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, Application Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

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

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Increasing healthcare costs owing to growing portfolio of healthcare services, sophistication of treatment coupled with need for reducing expenses and improving operational efficiencies will augment 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 further foster the market expansion. Furthermore, technological advancements along with increasing interest of investors in healthcare analytical tools is another favoring factor that is boosting the market progression.
 

Healthcare analytics refers to the use of huge amount of collected data to provide organizations with actionable insights. These insights are developed through analytical methods such as descriptive, predictive and prescriptive analytics to drive fact-based decision making. Also, healthcare analytics extensively uses data for quantitative and qualitative analysis. Further, these decisions improve planning, management, measurement and learning.
 

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. Also, 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. Thus, increasing use of healthcare analytical tools and development of solutions to conduct research during the pandemic have fuelled the industry growth.
 

Emergence of big data in healthcare sector will spur the healthcare analytics market value

Emergence of big data in healthcare sector will serve as a high impact rendering factor for the industry 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.
 

Lack of skilled IT professionals may slow down the industry progression

Lack of skilled IT professionals in healthcare sector is a major factor restraining the industry value. 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. Very few universities and institutes across the globe offer courses in healthcare analytics, thereby hampering the market revenue.
 

Descriptive analytics is the first step in converting big data into actionable insights that will stimulate the acceptance rate

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Descriptive analytics segment in the healthcare analytics market accounted for USD 6.1 billion in 2020 and is projected to showcase 9.5% growth rate by 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. Majority of healthcare organizations which have EHR systems installed also have some form of descriptive analytics in place. Thus, initiatives by Medicare and Medicaid EHR program favoring EHR usage in developed countries has also increased descriptive analytics adoption rate, thereby supplementing the industry revenue.
 

Various application of financial management will spur the segment growth

Financial management segment is predicted to expand at a CAGR of more than 11% through 2027. 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 expansion.
 

Acceptance of healthcare analytical tools in hospital setting will accelerate the segment progression

Healthcare analytics market for hospital segment 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 usage of healthcare analytical solutions in hospitals setting, thereby fostering the market demand. Additionally, various hospitals across the world are planning to incorporate various healthcare analytics software/tools to gain more efficiency and trim down costs that will further augment the market growth over the future.
 

Increasing investment in healthcare analytics coupled with adoption of latest technology in the North America region will surge the market expansion

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North America healthcare analytics market size was over USD 7.5 billion in 2020 owing to the increasing investment in healthcare analytics coupled with acceptance 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. Thus, rising investment coupled with usage of healthcare analytical tools and software in the region will influence the market progression. In addition, presence of key market players in the region will further fuel the industry demand.
 

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

Prominent companies 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.
 

Some of the 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 poised 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 set to amplify its service offering and increase its market revenue.
   
• in January 2019, IBM partnered with eQHealth Solutions to strengthen the capabilities of eQHealth’s analytics. The partnership aimed to provide insights from structured and unstructured healthcare data from clinician notes, care coordinator’s health risk assessments, and other forms of unstructured data. This strategy enabled companies to maintain long term business relations as well as enhance their service offerings.
   

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