Prescriptive and Predictive Analytics Market Scope and Overview
The Prescriptive and Predictive Analytics Market was valued at USD 17.8 billion in 2023 and is expected to reach USD 118.96 billion by 2032, growing at a projected CAGR of 23.5% from 2024 to 2031.
The growth of the prescriptive and predictive analytics market is driven by the growing number of IoT-connected devices, increasing demand for advanced and real-time analytics, and the growing need for prescriptive and descriptive analytics models. The need for predictive analytics, capabilities to process data, and develop custom algorithms is highlighted. Advanced analytical solutions provide a set of techniques that help overcome these challenges through statistical and technical methods and ultimately support strategic and factual decisions. As a result, analytics has become essential to business intelligence (BI) in several end-user industries. For example, industries like BFSI, healthcare, retail, and others have adopted prescriptive analytics solutions to optimize their businesses through cost-effective and result-oriented analytics models.
Some of the Major Key Players Studied in this Report are:
- Oracle Corporation
- SAP SE
- IBM Corporation
- Microsoft Corporation
- SAS Institute
- Altair Engineering
- Alteryx
- FICO
- Teradata
- TIBCO Software
- Others
Prescriptive and Predictive Analytics Market Segmentation Analysis
The retail segment is expected to dominate the prescriptive and predictive analytics market with the highest CAGR of 20.3% during the forecast period 2024-2032. Growing competition, diverse product offerings, and growing customer sophistication are forcing retailers to use analytics. Retail analytics helps businesses target and reach new customers, predict store traffic, and prevent theft and fraud. With the growth in demand for consumer goods and e-commerce, retail sales have grown significantly, paving the way for the adoption of big data solutions. Increasing competition in the industry has encouraged operators to ensure efficient operation at various stages of delivery. Descriptive and other advanced analytics from business intelligence solutions can identify and retain valuable customers, as well as identify potential customers and attract them with valuable offers. For example, Walmart, the world’s largest retailer with more than 20,000 stores in 28 countries, is currently building the world’s largest private cloud, processing 2.5 petabytes of data every hour. Predictive diagnostic analysis uses big data to enable retailers to plan their warehouses, reform management, improve methods, and minimize risk and uncertainty.
During the forecast period of 2024-2032, the deployment model accounted for most of the shares in the prescriptive and predictive analytics market segments. An appropriate deployment model provides confidentiality and privacy parameters for organizational data. Therefore, most organizations adopt an on-premises deployment model, especially in industries like BFSI, healthcare, defense, etc., where confidentiality and security of statistical modeling tools are of utmost importance. Advanced diagnostic analytics will help these industries by providing real-time information for quick decisions.
Market Segmentation and Sub-Segmentation Included Are:
On the Basis of Deployment
- On-Premise
- Cloud
On the Basis of Industry
- BFSI
- Retail
- Healthcare and Pharmaceutical
- IT and Telecom
- Others
Regional Analysis
North America is expected to hold the largest share of the prescriptive and predictive analytics market in 2023, accounting for more than 30% of the total market share during the forecast period 2024-2032, followed by Asia Pacific. The US leads the dominant analytics market in North America due to early and robust adoption of advanced analytics across most of its industries. The country’s retail and online sales are expected to grow to $735.36 billion. This has led retailers to use predictive analytics to gain a competitive advantage. For example, Amazon uses deep data insights in predictive analytics to make decisions about its product mix strategy, helping the company know exactly which products people buy, browse, and return. According to the National Academy of Medicine, the US healthcare system spends $750 billion on unnecessary services. Predictive analysis can reduce waste of money and save up to 15% of the budget by analyzing the probability of a certain patient contracting a certain disease. Additionally, a significant number of key vendors of the prescriptive and predictive analytics market are located in the United States, and these vendors are significantly benefiting from the booming digital industry in the country, which provides an additional advantage to the growth of prescriptive and descriptive analytics market analysis solutions.
Key Takeaways from the Prescriptive and Predictive Analytics Market Study
- Predictive analytics uses historical data and statistical techniques to forecast future trends and potential outcomes.
- The growing demand for Business Intelligence (BI) in various end-user verticals to enhance productivity and increase sales will provide growth opportunities for the Prescriptive & Predictive Analytics Market.
- Prescriptive analytics goes beyond prediction, suggesting optimal courses of action based on data analysis.
- Asia Pacific is a key growth region due to rapid economic development, government initiatives, and technology adoption.
- The Prescriptive & Predictive Analytics Market is expected to witness consolidation, with established players acquiring or partnering with niche analytics providers to offer comprehensive solutions.
- The integration of technologies like AI and IoT in the region is creating vast amounts of data, driving the need for prescriptive and predictive analytics to extract valuable insights.
Table of Contents
- Introduction
- Industry Flowchart
- Research Methodology
- Market Dynamics
- Impact Analysis
- Impact of Ukraine-Russia war
- Impact of Economic Slowdown on Major Economies
- Value Chain Analysis
- Porter’s 5 Forces Model
- PEST Analysis
- Prescriptive & Predictive Analytics Market Segmentation, by Deployment
- Prescriptive & Predictive Analytics Market Segmentation, Industry
- Regional Analysis
- Company Profile
- Competitive Landscape
- USE Cases and Best Practices
- Conclusion
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