Making predictions about future occurrences based on data is the focus of the subfield of predictive analytics, which belongs to the larger area of data analytics. Because of breakthroughs in machine learning algorithms, data gathering and storage technology, and other factors, this relatively new subject has experienced rapid growth in recent years.
According to a recent study by MarketsandMarkets, the predictive analytics market is anticipated to increase from $2.71 billion in 2016 to $10.95 billion by 2021, at a compound annual growth rate (CAGR) of 32.2% during the forecast period.
Numerous causes, such as the growing amount of data being produced, the demand for better decision-making, and the development of artificial intelligence (AI) and machine learning technologies, are driving this rapid expansion.
From healthcare and financial services to retail and e-commerce, a variety of industries are using predictive analytics. It is used to increase customer satisfaction, target marketing initiatives, stop fraud, and much more.
Predictive analytics is becoming more and more crucial for firms that want to stay ahead of the competition given the enormous amount of data created every day.
2. Market Difficulties with Predictive Analytics
One of the most well-liked and rapidly developing subfields of data science is predictive analytics. To make it even more effective, though, there are still a few issues that must be resolved. Two of the most significant market hurdles for predictive analytics will be covered in this blog post.
The absence of qualified employees is the first problem. Experts in predictive analytics are in high demand, yet there are currently very few of them available. This is because there aren’t enough people with the required knowledge and experience in predictive analytics, which is a relatively new profession. As a result, businesses are having trouble filling these roles with suitable candidates.
The high cost of predictive analytics software is the second problem. Predictive analytics software costs can be prohibitive for many firms, especially small and medium-sized ones. Additionally, it can be prohibitively expensive to train staff members to use these tools.
Predictive analytics is still a very promising topic with a lot of potential, despite these difficulties. Companies can use predictive analytics to enhance decision-making, automate operations, and gain a competitive edge if they have the necessary knowledge and resources.
3. Key Trends in the Predictive Analytics Market
In the upcoming years, it is anticipated that the predictive analytics industry will expand dramatically. This is a result of firms in numerous industry sectors adopting predictive analytics more frequently. Through the analysis of past data and trends, predictive analytics aids businesses in making wiser judgements.
The following is a discussion of some of the major themes that are anticipated to propel the predictive analytics market’s expansion:
Big data is being more widely used, which is one reason why the market for predictive analytics is expanding. Technologies for big data are being used by businesses to store and analyse massive amounts of data. These insights can then be used by corporations to help them make better decisions.
2. Growing need for cloud-based solutions Cloud-based predictive analytics solutions are becoming increasingly popular.Cloud-based solutions are adaptable and scalable, and they are simple for businesses to access from any location.
3. Increasing use of artificial intelligence: Predictive analytics is using artificial intelligence more and more. AI-based technologies assist businesses in automating data processing and producing precise predictions.
4. Market Covid19 Predictive Analytics Impact
Businesses of all sizes are suffering the repercussions of the COVID-19 pandemic’s tremendous influence on the global economy. The pandemic is not an anomaly, and it is predicted that the market for predictive analytics will have slower growth in 2020.
Predictive analytics were valued at $3.54 billion globally in 2019, and from 2020 to 2027, they are expected to expand at a CAGR of 10.2%. Due to the pandemic, the market is anticipated to grow less rapidly in 2020, with a CAGR of 9.5%.
All industries have been impacted by the epidemic, and the market for predictive analytics is no exception. A number of variables, including the decline in demand for predictive analytics products and services as well as the difficulties businesses face in terms of budget and resources, might be blamed for the decline in growth.
Despite these obstacles, it is anticipated that the predictive analytics market will recover in 2021 and resume its pre-pandemic growth rate. This is because organisations of all sizes are utilising predictive analytics products and services more frequently as they seek to enhance their decision-making in the post-pandemic era.
The moment is now if you are a business owner or decision maker who wants to implement predictive analytics. Predictive analytics can help you stay ahead of the competition as the market is predicted to expand quickly in the upcoming years.
5. Key Industry Developments in the Predictive Analytics Market
The following are the top 5 business advancements with predictive analytics:
1) The growing use of predictive analytics by small and medium businesses
2) The rise in acceptance of cloud-based predictive analytics tools
3. The expanding market for mobile predictive analytics products
4) The expanding application of predictive analytics to social media marketing
5) The expanding need for predictive analytics in the healthcare industry
Conclusion for the Predictive Analytics Market
At a CAGR of 32.2% over the projected period, the global predictive analytics market is anticipated to increase from USD 2.71 billion in 2016 to USD 10.95 billion by 2021. The analysis uses 2015 as its base year, and the prediction runs from 2016 through 2021.
Due to the increased use of predictive analytics across numerous business verticals, including BFSI, healthcare, retail and e-commerce, manufacturing, and others, the predictive analytics market is expanding quickly. Predictive analytics is widely used in the healthcare sector since it lowers treatment costs and enhances patient outcomes.
A thorough competitive analysis of the major market participants is provided in the study, together with information on their business profiles, recent developments, and important growth plans.
The report’s purview:
The following segments are used to segment the global market for predictive analytics:
Market for Predictive Analytics, by Component
The market for predictive analytics, by application
Marketing and Sales
Manage risk and fraud.
Market for Predictive Analytics by Deployment Model
Market for Predictive Analytics by Industry Vertical
Retail and online shopping
IT and telecom
Others (Media and Entertainment, Energy and Utilities, and Travel and Hospitality) (Media and Entertainment, Energy and Utilities, and Travel and Hospitality)
Market for Predictive Analytics, by Region
Europe, Asia, and Africa (MEA)