The predictive analytics is a branch of advance analytics, which is used to make future prediction by adopting various techniques such as Artificial Intelligence, machine learning, modelling, statistics, and data mining.
Increasing demand for market insights from unstructured data such as documents, call centre transcripts, email messages, social media content, and social networking sites is major factor driving growth of predictive analytics market. In organization only 20% of data is structured and 80% of data is unstructured. Predictive analytics software extract insights from unstructured data with the help of language processing technology combined with a variety of analytical tools. This insights enables the companies to understand customer mind-sets, purchase preferences, and sentiments that cannot be anticipated from structured data alone. Hence, growth of unstructured data is driving growth of the predictive analytics market.
Predictive Analytics Market: Taxonomy
The cloud deployment model segment is projected to witness highest CAGR over the forecast period, owing to various advantages such as low maintenance cost, remote location access, and flexibility, which have accelerated the demand for cloud based predictive analytics solutions.
By Organization Size
The small and medium size enterprises segment is projected to grow with the highest CAGR over the forecast period. Increasing focus on improving customer experience is one of the major factor driving the growth of the segment in the predictive analytics market. Moreover, due to low maintenance and investment cost have raised the demand for cloud based predictive analytics solutions in small and medium enterprises.
The Banking, Financial Services, and Insurance (BFSI) vertical held the largest share in the market in 2017 and is projected to retain its dominance throughout the forecast period. The BFSI industry vertical use predictive analytics for achieving competitive advantage by leveraging analytics to improve decisions, enhance marketing, and influence consumer behaviour by effectively and efficiently implementing the predictive analytics on various processes.
Predictive Analytics Market: Regional Insights
On the basis of geography, the global predictive analytics market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. North America held the dominant position in the market and is projected to retain its dominance throughout the forecast period. The U.S and Canada are the major economies driving growth of the market in this region. Increasing dominance of digitalization and high adoption of analytics application by various organizations have accelerated growth of the market in this region.
Predictive Analytics Market: Competitive Background
Leading players operating in the predictive analytics market include Oracle Corporation, SAP SE, Microsoft Corporation, SAS Institute, Inc., Fair Isaac Corporation (FICO), NTT Data Corporation, Tableau Software, Inc., Tibco Software, Inc., and Rapidminer, Inc.