Market Trends of Predictive and Prescriptive Analytics Industry
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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