Global Predictive Analytics Market Size, Share & Trends Analysis Report By Deployment Mode (Cloud, and On-Premise), By Component, By Organization Size, By Vertical, By Regional Outlook and Forecast, 2024 - 2031

Global Predictive Analytics Market Size, Share & Trends Analysis Report By Deployment Mode (Cloud, and On-Premise), By Component, By Organization Size, By Vertical, By Regional Outlook and Forecast, 2024 - 2031

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.

Market Growth Factors

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.

Market Restraining Factors

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.

Deployment Mode Outlook

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.

Component Outlook

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.

Organization Size Outlook

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.

Vertical Outlook

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.

Regional Outlook

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.

Recent Strategies Deployed in the Market

• Aug-2024: Alteryx introduced new features enhancing its AI Platform for Enterprise Analytics. Key updates include Alteryx Auto Insights' improved Playbooks for self-service data exploration and Alteryx Location Intelligence's new orchestration capabilities with Alteryx Analytics Cloud (AAC) Plans, boosting efficiency and simplifying analytics for non-technical users.
• Apr-2024: Fair Isaac Corporation signed a partnership with Atto, an American manufacturing company, to enhance UK lenders' credit risk assessment by integrating Open Banking data into credit scoring. This partnership combined Atto's Open Banking technology with FICO's transaction data analytics, offering predictive models that improve risk management, customer acquisition, and portfolio performance for lenders in the UK.
• Apr-2024: Fair Isaac Corporation teamed up with with Cognizant, an American IT company, to launch a cloud-based, real-time payment fraud prevention solution using FICO Falcon Fraud Manager. This AI and ML-powered offering would protect banks and payment providers in North America from fraud in instant digital payments, enhancing transaction security and reducing losses.
• Mar-2024: SAP introduced innovations in data management, AI-driven planning, and analytics, including SAP Datasphere knowledge graph, SAP HANA Cloud vector engine, enhanced Collibra AI Governance, and closer integration between SAP Datasphere and SAP Analytics Cloud. These updates aim to streamline data insights, governance, and planning for businesses.
• Feb-2024: SAS Institute Inc. announced a partnership with Carahsoft, an IT company, to enhance SAS's analytics and AI solutions' accessibility to US government agencies. Under the partnership, Carahsoft would distribute SAS products through various government contracts, expanding SAS's public sector reach and supporting advanced data management and AI capabilities for improved decision-making and innovation.

List of Key Companies Profiled

• 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.
• Fair Isaac Corporation (FICO)

Global Predictive Analytics Market Report Segmentation

By Deployment Mode

• Cloud
• On-Premise

By Component

• Solution
• Customer Analytics
• Financial Analytics
• Sales & Marketing Analytics
• Risk Analytics
• Supply Chain Analytics
• Services
• Professional
• Managed

By Organization Size

• Large Enterprise
• Small & Medium Enterprise

By Vertical

• BFSI
• Healthcare
• Manufacturing
• Transportation & Logistics
• Energy & Utilities
• Government
• Retail
• Telecom & IT

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA