Healthcare Analytics Market Size (2023 - 2030)

The Global Healthcare Analytics Market was valued at USD 36.18 billion and is projected to reach a market size of USD 140.59 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 21.4%.

INDUSTRY OVERVIEW

A combination of statistical algorithms and predictive models supported by high-performance analytics platforms make up big data analytics, a subset of advanced analytics. These technologies, which use powerful computer systems, provide the healthcare sector with several commercial advantages including successful marketing, new income prospects, greater operational efficiency, and better patient care. Currently, big data analytics is being used by a wide range of healthcare organisations, including multi-provider groups, single-physician practices, and huge hospital networks. This increase may be ascribed to the service's many benefits, which include its swift and effective detection of healthcare fraud as well as its analysis of patient information and clinical studies. Due to the quick evolution of healthcare reimbursement models, it is anticipated that the amount of current healthcare data would increase dramatically in the upcoming years. Because of this, businesses in the sector are using big data analytics to cut down on waste in clinical operations, R&D, and public healthcare. When used in clinical settings, these technologies support comparative effectiveness studies that aim to identify more affordable and clinically relevant approaches to patient diagnosis and treatment. Similar to this, big data analytics empowers operators to build predictive models for reducing attrition and creating a more focused R&D pipeline for medicines and gadgets. Furthermore, for better public health monitoring, big data analytics aids in the analysis and tracking of disease trends, outbreaks, and transmission. These advantages and benefits are now fueling the market for analytics in the healthcare sector.

COVD-19 IMPACT ON THE HEALTHCARE ANALYTICS MARKET

The COVID-19 virus epidemic has had a significant impact on the economies and businesses of important nations throughout the world. The importance of analytics in the healthcare industry has increased as a result of the pandemic. The advent of further waves of COVID-19 infection spread in many nations throughout the world has been predicted using prescriptive and predictive analytics tools. The pandemic-related increase in the adoption of electronic health records in developed and emerging countries has further propelled the market's growth in 2020. Analytics for claim management and risk assessment was widely used in COVID-19 patient healthcare reimbursement. During the pandemic, operational analytics have helped manage patient data and COVID-19 bed allocation in ICU units. Due to the pandemic's onset, the healthcare analytics industry has also seen notable advancements and advances. The firm has also embraced both organic and inorganic expansion tactics to take advantage of the market's enormous growth opportunity presented by COVID-19. All of the aforementioned elements have contributed to the market's expansion in 2020.

MARKET DRIVERS: 

The increased use of EHRs is anticipated to fuel market expansion

The need for Healthcare/Medical Analytics is increasing as more EHRs and other digital technologies are being adopted in the healthcare industry. EHRs have useful data on a patient's medical history, demographics, medications, vital signs, and the findings of diagnostic tests. These facts are crucial to getting precise outcomes from analyses that are predictive, descriptive, cognitive, and prescriptive. According to the American Hospital Association, just 12.2% of non-federal acute care hospitals in the US had EHR systems in 2009. (AHA). But by 2015, this figure had risen to 83.8%, and the Centers for Medicare and Medicaid Services had verified that 96% of them had EHRs (CMS). In 2022, it is predicted that this method will be used more frequently than 89% of the time in the US.

The projected rise in global healthcare spending will fuel market expansion

The need for healthcare analytics to improve treatment efficacy and decision-making is being driven by a rise in healthcare spending in industrialised and significant emerging nations. The US healthcare budget is estimated to increase annually at a pace of 5.4% between 2019 and 2028. The cost of healthcare was around $4 trillion in 2020 and is anticipated to increase to $6.19 trillion by 2028. In 2021, India's GDP for healthcare was only about 1.2%. But by 2022, this is anticipated to rise to 3%. In addition, the Indian government intends to launch a credit incentive scheme totaling $6.8 billion to strengthen the nation's healthcare system. The UK spent $344 billion more on healthcare in 2021, a 20% increase.

MARKET RESTRAINTS:

It is anticipated that the risk of cyberattacks would impede market expansion

The rising worry that healthcare institutions may disclose private patient data as a result of cyberattacks is a significant issue that might restrain industry expansion. For instance, between July 2020 and June 2021, ransomware assaults in the US resulted in the theft of more than 3.34 million healthcare records every month on average. Names, addresses, diagnoses, phone numbers, and insurance information for the patients are among the information that was exposed. Due to network outages brought on by ransomware attacks, the American health services firm UHS lost over $67 million in 2020. The information may be purchased for up to $1,000 per record and used for nefarious purposes including insurance fraud and the falsification of passports. Because of this, healthcare providers are becoming less confident in implementing additional IT systems, such as healthcare analytics, in their facilities.

The likelihood of high initial investment costs limiting growth opportunities

Development opportunities are being constrained by the high initial costs of the hardware systems, software licensing, and IT personnel needed for the healthcare analytics initiative. Furthermore, end-user sectors like hospitals have become particularly price sensitive as a result of the COVID-19 epidemic and the burden it has placed on the healthcare industry. According to the AHA, the pandemic cost US hospitals and healthcare systems $202.6 billion in lost income, while underdeveloped countries need $52 billion every four weeks to fight the disease. As a result, a sizable percentage of the market cannot afford analytics systems.

HEALTHCARE ANALYTICS MARKET REPORT COVERAGE:

This research report on the Healthcare Analytics Market has been segmented and sub-segmented based on Type, Component, Application, End-Use, Delivery Mode and By Region.

HEALTHCARE ANALYTICS MARKET – BY TYPE

• Descriptive Analysis
• Predictive Analysis
• Prescriptive Analysis

Based on the type, the healthcare analytics market is segmented into Descriptive Analysis, Predictive Analysis and Prescriptive Analysis. In 2021, the descriptive analysis type held a 37.1% market share. This market's growth has been significantly influenced by the widespread use of descriptive analytics to examine historical data and patient histories during the epidemic. By gaining access to historical data and transforming it into useful insights, descriptive analytics has proven to be a useful tool for comprehending what occurred. Identifying abnormalities and inaccuracies in the claims are also used by hospitals to track the performance of insurance claims. An increasing number of businesses are using descriptive analysis methods to boost market development potential.

Because it employs data sets produced by descriptive analytics by evaluating data for useful future insights, predictive analysis was the analytics kind with the greatest growth. The use of analytics by more and more businesses for greater growth chances has been a major driver of this market's expansion. It has become essential for businesses to use these platforms to forecast market trends to take the necessary actions that promote overall growth.

HEALTHCARE ANALYTICS MARKET - BY COMPONENT

• Software
• Hardware
• Services

Based on the component, the healthcare analytics market is segmented into Software, Hardware and Services. With a market share of 37.1% as of 2021, the services category was the largest part of healthcare analytics. The development of platforms and the digitalization of data for analytics have drawn significant investments from the healthcare sector into the IT sector. Because the majority of businesses do not have a data analytics division, they outsource the data analytics portion of their IT. Because of this, the number of data analytics firms growing and providing a full range of services to businesses. The expansion of the services provided by data analytics businesses is what has driven this market. The health industry's increased patient load, the prevalence of more diseases, and other factors have generated enormous amounts of clinical data. The industry is under unrelenting pressure to provide patients with better care, better outcomes, and more affordable treatments, which is further boosting this market's growth. Services were the component type that was expanding at the fastest rate. Key drivers of this segment's growth include the requirement for the use of analytical techniques and methodologies for improved patient monitoring, better treatment delivery, etc.

HEALTHCARE ANALYTICS MARKET – BY DELIVERY

• On-premises
• Web-hosted
• Cloud-based

Based on the delivery mode, the healthcare analytics market is segmented into On-premises, Web-hosted and Cloud-based. The on-premises delivery option had the biggest market share (49.5%) in 2021. Due to the convenience of access and security, the majority of institutions are presently installing software and instruments to store data at their premises, leading to the huge market share of this form of delivery. The current technologies are useful in small businesses, but when scaled up, they can make data management challenging and laborious if the firm is working with a sizable dataset. This may need significant financial outlays for data security and storage.

Due to the simplicity of storage, low capital expenditure, enhanced flexibility, and increased efficiency, cloud-based delivery has had the quickest growth. These aspects also contribute to the delivery mode's ongoing expansion. Although public cloud storage solutions are a major factor in the growth of cloud-based storage solutions into the fastest growing sub-segment, limitations of the same include less privacy and more security concerns regarding data loss. Cloud-based storage can also be on-premises, but the problem of scalability enters the picture.

HEALTHCARE ANALYTICS MARKET – BY APPLICATION

• Clinical
• Financial
• Operational and Administrative

Based on the application, the healthcare analytics market is segmented into Clinical, Financial Operational and Administrative. Financial applications held the greatest market share in 2021, accounting for 35.7% of the total. The expansion of this market has been attributed to the healthcare institutions and organizations’ ongoing efforts to reduce treatment costs while providing better care to patients. Still dominating management is the financial side, which helps businesses operate more profitably by cutting expenses and preventing fraud. Healthcare organisations use analytical tools for predictive and descriptive analysis to deliver better care to patients, reduce overall operational costs, and minimize fraud in insurance claims. Healthcare institutions incur costs in the form of insurance claims, which can also be fraudulent. To mitigate these risks and minimize such occurrences. The adoption of this application type has been significantly influenced by the necessity to perform well financially.

HEALTHCARE ANALYTICS MARKET – BY END-USE  

• Healthcare Payers
• Healthcare Providers
• Life Science Companies

Based on the application, the healthcare analytics market is segmented into Healthcare Payers, Healthcare Providers and Life Science Companies. Life science firms accounted for the greatest market share in 2021 with a 48% share. The life-science sector is now using analytical tools and platforms most extensively to lower product costs, boost profit margins, and produce better goods, which is accelerating segment adoption and growth. To appeal to a larger market, corporations are continually investing money in enhancing their product lineups and offers. As a result, analytical tools are now required to help people make decisions that are both value-based and better at understanding and predicting the market. Healthcare providers had the fastest increase. This is because hospitals and healthcare professionals were under a great deal of pressure to offer cost-effective treatment and improved patient management during and after the pandemic, which contributed to the expansion of this end-user category. The need to maintain patient information, keep track of diseases, and provide patients with cost-effective care have all played a significant role in the widespread adoption of healthcare analytics and are estimated to continue to do so.

HEALTHCARE ANALYTICS MARKET - BY REGION

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East
• Africa

By region, the Healthcare Analytics Market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East and Africa. Because of the region's highly established healthcare infrastructure, growing chronic illness rates, high awareness levels, and extensive IT integration in the healthcare sector, the North American industry is poised to have a 34% market share during the projection period of 2022–2030. Additionally, the presence of major industrial companies in the area, including IBM Corporation, Optum, Cerner, SAS Institute, McKesson Corporation, Oracle Corporation, and SCIO Health Analytics, guarantees reduced prices, greater innovation, and a wider range of options for the end-user sectors. Because public healthcare expenditure is increasing in significant growing economies like China and India, the Asia-Pacific region is anticipated to grow at the quickest rate.

HEALTHCARE ANALYTICS MARKET - BY COMPANIES

Some of the major players operating in the Healthcare Analytics Market include:

1. IBM
2. Optum
3. Cerner
4. SAS Institute
5. Allscripts
6. McKesson Corporation
7. Oracle
8. Health Catalyst
9. CitiusTech
10. Wipro

NOTABLE HAPPENING IN THE HEALTHCARE ANALYTICS MARKET

• PARTNERSHIP- To offer integrated genomic profiling to consumers, Flatiron (US) partnered with Foundation Medicine, Inc. in June 2021.
• PARTNERSHIP - Enlitic (US) and NMC Healthcare collaborated in July 2021. (UAE). To implement Enlitic's solutions across the GCC nations, a multifaceted relationship with private healthcare organisations has been formed.
• PRODUCT LAUNCH- APIXIO (US) launched HCC Complete in May 2020, utilising artificial intelligence to offer a thorough chart review experience for Medicare Advantage and Affordable Care Act businesses.
• ACQUISITION- Centene (US) announced its intention to purchase Apixio in November 2020. (US). After the acquisition, Apixio will go on as a standalone business.