Healthcare Analytics Market Size
Healthcare Analytics Market size accounted for around USD 16.4 billion in 2022 and is expected to reach USD 55.6 billion by 2032. Emergence of personalized and evidence-based medicine is widely prompted for use in healthcare decision making and is associated with effective outcomes for patient. It offers enhanced medication selection and targeted therapy, increased patient compliance, improves cost effectiveness, helps in developing novel therapeutic strategies, promotes consistency in treatment & optimal outcomes, etc.
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Also, it serves a diverse purpose within an organization, including managing grants and donations, patient records, appointment scheduling, and processing insurance claims. For instance, the Health Data Analytics Initiative at the Grainger College of Engineering in Illinois serves as a collaborative hub, connecting clinical investigators, engineers, artificial intelligence (AI) specialists, and data scientists to advance research quality using AI platforms and analytical tools. Thus, these factors are accelerating the demand for personalised and evidence-based medicine, thereby augmenting the market progress.
Healthcare analytics, a healthcare IT solution, refers to tools analyzing current and historic data to visualize trends and assists in forecast modelling. Healthcare analytics helps in enhancing the quality of clinical care, improves outreach, provides actionable insights, and manages the spread of diseases, among others. Benefits of healthcare analytics includes early detection of diseases, prevents unnecessary visits to doctors, provide precise results of patient’s tests, while also enabling healthcare facilities to be well prepared for disease management and providing optimum care services.
Healthcare Analytics Market Report Attributes
|Healthcare Analytics Market Size in 2022:||USD 16.4 Billion|
|Forecast Period:||2023 to 2032|
|Forecast Period 2023 to 2032 CAGR:||12.7 %|
|2032 Value Projection:||USD 55.6 Billion|
|Historical Data for:||2018 to 2022|
|No. of Pages:||12|
|Tables, Charts & Figures:||202|
|Segments covered:||Product, Application, End-use, and Region|
- Emergence of big data in healthcare
- Emergence of personalized and evidence-based medicine
- Rising investments in venture capital funds
- Technological advancements
|Pitfalls & Challenges:|
- Lack of skilled IT professionals in healthcare
- Data integrity and safety issues
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The emergence of COVID-19 pandemic had positively impacted the healthcare analytics market expansion. Several organizations were noted to focus on implementing and enhancing data analytics and artificial intelligence in healthcare to provide precise results and cost-effective treatments. Also, big data analytical tools and solutions are essential for developing the knowledge required in decision making and preventive measures. Therefore, big data played an important role in COVID-19 for analysing and validate data, as it helped in controlling the spread of COVID-19 by helping key decision makers with providing mathematical modelling and data visualization.
Healthcare Analytics Market Trends
- Adoption of big data in healthcare assists researchers to perform population health data analysis and helps limiting the potential risks of epidemics, treat diseases while lowering the overall costs associated with it. Such big data can include patients’ medical records, information collected by healthcare testing equipment, hospital records, prescription information, family medical history, personal ID as well as insurance details, among others.
- Doctors and medical professionals use big data analysis to make efficient decisions regarding treatment and services. Thus, it helps doctors to identify illness/disease at early stage which can be treated early and costs less. Such aforementioned factors are expected to boost the adoption rate of healthcare analytics, contributing to the overall market growth.
However, it is observed that there exists a dearth of skilled professionals in the healthcare sector for the smooth adoption and integration of novel technologies such as big data analytics, machine learning and artificial intelligence, among others. This is one of the major factors hampering the market growth.
- These professionals lack high technical and statistical knowledge to operate healthcare analytical solutions. Further, stringent data integrity and compliance regulations affects technology advancements adoption rate in healthcare industry.
Healthcare Analytics Market Analysis
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Based on product, the market is segmented into descriptive analytics, predictive analytics and prescriptive analytics. In 2022, the market witnessed descriptive analytics as the dominant segment, representing the highest share with a market value of USD 8.6 billion.
- Descriptive analytics is the simplest form of healthcare analytics tools and is largely employed in analysing data, describing relationships and trends using current and historical data. Using such datapoints, descriptive healthcare analytics provides decision makers a holistic view to base their business strategies on. Thus, descriptive analytics helps to interpret results of analysis as well as validate analytical findings, among others.
- Further, increasing implementation of descriptive healthcare analytics in hospitals and other healthcare institutions is also contributing to the segment share.
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Based on applications, the healthcare analytics market is classified into operations management, financial management, population health management and clinical management. In 2022, the financial management segment held the largest share of 33.5% in the global market.
- Increasing market demand for efficient healthcare facilities is boosting the segment landscape. Healthcare institutions are noted to increasingly focus on minimizing the overall cost of treatments while delivering optimum quality of care for patients.
- Facilities are noted to implement healthcare analytics for financial management in order to maintain an optimum inventory to manage overspending or underspending on capital instruments and consumables.
- Further, with increasing number of insurance claims, the demand for optimum financial management is also observed to increase in order to detect fraudulent claims. Hence, the aforementioned factors largely contribute to the segment growth.
Based on end-use, the healthcare analytics market is classified into hospitals clinics and other end-users. The hospital segment held the largest share of the total revenue at 71.6%. in 2022.
- Factors such as analyzing clinical data management to improve medical research, obtaining operational insights, utilization of patients’ data to improve health outcomes, studying regional population health, among others, have resulted in growing adoption rates for healthcare analytics solutions and other tools across healthcare facilities, predominantly in hospitals.
- Furthermore, several healthcare organizations are moving forward with incorporation of various healthcare analytics tools and software to minimize human error and reduce subsequent costs, thereby fostering the market development.
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The North American healthcare analytics market is anticipated to exhibit substantial growth, maintaining its dominance with a market share exceeding 63% during the entire forecast period.
- North America's leading market share in healthcare analytics can be attributed to its cutting-edge healthcare facilities, widespread adoption of advanced platforms, and robust technological infrastructure.
- Increasing prevalence of chronic diseases along with rising geriatric population creates a need for hospitals and other organizations to adopt healthcare analytics solutions. Therefore, rising adoption of healthcare analytics helps in lowering operational costs, promotes innovations and enhances quality of care delivered.
- Furthermore, technological advancements in data analytics along with a high density of prominent players operating in the regional market are few other factors that favour the North America healthcare analytics industry expansion.
Healthcare Analytics Market Share
Prominent key players are consistently engaged in innovation, introducing novel technologies for enhanced comprehension of patient data, disease transmission dynamics, and more. Allscripts, Epic System and Oracle Corporation account for significant market share in the global market. Their objective is to provide improved care solutions to healthcare providers and institutions. Further, the integration of big data analytics and artificial intelligence has fostered the creation of cutting-edge platforms designed to enhance data understanding and analysis.
Market players operating in the healthcare analytics industry are as mentioned below:
- McKesson Corporation
- IBM Corporation
- OptumHealth, Inc.
- Allscripts Healthcare Solution Inc.
- Oracle (Cerner) Corporation
- Athenahealth, Inc.
- Inovalon Holding Inc
- Computer Programs and Systems, Inc.
- Change Healthcare
- Tenet Healthcare Corporation
- GE Healthcare
- Evolent Health
- Influence Health Inc
- Health Catalyst
Healthcare Analytics Industry News:
- In September 2023, SAS is set to introduce an innovative healthcare platform that aims to streamline healthcare data and its management. The platform's key objectives are to enhance data governance and expedite the generation of patient insights. These insights encompass proactive identification of clinical staffing shortfalls and visualizing the distribution of screening centers in relation to patient demographics. This analytical platform is expected to empower healthcare systems with the necessary tools to assess the quality of patient interactions, thereby enabling them to make a positive impact on patient care.
- In March 2021, McKesson Corporation launched ScriptPAS, a pharmacy management platform for oncology practices. This product launch enhanced its patient care portfolio.
The healthcare analytics market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032 for the following segments:
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By Product, 2018 – 2032 (USD Million)
- Descriptive analytics
- Predictive analytics
- Prescriptive analytics
By Application, 2018 – 2032 (USD Million)
- Operations management
- Financial management
- Population health management
- Clinical management
By End-use, 2018 – 2032 (USD Million)
- Other end-users
The above information is provided for the following regions and countries:
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- Rest of Middle East & Africa