How much and how fast? Let’s look at projections from several research sources:
- Global Industry Analysts, Inc projects that the global market for predictive analytics will reach $3.6 billion by 2020. The company sees the Asia-Pacific as the highest growth market (CAGR of 12.6%), followed by Latin America and Canada. It divides the PA market into three key application areas:
- Distribution and Customer Relation Management
- Financial and Risk Management
- Marketing and Sales
- Markets and Markets sees the global PA market skyrocketing from $2.74 billion in 2015 to 9.2 billion by 2020, with a CAGR of 27.4% during the forecast period.
- Micromarket Monitor valued the predictive analytics market at $694.6 million back in 2013 and forecast that it would reach $2.3 billion by 2019. The firm forecasts 25% annual growth for the PA market in the U.S. and 32% globally.
- Zion Resource valued the global PA market at $2.5 billion in 2014 and projects it to reach $7.8 billion by 2020, growing at about 17% from 2015 to 2020.
It’s not surprising that different market research reports provide different estimates of the PA market. After all, just defining the market can be a challenge. At the start of the research process, any firm must answer a wide variety of questions, such as whether to focus solely on application providers, large businesses, specific business functions, etc.
But all research summaries agree that the global PA market is, or will be, worth billions and that it’s growing fast, often at double digit rates. Businesses can assume that:
- Competition for segments of this growing and lucrative market will be intense
- Innovation will rise quickly as companies jockey to help customers analyze the flood of data pouring in from technologies such as mobile and Internet-of-Things devices
- The demand for predictive analytics experts, or for automated systems that mimic the skills of such experts, will also continue to increase.
Of course, the predictive analytics market is just one segment of what could be termed the “foresight economy,” which also includes disciplines such as economic forecasting, political polling and more. Trying to gain advantage by peering into the future has become a huge, mainstream business, one with a high growth trajectory for at least the next several years.
by Mark Vickers
For more information, try these resources:
- Predictive Analytics Market Trends
- Predictive Analytics Market worth 9.20 Billion USD by 2020
- Predictive Analytics Will Be a $2.3 Billion Market by 2019
- Global Predictive Analytics Market Poised to Surge