Predictive Analytics Market size is poised to reach USD 120 Billion by the end of 2036, growing at a CAGR of 25% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of predictive analytics was USD 15 Billion. The reason behind the growth is impelled by the increasing amount of data generation across the globe. The sheer volume of data that is being created daily is astounding and is driven by the proliferation of data-generating devices, such as wearable electronics, and smartphones, the widespread use of cloud computing, and the Internet of Things.
For instance, it is anticipated that the amount of data created globally will surpass over 170 zettabytes in 2025, after five more years of growth.
The growing mergers and acquisitions are believed to fuel the predictive analytics market growth. For instance, in March 2023 Accenture acquired Flutura to help customers reach their net zero targets more quickly while also improving the efficiency of factories, refineries, and supply chains, and offering Flutura's functionalities to customers in the mining, chemicals, energy, metals, and pharmaceutical sectors by strengthening its AI offerings.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~25% |
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Base Year Market Size (2023) |
~ USD 15 Billion |
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Forecast Year Market Size (2036) |
~ USD 120 Billion |
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Regional Scope |
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End-User (BFSI, Retail, IT & Telecom, Healthcare, Government, Manufacturing)
The BFSI segment in the predictive analytics market is estimated to gain a robust revenue share of 40% in the coming years owing to the growing adoption of digital payments. In recent times, digital payments have gained significant importance across the globe owing to the swift growth of e-banking and payment systems, as well as the proliferation of digital wallets and mobile payments. For instance, it is anticipated that the digital payments market will reach a total transaction value of more than USD 2361 billion by 2024. This is the exact moment when predictive analytics takes the stage since it has a wide range of applications, including credit risk management, cash flow forecasting, and client payment forecasts. Moreover, AI can evaluate transaction data and offer clients personalized services by utilizing predictive analytics, and banks use it to assess prospective borrowers' creditworthiness.
Additionally, as predictive analytics become more widespread, it may aid the BFSI industry in several ways, including fraud detection, targeted marketing, and collections management, amongst others. Banks use predictive analytics to identify potential frauds and take necessary action to stop them from happening by analyzing transaction patterns and client behavior. Besides this, predictive analytics can be used by banks to find potential new business possibilities and make better choices regarding credit and investment products.
Solution (Financial Analytics, Risk Analytics, Marketing Analytics, Web & Social Media Analytics, Consumer Analytics)
Predictive analytics market from the consumer analytics segment is set to garner a notable share shortly. The demand for consumer predictive analytics has expanded as a result of consumers producing vast amounts of data from many sources, including social media platforms and e-commerce websites. Predictive analytics is the key to the consumer experience of the future since it helps in analyzing customers' past behavior and projecting their future behavior by making use of statistical algorithms, machine learning, and historical data. Moreover, predictive analytics helps businesses meet customer demand without overstocking warehouses by using previously obtained data and trends to forecast customers wants, desires, and potential difficulties.
Our in-depth analysis of the global predictive analytics market includes the following segments:
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Solution |
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End-User |
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Enterprise Size |
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Services |
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Deployment Type |
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North American Market Forecast
Predictive analytics market in North America is predicted to account for the largest share of 48% by 2036 impelled by the emergence of new ventures and startups in the United States and Canada. More and more people are investing in startups and other initiatives since the region has access to finance from a variety of sources, including angel investors, venture capitalists, and crowdfunding platforms. As a result, there is a rising need for predictive analytics in the field so that a company can better prepare for the changing tides, plan for demand fluctuations, and forecast future results using data from the past. For instance, more than 330000 new firms were established in the US in the first quarter of 2023.
APAC Market Statistics
The Asia Pacific predictive analytics market is estimated to be the second largest, during the forecast timeframe led by the increasing popularity of data analytics. In the past few years, data analytics in India has grown owing to an exponential increase in internet users. As a result, of this, the importance of data-driven decision-making has grown in the area, which has expanded the use of predictive analytics to help organizations make informed choices. According to estimates, the enormous data analytics market in India is anticipated to reach over USD 118 by 2026. For instance, the banking sector in India spent more than 15% of its total budget on big data and analytics in 2021.
Author Credits: Abhishek Verma, Hetal Singh
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