The predictive analytics market is witnessing a turning point with boom in ML (Machine Learning) & Internet of Things (IoT) along with falling costs associated with automation hardware. Additionally, Industry 4.0’s proliferation has augmented the adoption and deployment of predictive analytics solutions in the manufacturing sector. Increasing demand and use of various analytics models such as predictive, descriptive and decision models remain instrumental in driving the growth of the predictive analytics market.
Use of predictive analytics in the banking sector is also witnessing an upswing. Growing regulatory compliance process has triggered the need for advanced analytics in the finance domain, which is expected to fuel the adoption of predictive analytics in BFSI. Growing demand for insurance risk management, credit risk management and capital planning has resulted in growing deployment of advanced analytics solutions across the BFSI sector, in turn bolstering predictive analytics market growth.
Predictive Analytics in the Cloud – Cloud Deployment to Largely Contribute to the Market Growth
Reduced operational costs, significantly higher scalability and convenience in usage has driven the use of cloud deployment for predictive analytics solutions. Increasing awareness of benefits related to cloud-based deployment method has imprinted a positive influence on the predictive analytics market growth. Providers of predictive analytics are focusing on leveraging cloud to provide predictive analytics solutions to their clients. This transformation is also associated with migration from office model to private or public cloud across big organizations. Real time deployment and higher flexibility offered by cloud has enabled companies execute predictive analytics solutions in speed and convenience. The deployment by cloud has also resulted in removal of administrative roadblocks, in turn providing a competitive edge to companies. This is likely to give an impetus to the growth of the predictive analytics market in the years to follow.
Demand for Professional and Managed Services Likely to Increase at a Significant Rate
The demand for professional and managed services is expected to witness an unprecedented increase in the coming years. These service types are an integral and crucial step in deploying predictive analytics solutions. Since recent past, customization requirements in the existing and installed analytics solutions from customers are increasing in order to obtain enhanced performance. Custom requirements include improved security measure, enhanced digital CX (Customer Experience) and improved real-time information, to name a few. This has triggered the use of professional and managed services, in turn complementing the growth of the predictive analytics market.
North America Likely to Account for a Significant Share in the Predictive Analytics Market; Asia Pacific to Provide Lucrative Opportunities
Proliferation of predictive analytics across developed economies in North America is expected to increase in the following years. This is mainly due to presence of strong players developing and providing predictive analytics software and services across various end use industries. Also, the region is known for its strength from technology standpoint. The region has been a hub for new technologies, which is again complemented by a strong economy that developed countries reflect. Additionally, increasing funding by venture capitalists to new market entrants has translated into an increase in revenue output, again supplementing predictive analytics market growth in North America.
On the other hand, the growth rate of the predictive analytics market is poised to increase at a higher pace across regional markets in Asia Pacific. The developing soil has to offer various potential opportunities for providers of predictive analytics. Growing demand and deployment of predictive analytics solutions and services in the manufacturing sector in the region has embossed a profound influence on the market growth. Key companies and providers of predictive analytics can focus on tapping the Asia Pacific region for portfolio expansion, investment and position in the market.
Predictive Analytics Market: Competitive Landscape
Major players in the predictive analytics market are opting for various growth strategies such as collaborations, mergers and acquisitions and new product/service launches. For instance, in 2021, Tesco PLC expanded its collaboration with Teradata by integrating Vantage in its data platform. Using Vantage, Tesco can eliminate silos. Also, it can take all data in real time, regardless its deployment method, be it cloud or on-premise or a mix, which will provide comprehensive information of its business. In August 2021, S-FRAME Software was acquired by Altair to expand its business in the civil industry.
Likewise, same year, Information Builders Inc. was acquired by TIBCO Software. With this acquisition, it will be possible to integrate Information Builders’s predictive analytics and data management capabilities into TIBCO’s connected intelligence platform. In 2020, HPE and SAP entered in a partnership to deploy SAP HANA enterprise cloud using HPE’s GreenLake Cloud Services. This resulted in a customer edition of SAP HANA to address customer requirements.
Few of the key players in the predictive analytics market include SAP SE, SAS Institute Inc., Oracle Corporation, Microsoft Corporation, IBM, Google, Teradata, TIBCO Software and NTT Data Corporation.
Global Predictive Analytics Market is Segmented as Below:
By Deployment Mode
By Organization Size
Key Elements Included In The Study: Global Predictive Analytics Market
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