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Prescriptive Analytics Market Overview
The growing prominence of big data across all major industries, emergence of advanced technologies such as internet of things (IoT) and artificial intelligence (AI), and increasing demand for effective data-driven decision making are some of the key factors supporting the growth of the prescriptive analytics market across the globe.
Prescriptive analytics is the area of data analytics which offers a data driven approach to making complex decisions. Prescriptive analytics solutions use optimization technology to solve complex challenges with millions of decision variables, constraints, and tradeoffs. On the basis of component, the prescriptive analytics market has been categorized into software and service, wherein the service category is expected to witness faster growth during the forecast period, owing to the increasing demand for integration and implementation, and consulting services.
On the basis of deployment type, the market has been divided into on-premises and cloud. Of these, the on-premises category held the larger share in the market in 2018. As the on-premises deployment model offers greater confidentiality and privacy parameters to the organizational data, a large number of businesses are adopting it.
Based on enterprise size, the prescriptive analytics market has been bifurcated into large enterprise and small & medium enterprise (SME). Of these, the large enterprise category held the larger share in 2018. Due to their widespread geographical presence and customer base, large companies produce large amounts of data daily. Thus, they are increasingly adopting prescriptive analytics to make effective decisions, improve operation, retain existing and attract new customers, improve profit margins, and reduce future risks.
Based on region, North America held the largest market share in 2018. Technological advancement and the rising popularity of data-driven decision making are the key factors supporting the growth of the market in the region. On the other hand, Asia-Pacific (APAC) is expected to witness the fastest growth in the global prescriptive analytics market during the forecast period. Economic development, increasing investments in artificial intelligence and machine learning, and growing adoption of advanced analytical technologies for effective decision making are expected to drive the market in the region.
Prescriptive Analytics Market Dynamics
The growing prominence of big data across the globe is primarily fueling the growth of the prescriptive analytics market. The worldwide big data and business analytics market generated revenue of around $168 billion in 2018, and it is further expected to reach nearly $275 billion by 2022. Due to the increasing adoption of digital technologies and increasing internet penetration, coupled with the growing adoption of mobile devices, huge volumes of structured, semi-structured, and unstructured data are generated every day. Presently, companies are storing, managing, and analyzing this big data to take effective decisions and improve operation. Prescriptive analytics takes data analytics one step further by offering specific solutions for solving the issues arising in predictive data analysis. It helps organizations avoid risky business moves and reduce financial losses by providing an efficient outcome. Thus, organizations are increasingly adopting prescriptive analytics for faster and effective decision making to enhance efficiency and productivity.
The prospering healthcare industry is offering immense growth opportunities to the prescriptive analytics market players, worldwide. The global healthcare expenditure is expected to grow from $7.7 trillion in 2017 to $10.1 trillion in 2022. The increasing aging population, rising wealth, and advances in medical technology are some of the key factors driving the growth of the healthcare industry across the globe. Moreover, the growing telemedicine market is further reshaping the future of the healthcare sector, worldwide. Large number of patients suffering from chronic diseases, a surge in the need to cut down on healthcare costs, and improvements in the healthcare infrastructure in developing countries are the factors propelling the growth of the telemedicine market globally. Presently, healthcare centers generate a large volume of data every day, driven by record keeping, patient care, and regulatory compliance requirements. These institutes are increasingly analyzing this large data for effective decision making. Prescriptive analytics continues to demonstrate suggested actions to make healthcare providers more successful, profitable, and responsive to patient needs.
Prescriptive Analytics Market Competitive Landscape
With the presence of numerous prominence market players, presently, the prescriptive analytics market is competitive in nature. Some of the market players have been focusing on strategic measures such as mergers and acquisitions, partnerships, and product launches to expand their market foothold. For instance, in January 2018, Datawatch Corporation, a U.S.-based data intelligence provider, acquired Angoss Software Corporation, a privately held data science platform provider based in Toronto, Canada. The acquisition enhances Datawatch’s Monarch data intelligence capabilities that enable data scientists to perform predictive and prescriptive analysis in a wide variety of enterprise applications.
Furthermore, in May 2016, River Logic Inc., a U.S.-based technology company launched a cloud-based prescriptive analytics and performance management platform. With this platform, the company offers advanced visualization, embedded business knowledge, and unlimited what-if capabilities for trade-off analysis.
Some of the key players operating in the global prescriptive analytics market are International Business Machines Corporation, River Logic Inc., Fair Isaac Corporation (FICO), TIBCO Software Inc., Frontline Systems Inc., NGDATA Inc., Ayata, Fractal Analytics Inc., and Nelito Systems Ltd.
Prescriptive Analytics Market Segmentation
Market Segmentation by Component
Market Segmentation by Deployment Type
Market Segmentation by Enterprise Size
Market Segmentation by Application
Market Segmentation by Vertical
Market Segmentation by Region