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Prescriptive Analytics Market by Component (Software and Service), Data Type (Unstructured, Semi-Structured, and Structured), Application, Business Function, Deployment Model, Vertical, and Region - Global Forecast to 2021

By: marketsandmarkets.com
Publishing Date: January 2017
Report Code: TC 4874

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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.

Objectives of the Study:

The main objective of this report is to define, describe, and forecast the global prescriptive analytics market on the basis of components, data types, applications, business functions, deployment models, verticals, and regions. The report provides detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges). It aims to strategically analyze micro markets with respect to individual growth trends, future prospects, and contribution to the total market. The report attempts to forecast the market size with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America. It strategically profiles key players and comprehensively analyzes their core competencies. This report also tracks and analyzes competitive developments such as joint ventures, acquisitions, new product developments, and Research & Development (R&D) activities in the prescriptive analytics market.

The research methodology used to estimate and forecast the market begins with capturing data on key vendor’s revenues through a secondary research. The sources referred for secondary research include, Hoovers, Bloomberg Businessweek, Factiva, and OneSource. The vendor offerings are also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global prescriptive analytics market from the revenue of the key players in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and to arrive at the exact statistics for all segments and subsegments. The breakdown of primary profiles is depicted in the below figure:

The breakup of primary participants is as follows

Prescriptive Analytics Market

To know about the assumptions considered for the study, download the pdf brochure

The prescriptive analytics ecosystem comprises solutions and service providers such as 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).

Key Target Audience:

  • Independent Software Vendors
  • Business Analytics Software Providers
  • IT Service Providers
  • Cloud Service Providers
  • System Integrators
  • Application Design and Software Developers

 “Study answers several questions for the stakeholders, primarily which market segments will focus in the next two to five years for prioritizing the efforts and investments”.

Scope of the Report:

The research report categorizes the prescriptive analytics market to forecast the revenues and analyzes the trends in each of the following subsegments:

By Component:

  • Software
  • Services

By Data Type:

  • Unstructured
  • Semi-structured
  • Structured

By Application:

  • Risk Management
  • Operation Management
  •  Revenue Management
  •  Network management
  • Supply Chain Management
  • Workforce Management
  • Others

By Business Function:

  • HR
  • Sales
  • Marketing
  • Finance
  • Operations

By Deployment Model:

  • On-Premises
  • On-Demand

By Vertical:

  • Healthcare and life sciences
  • BFSI
  • IT and Telecommunication
  •  Retail and Consumer Goods
  • Media and Entertainment
  • Manufacturing
  • Energy and Utility
  • Travel and hospitality
  • Transportation and logistics
  • Government and Defense
  • Others

By Region:

  • North America
  • Europe
  • Middle East and Africa (MEA)
  • Asia-Pacific (APAC)
  • Latin America

Available Customizations:

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis:

Product matrix gives a detailed comparison of product portfolio of each company.

Geographic Analysis:

  • Further breakdown of the North America prescriptive analytics market
  • Further breakdown of the Europe market
  • Further breakdown of the APAC market
  • Further breakdown of the MEA market
  • Further breakdown of the Latin America market

Company Information:

  • Detailed analysis and profiling of additional market players

Emergence of advanced technologies, such as big data and Internet of Things (IoT) and rising need of real-time accessibility of data for efficient business operations to drive the global prescriptive analytics market to USD 4.58 billion by 2021

Prescriptive analytics is an advanced form of analytics, which comprehensively analyses the data to determine the best possible outcomes among numerous scenarios under given parameters. This advanced technology combines tools and techniques such as machine learning, Artificial Intelligence (AI), mathematical sciences, and multiple computational modelling procedures to prescribe the next best-course of action. The technology enables forecasting future scenarios, prescribing various outcomes that might arise with the passage of time. The prescriptive analytics technology utilizes both descriptive as well as predictive analytical algorithms to help businesses take quick and actionable decisions in near real-time. The much-anticipated self-driving cars are the best example of prescriptive analytical techniques that will drive the way into the future.

The explosion of big data has already become a clichι in the Business Intelligent (BI) space. Businesses are looking for solutions to analyze their massive customer data pool. Prescriptive analytics is gaining traction as it enables businesses to analyze the past and future patterns of the data and recommend the best possible actions. This has helped business organizations to enhance their decision-making process further enhancing their profitability.

Banking, financial services, and insurance (BFSI), government and defense, and retail and consumer goods are few of the verticals, with wide adoption of prescriptive analytics software and services. This is due to the data-centric characteristics of these verticals. Apart from this, the manufacturing industry has shown significant growth rate during the forecast period. There are various opportunities prevailing in this market such as overcoming the lacunae of traditional BI tools, growing investment in big data infrastructure across geography, and increasing cybercrime arising the need for threat prediction and prevention.

Overcoming the lacunae of traditional BI tools and growing investment in big data infrastructure globally are major opportunities in the market

High growth in volume of data have created complexities, which the conventional BI tools cannot manage and thus, has led necessity for improved analytic tools. Business users today need tools where they can utilize fresh untouched data to respond to operational issues, customer engagement, opportunities, and business threats. 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. The BI traditionally uses constant sets of metrics to measure historical performance and to guide future business planning, whereas the advance analytics tools such as prescriptive analytics works beyond the traditional BI and focuses on dedicated modelling techniques to forecast future actions.

With massive eruption of big data in the industry; companies across all regions are investing heavily in big-data analytics to develop better forecasting methods and to ensure maximum returns. According to a recent study, 51% of organizations with over 1000 employees are planning to increase their investments in big data in the coming years. With greater awareness of scope of big data large enterprises are biggest beneficiaries of big data implementations.

Market Dynamics

Prescriptive Analytics Market

Table of Contents

1 Introduction (Page No. - 15)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered in the Report
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries
    2.2 Market Size Estimation
    2.3 Market Breakdown and Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 29)
    4.1 Attractive Market Opportunities in the Prescriptive Analytics Market
    4.2 Market Share of Applications and Top Three Regions
    4.3 Lifecycle Analysis, By Region
    4.4 Market Investment Scenario
    4.5 Prescriptive Analytics Market: Top Three Verticals

5 Market Overview (Page No. - 32)
    5.1 Introduction
    5.2 Market Segmentation
           5.2.1 By Component
           5.2.2 By Application
           5.2.3 By Business Function
           5.2.4 By Deployment Model
           5.2.5 By Vertical
           5.2.6 By Region
    5.3 Evolution
    5.4 Market Dynamics
           5.4.1 Drivers
                    5.4.1.1 Emergence of Advanced Technologies Such as Big Data and IOT
                    5.4.1.2 Rising Popularity of Real-Time Accessibility of Data for Efficient Business Operations
           5.4.2 Restraints
                    5.4.2.1 Complex Analytical Workflow
                    5.4.2.2 Dynamic Nature of Data
           5.4.3 Opportunities
                    5.4.3.1 Overcoming the Lacunae of Traditional Business Intelligence Tools
                    5.4.3.2 Growing Investment in Big Data Infrastructure Across Geography
                    5.4.3.3 Rise in Cyber-Crimes and Need for Crime Prediction and Prevention
           5.4.4 Challenges
                    5.4.4.1 Lack of Advanced Analytical Knowledge Among the Workforce
                    5.4.4.2 Diversity of Data Models Based on Business Needs
                    5.4.4.3 Reluctance to Adopt Advanced Analytical Technology

6 Industry Trends (Page No. - 41)
    6.1 Introduction
    6.2 Value Chain Analysis
    6.3 Prescriptive Analytics Use Cases
           6.3.1 Introduction
                    6.3.1.1 Travel and Transportation Optimization
                    6.3.1.2 Oil Production Through Fracking
                    6.3.1.3 Improving the Healthcare Industry
                    6.3.1.4 Google’s Self-Driven Car
    6.4 Strategic Benchmarking

7 Prescriptive Analytics Market, By Component (Page No. - 45)
    7.1 Introduction
    7.2 Software
    7.3 Services
           7.3.1 Professional Services
           7.3.2 Managed Services

8 Prescriptive Analytics Market Analysis, By Data Type (Page No. - 49)
    8.1 Introduction
    8.2 Unstructured Data
    8.3 Semi-Structured Data
    8.4 Structured Data

9 Prescriptive Analytics Market Analysis, By Application (Page No. - 53)
    9.1 Introduction
    9.2 Risk Management
    9.3 Operations Management
    9.4 Revenue Management
    9.5 Network Management
    9.6 Supply Chain Management
    9.7 Workforce Management
    9.8 Others

10 Prescriptive Analytics Market Analysis, By Business Function (Page No. - 60)
     10.1 Introduction
     10.2 Human Resources
     10.3 Sales
     10.4 Marketing
     10.5 Finance
     10.6 Operations

11 Prescriptive Analytics Market Analysis, By Deployment Model (Page No. - 66)
     11.1 Introduction
     11.2 On-Premises
     11.3 On-Demand

12 Prescriptive Analytics Market Analysis, By Vertical (Page No. - 70)
     12.1 Introduction
     12.2 Healthcare and Life Sciences
     12.3 Banking, Financial Services, and Insurance
     12.4 Information Technology and Telecommunications
     12.5 Retail and Consumer Goods
     12.6 Media and Entertainment
     12.7 Manufacturing
     12.8 Energy and Utilities
     12.9 Travel and Hospitality
     12.10 Transportation and Logistics
     12.11 Government and Defense
     12.12 Others

13 Geographic Analysis (Page No. - 82)
     13.1 Introduction
     13.2 North America
             13.2.1 United States (U.S.)
             13.2.2 Canada
     13.3 Europe
             13.3.1 United Kingdom (U.K.)
             13.3.2 France
             13.3.3 Germany
             13.3.4 Rest of Europe
     13.4 Asia-Pacific
             13.4.1 Australia
             13.4.2 New Zealand
             13.4.3 South Korea
             13.4.4 China
             13.4.5 India
             13.4.6 Rest of Asia-Pacific
     13.5 Middle East and Africa
             13.5.1 Middle East
             13.5.2 Africa
     13.6 Latin America
             13.6.1 Brazil
             13.6.2 Mexico
             13.6.3 Rest of Latin America

14 Competitive Landscape (Page No. - 109)
     14.1 Overview
     14.2 Competitive Situations and Trends
             14.2.1 Partnerships, Collaborations, & Agreements
             14.2.2 Acquisition
             14.2.3 New Product Launches
             14.2.4 Expansions
     14.3 Prescriptive Analytics Market: Vendor Comparison
     14.4 Vendor Inclusion Criteria
     14.5 Vendors Evaluated

15 Company Profiles (Page No. - 116)
     15.1 Introduction
(Overview, Financials, Products & Services, Strategy, and Developments)*
     15.2 IBM Corporation
     15.3 FICO
     15.4 Ayata
     15.5 River Logic, Inc.
     15.6 Angoss Software Corporation
     15.7 Profitect
     15.8 Tibco Software Inc.
     15.9 Frontline Systems Inc.
     15.10 Ngdata
     15.11 Panoratio

*Details on Overview, Financials, Product & Services, Strategy, and Developments Might Not Be Captured in Case of Unlisted Companies.

16 Key Innovators (Page No. - 138)
     16.1 IRI and MU Sigma
     16.2 Good Data and Absolute Data
     16.3 Qualmetrix Inc.
     16.4 Netformx
     16.5 Mitek Analytics LLC

17 Appendix (Page No. - 140)
     17.1 Key Insights
     17.2 Discussion Guide
     17.3 Knowledge Store: MarketsandMarkets Subscription Portal
     17.4 Available Customization
     17.5 Related Reports
     17.6 Author Details


List of Tables (79 Tables)

Table 1 Prescriptive Analytics Market Size and Growth, 2014–2021 (USD Million, Y-O-Y%)
Table 2 Market Size, By Component, 2014–2021 (USD Million)
Table 3 Software: tics Market Size, By Region, 2014–2021 (USD Million)
Table 4 Prescriptive Analytics Market Size, By Service 2014–2021 (USD Million)
Table 5 Services: Market Size, By Region, 2014–2021 (USD Million)
Table 6 Prescriptive Analytics Market Size, By Data Type, 2014–2021 (USD Million)
Table 7 Unstructured Data Type: Market Size, By Region, 2014–2021 (USD Million)
Table 8 Semi-Structured Data Type: Market Size, By Region, 2014–2021 (USD Million)
Table 9 Structured Data Type: Market Size, By Region, 2014–2021 (USD Million)
Table 10 Prescriptive Analytics Market Size, By Application, 2014–2021 (USD Million)
Table 11 Risk Management: Market Size, By Region, 2014–2021 (USD Million)
Table 12 Operation Management: Market Size, By Region, 2014–2021 (USD Million)
Table 13 Revenue Management: Market Size, By Region, 2014–2021 (USD Million)
Table 14 Network Management: Market Size, By Region, 2014–2021 (USD Million)
Table 15 Supply Chain Management: Market Size, By Region, 2014–2021 (USD Million)
Table 16 Workforce Management: Market Size, By Region, 2014–2021 (USD Million)
Table 17 Others: Market Size, By Region, 2014–2021 (USD Million)
Table 18 Prescriptive Analytics Market Size, By Business Function, 2014–2021 (USD Million)
Table 19 Human Resources: Market Size, By Region, 2014–2021 (USD Million)
Table 20 Sales: Market Size, By Region, 2014–2021 (USD Million)
Table 21 Marketing: Market Size, By Region, 2014–2021 (USD Million)
Table 22 Finance: Market Size, By Region, 2014–2021 (USD Million)
Table 23 Operations: Market Size, By Region, 2014–2021 (USD Million)
Table 24 Prescriptive Analytics Market Size, By Deployment Model, 2014–2021 (USD Million)
Table 25 On-Premises: Market Size, By Region, 2014–2021 (USD Million)
Table 26 N-Demand: Market Size, By Region, 2014–2021 (USD Million)
Table 27 Prescriptive Analytics Market Size, By Vertical, 2014–2021 (USD Million)
Table 28 Healthcare and Life Sciences: Market Size, By Region, 2014–2021 (USD Million)
Table 29 Banking, Financial Services, and Insurance: Market Size, By Region, 2014–2021 (USD Million)
Table 30 It and Telecommunications: Market Size, By Region, 2014–2021 (USD Million)
Table 31 Retail and Consumer Goods: Market Size, By Region, 2014–2021 (USD Million)
Table 32 Media and Entertainment: Market Size, By Region, 2014–2021 (USD Million)
Table 33 Manufacturing: Market Size, By Region, 2014–2021 (USD Million)
Table 34 Energy and Utilities: Market Size, By Region, 2014–2021 (USD Million)
Table 35 Travel and Hospitality: Prescriptive Analytics Size, By Region, 2014–2021 (USD Million)
Table 36 Transportation and Logistics: Prescriptive Analytics Size, By Region, 2014–2021 (USD Million)
Table 37 Government and Defense: Prescriptive Analytics Size, By Region, 2014–2021 (USD Million)
Table 38 Others: Market Size, By Region, 2014–2021 (USD Million)
Table 39 Prescriptive Analytics Market Size, By Region, 2014–2021 (USD Million)
Table 40 North America: Market Size, By Country, 2014–2021 (USD Million)
Table 41 North America: Market Size, By Vertical, 2014–2021 (USD Million)
Table 42 North America: Market Size, By Component, 2014–2021 (USD Million)
Table 43 North America: Market Size, By Data Type, 2014–2021 (USD Million)
Table 44 North America: Market Size, By Business Function, 2014–2021 (USD Million)
Table 45 North America: Market Size, By Application, 2014–2021 (USD Million)
Table 46 North America: Market Size, By Deployment Model , 2014–2021 (USD Million)
Table 47 Europe: Prescriptive Analytics Market Size, By Country, 2014–2021 (USD Million)
Table 48 Europe: Market Size, By Vertical, 2014–2021 (USD Million)
Table 49 Europe: Market Size, By Component, 2014–2021 (USD Million)
Table 50 Europe: Market Size, By Data Type, 2014–2021 (USD Million)
Table 51 Europe: Market Size, By Business Function, 2014–2021 (USD Million)
Table 52 Europe: Market Size, By Application, 2014–2021 (USD Million)
Table 53 Europe: Market Size, By Deployment Model, 2014–2021 (USD Million)
Table 54 Asia-Pacific: Prescriptive Analytics Market Size, By Country, 2014–2021 (USD Million)
Table 55 Asia-Pacific: Market Size, By Vertical, 2014–2021 (USD Million)
Table 56 Asia-Pacific: Market Size, By Component, 2014–2021 (USD Million)
Table 57 Asia-Pacific: Market Size, By Data Type, 2014–2021 (USD Million)
Table 58 Asia-Pacific: Market Size, By Business Function, 2014–2021 (USD Million)
Table 59 Asia-Pacific: Market Size, By Application, 2014–2021 (USD Million)
Table 60 Asia-Pacific: Market Size, By Deployment Model, 2014–2021 (USD Million)
Table 61 Middle East and Africa: Prescriptive Analytics Market Size, By Country, 2014–2021 (USD Million)
Table 62 Middle East and Africa: Market Size, By Vertical, 2014–2021 (USD Million)
Table 63 Middle East and Africa: Market Size, By Component, 2014–2021 (USD Million)
Table 64 Middle East and Africa: Market Size, By Data Type, 2014–2021 (USD Million)
Table 65 Middle East and Africa: Market Size, By Business Function, 2014–2021 (USD Million)
Table 66 Middle East and Africa: Market Size, By Application , 2014–2021 (USD Million)
Table 67 Middle East and Africa: Market Size, By Deployment Model, 2014–2021 (USD Million)
Table 68 Latin America: Prescriptive Analytics Market Size, By Country, 2014–2021 (USD Million)
Table 69 Latin America: Market Size, By Vertical, 2014–2021 (USD Million)
Table 70 Latin America: Market Size, By Component, 2014–2021 (USD Million)
Table 71 Latin America: Market Size, By Data Type, 2014–2021 (USD Million)
Table 72 Latin America: Market Size, By Business Function, 2014–2021 (USD Million)
Table 73 Latin America: Market Size, By Application, 2014–2021 (USD Million)
Table 74 Latin America: Market Size, By Deployment Model , 2014–2021 (USD Million)
Table 75 Partnerships, Agreements, and Collaborations, 2012 – 2016
Table 76 Acquisitions, 2015–2016
Table 77 New Product Launches, 2016
Table 78 Expansions, 2016
Table 79 Evaluation Criteria


List of Figures (45 Figures)

Figure 1 Prescriptive Analytics Market: Market Segmentation
Figure 2 Prescriptive Analytics Market: Research Design
Figure 3 Breakdown of Primary Interviews: By Company, Designation, and Region
Figure 4 Market Size Estimation Methodology: Bottom-Up Approach
Figure 5 Market Size Estimation Methodology: Top-Down Approach
Figure 6 Data Triangulation
Figure 7 Prescriptive Analytics Market: Assumptions
Figure 8 Top Three Revenue Generating Segments of the Market, 2016–2021
Figure 9 North America is Expected to Hold the Largest Market Share in the Market in 2016
Figure 10 Emergence of Advanced Technologies and Rising Popularity of Real-Time Access of Data are Driving the Growth of the Prescriptive Analytics Market in the Forecast Period
Figure 11 Supply Chain Management Application is Expected to Hold the Largest Market Share in Prescriptive Market in 2016
Figure 12 Asia-Pacific is Expected to Have the Highest Growth Opportunity in the Prescriptive Analytics Market During the Forecast Period
Figure 13 Market Investment Scenario: Asia-Pacific is the Best Market to Invest During the Forecast Period
Figure 14 Banking, Financial Services, & Insurance to Have the Largest Market Size During the Forecast Period
Figure 15 Prescriptive Analytics Segmentation: By Component
Figure 16 Market Segmentation By Application
Figure 17 Market Segmentation By Business Function
Figure 18 Market Segmentation By Deployment Model
Figure 19 Market Segmentation By Vertical
Figure 20 Market Segmentation By Region
Figure 21 Evolution of Prescriptive Analytics Market
Figure 22 Market Drivers, Restraints, Opportunities, and Challenges
Figure 23 Market Value Chain Analysis
Figure 24 Market Strategic Benchmarking
Figure 25 Software Component is Expected to Have the Largest Market Size During the Forecast Period
Figure 26 Structured Data Type is Estimated to Have the Largest Market Size During the Forecast Period
Figure 27 Supply Chain Management Application is Estimated to Have the Largest Market Size During the Forecast Period
Figure 28 Operations Business Function is Estimated to Have the Largest Market Size During the Forecast Period
Figure 29 On-Premises Deployment Model is Estimated to Have the Largest Market Size During Forecast Period
Figure 30 The Banking, Financial Services, and Insurance Vertical is Estimated to Have the Largest Market Size During the Forecast Period
Figure 31 North America is Expected to Have the Largest Market Size in the Prescriptive Analytics Market During the Forecast Period
Figure 32 North America Market Snapshot
Figure 33 Asia-Pacific Market Snapshot
Figure 34 Companies Adopted Partnerships, Collaborations & Agreements as Their Key Growth Strategy From 2011-2016
Figure 35 Market Evaluation Framework
Figure 36 Battle for Market Share: Partnerships, Collaborations, & Agreements, and Acquisitions Were the Key Strategy in the Prescriptive Analytics Market
Figure 37 Evaluation Overview Table: Product Offering
Figure 38 Evaluation Overview Table: Business Strategy
Figure 39 IBM Corporation: Company Snapshot
Figure 40 IBM: SWOT Analysis
Figure 41 FICO: Company Snapshot
Figure 42 FICO: SWOT Analysis
Figure 43 Ayata: SWOT Analysis
Figure 44 River Logic, Inc. : SWOT Analysis
Figure 45 Angoss Software Corporation : SWOT Analysis

The prescriptive analytics market is estimated to grow from USD 1.16 Billion in 2016 to USD 4.58 Billion by 2021, at a high Compound Annual Growth Rate (CAGR) of 31.7% during the forecast period. Emergence of advanced technologies such as big data and IoT and rising popularity of real-time accessibility of data for efficient business applications are the drivers that propel the growth of the market.

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.

Prescriptive Analytics Market

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.

Apart from established players in the market, the new entrants in the market are introducing new prescriptive solutions across multiple applications

Prescriptive Analytics Market

Risk Management

Risk management has shown a significant rise with the growth of enormous data sets of big data, and thus it requires special data management tools to process and examine them. The complexity exists not only in the massive amounts of data collected, but also in the increasing threats in the global business environment. The major challenge faced by professionals lies in determining solutions to put in action with predictions identified, hence prescriptive analytics has emerged as an alternative solution to assist enterprises in business decision-making by providing actionable analysis over predictive information. For instance, Unicredit, an Italian global banking and financial services provider adopted FICO’s decision management technology to improve customer relationships and credit risk management.

Operation Management

Operations management refers to governing various business practices and utilizing resources, such as workforce, resources, tools, and technology to build the highest possible level of efficiency within an organization. The rapid technological developments have brought new operating models into picture that are distributed and shared across organizations and individual contributors, worldwide. The implementation of prescriptive analytics in operations management enables real-time monitoring of business operations. Additionally, it also helps in applying statistical and quantitative simulation methodologies to collect data and leverage the insights of the data to boost decision-making, while improving business performance. Prescriptive analytics can help meet the future operational goals of enterprises by processing and examining outcomes of predictive analytics.

Revenue Management

Revenue management has been a major challenge for every business in this dynamic competitive era. Conventional revenue management technology is lacking to meet the changing demand of businesses, owing to the changes in consumer buying behavior, pricing transparency, and fluctuating economic conditions. Prescriptive analytics applies a holistic approach to sales that helps in rapid business conversions. It also scales efficient & effective business strategies and formulates decisions to improve enterprise’s profits and revenue. The prescriptive analytics tool uses demand forecasting, simulation techniques, inventory optimizations, and provides immediate pricing decisions, based on past scenarios. It also incorporates various data sources to use information from them to improve pricing decisions. The prescriptive analytics solution provides day-to-day recommendations by predicting customer demand patterns at an extreme clarity that allows businesses to maximize revenue through price optimizations.

Network Management

As more and more enterprises are shifting to the cloud, enterprises are considering networks as competitive assets in this era of connected world. Thus, networks are supposed to hold greater standard of performance and availability. As the network complexity grows, delivering superior performance is becoming a challenge for IT administrators and solution providers. Network management solution is a set of tools that allows supervision of every individual module of a network within a larger network framework in an organization and simultaneously, gathers data, while providing solutions to enterprises that are needed to identify and resolve issues. Establishing a network management solution requires dedicated analytical techniques, and hence, prescriptive analytics plays a vital role in managing networks in IT infrastructure with the help of real-time network events to make immediate businesses decisions. The adoption of analytics for network management is anticipated to rise in the coming years due to rising network security issues, such as data breaches & threats and shifts of businesses towards a smart connected world.

Supply Chain Management

Supply chain management solutions are deployed by various businesses operating under verticals, such as wholesale, retail, telecom and IT, and manufacturing. Supply chain management solutions help manage the requirements generated by these businesses. Massive amount of data is generated across the industry from procurement of raw material from its sourcing to manufacturing. Other sources that are aiding the growth of data in the process include transport management, warehouse management, customer management, and logistics management. Organizations are facing challenges in managing these complexities, and thus, are using prescriptive analytics to address the estimated demands of their clients and end-users. For example, FusionOps, a provider of supply chain intelligence cloud, released an extension to its FusionOps cloud platform with pre-defined prescriptive analytics tool. Enterprise users with this extension, can access recommendations that are generated through analytics, which they can trust to enhance their inventory to diminish operational cost while improving customer services.

Workforce Management

Workforce management solutions provide HR professionals with the information that is needed to optimize the business workforce. This solution delivers a talent management that results in more informed decisions and greater return over talents. Many organizations are transforming their workforce management analytics from predictive to prescriptive, to utilize alternatives generated by prescriptive analytics on the base of forecasts. Additionally, increasing implementation of analytics has been observed for talent acquisition, performance evaluation, and for managing employee retention & retirement schemes. Furthermore, adaption of prescriptive analytics techniques is likely to bring performance, as well as, cost benefits to the organization, ultimately driving revenues. For instance, Ultimate Software, a developer of human capital management software solutions in cloud, released UltiPro Spring 2016 with an expansion of its predictive and prescriptive analytics delivery, along with a new organization-charting tool to make employees understand and look across their organization's structure.

Key questions

  • 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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