Predictive Analytics Market Size 2024-2028 

The predictive analytics market size is projected to increase by USD 38.65 billion at a CAGR of 28.97% between between 2023 and 2028.  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 to make future predictions and assessments based on the analysis of historical data.

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

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Predictive Analytics Market Segmentation

The predictive analytics market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• 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

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 1.73 billion in 2018 and will continue to grow through 2022.  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. and Oracle Corp., 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 and big data will continue to play a significant role in the BFSI industry, driving the growth of the global predictive analytics market during the forecast period.

Regional Analysis

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North America is estimated to contribute 41% to predictive analytics market growth during the forecast year.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout 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 software, 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 infrastructure 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. Hence, such factors are driving the predictive analytics market in North America during the forecast period.

Predictive Analytics Market Dynamics

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 analytics, 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 predictive analytics 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 predictive analytics 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 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. Hence, such factors are driving the market during the forecast period.

Major Market Restraint

Accessibility issues for quality and standardized data are a significant challenge hindering predictive analytics 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 predictive analytics market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the predictive analytics market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

Market Customer Landscape

Key Predictive Analytics Market Companies & Insights

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.

Market analysis and report of 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, decentralized 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 predictive analytics 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 platforms, and the Internet of Things (IoT), vast amounts of data are generated from diverse sources, including transactional databases, device log files, images, videos, and 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.

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

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market  and its contribution in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market analysis and report of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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