PREDICTIVE ANALYTICS MARKET ANALYSIS

Market Challenges And Opportunities

Increasing demand for market insights from unstructured data such as documents, call centre transcripts, email messages, social media content, and social networking sites is major factor driving growth of predictive analytics market. In organization only 20% of data is structured and 80% of data is unstructured. Predictive analytics software extract insights from unstructured data with the help of language processing technology combined with a variety of analytical tools. This insights enables the companies to understand customer mind-sets, purchase preferences, and sentiments that cannot be anticipated from structured data alone. Hence, growth of unstructured data is driving growth of the predictive analytics market.

The cloud deployment model segment is projected to witness highest CAGR over the forecast period, owing to various advantages such as low maintenance cost, remote location access, and flexibility, which have accelerated the demand for cloud based predictive analytics solutions.   

The small and medium size enterprises segment is projected to grow with the highest CAGR over the forecast period. Increasing focus on improving customer experience is one of the major factor driving the growth of the segment in the predictive analytics market. Moreover, due to low maintenance and investment cost have raised the demand for cloud based predictive analytics solutions in small and medium enterprises.  

The Banking, Financial Services, and Insurance (BFSI) vertical held the largest share in the market in 2017 and is projected to retain its dominance throughout the forecast period. The BFSI industry vertical use predictive analytics for achieving competitive advantage by leveraging analytics to improve decisions, enhance marketing, and influence consumer behaviour by effectively and efficiently implementing the predictive analytics on various processes.