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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.
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.
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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.
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,
Therefore, the increasing demand for data-driven decision-making by organizations is estimated to drive the market growth.
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.
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.
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.
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.
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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.
North America Predictive Analytics Market Size, 2022 (USD Billion)
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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,
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 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.
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.
CAGR of 24.4% from 2023 to 2030
Value (USD Billion)
By Deployment, Enterprise Type, Application, End-user, and Region
By Enterprise Type
According to Fortune Business Insights, the market is projected to reach USD 67.66 billion by 2030.
In 2022, the market was valued at USD 12.10 billion.
The market is projected to grow at a CAGR of 24.4% during the forecast period.
Based on application, the predictive maintenance segment is expected to lead the market.
The rising need for data-driven decision making is a key factor propelling the market growth.
SAP SE, IBM Corporation, TIBCO Software Inc., Amazon Web Services, Inc., Alteryx, Cloudera, Inc., SAS Institute Inc., FICO, Accenture, and AVEVA Group plc are the top players in the market.
North America is expected to hold the highest market share.
By end-user, the healthcare segment is expected to grow with a remarkable CAGR during the forecast period.
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