Global Predictive Analytics Market By Component (Solution and Services), By Deployment Mode (Cloud and On-Premise), By Enterprise Size (Large Enterprises and SME’s), By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The global predictive analytics market is anticipated to be USD 61.9 billion by 2032. It is estimated to record a steady CAGR of 21.2% in the review period 2023 to 2032. It is likely to total USD 11.5 billion in 2023.

Predictive analytics is a branch of progressive analytics that makes predictions about future results by consuming historical data joined with statistical demonstrating, machine knowledge, and data mining methods. The market is increasing as companies become more conscious about the huge amount of data generated and how to utilize predictive analysis solutions to forecast upcoming results.

The real value of this analytics can be understood by learning the main use cases that support those utilized cases for the applicable industries. Predictive models are also useful for businesses to benefit them in managing inventory, forecast sales, and marketing strategies. Human resources utilize predictive analytics to improve several processes, such as skill requirements, and analyze employee data to identify factors that contribute to high rates.

Note: Actual Numbers Might Vary In Final Report

Key Takeaways

• Market Size and Growth: Predictive analytics market set to reach USD 61.9 billion by 2032, with a solid 21.2% CAGR from 2023 to 2032. Started at USD 9.5 billion in 2022.
• Driving Factors: Digitalization (30%), big data utilization (25%), and loT adoption (20%) fuel market demand.
• Challenges and Restraints: High implementation cost (15%), lack of skilled IT personnel (12%), complex regulations, and customization needs (10%) hamper market growth.
• Segments Fueling Growth: Solution segment dominates with 62% market share, driven by consumer insights and fraud prevention. Large enterprises hold 60% market share, leveraging predictive analytics for long-term planning.
• Regional Dominance: North America leads with 46.8% market share due to a focus on big data analytics and early adoption of AI and loT technologies.
• Technology Integration and Trends: loT and AI integration (18%) offer growth opportunities, alongside increasing R&D activities (15%) globally.
• Major Players: Key players like Microsoft, IBM, Oracle, SAS, and SAP collectively hold 40% market share.
• Latest Developments: SAS’s COVID-19 predictive models (9%), SAP’s collaboration with HPE (8%), and TIBCO’s acquisition of Information Builders (7%) are notable recent industry developments.
• Regional Analysis: North America (46.8%), Europe (25%), and Asia-Pacific (22.3% CAGR) are key regions driving market growth.

Driving Factors

Rising Focus on Digitalization to Drive the Predictive Analytics Market Growth

The rising focus on digitalization and the increasing approval of big data are the major factors responsible for propelling the market growth. The rise in consciousness amongst administrations about generated statistics that can be utilized for forecasting upcoming results by using predictive analytics is fueling the market growth. Globalization, combined with the economic growth in several countries, also plays a vital role in higher data generation across the world.

The increasing popularity of the Internet of Thing-based applications, including distant monitoring, can effectively drive market growth. Development of smart organization projects would have been expected to quicken the need for 5G service demand. The usage of developed technologies, such as loT, Cloud, and analytics, has led to innovation and transformation, thus driving market expansion.

Restraining Factors

High Implementation Cost Hamper Market Growth

High implementation cost and a lack of IT-skilled staff is the major factor hindering the growth of the predictive analytics market. Altering regional governments’ information rules leading to the time-consuming restriction of analytical models is hampering the approval.  Depending on the amount and nature of the investigation, modifying predictive models allow for the addition of software and services.

Professional services are required to modify prevailing analytics systems that are personalized to particular data sets. The idea of predictive analytics is still in its beginning; lacked labor supply is another factor hampering the market growth.

By Component Analysis

Solution Segment to Witness Significant Growth

The global predictive analytics market is segmented into solutions and services. The solution segment accounted for the highest market revenue share of 62% in 2022. Attributable to the advantages of predictive analytical solutions such as consumer behavior insights, historical data, and fraud prevention. Due to the requirement for analyzing generating a huge volume of customer data through various sources such as e-commerce sites and touch-points.

The services segment registers the highest CAGR during the historical period. Services are the essential step in deploying this solution and are taken care of by service providers. The requirement for specialized services is anticipated to increase owing to the rising tailored needs of consumers. Consumers come with customization demand in previously installed predictive analytics solutions for augmenting whole performance. The customization demands include enhanced real-time insights for precise alert systems, developed security measures, improved digital experience, and the ability to extract the extreme perspective from the increasing enterprise data.

By Deployment Mode Analysis

The On-Premise Segment Dominates the Market Growth of the Predictive Analytics Market

Based on deployment mode, the global predictive analytics market is classified into cloud and on-premise. The on-premise segment accounted for the maximum market revenue share of 64% in 2022, due to the preference for cloud-based infrastructure to provide enhanced data security, privacy, and storage. Most of the institutions are now installing software and instruments to store data at their premises.

The present technologies are beneficial in small corporations, but when scale-up, they can make data management interesting and laborers if the safe workings with a substantial dataset. This might require significant financial spending for data storage and security. The cloud segment is anticipated to witness the fastest growth rate during the forecast period. Due to its storage, enhanced flexibility, less capital needs, and efficacy. Cloud solution benefits from rising user arrangement and gives access to medical information from anywhere and anytime.

Note: Actual Numbers Might Vary In Final Report

By Enterprise Size Analysis

The Large Enterprises Segment Hold the Highest Market Revenue Share During the Forecast Period

Based on the enterprise size, the global predictive analytics market is categorized into large enterprises and SME’s. Among these, the large enterprise segment dominated the highest market revenue share in 2022. This business is retaining predictive analytics solutions more commonly. Large enterprises are also creating long-term business plans based on forecast results.

Furthermore, large enterprises can discover novel chances to develop their businesses with the usage of predictive analytics, which drives the segment’s growth. Large organizations can also manage risk by seeing possible dangers before they materialize. The SME’s segment is anticipated to grow at a slower CAGR. Small enterprises can propel their sales as well as marketing efforts by using predictive analytics to analyze customer data and spot patterns. Small enterprises can optimize their inventory management methods since they commonly have fewer resources.

By End-User Analysis

The BFSI Segment Dominated the Predictive Analytics Market

Based on the end-user, the global predictive analytics market is divided into government, healthcare, BFSI, IT & Telecom, manufacturing, and others. Among these, the BFSI segment is anticipated to hold the maximum revenue share in 2022. The BFSI segment is predicted to enhance considerably by increasing government support and securing sensitive national security and personal data, and escalating the need for advanced financial analytics solutions.

The regulatory framework has become more complex across the globe. BFSI services financial analytics, insurance risk management, capital planning, and insurance risk management, which further propel the segment’s growth. The healthcare segment registers a CAGR of 7.6% in the predictive analytics market.

Key Market Segments

By Component

• Solution
• Services

By Deployment Mode

• Cloud
• On-Premise

By Enterprise Size

• Large Enterprises
• SME’s

By End-User

• Government
• Healthcare
• BFSI
• IT & Telecom
• Manufacturing
• Other End-Users

Growth Opportunity

Integration of loT and Artificial Intelligence on Predictive Analytics

The proliferation of the internet and the accessibility of several means to access the internet have led to a massive rise in data volumes generated. Globalization and economic growth are also providing significant opportunities for the market. An increase in the demand for collecting data to understand customer behavior offers opportunities for market growth. The addition of loT and Artificial Intelligence in predictive analytics and the increase in demand for predictive analytics by SME’s are projected to offer significant opportunities for market growth.

Latest Trends

Increasing Number of R&D Activities Global Trend in the Market

Increasing the number of R&D activities to support the development of novel techniques and procedures is the major trend in the market. Market revenue can be propelled by the trend for big data in healthcare applications. Achieving traction in this industry is a significant trend in the market. The use of the cloud is extensive in business and serves as a vital channel for digital empowerment.

Regional Analysis

North America Dominates the Global Predictive Analytics Market During the Forecast Period

North America accounted for a significant predictive analytics market revenue share of 46.8%, due to the robust presence of market players across the U.S. The major funding provided to novel players by venture capitalists is likely to positively impact market growth. Increasing innovations in procedures and techniques, including on predictive analytics development, are anticipated to offer major opportunities for market players.

Owing to the high spending on Big Data analytics and early approval of new technologies in Artificial Intelligence and loT in this region, drive the market growth of the North American region. Europe is estimated to hold the second-largest market revenue share during the forecast period. Due to the increased importance and awareness regarding the predictive analytics models offer a significant requirement for solutions across the European region.

Asia-Pacific is anticipated to register a CAGR of 22.3% in 2022. The rapid implementation and usage of developed predictive analytics solutions are responsible for the region’s market growth. Furthermore, the Asia-Pacific market’s greater potential encourages solution providers to raise their presence. Also, due to the increasing attention and spending on developing technologies like machine learning and AI.

Note: Actual Numbers Might Vary In Final Report

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The market is highly competitive and shows the presence of well-established vendors. These companies have implemented many organic and inorganic players. The major players in the market are concentrating on new product launches, growth plans, and technological advancements.

Some of the prominent key players in the predictive analytics market include SAS Institute Inc., Allscripts Healthcare Solutions Inc., Microsoft Corporation, Oracle Corporation, International Business Machines Corporation, SAP SE, and other key players.

Top Key Players in Predictive Analytics Market

• Microsoft Corporation
• International Business Machines Corporation
• Oracle Corporation
• SAS Institute Inc.
• TIBCO Software Inc.
• Alteryx, Inc.
• Allscripts Healthcare Solutions Inc.
• Health Catalyst
• Siemens AG
• General Electric Company
• SAP SE
• Other Key Players

Recent Development

• April 2022-SAS Institute Inc. and North Carolina- base Cleveland Clinic have produced inventive COVID-19 predictive models that benefit hospitals in estimating ventilator accessibility, patient capacity, and bed capacity.
• August 2020- SAP SE collaborates with HPE to offer SAP HANA Initiative Cloud with HPE GreenLake Cloud Services. This collaboration will allow consumers to have their SAP software scenery and information on-premise.
• January 2021-TIBCO Software Inc., an American base business intelligence software company, achieved Information Builders, Inc., for an unidentified amount. With this achievement, TIBCO will focus on support to enhance its customer base and global partner networks.

Report Scope