Updated date - Oct 05, 2019

[148 Pages Report] The prescriptive analytics market size is estimated to grow from USD 1.16 billion in 2016 to USD 4.58 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 31.7% during the forecast period. The base year considered for this report is 2015 and the forecast period is 2016�2021. Major growth drivers of the mobile BI include increasing BYOD trend, rise in importance of mobile enterprise application platform (MEAP), data-driven decision-making, proliferation of in-memory computing. As organizations today have growing access to the real-time data they are leveraging it for gaining competitive edge over their competitors which is coupled with an increase customer satisfaction through enhancements in customer which are supporting factors accelerating the growth of the market.

Prescriptive Analytics Market Dynamics

Drivers

Emergence of advanced technologies, such as, big data, and IoT

Rising popularity of real-time accessibility of data for efficient business operations

Restraints

Complex analytical workflow

Dynamic nature of data

Opportunities

Overcoming the lacunae of traditional business intelligence tools

Growing investment in big data infrastructure across geography

Rise in cyber-crimes and need for crime prediction and prevention

Challenges

Lack of advanced analytical knowledge among the workforce

Diversity of data models based on business needs

Prescriptive analytics is a part of advanced analytics, which has complemented the traditional BI methodologies and has extended organizations reach into real-time decision making prescriptive analytics is an advanced form of analytics, which comprehensively analyzes the data to determine the best possible outcomes among numerous choices under given parameters. This advanced technology combines tools and techniques such as machine learning, artificial intelligence, mathematical sciences, and multiple computational modelling procedures to prescribe the next course of action that should be undertaken. Organizations are extensively using predictive analytics to meet the challenges in the competitive market. The technology development has increased the capacity for capturing data; this rise in capacity is likely to create confusion with availability of data of different type with similar impact. Prescriptive analytics tools and techniques would be the real enabler for enterprises looking to safeguard their data against these data threats. The volume of data analyzed by the prescriptive algorithms enables the data scientists to visualize the patterns of attacks based on certain factors like geographical area, size, and vertical and suggests proper steps that could be taken to mitigate such catastrophes.

Objectives of the report:

To describe and forecast the global prescriptive analytics market on the basis of components, data types, business functions, applications, deployment models, verticals, and regions

To forecast the market size of the five main regional segments, namely, North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America

To strategically analyze subsegments with respect to individual growth trends, future prospects, and contribution to the total market

To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)

To analyze the opportunities in the market for stakeholders and to provide details of a competitive landscape for major players

To comprehensively analyze core competencies* of key players

To track and analyze competitive developments such as mergers & acquisitions, new product developments, and partnerships & collaborations in the market

During this research study, major players operating in the prescriptive analytics market in various regions have been identified, and their offerings, regional presence, and distribution channels have been analyzed through in-depth discussions. Top-down and bottom-up approaches have been used to determine the overall market size. Sizes of the other individual markets have been estimated using the percentage splits obtained through secondary sources such as Hoovers, Bloomberg BusinessWeek, and Factiva, along with primary respondents. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews with industry experts such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the market. The figure below shows the breakdown of the primaries on the basis of the company type, designation, and region considered during the research study.

BREAKDOWN OF PRIMARY PARTICIPANTS

Note: �Others� includes sales managers, marketing managers, and product managers. Tiers of the companies have been defined based on its total revenue as of 2017; Tier 1 = > USD 100 million, Tier 2 = USD 50 million � USD 100 million, and Tier 3 = < USD million 50

Major Prescriptive Analytics Market Developments

In August 2016, River Logic partnered with GitaCloud to provide �Planning and Decision Analytics� to various industry verticals such as automotive, pharmaceutical consumer goods, and other manufacturing sectors in the North American and APAC markets. In June 2016, FICO acquired QuadMetrics, a firm that implements predictive analytics to rate cybersecurity of organization. This acquisition is likely to leverage quantitative and qualitative insights to evaluate and identify the cybersecurity risks of an organization�s assets. In May 2016, River Logic launched cloud-based prescriptive planning and performance management platform. The platform delivers embedded business knowledge, cutting-edge visualizations and capabilities, and numerous capabilities for trade-off analysis.

Key Target Audience

Solution vendors

Original equipment manufacturers

System integrators

Advisory firms

National regulatory authorities

Venture capitalists

Private equity groups

Investment houses

Equity research firms

Scope of the Report

Report Metrics Details Market size available for years 2016�2021 Base year considered 2015 Forecast period 2016�2021 Forecast units Billion (USD) Segments covered Components, Data Types, Business Functions, Applications, Deployment Models, Verticals, and Regions Geographies covered North America, Europe, APAC, MEA, and Latin America Companies covered IBM Corporation (U.S.), FICO (U.S.), River Logic, Inc. (U.S.), Ayata (U.S.), Angoss Software (U.S.), Profitect (U.S.), Frontline (U.S.), Panoratio (Germany), TIBCO Software (U.S.), and NGData (Belgium)

Prescriptive Analytics Market by Component:

Software

Service Professional Service Managed Service



Prescriptive Analytics Market by Data Type:

Unstructured Data

Semi-Structured Data

Structured Data

Prescriptive Analytics Market by Business Functions:

Human resources (HR)

Marketing

Sales

Finance

Operations

The report provides detailed insights into the global prescriptive analytics market, which is segmented by component, data type, applications, business functions, deployment model, vertical, and region. In business functions, the operation segment holds the largest market share and is gaining significant importance among corporates and enterprises. Operations find surplus applications, which can benefit by adapting prescriptive analytics technology. Remote operations such as drilling, mining, solar, and wind farms, power substations often faces poor network connectivity, limited bandwidth and high costs of data transfer to central analytical hubs. Advanced analytics is a boon to these industries that require real time intelligence to make swift decisions in remote locations. Unstructured data type is expected to grow at the highest CAGR during the forecast period. Advent of big data, IoT, and smart cities are all contributing to the enormous amount of data being generated out of enterprises.

On-premises deployment model has higher adoption as compared to the on-demand deployment model. The on-premises deployment model provides confidentiality and privacy parameters to the organizational data; hence, most of the organizations are adopting the on-premises deployment model. The BFSI segment has shown the largest market share in vertical segment, where prescriptive analytics solutions are used to predict the right product portfolio, increasing precisions and timeliness of mortgage or deposit pricing, collecting the debt competently, and making right investment that drives the profits of the banks. However, manufacturing industry is poised to grow at the highest rate during the forecast period, which will help them in streaming real-time analytics ingesting from sensors and devices situated at the shop floor of the factory.

The report covers all the major aspects of the prescriptive analytics market and provides an in-depth analysis across the regions of North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. The market in North America is expected to hold the largest share of the market. The APAC region is projected to have great opportunities in this market and would grow at the highest CAGR by 2021. Complex analytical workflow and dynamic nature of data are acting as the restraining factors for the prescriptive analytics market. Lack of advanced analytical knowledge among the workforce and diversity of data models based on the business needs are some of the stumbling blocks in the adoption of prescriptive analytics solutions.

Most of the vendors have adopted agreements, collaborations & partnerships, new product developments, product upgradations, and expansions as the key strategies to enhance their client base and customer experience. For instance, in August 2016, River cloud partnered with GitaCloud to provide �Planning and Decision Analytics� to various industry verticals such as automotive, pharmaceutical consumer goods, and other manufacturing sectors in the North American and APAC markets. Product upgradation has also been adopted by top players to innovate in this market space. For example, in April 2016, Angoss software released 9.6 version of software suite, with enhancements to KnowledgeSEEKER, KnowledgeSTUDIO, KnowledgeREADER, and InsightOPTIMIZER products. Angoss boosted its prescriptive analytics product, InsightOPTIMIZER, by integrating dataset and record level optimization. The growth of prescriptive analytics market depends on the factors, such as demand for real-time accessibility of data for efficient business operations and emergence of advanced technologies such as big data and IoT.

Key Questions Addressed in the Prescriptive Analytics Market Report:

Which are the substitute products and how big is the threat from them?

Which are the top use cases where prescriptive analytics can be implemented for revenue generation through new advancements such as AI, IoT, and cloud computing?

What are the potential opportunities in the adjacent markets, such as Big Data and predictive analytics?

What should be your go-to-market strategy to expand the reach into developing countries across APAC, MEA, and Latin America?

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