The global predictive analytics market is dominated by a few titans of the information technology sector such as IBM, SAS, Oracle, SAP, and Microsoft. Aided by their brand image, these companies are commanding high prices for their solutions despite subdued demand, thereby raking in substantial revenues. However, the soaring popularity of cloud and open source solutions and many new entrants with proper solutions at affordable rates is slated put a downward pressure on prices in the near future. While this would bring down the real-time revenue realized per user, it would also propel the overall revenue generation in the global predictive analytics market by increasing the number of customers substantially.
The top five vendors in the global predictive analytics market together accounted for around 80% of the market in 2012. Among them, SAP AG led the market with maximum share owing to its continuous investment in the analytics sector, which has helped it enhance its existing portfolio of solutions. SAP AG was followed by SAS Institute Inc. in terms of market share in 2012. The global market for predictive analytics is slated to be worth US$6.55 bn by 2019.
Banking and Financial Services Sector Leading the Market
Among end users, the banking and financial services segment has dominated the global market for predictive analytics. This is because predictive analytics helps uncover valuable insights and make forecasts by scrutinizing large volumes of data related to cost and revenue. The banking and financial services sector accounted for US$0.96 bn in the global predictive analytics market in 2015. The sector is expected to hold on to its leading position in the years to come as well. The government, public administration, and utilities sector comes in second in terms of market share.
Depending upon the kind of business or specific business applications, the customer intelligence segment has held the maximum share in the global predictive analytics market and is predicted to retain its stronghold in the near future too. Fraud and security intelligence is the second largest segment, followed by campaign management.
Geography-wise, North America is numero uno with over half the market and Europe follows next. North America’s leading position in the market is primarily on account of the large scale adoption of Big Data and the subsequent utilization for predictive analytics models by various public and private entities in the region.
Market Aided by Increasing Awareness about Benefits of Big Data
One of the main growth drivers in the market has been the increasing awareness about the benefits of Big Data and predictive analytics. “Companies such as Wal-mart, Morgan Stanley, Bank of America, ANZ Bank, eBay, and GE, and government initiatives such as Obama Administration’s Big Data Initiative, Aadhar Card in India, and NTT (Nippon Telegraph and Telephone Corporation) in Japan have deployed Big Data architectures to tap into the humongous data generated. These companies can better utilize this Big Data through predictive analytics and extract crucial operations to support their growth objectives,” explains the lead analyst of the TMR report.
However, the report finds that the complexity of software and hardware, alongside cost and dearth of skilled resources is hobbling the growth of the market. Even though software vendors are advertising the latest technologies and algorithms, most entities have just been initiated into the domain of predictive analytics, and hence are still vague about the benefits and exact usage.
This review is based on the findings of a TMR report titled “Predictive Analytics Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2013–2019.”
Global Predictive Analytics Market, By End-Use Industry
- Banking and financial services
- Government, public administration, & utilities
- Telecom and IT
- Transportation and logistics
- Media and entertainment
- Energy (oil, gas, and electricity)
- Engineering and construction
Global Predictive Analytics Market, By Software Solutions Type
- Customer intelligence
- Decision support systems
- Performance management
- Data mining and management
- Fraud and security intelligence
- Sustainability intelligence
- Financial intelligence
- Operations management
- Campaign management
Global Predictive Analytics Market, By Application
- Sales and marketing
- Customer and channel
- Operations and workforce
- Finance and risk
Global Predictive Analytics Market, By Mode of Delivery
- On-premises installation
- Hosted or Cloud based
Global Predictive Analytics Market, By Geography
- North America
- Asia Pacific
- Rest of the World
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