Customer demands, cloud services drive demand for predictive analytics

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Having the ability to predict future events on the basis of what’s already occurred can provide a strong competitive advantage for companies. So it’s not surprising that there’s increased demand for predictive analytics software.

The worldwide market for predictive analytics is expected to rise at a compound annual growth rate (CAGR) of 22 percent between 2018 and 2014, according to research firm Research and Markets.

Among the key drivers of market growth are rising demand for advanced analytics to predict future outcomes and customer requirements and advancements in cloud-based services.

Ongoing advancement in technologies such as artificial intelligence (AI) and growing demand for better analytics tools from small and medium-sized businesses are also helping to fuel the market.

A March 2019 report by research firm Gartner Inc. noted that data and analytics can deliver “profound benefits” to mid-sized companies and are becoming critical for differentiation and even long-term survival.

For example, farming operations can improve productivity, growth and margins by using analytics; retailers can use video analytics and visualizations to understand shopper profiles and shopping traffic patterns; financial services providers can continuously improve their risk models with more accurate assessments of risk; and manufacturers can combine “what if” analyses with predictive models to determine the causes of quality fluctuations.

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