Business intelligence technology helps organizations stay ahead of competitions, which has widened the strength and applications of different tools and techniques. Predictive analytics is one of such modern business intelligence technologies that assist businesses to assess each customer and produce predictive score for various other organizational elements. It involves variety of techniques that help analysts to study various historic and current facts in order to make predictions about future. Increasing global demands for the technology and rapid replacement of conventional business intelligence are driving the global predictive analytics market.
Surging competition in different business verticals is forcing the industry to innovate new technologies. Innovation is considered to be the key for the businesses looking to survive in this market. Increasing applications of different innovative technologies is the proof of the rapidly developing predictive analytics market. The market has significant segmentation, which is largely based on the applications in various industrial verticals and demand patterns for different geographical regions. Based on geographical demands, the industry is divided into five regions, which include North America, Asia Pacific, Latin America, Europe and Middle East and Africa.
Following are the details of the segmentation in this market, based on industrial verticals:
- Banking and finance services
- Consumer goods and retail services
- Energy & utilities and oil & gas
- Environment and government
- Media and entertainment
- Telecommunication and information technology
- Transportation and logistics
- Travel and hospitality
Considering progress amongst all the aforementioned segments is crucial for the researchers to reach to definitive conclusions. Recent market research reports for the predictive analytics industry suggest the remarkable growth pattern in the market. According to the study of the current market trends, challenges, threats, opportunities, growth prospects and geographical demands for this technology, researchers assure a great future for the businesses in this industry. Detailed analysis of the market from 2013 to 2018 suggests that predictive analytics industry is anticipated to grow at an estimated CAGR of 25.2% within next four to five years. As of 2013, the market is worth $1.70 billion, which is expected to become worth $5.24 billion by 2018. These are positive signs for the global industry.
Transformation from conventional business intelligence techniques is the biggest driver for this technology. More and more businesses are now adopting advanced analytics techniques, which has increased the demand and supply ratio. The most active industrial verticals are banking and finance. Industries are gaining numerous benefits like managing customer relationships, improving customer loyalty and predicting behavior of potential buyers. Predictive analytics technique helps in implementation of regression modeling, machine learning, text mining, genetic algorithms, clustering and other extracting techniques to gain all-inclusive industrial data.