The market growth is driven by increased demand for 'customer intelligence' and 'fraud and security intelligence' software
ALBANY, USA: According to a new market report "Predictive Analytics Market (Customer intelligence, Decision support systems, Data mining and management, Performance management, Fraud and security intelligence, Risk management, Financial intelligence, Operations and Campaign management) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2013 - 2019," published by Transparency Market Research, the market for predictive analytics software is forecast to reach $6,546.4 million globally by 2019.
The market growth is driven by increased demand for 'customer intelligence' and 'fraud and security intelligence' software. Cloud hosted predictive analytics software solution is seen as an emerging market and is expected to drive growth in the near future.
Globally, the predictive analytics market was valued at $2,087.3 million in 2012 and is forecast to grow at 17.8 percent CAGR from 2013 - 2019. End-use sectors such as banking and finance services, insurance, government, pharmaceuticals, telecom and IT, and retail, are seen as key demand drivers during the forecast period. Collectively these segments accounted for 71.8 percent of the marker share in 2012.
Among all, companies under BFSI (banking, finance services, and insurance) sector are expected to account for the largest market share throughout the forecast period. However, retail and manufacturing, are expected to record faster growth as compared to any other segment. This is largely due to fast growing consumer driven digital data and the subsequent need to extract strategically critical information from the same.
Rise in incidences of frauds, payment defaults, over or under stock inventory levels, and stringent regulations regarding GRC (governance, risk, and compliance), have pushed companies to adopt predictive analytical models, so they can gain futuristic insights and take preventive measures.
Demand for industry specific software solutions has caused customer intelligence, fraud and security intelligence, and campaign management to emerge as leading segments. These segments together accounted for approximately 50 percent of market revenue in 2012. These different software solution types are used for supporting organizational functions/applications such as sales and marketing, customer and channel management, operations and workforce management, and finance and risk management.
Among these software solutions for finance and risk management applications accounted for 40.9 percent of revenue share in 2012. The demand has seen a surge amidst the restraining impact of current global economy, where companies have been looking for measures to effectively manage their finances and associated risks.
Most of these software solutions are currently delivered through on-premises installation, and such installed solutions alone accounted for more than three-fourth of revenue share. Demand from companies with strong financial arms has been a key contributor to their high revenue share.
However, with rise in awareness pushing the demand up from small and medium businesses, cloud based predictive analytics software solutions and services are expected to emerge as an alternative. Low cost, ease of switching the vendor, and scope for upgrade as per requirements, are some of the factors supporting demand for cloud hosted software solutions.