Healthcare Analytics Market Size By Product (Descriptive Analytics, Predictive Analytics, Prescriptive Analytics), By Application (Operations Management, Financial Management, Population Health Management, Clinical Management) By End-Use (Hospitals, Clinics), COVID19 Impact Analysis, Regional Outlook, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Industry trends

Healthcare Analytics Market size exceeded USD 11.4 billion in 2020 and is poised to grow at a CAGR of more than 11.4% between 2021 and 2027.
 

Increasing healthcare costs due to growing portfolio of healthcare services, sophistication of treatment coupled with need for reducing expenses and improving operational efficiencies will drive the market growth. Also, growing amount of complex data due to transition from written to electronic health records and its ability to improve physician practice will foster the industry demand. Furthermore, technological advancements along with increasing interest of investors in healthcare analytical tools will boost the market expansion.
 

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The COVID-19 outbreak is encouraging the adoption of healthcare analytic solutions, especially predictive analytics to actively identify individuals that are at greater health risk and to help focus on offering timely treatment. For instance, in April 2020, Cleveland Clinic researchers created a predictive model that can forecast patient volume, bed capacity, ventilator availability, and other metrics. The model provides timely, reliable information to optimize care delivery for COVID-19 and other patients.
 

Various market players and regulatory bodies are rapidly developing artificial intelligence and data analytics in healthcare to conduct research on the virus. For instance, in July 2020, the Department of Health and Human Services (HHS), the Department of Veterans Affairs and the Department of Energy (DOE) had announced a new big data analytics initiative to coordinate and share COVID-19 information.
 

Emergence of big data in healthcare sector will fuel the healthcare analytics market expansion

The big data is a term used for huge volume of complex data sets which cannot be processed with traditional data processing software. Transition in healthcare from written scripts and paper charts to real-time monitoring and electronic health records has resulted in the accumulation of larger amounts of digital data. Moreover, collection of data from genomic sequencing, billing, medical research findings, claims, and practice guidelines is constantly expanding the digital data universe. For instance, it is estimated that, the global healthcare data will be about 2 trillion gigabytes by 2020. Thus, large data volume will increase the adoption of healthcare analytical services.
 

Lack of skilled IT professionals may slow down the market growth

Lack of skilled IT professionals in healthcare sector is a major factor restraining the market growth. Usage of healthcare analytics solutions in healthcare organizations requires high technical and statistical knowledge. Most organizations need data scientists to extract data from a big data environment. At present, there are very few experts and professionals working in healthcare analytics field. Moreover, very few universities and institutes across the globe offer courses in healthcare analytics.
 

Descriptive analytics segment will witness lucrative growth in near future

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Descriptive analytics segment revenue was over 6.1 billion in 2020 and is projected to show growth of 9.5% till 2027. Descriptive analytics is the first step in converting big data into actionable insights. These analytical solutions describe or summarize raw data collected in the past to determine reasons behind past success or failure. Moreover, majority of healthcare organizations which have EHR systems installed also have some form of descriptive analytics in place.
 

Various application of financial management will boost the segment growth

Financial management segment in the healthcare analytics market is set to expand at 11% CAGR during the forecast period. Financial management includes use of healthcare analytics for fraud detection, revenue cycle management, contract compliance, reimbursement compliance and claim management. Rising problem levels pertaining to claims denial and reimbursement will further propel the segment growth.
 

Growing adoption of healthcare analytical tools in hospital setting

Hospital end-use segment size is expected to reach USD 17 billion by 2027. Hospitals are the early adopters amongst all the healthcare providers. Factors such as large-scale operations, multifunctionality and need to manage huge amount of information have majorly resulted to high adoption of healthcare analytical solutions in hospitals setting. Furthermore, various hospitals across the world are planning to incorporate various healthcare analytics software/tools to gain more efficiency and trim down costs.

Increasing investment in healthcare analytics coupled with adoption of latest technology in the North America region

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North America dominated the global healthcare analytics market with USD 7.5 billion in 2020, owing to increasing investment in healthcare analytics coupled with adoption of latest technology. For instance, in 2016-2017, the region witnessed huge investments in healthcare analytics. Also, majority of the hospitals in North America region have implemented EHR system along with healthcare analytical software and tools to reduce the costs as well as to manage the high patient data volumes. Furthermore, presence of key market players in the region will impel the market growth.
 

Adoption of business strategies will pave growth opportunities for companies operating in the market

Prominent players operating in the market include IBM, McKesson Corporation, Allscripts Healthcare Solutions, Cerner Corporation, Athenahealth, Tenet Healthcare Corporation and Health Catalyst, among others. New service launch, partnerships and collaboration are the most adopted business strategies to sustain market position.
 

Recent Industry Developments:

• In December 2020, Cerner announced an agreement to acquire Kantar Health, a division of Kantar Group engaged in data, analytics and real-world evidence to life science industry. The acquisition is expected to complete in the first quarter of 2021. With this acquisition, Cerner plans to harness data to improve the safety, efficiency and efficacy of clinical research across life sciences, pharmaceuticals and health care. This acquisition strategy is expected to enhance its service offering and increase its market revenue.
   

The healthcare analytics market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027, for the following segments:

Market, By Product

• Descriptive analytics
• Predictive analytics
• Prescriptive analytics

Market, By Application

• Operations management
• Financial management
• Population health management
• Clinical management

Market, By End-use

• Hospitals
• Clinics
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • South Africa
  • Saudi Arabia