The Global Predictive Analytics Market Growth, COVID-19 Impact and Forecast (2021-2025)
The global predictive analytics market is segmented on enterprise size as large enterprise and small & medium enterprises; based on deployment type as cloud and on-premises; based on applications as BFSI, Retail, Healthcare, IT & Telecom, Industrial, government & defense, and others; based on geography as APAC, Europe, North America, and ROW.
Introduction
Prescriptive analytics is a form of advanced analytics, which examines data or content and is characterized by techniques, such as graph analysis, simulation, complex event processing, neural networks, recommendation engines, heuristics, and machine learning.
There are two types of predictive models. Classification models predict class membership. For instance, you try to classify whether someone is likely to leave, whether he will respond to a solicitation, whether he’s a good or bad credit risk, etc. Usually, the model results are in the form of 0 or 1, with 1 being the event you are targeting. Regression models predict a number – for example, how much revenue a customer will generate over the next year or the number of months before a component will fail on a machine.
Predictive analytics describes any approach to data mining with an emphasis on prediction (rather than description, classification or clustering).
Table of Contents
Market Overview
The Global predictive analytics market is expected to grow to $21.54 billion by 2025 at CAGR of 24.5%
Industry 4.0 is expanding at an unprecedented rate. With the expansion of fourth industrial the global predictive analytics market is also expected to grow substantially
Advanced analytics solution offers a set of techniques that help deal with these challenges through statistical and technical methods. Owing to this, analytics have become significant for Business Intelligence (BI) across various end-user industries
Key Trends
Companies prefer to provide standalone solutions rather than combined solutions. This is eventually increasing the number of big data analytics startups, which are driving noteworthy innovations.
Integration of IoT and AI in predictive analytics and the rise in demand for predictive analytics by SMEs are anticipated to provide lucrative growth opportunities for the expansion of the global predictive analytics market during the analysis period.
Key Market Players
The market is dominated by global vendors like IBM Corporation, Microsoft Corporation, Oracle Corporation, SAP, SAS and General Electric Company
Growth Drivers and Challenges
Technology is the primary driver of the predictive analytics market. It is because of implementation of IoT and data science is possible in manufacturing and other industries. Moreover, value addition is another trend that every business is striving for these days.
Various industries are demanding a solution that can predict when their machine is about to get damaged. They are implementing sensors that can analyze the patterns and predict the outcome of any anomaly in the operation of the machine. This, as a result, prevents the businesses from engaging in the downtime of the machine and improves productivity. This advantage is also expected to boost the growth of the market in the forecasted period.
The lack of skilled professionals with sufficient knowledge of the functioning of predictive analytics may limit the growth of the market.
Growing demand for diversified data models based on business needs is a major challenge for this industry. Organizations analyze and generate insights from various data formats. These data formats include text, video, speech, and image for their businesses. There is a variety of data models for different business needs. These data models are tightly integrated with specific analytics solutions.