“Global Predictive Analytics Market to reach a market value of 54.6 Billion by 2031 growing at a CAGR of 21.7%”
The Global Predictive Analytics Market size is expected to reach $54.6 billion by 2031, rising at a market growth of 21.7% CAGR during the forecast period.
The Asia pacific region experienced robust economic growth, increasing investments in technology and data analytics. Businesses sought these analytics to leverage data for better decision-making and competitive advantage. Consequently, the Asia Pacific region would acquire nearly 30% of the total market share by 2031.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, in August, 2024, Alteryx partnered with Udacity, an American educational company, to launch a comprehensive data preparation course using Alteryx Designer. This partnership aimed to expand AI and data literacy, offering hands-on training to equip learners with essential skills for these analytics, supporting the growing demand for data-savvy professionals in modern organizations. Moreover, in June, 2024, IBM Corporation partnered with Telefónica Tech, a Spanish telecommunications company, to enhance AI, analytics, and data governance solutions in Spain. This partnership would develop an open, hybrid, multi-cloud platform, SHARK.X, featuring IBM's watsonx AI and Data platform.
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation are the forerunners in the Predictive Analytics Market. In June, 2023, Microsoft Corporation signed a partnership with Moody’s, a financial services company. The partnership aimed to develop advanced data, analytics, and risk solutions using Microsoft Azure OpenAI Service. Companies such as Oracle Corporation, IBM Corporation, SAP SE are some of the key innovators in Predictive Analytics Market.
The modern digital landscape generates unprecedented data from many sources, including social media, IoT devices, transactional systems, mobile applications, and more. The surge in data volume and variety enables the application of advanced analytics techniques, such as machine learning and AI algorithms. In conclusion, exponential increase in data volume and variety is driving the market's growth.
Organizations face intense competition across various industries. Businesses are turning to data-driven decision-making to identify trends, optimize strategies, and make informed choices to gain a competitive edge. Furthermore, organizations are increasingly pressured to demonstrate tangible improvements in performance and return on investment (ROI). Thus, the rising demand for data-driven decision-making drives the market's growth.
The initial costs associated with implementing these analytics solutions can be substantial. This includes expenses related to purchasing software licenses, hardware infrastructure, and integrating the system with existing technologies. Maintaining these analytics systems involves ongoing costs for software updates, bug fixes, and technical support. Therefore, high implementation and maintenance costs are hampering the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations & Agreements.
Based on deployment mode, the market is bifurcated into cloud and on-premise. In 2023, the on-premise segment attained 43% revenue share in the market. Organizations in highly regulated industries such as healthcare, finance, and government often prefer on-premise solutions to ensure complete control over their data.
Based on component, the market is divided into solution and services. In 2023, the services segment recorded 33% revenue share in the market. Many organizations lacked the in-house expertise to implement and manage these analytics solutions. Services from specialized providers filled this gap, offering expert guidance and support.
On the basis of organization size, the market is segmented into large enterprise and small & medium-sized enterprise. The small & medium-sized enterprise segment witnessed 37% revenue share in the market in 2023. The cost of these analytics tools and technologies decreased over time, making them more affordable and accessible to SMEs.
By vertical, the market is divided into BFSI, government, business function, healthcare, manufacturing, retail, telecom & IT, transportation & logistics, energy & utilities, and others. In 2023, the healthcare segment acquired 14% revenue share in the predictive analytics market. These analytics helped healthcare providers forecast patient outcomes by analyzing historical data, genetic information, and real-time health metrics.
Free Valuable Insights: Global Predictive Analytics Market size to reach USD 54.6 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 38% revenue share in the market in 2022. North America is a leader in technological innovation, with significant advancements in cloud computing, artificial intelligence (AI), and machine learning.
The Market is highly competitive, with numerous players offering advanced analytics solutions. Key players focus on innovation, leveraging AI and machine learning to enhance predictive capabilities. The competition is driven by demand across industries like finance, healthcare, and retail, with cloud-based solutions gaining prominence
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 11.8 Billion |
| Market size forecast in 2031 | USD 54.6 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 21.7% from 2024 to 2031 |
| Number of Pages | 380 |
| Number of Tables | 653 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Deployment Mode, Component, Organization Size, Vertical, Region |
| Country scope |
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| Companies Included | IBM Corporation, Oracle Corporation, SAP SE, Microsoft Corporation, SAS Institute Inc., NTT Data Corporation, TIBCO Software, Inc. (Vista Equity Partners Management, LLC), Salesforce, Inc., Alteryx, Inc. and Fair Isaac Corporation (FICO) |
By >Deployment Mode
By Component
By Organization Size
By Vertical
By Geography
This Market size is expected to reach $54.6 billion by 2031.
Exponential increase in data volume and variety are driving the Market in coming years, however, High implementation and maintenance costs restraints the growth of the Market.
IBM Corporation, Oracle Corporation, SAP SE, Microsoft Corporation, SAS Institute Inc., NTT Data Corporation, TIBCO Software, Inc. (Vista Equity Partners Management, LLC), Salesforce, Inc., Alteryx, Inc. and Fair Isaac Corporation (FICO)
The expected CAGR of this Market is 21.7% from 2024 to 2031.
The Cloud segment is generating the highest revenue in the Market by Deployment Mode in 2023; thereby, achieving a market value of $30.6 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $19.7 billion by 2031.
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