Predictive Analytics Market size poised to grow with a lucrative CAGR from 2022 to 2028. The advent of big data, machine learning, data mining and assorted mathematical processes has spurred the global industry growth. Enterprises are using predictive analytics in an array of ways, helping users in fields as diverse as BFSI, energy, manufacturing, IT & telecom, government & public, hospitality and healthcare.
Stakeholders, including pharmaceutical companies, researchers and physicians are using data analytics to advance research, boost quality and manage risk. For instance, the University of Iowa team won USD 1 million from the National Science Foundation (NSF) in September 2020 to work on medical AI. The team from the university will create a machine learning platform to train algorithms with data globally.
With the demand for agility surging in businesses, supply chain management has emerged as a lucrative segment. Predictive analytics is helping forecast buying behaviors, reduce pilferage and ensure timely deliveries through the most viable and efficient modes.
Predictive solutions are helping decision-makers bolster transportation management systems and accelerate supply chain visibility. Logistics service providers are relying on TMS to track and manage lead times and shipments.
Based on deployment mode, the on-premise segment is likely to witness expansion through 2028 owing to the increasing preference over the cloud-based infrastructure to offer enhanced data security, storage, and privacy. These deployment models are increasingly adopted to offer improved data protection. Rising penetration in the semiconductor industry and the thriving need for effective functioning of data centers and servers will additionally drive the industry prospects.
With regards to end-user, the predictive analytics market share from the BFSI sector will expand considerably by 2028. The growing government support to secure sensitive national security and personal data and escalating demand for advanced financial analytics solutions leading to the market growth. Predictive analytics assist banks in optimizing their collection processes and tracking patterns of in-and-out payments in branches and ATMs to draw up a dashboard. Advantages such as fraud detection, and customer engagement & targeting are other factors burgeoning the segment growth.
Regionally, the North America predictive analytics market share is expected to garner considerable momentum due to higher awareness pertaining to various predictive analytics measures in the region. The strong presence of numerous solution providers, particularly in Canada and the U.S. has made way for the increasing technological innovations. The rising number of R&D activities to support the development of new techniques and methods is another major trend fueling the industry growth.
The predictive analytics market volume has gained impetus with companies gearing to implement strategies, including business expansions, product rollouts, collaborations, product upgradations and mergers & acquisitions.
Prominent players in the industry are Microsoft Corporation, IBM Corporation, Oracle, SAP, Dell, RapidMiner, Tibco Software, FICO, Alteryx and SAS Institute. Leading companies are racing to gain a competitive edge. For instance, Microsoft collaborated with the Bank of New York Mellon Corporation in June 2020 to create technology, data and content solutions for investment managers.
Meanwhile, IBM released novel AI-powered technologies to help researchers augment the treatment and insights for COVID-19. The company is providing a cloud-based AI research resource and applying the advanced virus genomic information to create new drug molecule candidates. Market players are rethinking how they navigate and create value addition. Healthcare researchers and other stakeholders will facilitate the use of big data analytics in the current- and post-COVID-era.
The onset of COVID-19 has created a wave of innovations, with technological advancements augmenting the global predictive analytics industry outlook.
COVID-19 has expedited the adoption of predictive analytics and what would have taken the markets years to implement is now taking months. Stakeholders are cashing in on predictive models to track COVID-19 vaccination rates, for instance. The pandemic is influencing the world of predictive analytics—stakeholders are warranting real-time insights on their supply chain.
While the outbreak has brought inevitable challenges, the healthcare sector has been quick to leverage big data analytics. The trend for big data in the healthcare application has fueled predictive analytics market revenue. The crisis sparked innovations in the U.S. with the White House urging health experts to use AI to assess 29,000 scholarly articles on COVID-19 in March 2020. This will help provide insights into treating COVID-19 and contain the outbreak.