The Global Market for Prescriptive Analytics is Projected to Reach US$1.61 Billion by 2022

Analytical Disruption Fuels the Emergence of the Era of Prescriptive 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 Prescriptive Analytics market. The global market for Prescriptive Analytics is projected to reach US$1.61 billion by 2022, driven by the radical disruption underway in the field of business intelligence (BI) and analytics. 

Analytical disruption is defined as the disruptive use of data that creates value in the practice of business intelligence. It refers to radical innovation in both the use of big data and application of big data. Analytical disruption is going beyond the use of data for information and value creation, it refers to leveraging data to become more predictive and proactive. The modern insight-driven enterprises are no longer running their businesses based on historical data. Rear view business intelligence is increasingly falling out of favor and emerging over the horizon is the development of supply chain data science. New analytical capabilities such as those epitomized by prescriptive analytics are enabling business intelligence to emerge from reactive models to proactive and predictive models to automated business decision making. Improving technologies, rapid rise of data discovery tools, easy access to multi-structured data, innovation in data preparation tools, ubiquitous access to cheap smartphones, evolution of business oriented social networks, breakthroughs in big data mining for developing behavioral insight, proliferation of cloud computing and its epitomized cheap and nearly limitless processing power and storage capacities, augmented reality interfaces, development of neural networks and machine learning and intelligence, are major factors acting as agents of disruption.

Traditional practice of BI is changing from descriptive, predictive to the now final stage of prescriptive analytics. Prescriptive analytics is a disruptive force in the field of business intelligence given its ability to truly harness the real power of data driven business insights with the potential to shape the future of an enterprise.  There is continuous activity in the development of advanced tools and technologies that help organizations make the most of its data. Defined as an advanced form of BI and business analytics which helps go the last mile by recommending actions to be taken to improve outcomes, prescriptive analytics holds the potential for becoming the future standard for business intelligence. By providing answers to what should be done or what can be done, prescriptive analytics facilitates the holistic creation of business insights vital for data driven decision making. The rising popularity of automated business decisions, especially against the backdrop of an evolving on-demand consumer economy, is expected to expand the addressable market for prescriptive analytics. With consumers, suppliers and partners wanting real-time responses, there is heady activity in the field of automated analytics. Some of the factors driving the prominence of automated decision support systems include enhanced productivity by eliminating the time associated with taking repetitive decisions, reduction in routine information processing, improved decision making as it eliminates the human limitations in information acquisition and information overload, and the growing need for mass customization/personalization and micromarketing. Continuous technology improvements are benefiting confidence in new analytical concepts such as prescriptive analytics and a greater willingness to rely on software algorithms to guide the direction of an enterprise.

As stated by the new market research report on Prescriptive Analytics, North America represents the largest market worldwide. The dominance of the region is supported by the growing commitment of companies in the region to big data projects and the focus on prescriptive analytics as the most desirable tool for big data synthesis. Also driving growth in the region are the rising investments in IoT infrastructure and the ensuing focus on IoT-enabled prescriptive analytics; and rise in cybercrime and the resulting focus on prescriptive analytical models of cybercrime prevention as a necessary and vital security technology.   

Major players in the market include Ayata, Frontline Systems, Inc., IBM Corporation, Profitect, River Logic, Inc., SAP SE, SAS Institute Inc., and TIBCO Software Inc., Inc. among others.

The research report titled “Prescriptive Analytics: A Global Market Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for the North American and Rest of World markets.

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