The global predictive analytics market size is anticipated to reach US $23.9 billion by 2025, according to a report by Millionin$ights. It is anticipated to register a 23.2% CAGR during the forecasted period, 2019 to 2025. The growth reflects an exponential increase in the generation of data coupled with rising awareness about its usage for implementing marketing strategies.
With the rise of Big Data and Artificial Intelligence, marketers have more powerful technology and analytics tools at their disposal than ever before. Data-backed customer insights can be used to enhance marketing efforts at every stage of the funnel, and one of the most effective tactics is using predictive analytics.
Predictive Analytics in Marketing
According to IBM, over 2.5 quintillion bytes of data are created every single day providing raw data that can be used to obtain data-backed customer insights. As stated in an article written by Jennifer Xue for Single Grain, there are eight uses of predictive analytics in marketing:
-Detailed Lead Scoring
-Lead Segmentation for Campaign Nurturing
-Targeted Content Distribution
-Lifetime Value Prediction
-Churn Rate Prediction
-Upselling and Cross-Selling Readiness
-Understanding Product Fit
Large enterprises held a major share across the global predictive analytics market due to the surging usage of these solutions for the prediction of future trends according to the availability of historical data. While the small & medium enterprises segment registered the highest CAGR on account of the rising adoption of technologies like cloud and predictive analytics by several SMEs.
The deployment segment of on-premise dominated the global market in 2018 on account of the rising concerns about cloud infrastructure like privacy, storage, and data security. On the other hand, the segment of cloud deployment is projected to register the fastest CAGR in the upcoming years owing to its features like enhanced resource utilization, and cost-effectiveness.
North America dominated the global market in 2018 due to rising technological advancements and surging presence of key players across the U.S. While, the Asia Pacific is projected to witness the highest growth during the forecasted period, 2019 to 2025 on account of increasing deployment of such solutions among several services and solution providers.
The market for predictive analytics includes key players such as IBM Corporation; Microsoft Corporation; SAP ERP; Oracle Corporation; and Tableau Software, Inc. These players have started adopting inorganic and organic marketing strategies like collaborations, mergers, acquisitions, partnerships to widen their product portfolio and reach.
Further key findings from the report :
- The large enterprises segment dominated the global market in 2018.
- The segment of cloud deployment is projected to register the highest CAGR during the forecasted years, 2019 to 2025.
- North America dominated the global predictive analytics market in 2018.
- The key players in this market are IBM Corporation; Microsoft Corporation; SAP ERP; Oracle Corporation; and Tableau Software, Inc.
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