Prescriptive Analytics Market Forecasts to 2028 - Global Analysis By Data Type, By Component, By Business Function, By Organization Size, By Deployment Model, By Application, By End User and By Geography

According to Stratistics MRC, the Global Prescriptive Analytics Market is accounted for $6.0 billion in 2022 and is expected to reach $19.7 billion by 2028 growing at a CAGR of 22.0% during the forecast period. Prescriptive analytics is a method for making decisions regarding the results of company operations. Prescriptive analytics is used in a variety of businesses to improve business operations by maximising trade-offs between objectives like costs or customer service, to boost customer satisfaction, and to identify first-in-market possibilities by using big data. Prescriptive analytics is a system that uses practices and methods including descriptive, diagnostic, and predictive analytics to predict potential outcomes for a given circumstance.

Prescriptive analytics typically offers insights such as data on potential outcomes, prior results, and available resources and recommends a course of action or strategy that must be implemented or modified. Moreover, prescriptive analytics not only forecasts potential outcomes but also analyzes why they are likely to occur. Thus, a prescriptive model is frequently used to obtain insight into recommendations related to activities that can benefit from the forecasts. Due to its potential to quantify the impact of future decisions and predict future outcomes, prescriptive analytics are therefore projected to experience a large increase in demand among enterprises worldwide.

According to a study by NASSCOM (National Association of Software and Service Companies), the Indian analytics industry is predicted to reach USD 16 Billion mark by 2025.

Market Dynamics:

Driver:

Increasing acceptance of real-time data access for efficient business operations

Every organisation focusing on its business expansion in a competitive market must use data-driven decision-making. Real-time data accessibility assists firms in processing and analysing data, which is then used to produce regular strategies for improving corporate performance and gaining an advantage over rivals. Also, businesses are utilising the advantages of business intelligence and analytical tools more and more, not only to gather perspectives but also to drive strategic decision-making in real-time. Prescriptive analytics employs ML and AI to identify and recommend an action or collection of activities that can be used to control potential future scenarios.

Restraint:

Data's dynamic nature

Big data's nature depends on its volume, diversity, velocity, variability, and veracity, which makes managing data sets challenging, especially when significant volumes originate from a number of sources. The increase in data leads to a change in the type of data gathered as businesses move towards more data-driven decision-making techniques. Technological advancements have increased the capacity for data collection, and this increase in capacity is likely to cause confusion because diverse types of data with similar effects have become more easily accessible. Predictive analytics is widely used by businesses to overcome obstacles in a competitive industry. Due to the lack of effective and efficient algorithms for retrieving accurate data, the dynamic nature of the data is anticipated to constrain analysis because it is constantly changing.

Opportunity:

Overcoming the shortcomings of existing business intelligence tools

Every company has been impacted by the growing volume of data. The increase in data volume has led to a complexity that traditional BI systems are unable to handle. This has increased the demand for better analytical tools. Today's business users require tools that allow them to respond to operational issues, consumer interaction, business opportunities, and threats. Advanced analytics, which have complemented conventional BI approaches and enabled enterprises to reach real-time decision making, include prescriptive analytics. Both descriptive and predictive analysis can be used to identify prescriptive analysis.

Threat:

Diversity of data models based on business needs

In the past few decades, data growth has expanded at an enormous rate which is restraining the market growth. Owing to big data, businesses are gathering the enormous amounts of data from sensors, cameras, the web, and other sources to distinctly engage with their customers and provide them with personalised guidance and preferential treatment. Several advanced analytics models are required to handle the unstructured data, which is made up of text, video, image, and sound data. For instance, data generated by machines is represented differently than data generated by the web and social media. Supply chain analytics and operational analytics can be used to examine machine-generated data, while social media analytics can be used to analyse online and social network data.

COVID-19 Impact:

Due to lockdowns, travel restrictions, and business closures, COVID-19 has had an impact on the businesses and industries of numerous nations. The closing of numerous plants and factories has had a detrimental influence on production, delivery schedules, and sales of products on the international market. Only a few businesses have already been warned of potential delivery delays and eventual sales declines. Also, the chances for commercial relationships and collaborations are being impacted by the international travel bans implemented by nations in Europe, Asia-Pacific, and North America.

The Banking, Financial Services and Insurance segment is expected to be the largest during the forecast period

Because of the enormous data generation within the banking system, which is responsible for cases of fraud, it is anticipated that the BFSI segment will experience the largest share of the market throughout the anticipated period. The demand for prescriptive analytics to preserve financial sector security is therefore positively rising as a result of reducing risks and fraud-related cases in the financial industry. Also, the results of prescriptive analytics assist the financial sector in raising client satisfaction with their offerings.

The Supply Chain Management segment is expected to have the highest CAGR during the forecast period

Throughout the projected period, it is predicted that the supply-chain management segment will have the highest CAGR as several industry sectors, including manufacturing, retail, wholesale, and others, use supply-chain solutions. The management of inventories across all verticals is assisted by supply-chain management technologies. As raw materials are purchased and used in manufacturing, a significant amount of data is generated within the business. However, the supply chain management segment's demand in the prescriptive analytics market is being driven by the organisation's goal of lowering costs and increasing profits.

Region with largest share:

Due to rising adoption costs for new technologies like big data, cloud computing, social media, and mobility, which are anticipated to fuel market expansion throughout the forecast period, the North American region held a dominant position in the prescriptive analytics market in 2021 and is expected to have the largest market share during the projection period. Additionally, the volume of data across the verticals rises proportionately with the adoption of new technology. For important insights that assist in developing company strategies, organisations need an analytical tool. As a result, prescriptive analytics helps organisations create business strategies based on current information.

Region with highest CAGR:

As most would consider normal to drive the development of the market over the forecast period, the North American region is expected to have the highest CAGR. This is due to expanding spending on the reception of new advances like huge information, cloud innovation, web-based entertainment, and portability innovations, among others. Furthermore, increasing the acceptance of new innovations generally boosts the volume of information across all verticals. In order to get essential data that helps in the creation of business methodologies, organisations need a scientific instrument.

Key players in the market

Some of the key players in Prescriptive Analytics market include: INFOR, ORACLE CORPORATION, TERADATA CORPORATION, SALESFORCE.COM, INC., FAIR ISAAC CORPORATION, SAP SE, TIBCO SOFTWARE INC., IBM Corporation, INTERNATIONAL BUSINESS MACHINES CORPORATION, Frontline Systems Inc, RIVER LOGIC, INC., Altair Engineering Inc, SAS INSTITUTE INC., Microsoft Corporation and Profitect.

Key Developments:

In September 2021, Infor launched the next generation of hospitality management solution that puts mobile capabilities for exceptional personalized guest services in the spotlight.

In August 2021, Sisense launched the latest Sisense Q2 2021 which allows organizations to build extensible insights, explore latest features, explore additional dimensions with Sisense Explanations, and infuse images into pivot tables.

In May 2021, SAS announced to reinforce the foundation for data and analytics success by incorporating new data management solutions into its cloud native SASViya platform.

In March 2021, IBM launched its Cloud Satellite which offers cloud services to its clients anywhere. Using this, clients can automate deployment and management of cloud native services for both development and operations, resulting in increasing business agility.

In November 2020, IBM launched 5G and Edge Computing which helps businesses bringing computation and data storage closer to the source of the data, which further makes it easier to act on the insights generated from the data.

In August 2020, Talend released the 2020 update of its Talend Data Fabric solution for expanding cloud capabilities to meet the customer needs.

Data Types Covered:

• Unstructured Data
• Structured Data
• Semi Structured Data

Components Covered:

• Services
• Software

Business Functions Covered:

• Sales
• Finance
• Human Resources
• Marketing
• Operations

Organization Size Covered:

• Small and Medium Sized Enterprises
• Large Enterprises

Deployment Models Covered:

• Cloud
• On Premises
• On Demand

Applications Covered:

• Operations Management
• Network Management
• Risk Management
• Revenue Management
• Workforce Management
• Supply Chain Management
• Other Applications

End Users Covered:

• Banking, Financial Services and Insurance
• Healthcare and Life Sciences
• Retail and E Commerce
• Telecom and Information Technology
• Manufacturing
• Media and Entertainment
• Travel and Hospitality
• Energy and Utility
• Government and Defense
• Transportation and Logistics
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances