Predictive modelling technologies are becoming more widely used. The worldwide predictive analytics industry is being driven by big data technologies and many government initiatives to promote big data infrastructure. High implementation costs and a scarcity of competent labour, on the other hand, stymie progress. Nonetheless, the rise of AI technology is projected to open up a slew of new possibilities for the crucial player. From 2020 to 2027, the global predictive analytics market is predicted to grow at a CAGR of 21.9 percent, from $7.32 billion in 2019 to $35.45 billion in 2027. Due to an increase in investment in Big Data IT infrastructure, Asia-Pacific is expected to have the highest CAGR of 24.9 percent during the projection period.
Furthermore, the increased use of predictive analytics in the retail e-commerce industry to analyse customer behaviour and purchase patterns in order to provide relevant buying recommendations, as well as the need to create effective marketing campaigns, are driving up demand for predictive analytics solutions. The solution category represented for about two-thirds of the global predictive analytics market share in 2019 and is likely to rule the roost by 2027, according to component. The segment’s growth is driven by an increase in the need to optimise marketing efforts, improvements in operations to better manage inventory and other resources, and the reduction of business risks.
The services segment, on the other hand, is expected to grow at the fastest rate, with a CAGR of 23.8 percent over the projected period. This is due to its use in the predictive analysis process to assure the proper operation of software and platforms. The BFSI category accounted for more than one-fifth of worldwide predictive analytics market revenue in 2019 and is expected to maintain its dominance throughout the study period. This is due to the widespread use of predictive analytics in risk management, fraud detection, customer management, customised solutions, and other applications. Simultaneously, the healthcare industry would grow at the fastest rate, with a CAGR of 24.8 percent between 2020 and 2027. This is owing to a growth in the application of predictive analytics in the development of precision medicine, the prediction of virus spread, and supply chain management.