDS

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Integration of Predictive Analytics with Traditional Business Intelligence (BI) Platforms to Aid Market Growth

The incorporation of predictive analytics with traditional business intelligence platforms is driven by the need for a more holistic and actionable approach to data analysis. By combining historical data insights from BI with predictive models, organizations gain a comprehensive view of their data, enabling them to make more informed decisions based on future forecasts. This integration empowers decision-makers with real-time predictions, allowing for proactive responses to changing conditions. Data analysts and business users can easily access and interpret the combined insights with user-friendly interfaces and enhanced data visualization. Continuous learning ensures that predictive models evolve and improve, providing more accurate and valuable information. Ultimately, the trend leads to improved business performance, increased ROI, and a competitive edge in a data-driven world.

Therefore, incorporating this solution with traditional BI tools is set to fuel the predictive analytics market growth over the forecast period.

DRIVING FACTORS

Rising Need for Data-driven Decision Making to Drive the Market Growth

Companies constantly seek ways to gain a competitive edge and make informed decisions that lead to success, leading to the increasing need for data-driven decision-making. Businesses realize that data is a valuable asset that can provide valuable insights and help them better understand their operations, customers, and market dynamics. It plays a crucial role in this data-driven decision-making process. By leveraging historical data and applying advanced algorithms, the solutions enable organizations to forecast future trends and outcomes with high accuracy. This capability empowers businesses to stay ahead of the curve by anticipating market shifts, customer preferences, and potential challenges. For instance,

• According to Keboola, a software company, 90% of business professionals and enterprise analytics emphasize the crucial role of data and analytics in driving their organizations’ digital transformation efforts.

Therefore, the increasing demand for data-driven decision-making by organizations is estimated to drive the market growth.

RESTRAINING FACTORS

High Implementing Costs and Lack of Data Accuracy May Hamper Market Expansion 

Implementing this solution can be costly, especially for smaller businesses with limited budgets. The complexity of integrating predictive models into existing infrastructures and workflows can also be a barrier, requiring skilled data scientists and analysts to set up and maintain these systems effectively. Moreover, it heavily relies on high-quality, clean, and relevant data. Organizations often struggle to maintain data accuracy, consistency, and accessibility across different systems and departments. Poor data quality can lead to inaccurate predictions and unreliable insights, limiting the effectiveness of predictive analytics solutions. Thus, the implementation costs and poor data quality may restrain the predictive analytics market share expansion.

SEGMENTATION

By Deployment Analysis

Advantages Offered by Cloud-based Solutions to Drive the Segmental Growth

By deployment, the market is fragmented into cloud and on-premise. The cloud segment dominated the market and is expected to grow at the highest CAGR throughout the projected period. This is on account of its several advantages, including scalability, flexibility, accessibility, cost efficiency, and efficient way for organizations to harness the power of data and gain valuable insights for informed decision-making and improved business outcomes.

By Enterprise Type Analysis

Large Enterprises to Dominate Supported by Increased Product Demand for Making Informed Decisions

Based on enterprise type, the market is bifurcated into large enterprises and small & medium enterprises. The large enterprises segment is expected to dominate the market as this software empowers them to unlock their data's full potential, optimize various business processes, make informed decisions, and gain a competitive advantage in a data-driven business environment.

The SMEs segment is projected to experience an average growth rate in software adoption. This growth can be attributed to increasing SMEs in developing regions such as Asia Pacific, the Middle East & Africa, and South America. These regions are exhibiting an extensive adoption of Artificial Intelligence (AI) technologies. Furthermore, SMEs recognize the benefits of using this solution to enhance their product offerings to their clients, further fueling segment growth.

By Application Analysis

Growing Need for Predictive Maintenance across Industries to Drive the Segment Growth

By application, the market is segmented into demand forecasting, financial risk forecasting, pricing personalization, predictive maintenance, and others. The predictive maintenance segment holds the highest share in the global market as every industry uses it. It enables them to optimize maintenance practices, reduce costs, enhance equipment reliability, and improve operational efficiency.

The financial risk forecasting segment is projected to grow at the highest CAGR as it has become vital for businesses and financial institutions to proactively identify, assess, and manage risks. It provides critical insights that support strategic decision-making, enhance financial stability, and ensure regulatory compliance.

By End-user Analysis

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Growing Product Usage in BFSI to Fuel the Segment Expansion

Based on end-user, the market is subdivided into BFSI, automotive, telecom/media, healthcare, life sciences, retail, energy & utility, government, and others. The BFSI segment holds the largest share in the global market. The products help in harnessing data for better decision-making, enhancing customer experience, managing risks effectively, ensuring compliance with regulations, and driving operational efficiency.

The healthcare segment is expected to grow at the highest CAGR over the study period. This comes as the solution is deployed in the industry for a wide range of applications due to its ability to leverage data and advanced algorithms to make informed predictions and improve patient care.

REGIONAL INSIGHTS

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Based on region, the market has been studied across five regions, North America, South America, Europe, the Middle East & Africa, and Asia Pacific. These regions are further categorized into countries.

North America holds the largest market share, primarily driven by the rising demand for automated processes and the widespread adoption of advanced technologies across various industries in Canada and the U.S. The region has the presence of key players and depicts the rising automation of various processes to enhance efficiency and productivity by leveraging predictive analytics.

The Asia Pacific market is expected to grow at the highest CAGR over the forecast period. This is owing to the increased adoption and utilization of advanced predictive analytics solutions across various countries and industries. The growing importance of data-driven decision-making among businesses is encouraging them to adopt the solution to extract valuable insights from their data, enabling them to anticipate trends, identify opportunities, and mitigate risks effectively. For instance,

• In February 2023, Afterpay, a ‘Buy Now, Pay Later,’ chose the Cloudera Data Platform (CDP) from Cloudera to power their real-time fraud detection system. The solution enables Afterpay to run advanced machine learning and streaming analytics algorithms to detect and prevent real-time fraudulent activities. This would ensure a secure and trustworthy experience for their customers.

Europe is expected to witness steady growth over the study period. This is attributed to increasing data volumes, advancements in technology, growing awareness about the benefits offered by the solution, and the need for businesses to optimize operations and enhance customer experiences.

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The Middle East & Africa and South America are expected to grow steadily over the forecast period. Major players are expanding their presence in the regions to cater to the growing product demand. Further, local startups and technology companies have also been developing these solutions tailored to the regions’ needs.

KEY INDUSTRY PLAYERS

Key Players Launch New Products to Strengthen Market Position

Prominent market players actively create advanced solutions to cater to customer demands. They also focus on enhancing their existing product portfolio to deliver flexible solutions with unique attributes. Furthermore, these organizations proactively pursue collaborations, acquisitions, and partnerships to bolster their product offerings.

List of Key Companies Profiled:

• SAP SE (Germany)


• IBM Corporation (U.S.)


• TIBCO Software Inc. (U.S.)


• Amazon Web Services, Inc. (U.S.)


• Alteryx (Us.S.)


• Cloudera, Inc. (U.S.)


• SAS Institute Inc. (U.S.)


• FICO (U.S.)


• Accenture (Ireland)


• AVEVA Group plc (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: Accenture acquired Nextira, an AWS Premier Partner specializing in cloud-native innovation and predictive analytics. With this acquisition, Accenture aims to provide clients with actionable insights and predictive outcomes, enabling them to develop new applications, enhance customer and employee experiences, and drive product growth in the future.


• May 2023: Teradata and FICO collaborated to introduce integrated advanced analytics solutions for real-time payments fraud, insurance claims, and supply chain optimization. The companies aimed to streamline solution development for various industries by combining data, analytics, and insights in a unified environment.


• May 2023: SAS planned to invest an additional USD 1 billion in advanced analytics and AI. With the investment, the company aimed to enhance its capabilities in predictive analytics, enabling its clients to gain valuable insights and make informed decisions based on data-driven predictions.


• February 2023: AVEVA, an industrial software provider, introduced its latest AVEVA Predictive Analytics software. The new release is specifically designed for predictive monitoring of assets in various industries such as mining and materials, power, oil and gas, chemicals, and manufacturing. By utilizing this software, industrial operators can enhance asset performance and reliability, leading to increased sustainability and improved workforce productivity.


• November 2022: IBM unveiled IBM Business Analytics Enterprise, a comprehensive suite of software that helps enterprises break down analytics and data silos. The suite includes business intelligence reporting, budgeting, forecasting, planning, and dashboard capabilities, providing consumers with a comprehensive view of data sources across their business. It streamlines access to analytics and planning tools, enabling data-driven decisions and improved navigation during unpredictable disruptions.

REPORT COVERAGE

An Infographic Representation of Predictive Analytics Market

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The report provides detailed market analysis and focuses on key aspects such as leading companies, product/service types, and leading product applications. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market growth in recent years.

Report Scope & Segmentation