Industry Trends
Healthcare Analytics Market size was
over USD 5.5 billion in 2016, with expectations to witness over 12 % CAGR from
2017 to 2024.
Growing need to reduce healthcare cost coupled with increasing
application of healthcare analytics to provide real time solutions will lead to
higher efficiency levels. Emergence of big data owing to the transition from
paper charts to real time monitoring systems and use of electronic health
records for collecting patient health data will boost industry growth.
Rising awareness pertaining to personalized medicines would result
in the generation and collection of huge volume of digital genome data driving
the healthcare analytics market expansion. Increasing usage of data sharing
platforms such as social media platforms, blogs, and professional networks has
allowed sharing health related information and obtaining peer opinions. This
will increase the data available for healthcare analytics over the forecast
years.
Lack of skilled IT professionals and issues pertaining to data
integrity and safety should restrain market growth. The inherent nature of
healthcare industry hinders seamless data sharing among different providers due
to privacy concerns. Lack of organizational procedures for integrating and
sharing data and uncertainty of returns will further impede the industry
growth.
Healthcare Analytics Market,By
Product
Descriptive analytics accounted for over 55% of industry share
with expectations to witness more than 11% CAGR over forecast years. The
ability of descriptive analytics to analyze historical data and gain actionable
future insights should favor segment growth. It is the most basic and widely
accepted form of analytics which acts as a precursor for predictive and
prescriptive analytics.
Favorable government initiatives and increasing venture capitalist
investments will augment business growth. Increasing funding to healthcare
technology companies that developed mHealth apps, big data analytics, and
Internet of Things (IoT) offerings will boost global market size.
Prescriptive analytics should witness lucrative 14% CAGR between 2017 and 2024 owing to its ability to predict about possible outcomes and its implications on key business metrics. It is comparatively complex in nature with few players optimizing it to achieve best outcomes by identifying data uncertainties.
Prescriptive analytics should witness lucrative 14% CAGR between 2017 and 2024 owing to its ability to predict about possible outcomes and its implications on key business metrics. It is comparatively complex in nature with few players optimizing it to achieve best outcomes by identifying data uncertainties.
Healthcare Analytics Market, By
Application
Financial management held over 30% of global healthcare analytics
market share with expectations to surpass USD 5.5 billion by 2024. Growing
application of analytics to curb increasing healthcare costs and provide
quality patient care attributes to its significant industry share. Extended use
of analytics to detect and prevent healthcare fraud will further increase its
demand across all healthcare organizations.
Clinical management should witness robust 13% CAGR over the
forecast years. It enables reduce healthcare spending by using data analytics
solutions and improve access to healthcare provider networks. Increasing
investors interest in clinical solution provider companies should accelerate
segment growth.
Technological advances facilitating information sharing and
improved compliance to Health Insurance Portability and Accountability Act
(HIPAA) patient data confidentiality standards will accelerate business growth.
Novel approaches are used to develop effective therapies by focusing on
discovery, safety and clinical trials output increasing the overall R&D productivity.
Healthcare
Analytics Market,By End-use
Hospitals attributed for nearly 70% of healthcare analytics market
share with over 12% CAGR from 2017 to 2024. Healthcare analytics will help
hospitals cut down on administrative costs, reduce fraudulent and incorrect
payments, provide better care coordination and enhance clinical decision
support.
Clinics should witness over 13% CAGR with industry size
anticipated to exceed USD 2 billion by 2024. Increasing usage of primary care
analytics will enable physicians to identify areas for care improvement and
build effective evidence based practices throughout the healthcare delivery.
Healthcare
Analytics Market,By Region
U.S. market held more than 90% of regional revenue share in 2016.
Presence of well-established healthcare infrastructure, increasing venture
capital funding, acceptance of advanced technologies and widespread adoption of
electronic health records across healthcare organizations will boost business
growth. Moreover, presence of headquarters of major industry players in this
region will further propel industry expansion.
Japan market size was over USD 240 million in 2016 and is
anticipated to witness rapid growth throughout the forecast years. Rising
healthcare expenditure, presence of advanced healthcare IT infrastructure and
increasing initiatives for curtailing rising medical costs should propel
business growth. Presence of EHR platforms and increasing adoption of
predictive and prescriptive analytics across majority of hospitals should accelerate
the industry growth.
Competitive Market Share
Some of the key players operating in the healthcare analytics
market space include IBM, OptumHealth, McKesson Corporation, Allscripts
Healthcare Solutions, Cerner Corporation, Athenahealth, Inovalon, Computer
Programs and Systems, Change Healthcare, Tenet Healthcare Corporation, GE
Healthcare, Evolent Health, Influence Health and Health Catalyst.
Acquisitions, collaborations, partnerships, new product launches
and geographic expansion are the most commonly adopted business strategies by
healthcare analytics industry participants. For instance, IBM acquired Truven
Health Analytics for approximately USD 2.6 billion enhancing IBM Watson Health
business unit’s portfolio and broadening its client base.
Healthcare Analytics Industry Background
Healthcare analytics is an evolving concept and is anticipated to
transform the nature of healthcare organizations in the near future. Increasing
adoption and implementation of electronic health records in hospitals, clinics
and other healthcare settings will favor healthcare analytics market growth.
Usage of healthcare analytics solutions is widespread in developed countries.
Economic development and healthcare infrastructure advancements in developing
economies coupled with ushering in the era of digitization is anticipated to
increase adoption rate in these regions.