The global predictive analytics market, valued at USD 2.08 billion in 2012, is expected to see strong growth at 17.8% CAGR during 2013 to 2019.
Albany, NY -- (SBWIRE) -- 10/03/2016 -- Predictive analytics, a business intelligence technology that produces a predictive score for each customer or other organizational element. Predictive analytics uses a variety of statistics and modeling techniques, and utilizes data mining, business intelligence tools, and machine information, to make predictions. The emergence of enormous amount of structured and unstructured data and ground-breaking technology deployments are the major drivers for the predictive analytics market.
Efforts to Check Frauds in Banking Sector to Fuel Predictive Analytics Market
On the basis of end use, the banking and financial services segment is projected to lead the in the global predictive analytics market and account for a 27.2% share by the end of 2019. The rise in the adoption rate of predictive analytics solutions by banks and other financial institutions in order to manage market uncertainty, minimize frauds, and control exposure risk is expected to drive the market in the coming years, says a TMR analyst. Furthermore, by application, the finance and risk segment is estimated to lead the global predictive analytics market in the coming years. This segment is expected to reach a value of US$2.84 bn by the end of 2019.
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Price Competitiveness to Benefit Predictive Analytics Consumers
The growing awareness regarding benefits of big data and its analysis for determining future estimations is expected to augment the growth of the predictive analytics market in the near future. The rising need for product differentiation and rising business interests towards advanced big data products are expected to drive the market. In addition, the presence of a large number of players in the market who are inducing price competitiveness is another factor fuelling the growth of the global predictive analytics market.
The new entrants in the market are introducing low-cost solutions, thus compelling existing players to reduce their prices and offer add-on services to consumers. This change is projected to result in higher adoption of predictive analytics.
Issues Concerning Data Integrity to Hamper Growth of Global Predictive Analytics Market
"The lack of experienced and skilled professionals and cost and complexity of software are some of the primary factors restricting the growth of the global predictive analytics market," states a TMR analyst. Moreover, concerns related to data integrity are projected to impede the growth of the market in the coming few years. Nevertheless, constant efforts taken by key players for the development of a single, simple, and successful user interface are expected to offer potential opportunities for the key players.
The global predictive analytics market is highly consolidated in nature with a few leading players holding a massive share of the market, states a new market research report by Transparency Market Research. In 2012, the top five players operating in the global predictive analytics market, namely SAP AG, SAS Institute, Inc., Oracle Corporation, IBM Corporation, and Microsoft Corporation, collective held an 80.3% share. With a high degree of consolidation, the market is expected to witness a rise in mergers and acquisitions by big players in the near future. The key players in the market are expected to focus on intensive investment in research and development activities and expansion of product portfolio to stay ahead in the league.
As per the research study, in 2015, the market opportunity for predictive analytics was worth US$3.57 bn and is expected to reach a value of US$6.54 bn by the end of 2019. By geography, North America is projected to lead the global predictive analytics market with a 54.5% share. The robust growth of this region is attributed to the high rate of adoption of big data architectures in diverse organizations in this region, including retail, banking and finance, government, insurance, and other sectors. In addition, the substantial contribution from the U.S. is expected to contribute to the growth of the predictive analytics market in North America.