Predictive & Prescriptive Analytics Market Size
|Base Year For Estimation||2022|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
*Disclaimer: Major Players sorted in no particular order
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Predictive & Prescriptive Analytics Market Analysis
The predictive and prescriptive analytics market will register a CAGR of 24% over the forecast period. Various factors include increased spending on marketing advertising by enterprises and changing customer intelligence landscape to drive market growth.
- Further, using data-driven insights, predictive analytics provides businesses with actionable information. It offers estimations of how likely a given outcome is to occur. Enterprises use these facts to estimate future trends. Predictive analytics is also built on probability as its underlying principle.
- Machine learning (ML), algorithms, business rules, and computational modeling techniques are some methods and equipment used in prescriptive analytics. Input for this technique comes from various data sources, including historical and transactional data, real-time data feeds, and big data. Companies and organizations already using descriptive analytics tools and solutions are more prepared to deploy predictive and prescriptive analytics solutions. They employ these solutions more successfully since they have historical data to forecast from and run algorithms.
- Advanced analytics solutions provide strategies to address these issues using statistical and technical approaches, ultimately assisting in making strategic and fact-based decisions. As a result, analytics are crucial for Business Intelligence (BI) in many different end-user industries.
- Security and data privacy concerns have been brought up. Users are concerned about the confidentiality of the collected data because of the information generated on behavioral aspects.
- The COVID-19 emergence slowed the market growth, but the market is gradually gaining traction due to uplifting lockdowns. It provided several opportunities for businesses to digitalize and expand throughout the region as the adoption of technologies like cloud and AI increased during the lockdowns.
Predictive & Prescriptive Analytics Market Trends
BFSI is Expected to Hold a Major Market Share
- BFSI is one of the major industries in the predictive and prescriptive analytics market. Many BFSI companies are increasingly investing in the market studied. Predictive analytics play a huge role in banking and finances as they help forecast the future growth, development strategies, and internal flaws.
- Machine learning and AI integration can process Big Data, find hidden dependencies, and build solid predictive models in the sector. Being a data-dependent sector, BFSI is also investing in the analytics sector to enhance its digital transformation.
- Legacy banks and financial institutions mainly invest in predictive and prescriptive analytics to compete and stay relevant in the market. They are cashing in on the business capabilities of analytics for increased profitability and to identify potential customers.
- Banks are also using predictive analytics to analyze current and historical data of its customer and then predict unknown scenarios, like future customer behavior and activity. For instance, it offers insights into the possibility of customer propensity toward a personalized credit card offer. Its potential is brought out the most efficiently when integrated with business processes to draw analytic insights, generating projections that can be used automatically by other systems, like a BPM or CRM system.
- BFSI companies are using data analytics to predict mortgage default risk and for customer authentication. Data analytics is also being used for customer loyalty programs.
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North America is Expected to Hold Major Market Share
- Due to its early and extensive adoption of advanced analytics across most industries, the United States dominates the North American market for predictive and prescriptive analytics. The nation's retail market is expanding quickly. According to the NRF (National Retail Federation), 2.7 companies were opening stores for everyone closing. In-store analytics now have greater importance as a result.
- The National Academy of Medicine estimates that the US healthcare sector wastes USD 750 billion on needless services. Predictive analytics can eliminate financial waste and save up to 15% of its budget by estimating the risk that a specific patient will contract a particular disease.
- Royal Philip collaborated with Humana Inc., a managed care organization in the United States, to improve the outcomes for the benefit of a few high-risk Medicare Advantage customers. Using the Philips Lifeline medical alert system, which includes AutoAlert and is supported by Philips CareSage predictive analytics, Humana can identify members who may be at risk. Patients with chronic diseases who are at high risk are identified early and referred for timely care and action.
- A market with strong potential for the establishment of a global big data cloud services market among early adopters is Canada, which leads the world in cloud adoption. Without accounting for secondary operational benefits, the Canadian analytics sector contributes more than USD 1 billion annually to the economy.
- Zebra Technologies and Profitech have a contract in place for Zebra Technologies to purchase Profitect. For clients in the retail and consumer packaged goods (CPG) sectors, Profitech's platform analyzes data along the whole value chain. After acquiring Profitech, Zebra Technologies intended to use the platform to increase its significance in retail operations.
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Predictive & Prescriptive Analytics Industry Overview
The predictive and prescriptive analytics market is moderately competitive and consists of a few players. Few big firms now control most of the market in terms of market share. For a competitive edge, firms are concentrating on product differentiation. Focus on ongoing innovation is one approach to achieving this. Forrester Research recognized Oracle's Autonomous Data Science Cloud Service as a leader in notebook-based predictive analytics and machine learning, earning the highest average current offering score and the highest possible score for its solution roadmap.
- July 2022 - SAP SE announced the acquisition of Askdata, a startup focused on search-driven analytics. With the purchase of Ask data, SAP strengthens its ability to help organizations make better-informed decisions by leveraging AI-driven natural language searches. Users are empowered to search, interact and collaborate on live data to maximize business insights.
Predictive & Prescriptive Analytics Market Leaders
SAS Institute Inc.
*Disclaimer: Major Players sorted in no particular order
Predictive & Prescriptive Analytics Market News
- August 2022 - SAP SE announced it by utilizing new types of databases, machine learning algorithms, real-time data processing capabilities, the development of self-service analytics and data marketplaces, and the company shift from the current state of analytics to the future. We can help customers base decisions on intelligent data-driven insights. As a result, we see the end of analytics as autonomous.
- July 2022 - IBM Corporation announced it had acquired Databand, one of the leading providers of data observability software. It helps businesses ensure that reliable data is placed in the hands of the appropriate individuals at the proper time and further improves IBM's software offering across data, AI, and automation to address the whole spectrum of observability.
Predictive & Prescriptive Analytics Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Importance of Big Data with Large Volumes of Data Generated, both in Structured and Unstructured Form
5.1.2 Increasing Adoption of Business Analytics and Business Intelligence
5.2 Market Restraints
5.2.1 Data Privacy and Security Concerns
6. MARKET SEGMENTATION
6.1 By End-user Industry
6.1.4 IT and Telecom
6.1.5 Industrial (Manufacturing, Automotive, and Energy and Mining)
6.1.6 Government and Defense
6.1.7 Other End-user Industries
6.2 By Geography
6.2.1 North America
6.2.4 Latin America
6.2.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Oracle Corporation
7.1.2 SAP SE
7.1.3 IBM Corporation
7.1.4 Microsoft Corporation
7.1.5 SAS Institute Inc.
7.1.6 River Logic Inc.
7.1.7 Infor Inc.
7.1.8 Teradata Corporation
7.1.9 Altair Engineering Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Predictive & Prescriptive Analytics Market Research FAQs
What is the study period of this market?
The Predictive and Prescriptive Analytics Market is studied from 2018 - 2028.
What is the growth rate of Predictive and Prescriptive Analytics Market?
The Predictive and Prescriptive Analytics Market is growing at a CAGR of 24% over the next 5 years.
Which region has highest growth rate in Predictive and Prescriptive Analytics Market?
Asia Pacific is growing at the highest CAGR over 2018-2028.
Which region has largest share in Predictive and Prescriptive Analytics Market?
North America holds highest share in 2022.
Who are the key players in Predictive and Prescriptive Analytics Market?
Oracle Corporation, SAP SE, Microsoft Corporation, SAS Institute Inc., IBM Corporation are the major companies operating in Predictive and Prescriptive Analytics Market.
Predictive and Prescriptive Analytics Industry Report
Statistics for the 2023 Predictive and Prescriptive Analytics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Predictive and Prescriptive Analytics analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.