Predictive Analytics Market Size, Share, Trends, Growth, and Forecast 2032

Predictive Analytics Market Size

According to a report from Zion Market Research, the global Predictive Analytics Market was valued at USD 16.19 Billion in 2023 and is projected to hit USD 113.8 Billion by 2032, with a compound annual growth rate (CAGR) of 24.19% during the forecast period 2024-2032.

This report explores market strengths, weakness, opportunities, and threats. It also provides valuable insights into the market's growth drivers, challenges, and the future prospects that may emerge in the Predictive Analytics Market industry over the next decade.

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Predictive Analytics Market: Overview

Predictive analytics is the advanced form of analysis which is used to predict future events. It takes new and historical data to identify patterns and forecast future activity, behavior, and trends. It uses many techniques like data mining, statistical algorithms, machine learning and artificial intelligence to identify the likelihood of future outcomes based on historical data. In business, predictive analytics models explore patterns found in transactional data to identify risk and opportunity for future. These models capture relationships among many factors to allow assessment of risk or potential associated with a particular set of conditions, guiding decision-making for candidate transactions.

Predictive analytics helps in the optimization of the marketing campaigns and understanding the customer behavior for boosting the end-user response. Predictive analytics have been adopted by many industries such as BFSI, IT, telecommunication, retail, healthcare, food & beverage and government to survive in an era of cut throat competition.Across different end-use sectors, banking and financial services, government and insurance emerged as leading markets. The banking sector is data intensive with massive and unused credit and ATM processing data. Financial institutions and banks are increasingly adopting inventive models of proactive risk management such as predictive analytics. Different application areas for predictive analytics include sales and marketing, customer & channel, finance & risk and others. Finance & risk emerged as largest application segment with over 40% market share of total revenue generated in 2016. This is due to benefits of predictive analytics model for analyzing fraud vulnerabilities and security breach.

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Furthermore, the various approaches or techniques used for carrying out predictive analytics are regression methods and machine learning methods. Reportedly, regression techniques include linear regression model, multivariate adaptive regression splines, discrete choice model, classification and regression trees (CART), logistic regression model, probit regression model, and time series model.

Predictive Analytics Market: Growth Factors

The growing use of predictive analytics in clinical medicine & medical diagnostics will open a slew of opportunities for the predictive analytics market over the forecast timeframe. In addition to this, the massive need for detecting credit card fraud as well as the requirement for accurate stock market analysis will pave a way for the growth of the predictive analytics industry over the forecasting timespan. Apart from this, the rise in the use of internet along with an increase in the number of persons accessing the web will translate into the generation of huge data volumes, thereby creating lucrative avenues for the market within a span of next few years.

Furthermore, big data has brought a paradigm shift in the functions of the organization that includes generating, managing, analyzing, and leveraging data. This, in turn, is likely to enlarge the scope of the predictive analytics business in the near future. Apparently, predictive analytics find numerous uses in manufacturing, credit scoring, and law enforcement activities as well as risk assessment activities, thereby charting a profitable roadmap for the predictive analytics industry over the estimated timeframe. Technological breakthroughs such as AR, AI, VR, and machine learning are predicted to steer the market size in the years ahead. Acceptance of social media, the internet, and enhanced use of data sets will spur market demand in the years to come.

Predictive Analytics Market: Report Scope

Predictive Analytics Market: Regional Analysis

North America To Lead Overall Market Expansion By 2032

The growth of the predictive analytics industry in the sub-continent over the assessment timeframe is due to the large-scale presence of key industry players in the countries such as the U.S. Furthermore, a rise in the awareness pertaining to benefits incurred due to the use of predictive analytics in various industries will exponentiate the growth of the industry in the region over the upcoming years. With IoT and Big Data becoming the catchphrases of reputed firms in the countries such as Canada and the U.S., the industry is likely to witness noteworthy growth in the region in the near future.

Predictive Analytics Market: Regional Analysis

Key participants profiled in the study include:

• Microsoft Corporation
• Acxiom Corporation
• Tableau Software Inc.
• Information Builders
• SAP SE
• Teradata Corporation
• Fair Isaac Corporation (FICO)
• TIBCO Software Inc
• SAS Institute
• IBM Corporation

This report segments the global predictive analytics market as follows:

Global Predictive Analytics Market: Delivery Mode Segment Analysis

• Cloud-Based Technology
• On-Premises Installation

Global Predictive Analytics Market: Software Solutions Segment Analysis

• Customer Intelligence
• Decision Support Systems
• Data Mining & Management
• Fraud & Security Intelligence
• Financial Intelligence
• Others (including performance management, sustainability intelligence, campaign management, etc.)

Global Predictive Analytics Market: End-user Segment Analysis

• Banking, Financial Services & Insurance (BFSI)
• Government, Public Administration & Utilities
• Telecom and IT
• Transportation & Logistics
• Healthcare
• Others (including Energy, Media, and entertainment, Engineering & construction, etc)

Global Predictive Analytics Market: Application Segment Analysis

• Sales & Marketing
• Customer & channel
• Finance and risk
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa