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Comprehensive Guide to Types of Clustering in Machine Learning and Applications

By Pavan Vadapalli

Updated on Feb 25, 2025 | 15 min read | 1.7k views

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What if you could quickly identify patterns in your data? Clustering makes this possible. It’s a key technique in data analysis and machine learning that groups similar data points, revealing insights that are often hidden. By simplifying complex data, clustering helps you make better decisions in fields like healthcare, marketing, and finance.

Understanding the types of clustering and their algorithms is crucial. Each clustering algorithm serves a different purpose, and choosing the right one depends on your specific data and goals.

In this article, you’ll learn about the different types of clustering, their uses, and how they power machine learning models. You’ll discover how clustering can improve your data analysis and lead to smarter, more informed decisions. Let’s dive right in!

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Types of Clustering Methods in Machine Learning

Clustering helps you group similar data points together, making it easier to identify patterns. In machine learning, different clustering methods can be used depending on the type of data you have. Each method has its own strengths, so knowing which one to apply is key to getting meaningful results.

Here, you'll learn about popular clustering techniques like DBSCAN and K-means. Knowing these methods will help you apply the best one for your needs.

Connectivity-Based Clustering in Machine Learning

Connectivity-based clustering focuses on the idea of spatial proximity. This means that the data points are grouped together based on their closeness to each other. This method is crucial when understanding relationships in hierarchical structures. 

How does it work?

  1. Identify proximity: Data points that are close to each other are grouped into clusters.
  2. Build the hierarchy: Using either agglomerative (bottom-up) or divisive (top-down) approaches, clusters are formed progressively.
  3. Visualize clusters: A dendrogram is created to show the relationships between clusters.

Pros and Cons:

  • Pros:
    • Does not require a predefined number of clusters.
    • Flexible, works with different types of distance metrics.
    • Produces a hierarchy of clusters, providing a clear overview.
  • Cons:
    • Computationally expensive for large datasets.
    • Can struggle with clusters of varying sizes or densities.

Real-World Applications:

Application Area

Example Use Case

Healthcare Grouping similar patient records for treatment recommendation.
Finance Identifying clusters of investment profiles for targeted strategies.
Marketing Segmenting customer groups for personalized campaigns.

To further understand how you can group data points, let’s explore centroid-based clustering, where centroids play a crucial role in the process.

Centroid-Based Clustering in Machine Learning

Centroid-based clustering organizes data around a central point called a centroid. The most common algorithm, K-means clustering, iteratively adjusts cluster centers to bring data points closer to their centroids.

How does it work?

  1. Choose centroids: Select a predefined number of centroids (e.g., K).
  2. Assign points: Assign data points to the nearest centroid.
  3. Recalculate centroids: Update centroids based on the mean of the points assigned to them.
  4. Repeat: Continue until convergence.

Pros and Cons:

  • Pros:
    • Simple to understand and easy to implement.
    • Computationally efficient for large datasets.
  • Cons:
    • Requires the number of clusters (K) to be predefined.
    • Sensitive to initial centroid placement, leading to suboptimal results.

Real-World Applications:

Application Area

Example Use Case

E-commerce Grouping customers based on purchasing behavior.
Healthcare Categorizing medical images into diagnostic groups.
Marketing Segmenting social media users for targeted advertising.

Next, you’ll dive into density-based clustering, which focuses on the density of data points rather than relying on fixed centroids.

Also Read: Clustering vs Classification: Difference Between Clustering & Classification

Density-Based Clustering in Machine Learning

Density-based clustering groups closely packed data points and separates sparse regions as outliers. A popular algorithm for this approach is DBSCAN (Density-Based Spatial Clustering of Applications with Noise).

How does it work?

  1. Identify dense regions: Group data points based on density (number of points within a specific radius).
  2. Define core points: Core points have a minimum number of neighbors within a specified distance.
  3. Form clusters: Points connected to core points are grouped together.
  4. Noise identification: Points that do not belong to any cluster are labeled as noise.

Pros and Cons:

  • Pros:
    • No need to predefine the number of clusters.
    • Can find clusters of arbitrary shapes.
  • Cons:
    • Struggles with clusters of varying densities.
    • Sensitive to parameters (radius and min points).

Real-World Applications:

Application Area

Example Use Case

Geospatial Detecting clusters of incidents in geographic areas.
Retail Grouping products based on purchase patterns to find trends.
Fraud Detection Identifying anomalous financial transactions.

Distribution-Based Clustering in Machine Learning

Distribution-based clustering assumes that data points are drawn from a mixture of underlying statistical distributions. Gaussian Mixture Models (GMM) is a popular method in this category, which fits data to a mixture of Gaussian distributions.

How does it work?

  1. Fit data to distributions: Model the data as a combination of multiple distributions (often Gaussian).
  2. Assign probabilities: Each point has a probability of belonging to each distribution.
  3. Update distributions: The parameters of the distributions (mean, variance) are updated iteratively.
  4. Convergence: Repeat until the model parameters converge.

Pros and Cons:

  • Pros:
    • Flexible and works well with synthetic or well-defined data.
    • Can handle overlapping clusters.
  • Cons:
    • Assumes specific distributions (like Gaussian), which may not always be true.
    • Computationally intensive.

Real-World Applications:

Application Area

Example Use Case

Healthcare Modeling the distribution of disease patterns.
Market Research Analyzing customer preferences for product recommendations.
Image Segmentation Dividing images into regions based on pixel intensity distributions.

Next, you’ll explore fuzzy clustering, where data points can belong to multiple clusters with varying degrees of membership.

Fuzzy Clustering in Machine Learning

Fuzzy clustering allows data points to belong to multiple clusters with varying degrees of membership. This is unlike traditional clustering, which assigns each point to only one cluster. Fuzzy C-means is a widely used algorithm in this category.

How does it work?

  1. Assign membership values: Each data point has a membership value for each cluster.
  2. Update centroids: The centroids are updated based on the weighted average of points, considering their memberships.
  3. Iterate: Repeat the process until the membership values stabilize.

Pros and Cons:

  • Pros:
    • Handles overlapping clusters and uncertainty.
    • More flexible in capturing real-world complexities.
  • Cons:
    • Higher computational overhead.
    • It can be more challenging to interpret results.

Real-World Applications:

Application Area

Example Use Case

Healthcare Segmenting patients who may fall into multiple risk categories.
Image Processing Handling blurry images where pixels belong to more than one region.
Marketing Categorizing customers who exhibit behaviors from multiple segments.

Now, let's move on to subspace clustering, designed for high-dimensional data and focused on uncovering overlapping subspaces.

Subspace Clustering in Machine Learning

Subspace clustering handles high-dimensional data by identifying clusters in specific subspaces. This is useful when only a subset of dimensions contain meaningful information for clustering.

How does it work?

  1. Identify subspaces: Find the most relevant subspaces that capture cluster patterns.
  2. Apply clustering: Perform clustering within these subspaces.
  3. Iterate: Continue refining the subspaces and clusters through algorithms like SUBCLU or PROCLUS.

Pros and Cons:

  • Pros:
    • Effective in high-dimensional spaces.
    • Can find clusters in overlapping subspaces.
  • Cons:
    • High computational cost.
    • It can be complex to implement and interpret.

Real-World Applications:

Application Area

Example Use Case

Bioinformatics Analyzing gene expression data where only certain genes cluster together.
Marketing Identifying customer groups in high-dimensional behavior data.
Cybersecurity Detecting network anomalies in high-dimensional traffic data.

You’ll now explore hierarchical clustering, which builds cluster structures in a tree-like manner, offering flexibility in how data is grouped.

Hierarchical Clustering in Machine Learning

Hierarchical clustering builds a tree-like structure of clusters, known as a dendrogram, that shows the relationships between data points. It’s ideal for discovering nested clusters and is either agglomerative (bottom-up) or divisive (top-down).

How does it work?

  1. Agglomerative: Start with individual data points and merge the closest clusters.
  2. Divisive: Start with one large cluster and split it into smaller ones.
  3. Use dendrograms: Visualize clusters and their relationships.

Pros and Cons:

  • Pros:
    • Does not require the number of clusters to be predefined.
    • Produces a clear, interpretable hierarchy.
  • Cons:
    • Computationally expensive.
    • Not suitable for large datasets.

Real-World Applications:

Application Area

Example Use Case

Customer Segmentation Grouping customers based on purchasing behavior.
Genomics Identifying similar genetic sequences.
Document Clustering Grouping documents based on content similarities.

Next, you’ll learn about partitional clustering, which divides data into predefined, non-overlapping clusters.

Also Read: Understanding the Concept of Hierarchical Clustering in Data Analysis: Functions, Types & Steps

Partitional Clustering in Machine Learning

Partitional clustering divides a dataset into a predefined number of clusters based on data characteristics. It is often used when you have a clear idea of how many clusters you want to extract.

How does it work?

  1. Predefine the number of clusters: Specify the number of clusters (K).
  2. Iterate clustering: Apply algorithms like K-means to assign data points to clusters.
  3. Optimize clusters: Continue refining the clusters based on data characteristics.

Pros and Cons:

  • Pros:
    • Efficient for large datasets.
    • Clear and easy-to-interpret results.
  • Cons:
    • Requires the number of clusters to be predefined.
    • Can struggle with outliers or noisy data.

Real-World Applications:

Application Area

Example Use Case

E-commerce Classifying products for personalized recommendations.
Telecommunications Segmenting users based on call patterns.
Social Networks Identifying communities based on interaction data.

Finally, you’ll examine grid-based clustering, an efficient method that organizes data in grid structures rather than relying on specific data points.

Grid Clustering in Machine Learning

Grid clustering organizes data into grid-based structures, focusing on value spaces rather than individual points. This approach is useful when data is spatially distributed across different ranges.

How does it work?

  1. Grid representation: Data is divided into grid cells based on predefined ranges.
  2. Cluster formation: Form clusters based on the number of data points within each cell.
  3. Value spaces: Focus on the value distribution across the grid rather than individual points.

Pros and Cons:

  • Pros:
    • Can handle large datasets efficiently.
    • Simplifies complex data by focusing on value ranges.
  • Cons:
    • Can miss finer details in highly distributed data.
    • Grid sizes can significantly impact the results.

Real-World Applications:

Application Area

Example Use Case

Geospatial Data Clustering geographic areas based on environmental factors.
Weather Modeling Grouping weather patterns across regions.
Smart Grids Identifying patterns in energy usage data.

Now that you've explored the different clustering methods let's dive into the specific algorithms used to implement these techniques in machine learning.

Types of Clustering Algorithms in Machine Learning

Clustering algorithms help you group data based on similarity, making sense of complex datasets. Different algorithms offer unique ways to approach clustering, each suited to different types of data and use cases.

In this section, you'll discover key clustering algorithms like K-means, DBSCAN, and hierarchical clustering. Understanding these algorithms will help you choose the best one for your machine-learning tasks.

Density-Based Clustering Algorithms

Density-based clustering groups closely packed data points and identifies sparse regions as outliers. These algorithms are ideal for handling clusters of arbitrary shapes and sizes in real-world data.

  • DBSCAN (Density-Based Spatial Clustering of Applications with Noise):
    • Identifies clusters based on a minimum number of points within a specified radius.
    • Good at detecting noise and outliers.
    • Does not require the number of clusters to be predefined.
  • OPTICS (Ordering Points to Identify Clustering Structure):
    • Builds an ordering of the dataset to capture the structure of clusters at different density levels.
    • Ideal for datasets with varying densities.
    • Unlike DBSCAN, OPTICS does not explicitly assign points to clusters but creates an ordering that can be used for further analysis.
  • HDBSCAN (Hierarchical Density-Based Spatial Clustering of Applications with Noise):
    • Combines DBSCAN and hierarchical clustering.
    • Can handle varying densities and noisy data.
    • Provides a hierarchy of clusters and is more effective in handling complex structures.

Now that you've learned about density-based algorithms let's explore hierarchical clustering algorithms, which organize data into tree-like structures.

Hierarchical Clustering Algorithms

Hierarchical clustering algorithms build a hierarchy of clusters in a tree-like structure, known as a dendrogram. These methods are useful for discovering nested clusters and are often used in hierarchical data.

  • Single Linkage:
    • Merges clusters based on the shortest distance between points in different clusters.
    • Sensitive to noise and outliers but can create long, chain-like clusters.
  • Complete Linkage:
    • Merges clusters based on the farthest distance between any two points from each cluster.
    • Tends to produce compact, spherical clusters and is less sensitive to noise than single linkage.
  • Average Linkage:
    • Merges clusters based on the average distance between all pairs of points in different clusters.
    • Strikes a balance between the single and complete linkage methods and can create more balanced clusters.

Next, you'll discover fuzzy clustering algorithms, where data points can belong to multiple clusters with varying degrees of membership.

Fuzzy Clustering Algorithm

Fuzzy clustering is a type of soft clustering where each data point has a probability or degree of membership in multiple clusters. This approach is ideal for handling overlapping cluster boundaries.

  • Fuzzy C-Means Clustering:
    • Assigns a membership value between 0 and 1 to each point for each cluster.
    • Ideal for scenarios where data points belong to multiple clusters or when cluster boundaries are not clear-cut.
    • It’s computationally more complex than traditional clustering methods but offers more flexibility for uncertain or fuzzy data.

Now, let’s move on to partitioning clustering algorithms, which divide data into non-overlapping clusters based on predefined criteria.

Partitioning Clustering Algorithm

Partitioning clustering algorithms divide data into a predefined number of clusters. These methods are useful when you have prior knowledge of how many clusters you need or when clusters are expected to be well-separated.

  • K-Means Clustering:
    • Divides the data into K clusters by minimizing the variance within each cluster.
    • Simple and efficient but requires the number of clusters (K) to be specified beforehand.
    • Sensitive to initial centroid placement and can struggle with clusters of varying sizes.
  • PAM (Partitioning Around Medoids):
    • Similar to K-means, but uses actual data points (medoids) as cluster centers rather than centroids.
    • More robust to noise and outliers compared to K-means.
    • Computationally more expensive, especially for large datasets.
  • CLARA (Clustering Large Applications):
    • A variant of PAM is designed for large datasets.
    • Uses a sampling approach to select a subset of data points for clustering.
    • More efficient than PAM for large-scale data but can be less accurate due to the sampling.

Next, you'll explore grid-based clustering algorithms, which organize data into grid structures for efficient clustering.

Also Read: K Means Clustering in R: Step-by-Step Tutorial with Example

Grid-Based Clustering Algorithm

Grid-based clustering algorithms organize data into grid cells, making them particularly efficient for large datasets. These methods focus on value spaces rather than individual data points, which can make them faster for processing vast amounts of data.

  • STING (Statistical Information Grid Approach):
    • Divides the data space into a grid and uses statistical properties (mean, variance) to perform clustering within each grid.
    • Efficient for large datasets with uniform data distribution.
    • Assumes that data is spatially uniform within grid cells, which may not always hold true in complex datasets.
  • WaveCluster:
    • A grid-based algorithm that uses wavelet transformations to cluster multidimensional data.
    • Suitable for high-dimensional data and can detect clusters at different scales.
    • Computationally intensive but effective for certain types of data.
  • CLIQUE (Clustering in Quest):
    • A grid-based algorithm that focuses on finding dense regions in high-dimensional space.
    • Efficient for high-dimensional datasets and can detect clusters in subspaces.
    • Struggles with sparse or unevenly distributed data points.

Now that you’ve explored the various clustering algorithms let’s take a look at how these techniques are applied in real-world scenarios across different industries.

Real-World Applications of Clustering Across Industries

Clustering algorithms group data based on similarity, helping you uncover patterns. Each algorithm offers a different approach, making it suitable for various datasets and goals.

In this section, you’ll explore key algorithms like K-means, DBSCAN, and hierarchical clustering. These algorithms each have unique strengths, and understanding them will guide your choice in real-world applications.

Marketing and Customer Segmentation

Clustering is widely used in digital marketing to segment customers based on their behaviors, preferences, and demographics. This helps companies target the right audience with personalized marketing strategies.

  • Use Case: Grouping customers for targeted campaigns based on purchasing behavior.
  • Example: Retail companies use clustering to categorize customers into segments like frequent buyers, discount seekers, and occasional shoppers.

Benefits:

  • Improved customer targeting
  • Personalized marketing strategies
  • Enhanced customer satisfaction

Now that you’ve seen how clustering is used in marketing let’s explore its applications in healthcare, where patient segmentation plays a key role.

Healthcare

In healthcare, clustering is used to analyze patient data, identify trends in diseases, and even predict treatment outcomes. It is a powerful tool for personalized medicine and public health strategies.

  • Use Case: Identifying patient groups with similar medical conditions for personalized treatments.
  • Example: Clustering patients based on genetic data to design tailored treatments for cancer.

Benefits:

  • Better diagnosis and treatment plans
  • Identifying disease patterns and risk factors
  • Enhancing patient care through segmentation

Next, you'll discover how clustering enhances image and pattern recognition, helping to uncover meaningful features in visual data.

Also Read: Data Science in Healthcare: 5 Ways Data Science Reshaping the Industry

Image and Pattern Recognition

Clustering algorithms are essential for image recognition tasks, where similar pixels or features are grouped to identify patterns, objects, or faces in images and videos.

  • Use Case: Grouping similar pixels to detect edges or shapes in images.
  • Example: Facial recognition software clustering different facial features for accurate identification.

Benefits:

  • Accurate object and pattern recognition
  • Automated image classification
  • Efficient image processing

Now, let’s shift to anomaly detection in cybersecurity, where clustering helps identify unusual patterns and potential threats.

Anomaly Detection in Cybersecurity

Clustering is highly effective in cybersecurity for detecting unusual activity or potential threats by identifying data points that deviate from normal behavior patterns.

  • Use Case: Detecting unusual network traffic patterns that might indicate a cyberattack.
  • Example: Using clustering to identify abnormal login times or IP addresses in a corporate network.

Benefits:

  • Early detection of cybersecurity threats
  • Minimization of false alarms
  • Improved security measures

Want to learn more about the basics of cybersecurity? Join upGrad’s free course titled Fundamentals of Cybersecurity today!

 

Next, you’ll see how clustering is applied in document classification and information retrieval, improving search and content organization.

Document Classification and Information Retrieval

Clustering is used in document classification and information retrieval systems, where large volumes of text data are grouped based on similarity to improve search and retrieval processes.

  • Use Case: Grouping similar news articles or research papers for easier access.
  • Example: Clustering academic papers on similar topics to recommend relevant readings.

Benefits:

  • Efficient information retrieval
  • Improved document organization
  • Streamlined research and learning

Let’s now look at how clustering supports social network analysis, uncovering connections and patterns within social structures.

Social Network Analysis

In social network analysis, clustering helps identify communities within networks by grouping individuals or nodes based on their relationships or interactions.

  • Use Case: Identifying online communities or groups with shared interests.
  • Example: Social media platforms using clustering to identify user groups with similar interests for targeted content.

Benefits:

  • Enhanced user experience through personalized content
  • Better understanding of community dynamics
  • Efficient network analysis and management

Now that you've seen clustering’s real-world applications let’s look at how upGrad can help you upskill in machine learning. This will empower you to take your career to the next level.

How Can upGrad Help You?

upGrad offers 200+ courses with live classes and industry-relevant curricula, helping you achieve your learning goals. Upskilling in AI, Data Science, and Machine Learning is crucial for career growth, and upGrad provides the ideal platform to gain practical, industry-aligned knowledge.

Courses in Machine Learning and Clustering

upGrad offers several courses designed to equip you with essential skills in machine learning and clustering:

These courses cover clustering algorithms, AI, and deep learning techniques.

Guidance and Support

upGrad provides:

You can also visit your nearest upGrad center for in-person counseling.

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Frequently Asked Questions (FAQs)

1. What is clustering in machine learning?

2. What are the different types of clustering methods?

3. How does DBSCAN work in clustering?

4. What is the main advantage of hierarchical clustering?

5. What is the difference between K-means and K-medoids?

6. Why is fuzzy clustering used?

7. What is the primary use of grid-based clustering?

8. How is clustering used in healthcare?

9. How does clustering benefit marketing?

10. What are the limitations of centroid-based clustering?

11. How is clustering applied in anomaly detection?

Pavan Vadapalli

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