The Global Market for Predictive Analytics is Projected to Reach US$3.6 Billion by 2020

Need to Replace Uncertainty in Business Forecasting with Probability Drives Demand for Predictive Analytics, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Predictive Analytics markets. The global market for Predictive Analytics is projected to reach US$3.6 billion by 2020, driven by the growing need to replace uncertainty in business forecasting with probability and the increasing popularity of prediction as a key towards improved decision making.

To survive in an era of cut throat competition where existing business advantages may be short lived, organizations are compelled to outgrow practices of focusing merely on historical customer behavior and become more forward-looking and proactive. Predictive analytics is witnessing a shift in user base. No longer are these tools used only by mathematicians and statisticians. Years of advancements have made predictive analytics products more intuitive and easier to use such that various business users including business analysts are increasingly using these tools, thereby democratizing predictive analytics within an organization. Ease of use is increasingly becoming the key feature of solutions offered by vendors. Other features enabling widespread use include automation of model-building capabilities and integration of visualization capabilities for easier recognition of patterns; and operationalization of the software within a business process. The changing business and competitive environment is also encouraging the use of predictive analytics in the enterprise sector. A key trend in the market is the evolution from business intelligence to predictive intelligence. Harnessing the power of data is pivotal in predicting and controlling the future of a business.

Almost all companies that have already adopted predictive analytics in their organizations work on structured data. To date, structured data remains central to effective models in predictive analytics. The advent of big data and IoT, however, is shifting the emphasis on the development of predictive models for unstructured data. More and more unstructured data is emerging from outside the organization, forcing evolution in predictive analytics models to be able to handle unstructured data. While 20% of data in an organization is structured, the remaining 80% represents unstructured data. The trend towards “invisible” business intelligence is spurring the popularity of embedded predictive analytics. The rising curve of analytics maturity is making the market ripe for embedded predictions. Defined as the integration of reporting capabilities and analytics within a device and/or software based information system, embedded predictive analytics is growing into a mainstream market. The widespread proliferation of anytime, everywhere computing and the rise of Internet of Things (IoT) are creating a fertile environment for the evolution of advanced, pervasive, invisible analytics.

As stated by the new market research report on Predictive Analytics, the United States represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market exhibiting a CAGR of 12.6% over the analysis period. The growth in the region is driven by rapid mushrooming of SMBs and their increased adoption of cloud based predictive analytics solutions, and. growing enterprise spending on cutting edge business intelligence tools and technologies. With the region expected to emerge into the frontline for IoT development, growth is also being supported by the growing ecosystem of Internet of Things (IoT) and the need for predictive analytics to help IoT deliver on its promise of building “pervasive intelligence”.

Major players covered in the report include Actian Corporation, Alpine Data, Alteryx, Inc., Angoss Software Corporation, Business Insight International, Dell Inc., Fair Isaac Corporation, Hewlett-Packard Development Company, L.P., IBM Corporation, Information Builders, Logi Analytics, Microsoft Corporation, Oracle Corporation, Pentaho Corporation, Pitney Bowes Inc., Predixion Software, RapidMiner, Inc., Revolution Analytics, Salford Systems, SAP SE, SAS Institute, Inc., Teradata Corporation and TIBCO Software Inc. among others.

The research report titled “Predictive Analytics: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, growth drivers, company profiles, mergers and acquisitions, and other strategic industry activities of global companies. The report provides market estimates and projections in US$ thousand for all major geographic markets, such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Latin America and Rest of World. Global and regional markets for Predictive Analytics are also analyzed by application segments – Financial & Risk Management, Distribution & CRM, Marketing & Sales and Personnel & Operations Management.

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