Predictive Analytics Market size was valued at USD 17.87 billion in 2024 and is expected to reach USD 249.97 billion by 2037, expanding at around 22.5% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of predictive analytics is assessed at USD 21.09 billion.
The market is rising as a result of the increasing demand for data generation across the globe, as the 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. According to a report, it is anticipated that the amount of data created globally will surpass over 170 zettabytes in 2025, after five more years of growth.
Additionally, the growing number of mergers and acquisitions is believed to fuel 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
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
22.5% |
Base Year Market Size (2024) |
USD 17.87 billion |
Forecast Year Market Size (2037) |
USD 249.97 billion |
Regional Scope |
|
End-User (BFSI, Retail, IT & Telecom, Healthcare, Government, Manufacturing)
The BFSI segment in the predictive analytics market is estimated to gain a share of about 41% in 2037. The reason behind this significant growth is impelled by the surge in the 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.
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 becomes 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. Therefore, the use of predictive analytics in BFSI is set to rise in the energy sector.
Solution (Consumer Analytics, Financial Analytics, Risk Analytics, Marketing Analytics, Web & Social Media Analytics)
The consumer analytics segment in the predictive analytics market is set to garner a notable share. The market expansion is led by the substantial growth in demand for consumers to produce vast amounts of data from many sources, including social media platforms, e-commerce websites, and many more.
In addition, 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. Additionally, the surge in demand for data processing solutions and technology is also projected to impact segment growth.
Our in-depth analysis of the global predictive analytics market includes the following segments:
End-user |
|
Solution |
|
Enterprise Size |
|
Services |
|
Deployment Type |
|
North American Market Statistics Forecast
The predictive analytics market in the North American region will hold the largest share, with a share of about 46% by the end of 2037. The landscape growth in the region is expected to grow on account of the surge in the emergence of new ventures and startups in the United States and Canada, as 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 crowd funding platforms.
Furthermore, 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 second quarter of 2023.
Moreover, there has been a surge in smartphone usage, along with the generation of data in corporate enterprises, which is further driving industrial growth and boosting the market revenue share.
APAC Market Statistics
The Asia Pacific region will also encounter a huge influence on the predictive analytics market size expansion during the forecast period and will account for the second position attributed to the growing popularity of data analytics.
In the past few years, data analytics in India has grown owing to an exponential increase in internet users. Impelled by 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 analytics market in India is anticipated to reach over USD 118 billion by 2026. For instance, the banking sector in India spent more than 18% of its total budget on big data and analytics in 2021.
Author Credits: Abhishek Verma
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?