Increasing demand for accurate forecasting in business activities is the key driver for predictive analytics market. Predictive analytics is the activity of data mining which deals with extracting important data from given database, used to analyse the trends and behaviour patterns to predict the future. It is also used to forecast the results. Predictive analysis relies on defining relationship between different variables behaviour from past occurrence and exploit them to predict the future outcome.
Database management, forecasting, data warehouses, data mining, CRM analytics, smart, logistics, decision making process, data visualization in dashboards and increasing demand of business having analytic capabilities are expected to drive the predictive analytics technology in coming six years. However, traditional measures, technological incapability and cost of developing predictive analytics software are anticipated to challenge the market growth over the forecast period. Increasing demand for more than a point solution is expected to offer the opportunity for the growth of predictive analytics market in near future.
Banking, financial service & insurance (BFSI) has impact of predictive analytics on processes of loan, insurance, financial activities and fulfilment of financial needs which is going to impact the predictive analytics market positively. Environment segment uses predictive analytics for weather forecast, natural calamities forecast, flights safety among others. In government segment, predictive analytics decreases waste, fraud and abuse, maximizes productivity of agency personnel, drives smarter decisions within government agencies and automates manual processes which are expected to expel the growth of the market. Healthcare segment utilizes predictive analytics in chronic disease management, patient care, hospital administration and supply chain efficiencies, which are expected to drive the market growth in coming years.
In industries and retail business, predictive analytics helps to define a view of customers by analyzing the wealth of data within the organization. Retail business is expected to witness the highest growth over the forecast period. Sports segment uses predictive analysis for player-tracking systems to understand how individual players move through every passage of play and improve performance which is going to impact the market growth positively. Transportation is made advanced by using predictive analytics activities such as sensors in passenger counting, vehicle locator systems, ticketing and fare collection systems. Telecom industry uses predictive analytics in departments such as marketing, sales and CRM by implementing churn, cross-sell and up-sell and pricing optimization. Transportation and telecom industries are expected to witness the fastest growth in near future.
The predictive analytics facilitates to solve the increased awareness of fraud. Predictive analytics deals with emails, chat messages, phone records and other structured and unstructured data which enables security and lessen the chances of fraud. These factors are expected to impact the growth of the market positively. In marketing, predictive analytics is used to lift the sales from previous year by accurate forecasting and companies adopt best practices associated with developing and using data-driven customer insights. The decisions are taken based on the analysis of behavioral data.
These activities are going to expel the market growth over the forecast period. Predictive operational analytics helps to represent actions and counter actions taken to manage and improve performance and to get operations back on track if something has gone awry. These operational activities enhances the efficiency in retail sector with the help of predictive analytics and are anticipated as the major factors to drive the market in coming years. Predictive analytics solves risk problem connected to any decision in business owing to the precised decision taken by data analytics and going to drive the market growth.
North America has the largest market share in the predictive analytics market due to massive amount of data deluge and entrance in multiple domains. Its applications are largely towards manufacturing, healthcare, transportation, logistics, mobile device and broadband technology domains in North America. In Asia pacific, the countries including China, Japan, India, and Australia are expected to witness an increase in the adoption rate of predictive analytics over the forecast period. Middle East and rest of the world is expected to witness growth in similar line.
Providers of predictive analytics technology includes SAS predictive analytics, IBM, Revolution Analytics, Oracle, Statsoft, FICO, Salford Systems, TIBCO, Oracle Advanced Analytics RapidMiner, GraphLab Create, KXEN, STATISTICA, TIMi Suite, Pervasive, Portrait, Predixion, Data Science Studio, Angoss predictive analytics, H2O, Analytics solver, Viscovery Data Mining Suite, Mathematica, Minitab, MATLAB and SAP InfiniteInsight.. IBM offers ensuring the data being analyzed is safe, secure and accurate, predictive analytics software to make data-based decisions and the task of handling all types of data and analytics. Oracle is one of the biggest players in predictive analytics market providing software for database management, data ware housing, data integration, database security and big data appliance.
Research Support Specialist, USA