Chicago, March 27, 2023 (GLOBE NEWSWIRE) -- The healthcare analytics industry is expected to experience rapid growth in the near future as the industry continues to embrace technological advancements. A major factor driving this growth is the increasing availability and affordability of data sources and analytics tools. This has enabled healthcare organizations to more effectively collect, analyze, and utilize data to improve patient care, reduce costs, and improve operational efficiency. Additionally, the application of artificial intelligence (AI) and machine learning (ML) technologies is expected to further accelerate the growth of this sector as these technologies enable healthcare organizations to gain insights from large volumes of patient data. The growth of this industry will also be driven by government mandates to implement healthcare analytics solutions and the rising demand for personalized healthcare services.
Healthcare Analytics market in terms of revenue was estimated to be worth $27.4 billion in 2022 and is poised to reach $85.9 billion by 2027, growing at a CAGR of 25.7% from 2022 to 2027 according to a latest report published by MarketsandMarkets™. Healthcare analytics is the efficient use of data and related business insights developed through statistical, quantitative, predictive, comparative, cognitive, and other developing applied analytical models. Healthcare analytics tools help discover and recognize historical information patterns, predict future outcomes, and provide actionable insights to drive fact-based decision-making for enhanced financial, clinical, and operational performance of healthcare organizations.
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Healthcare Analytics Market Scope:
| Report Coverage | Details |
| Market Revenue in 2022 | $27.4 billion |
| Estimated Value by 2027 | $85.9 billion |
| Growth Rate | Poised to grow at a CAGR of 25.7% |
| Market Size Available for | 2020–2027 |
| Forecast Period | 2022–2027 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | By Type, By Application, By Component, By Deployment Model, By End User, & By Region |
| Geographies Covered | North America, Europe, Asia, Pacific countries, Latin America and the Middle East and Africa |
| Report Highlights | Updated financial information / product portfolio of players |
| Key Market Opportunity | Use of analytics in precision and personalized medicines |
| Key Market Drivers | Increasing adoption of EHR in developing and developed countries |
The healthcare analytics market is mainly driven by factors such as increasing focus on real-world evidence, rising prevalence of chronic diseases and growing pressure to curb healthcare spending and improve patient outcomes. However, high cost of healthcare analytics solutions and increasing data security concerns are likely to restrain growth of this market.
Based on type, the healthcare analytics market is bifurcated into descriptive, predictive, prescriptive, and cognitive analytics. In 2021, the descriptive analytics segment accounted for the largest share of the healthcare analytics market, while the prescriptive analytics segment is projected to grow at the highest CAGR during the forest period. The large share of this segment is primarily attributed because descriptive analytics forms the base for the effective application of predictive or prescriptive analytics.
Based on application, the healthcare analytics market is bifurcated into financial analytics, clinical analytics, operational & administrative analytics, and population health analytics. In 2021, the financial analytics segment accounted for the largest share of the healthcare analytics market. Factors such as increasing adoption of electronic healthcare records, the need to improve patient outcomes and reduce hospital readmission rates are driving the market growth.
Based on deployment mode, the healthcare analytics market is bifurcated into on-premises and on-demand. In 2021, the on-premise healthcare analytics segment accounted for the largest share of the healthcare analytics market. The large share of this segment is primarily attributed because on-premise deployment permits end users to use solutions from multiple vendors, which allows customizations as per end-user needs.
Based on component, the healthcare analytics market is bifurcated into services, software, and hardware. In 2021, the services segment accounted for the largest market share of the healthcare analytics market. This is attributed to their indispensable nature and recurring requirement. This is because end users of healthcare analytics depend on service providers for consulting, data storage, implementing services, training, maintenance, and regular solution upgrades.
Based on end users, the healthcare analytics market is bifurcated into providers (hospitals, physician practices, IDN, post-acute care organisations and, ambulatory settings), payers (private insurance companies, government agencies, and employers & private exchangers), and ASCOs, HIEs, & TPAs. In 2021, the payers segment accounted for the largest market share of the healthcare analytics market. This is attributed use of healthcare analytics by payer organisations for claim management, risk assessment and financial management.
The healthcare analytics market is bifurcated into six regions namely, North America, Europe, Asia, Pacific countries, Latin America, and the Middle East and Africa. In 2021, North America held the largest share of the market, also expected to grow at the highest CAGR. Factors such as growing federal healthcare mandates to curb rising healthcare costs, increasing regulatory requirements, and many major global players are also based in the US, owing to which the country has become a centre of innovation in the healthcare analytics market are driving the market growth in this region.
Key Market Players:
Prominent players in this market include IBM (US), SAS Institute Inc. (US), Optum, Inc. (US), Cerner Corporation (US), Allscripts Healthcare, LLC (US), Cotiviti, Inc. (US), CitiusTech Inc (US), Health Catalyst (US), CVS Health (US), Inovalon (US), McKesson Corporation (US), MedeAnalytics, Inc. (US), Oracle (US), ExlService Holdings, Inc. (US), Gainwell (US), Wipro (US), Flatiron (US), Apixio (US), Enlitic, Inc. (US), Komodo Health, Inc. (US), HealthEC, LLC, Sema4 OpCo, Inc. (US), Evidation Health, Inc. (US), Insilico Medicine (US), Exscientia (UK), Aetion, Inc.(US), and Premier (US).
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Hypothetic Challenges of Healthcare Analytics Market in Near Future:
- Increasing data complexity: The healthcare industry is becoming increasingly complex and data-driven, making it difficult to accurately analyze and interpret data to make effective decisions.
- Regulatory compliance: Healthcare analytics must comply with a variety of government and industry regulations, making it difficult for companies to leverage data in a responsible manner.
- Privacy and security concerns: Patient data must be protected and access to healthcare analytics must be restricted.
- Limited access to data: Even with advances in technology, healthcare providers must still acquire and manage data from multiple sources.
- Access to resources: Healthcare analytics requires a significant amount of resources and expertise to implement, making it difficult for smaller organizations to take advantage of.
- Interoperability issues: Healthcare data is often siloed, making it difficult to access and aggregate data from different sources.
- Cost: Healthcare analytics require a significant investment in infrastructure and resources, making it difficult for some organizations to afford.
Top 3 Use Cases of Healthcare Analytics Market:
- Clinical Decision Support: Healthcare analytics can be used to provide evidence-based insights to physicians and other healthcare professionals to help them make data-driven decisions about patient care. This includes identifying the most suitable treatments for a particular patient, predicting the risk of readmission, and analyzing treatment efficacy.
- Population Health Management: Healthcare analytics can be used to monitor the health of a population and identify trends in healthcare utilization, disease prevalence, and outcomes. This enables healthcare providers to tailor approaches to population health management and develop proactive strategies to improve healthcare outcomes.
- Value-Based Care: Healthcare analytics can be used to measure and analyze outcomes of care and identify areas of improvement. This allows providers to compare the cost and quality of care across different populations and identify opportunities for cost savings and performance improvement. This enables providers to move towards a value-based care model that focuses on outcomes rather than fee-for-service.
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Recent Developments:
- In October 2022, Optum (US) acquired Change Healthcare (US). This acquisition will connect and simplify the core clinical; administrative and payment processes health care providers and payers depend on to serve patients.
- In October 2022, Oracle (US) entered into an agreement with WellSpan Health (US) to enhance operational insights, reduce costs, improve the team member experience, and support its future expansion
- In July 2022, Francisco Partners (US) completed the acquisition of healthcare data and analytics assets that were part of IBM’s Watson Health business. The assets acquired by Francisco Partners consist of extensive and diverse data sets and products, including Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex, and imaging software offerings.
- In June 2021, Flatiron (US) Partnered with Foundation Medicine, Inc. to integrate its solutions with OncoEMR to offer integrated genomic profiling to customers.
- In July 2021, Enlitic (US) partnered with NMC Healthcare (UAE). This is a multi-faceted partnership with private healthcare companies to incorporate Enlitic’s solutions in GCC countries.
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