Global Predictive Analytics Market Report and Forecast 2024-2032

Global Predictive Analytics Market Size

The global predictive analytics market size attained approximately USD 15.70 billion in 2023. The market is estimated to grow at a CAGR of 21.7% in the forecast period of 2024-2032, reaching a value of around USD 91.93 billion by 2032.

Predictive Analytics Market Outlook

• According to Pecan's 2022 State of Predictive Analytics in Marketing, 95% of companies still use AI-driven predictive analytics to drive their marketing strategies.

• Predictive analytics is used today to understand consumer behavior, detect fraud, and prevent it; it is also used in the creation of products according to consumer choice to make sure that they sell out.

• In 2024, Telefonica Tech and IBM announced a new collaboration agreement to implement Artificial Intelligence (AI), analytics, and data governance solutions to continue meeting the needs of modern businesses.

• In 2023, Google Cloud announced that it had rolled out an integration between Duet AI—a generative AI platform since folded into Gemini—and Looker, the firm's key analytics platform.

Predictive Analytics Market Growth

Growth in data volume is one of the major drivers for the predictive analytics demand growth. Exponentially growing data from IoT devices, social media, and transaction systems make it highly business-relevant to use such information to generate actionable insights and forecasts of trends in view that help drive better decision-making and efficiency.

Advancements related to AI and machine learning also turn into key drivers. These technologies further enhance the accuracy of predictions, providing deeper insights by processing large volumes of data effectively. Advanced analytical solutions offered by platforms like Microsoft Azure Machine Learning using AI to enhance predictive capabilities, are leading the growth of the predictive analytics industry.

Key Trends and Recent Developments

Use of real-time analytics, big data adoption, and increased internet penetration is going to open up new predictive analytics market opportunities.

August 2024

U.S. defense contractor BAE Systems won a $48 million contract from the U.S. Air Force Research Laboratory to further develop an existing data analytics platform in use by military intelligence analysts.

June 2024

Contentsquare has announced its new platform—Experience Intelligence. Announced as part of the company's summer releases, it is going to help users gain true insight into their customers and journeys, retain, converse with, and improve on NPS.

June 2024

The founders of MapmyIndia launched ClarityX, a company focused on providing leading-edge and customised customer-centric AI-driven data Analytics & Consulting to enterprise clients. ClarityX capabilities will help grow MapmyIndia's enterprise offerings and addressable market.

March 2024

Accenture has completed its acquisition of GemSeek, one of the largest customer experience analytics providers in the industry that helps global businesses understand customers through insight, analytics, and AI-powered predictive models.

Real-time analytics

Real-time predictive analytics will put most businesses at the very core of making instant data-driven decisions, driving demand of predictive analytics market. For instance, streaming analytics platforms such as Apache Kafka allow firms to analyze live data streams for improved agility and responsiveness.

Big data adoption

Increased adoption of big data by business enterprises and organisations is driving the predictive analytics market growth. Predictive analytics can be utilised to streamline operations, gather huge amounts of data, gain valuable insights, and empower companies to stay ahead of their competitors.

Increase in internet penetration

The rise in internet penetration is one of the key predictive analytics industry trends as growing access to the internet increases data generation and helps companies in boosting the predictive analytics market revenue. Furthermore, the expansion of high-speed internet services such as 5G also boosts the demand for predictive analytics to assess the data.

Integration of IoT

Integration of the Internet of Things (IoT) in predictive analytics to deep dive into the data, get faster insights, optimise operations, and gain an analytical framework also augments the growth of the predictive analytics market.

Predictive Analytics Market Trends

One of the top trends of predictive analytics market is integrating AI and machine learning into predictive analytics. These technologies increase predictive accuracy and give deeper insights by being able to consider reams of data. For example, IBM's Watson uses AI to support advanced predictive analytics for a myriad of industries, improving decision-making and operational efficiency.

It is also being increasingly applied in health care to predict patient outcomes and thus optimise treatment plans. Tools like Google's DeepMind are applying predictive analytics in a way that will help predict the progress of a disease and provide customized treatment to a patient, hence raising diagnostic accuracy and treatment efficiency.

Predictive Analytics Industry Segmentation

“Predictive Analytics Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

The major components of predictive analytics are:

• Solutions

• Services

The market can be divided based on organisation size into:

• Small and Medium Sized Enterprises (SMEs)

• Large Size Enterprises

On the kind of deployment, the market can be divided into:

• Cloud

• On-premise

The market can be broadly segmented based on end use into:

• BFSI

• Healthcare and Life Sciences

• Manufacturing

• Retail and E-commerce

• Government

• Transportation and Logistics

• IT and Telecom

• Others

By region, the market is divided into: 

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Predictive Analytics Market Share

Cloud-Based Deployment Will Gain Traction For Its Cost-Effectiveness

The cloud-based deployment will gain a significant market share in the market for predictive analytics due to the scalability, cost-effectiveness, and ease of integration with other digital tools and platforms that the cloud promises. The cloud, in turn, allows business entities to enjoy predictable analytics flexibility—huge data set analysis realizations of insights without much physical on-site infrastructure. As such, it supports the processing and collaboration over real-time data, thus making it pretty amenable to enterprises in search of predictive analytics agile and swift solution packages. This helps in boosting the predictive analytics industry revenue globally.

BFSI To Occupy Significant Share Owing To Improvements In Decision-Making

As per the predictive analytics industry analysis, the BFSI sector occupies a significant portion of the market due to the focus of financial organisations and banks to improve their decision-making. Increasing cases of financial fraud and threats have bolstered the demand for predictive analytics to predict and mitigate the patterns of fraudulent transactions and thefts.

Banks and financial institutions implement predictive analytics solutions in loan approval processes to identify lending risk. Additionally, banks and financial institutions can enhance their customer engagement strategies and improve customer management through such solutions.

Predictive Analytics Market Regional Analysis

Expanding Retail and E-Commerce Sector To Push The Demand For Predictive Analytics In North America

As per the predictive analytics market analysis, North America accounts for a substantial share of the global market owing to the presence of key market players in the region. Furthermore, the development of innovative methods and techniques to enhance the efficiency of predictive analytics is anticipated to propel the market in the forecast period.

Expansion of the retail and e-commerce sector in the region also propels the demand for predictive analytics to predict future trends under changing customer preferences. Additionally, the growing adoption of big data and cloud services also provides a positive outlook to the predictive analytics demand.

Competitive Landscape

IBM Corporation, established in 1911 is a multinational company that provides hardware, middleware, and software. The company, with its headquarters in New York, the United States, provides services such as AI, cloud computing, and data analytics.

Microsoft Corporation, a multinational corporation, was founded in 1975 and has its headquarters in Washington, the United States. The company offers software products, consumer electronics, and technological services, among others.

Amazon Web Services, Inc., founded in 2002 and based in Seattle, the United States, is a subsidiary of Amazon. The company provides cloud-based products for analytics, computing, database, storage, and networking.

Google LLC, founded in 1998 and headquartered in Mountain View, California, offers predictive analytics through its Google Cloud Platform. This comprises BigQuery and AI-driven services for the analysis of data and prophecies of trends that help businesses extract insights and predict trends.

Other predictive analytics market players include Hewlett Packard Enterprise Development LP, Oracle Corporation, SAS Institute Inc., SAP SE, TIBCO Software Inc., and Alteryx, Inc., among others.

Key Highlights of the Report

Predictive Analytics Market Report Snapshots

Predictive Analytics Market Size

Predictive Analytics Market Growth

Predictive Analytics Market Trends

Predictive Analytics Market Share

Predictive Analytics Companies

Predictive Analytics Market Regional Analysis