Many enterprises can benefit from using predictive modeling. As the technology gets more accurate, easier to use and cheaper, the benefits of this type of analytics will only continue to increase.
According to Allied Market Research, the global predictive analytics market size reached $7.3 billion in 2019 and will increase to $35 billion by 2027, a compound annual growth rate of 22%.
With such a strong market, many enterprises are looking at whether predictive analytics use cases fit within their business models.
What is predictive modeling?
Predictive modeling, or predictive analytics, uses standard statistics, machine learning or even artificial intelligence to predict what’s going to happen next by looking at previous patterns in data.
One of the best-knownand oldest examples of predictive models is weather forecasting. It’s useful to know when it’s going to rain or be sunny, or if your house is in the path of a hurricane.