Healthcare Analytics Market worth over $23.5 Bn by 2027
Published Date: June 16, 2021 Authors: Sumant Ugalmugle, Rupali Swain
Healthcare Analytics Market size is set to surpass USD 23.5 billion by 2027, according to a new research report by Global Market Insights, Inc.
The market growth is due to increasing funding for healthcare analytics through venture capital funds. For instance, Health Catalyst, leading provider of data and analytics technology secured USD 70 million in series E funding round for financing the expansion of solutions offered by the company. Thus, increasing funding to develop new technology will continue to play an important role in the expansion of healthcare analytics.
Emergence of personalized medicines will fuel the market demand
The increasing collection and analysis of genomic, environmental and lifestyle data for developing personalized medicines will favor the healthcare analytics market growth. Also, implementation of programs by various government for precision medicine and adoption of specific solutions pertaining to precision medicine by organizations will boost the industry growth.
For instance, U.S. government launched “Precision Medicine Initiative” providing about USD 215 million funding for development of precision medicines. Thus, healthcare analytics area is anticipated to witness robust growth due to emergence of personalized medicines including population health and clinical analytics. Furthermore, rapid implementation of healthcare analytics in developed regions and steadily rising popularity of the same in emerging economies should expand the market size.
Issues pertaining to data integrity and safety may restrict the healthcare analytics market revenue growth
Data integrity ensures that data generally obtained from EHRs and being used for analytics is accurate and has not been changed. It is a critical component of the design, implementation and usage of the system which is involved in storing, processing, or retrieving data. Any unintended data changes as a result of storage, retrieval or processing operation leads to failure of data integrity. In addition, data integrity is also compromised by data entry errors, missing data or delayed data delivery, and misattribution of one patient’s data to another. Usage of such data by healthcare analytics tools would ultimately yield improper or false results.
Adoption of predictive analytics for making prompt clinical and financial decisions
Predictive analytics segment accounted for market revenue of USD 3.4 billion in 2020. Predictive analytics represents the next step after a proper descriptive analytics program is in place. Predictive analytics uses descriptive data for forecasting what might happen in the future. It requires access to real time data for making prompt clinical and financial decisions. Furthermore, presence of advanced healthcare IT infrastructure in developed countries has resulted in higher adoption rate.
Browse key industry insights spread across 150 pages with 173 market data tables & 16 figures & charts from the report, “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), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Spain, Italy, Russia, Japan, China, India, Australia, South Korea, Brazil, Mexico, South Africa, Saudi Arabia), Application Potential, Price Trends, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
Clinic end-use segment to show significant market growth
Clinics segment held around 15.4% healthcare analytics market share in 2020, owing to their growing numbers and increasing service offerings. In addition, increasing use of healthcare analytics in clinics in developed regions will significantly contribute to the market revenue. However, in developing countries such as India and China, clinics are considered as less effective and more cost intensive by the patients. Therefore, number of clinics in these nations is far less than that of in developed countries.
Various application associated with clinical management will foster the segment growth
The clinical management segment revenue is predicted to observe 11.8% CAGR through 2027. Clinical management includes clinical outcome analysis, patient care enhancement and quality benchmarking. Using healthcare analytical solutions for clinical management enables implementation of preventive care over reactive care. Preventive care reduces healthcare costs by providing treatment to patients in advance to prevent costly admission to emergency rooms. Moreover, increasing interest of investors in clinical management solutions will boost the market demand.
Government initiatives to improve healthcare infrastructure and promote big data in healthcare will influence the European market size
Europe healthcare analytics market value is estimated to show considerable growth of 11.3% during the forecast period. Emergence of big data in healthcare sector coupled with technological advancements are the drivers for the regional market growth. In addition, Government initiatives to improve healthcare infrastructure and promote big data in healthcare will boost the market expansion. For instance, eHealth action plan 2012-2020 initiated by European commission to combine technologies with devices and motivate researcher towards personalized medicines. This will result in higher adoption of healthcare analytical tools.
Companies undertake inorganic growth strategies to strengthen their business portfolio and revenue
Eminent companies operating in the healthcare analytics market include IBM, McKesson Corporation, Allscripts Healthcare Solutions, Cerner Corporation, Athenahealth, Tenet Healthcare Corporation and Health Catalyst, among others.
These industry players focus on strategies such as innovative service development & launches, mergers & acquisitions, and collaboration to garner more revenue and sustain market competition. For instance, in January 2021, Optum and Change Healthcare a health care technology provider has agreed to Collaborate. The collaboration aimed to provide software and data analytics and technology-enabled services, among others.
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