Home Healthcare IT Healthcare Analytics Market Size, Share, Trends, Demand and Report, 2031

Healthcare Analytics Market

Healthcare Analytics Market Size, Share & Trends Analysis Report By Type (Descriptive, Predictive, Prescriptive ), By Component (Hardware, Software, Services ), By Delivery (Web Hosted, On-premises, Cloud-Based), By Applications (Clinical, Financial, Operational and Administrative), By End-User (Healthcare Payers, Healthcare Providers, Life Science Companies) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRHI55793DR
Study Period 2019-2031 CAGR 23.6%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 36.12 Billion
Forecast Year 2031 Forecast Year Market Size USD 243.13 Billion
Largest Market North America Fastest Growing Market Europe
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Market Overview

The global healthcare analytics market revenue was valued at USD 36.12 billion in 2022. It is estimated to reach USD 243.13 billion by 2031, growing at a CAGR of 23.60% over the forecast period (2023–2031). The healthcare analytics market is expected to benefit from the significant influence of increasing healthcare costs.

Healthcare analytics allows experts to improve patient engagement, clinical outcomes, care delivery, and business operations. Healthcare data analytics combine real-time and historical data to identify trends, enhance patient care, provide insightful information, and promote long-term growth. Healthcare analytics systems require massive amounts of data to give businesses valuable information. Healthcare analytics can be used for various tasks within a facility, such as the administration of hospital grants and donations, patient records, appointment scheduling, insurance claims, etc.

Healthcare analytics can improve patient outreach, control the spread of diseases, manage larger company operations, and raise the bar for patient care, among other things. The Health Data Analytics Initiative was created by the Grainger College of Engineering in Illinois as a focal point for clinical investigators, engineers, AI experts, and data scientists. This initiative aids in delivering better solutions by enhancing the caliber of research through AI platforms and analytical tools.

Market Dynamics

Global Healthcare Analytics Market Drivers

Pressure to Curb Healthcare Cost

Rising healthcare costs are a crucial factor anticipated to positively impact the healthcare analytics market. Developing and developed regions are struggling to provide cost-effective and qualitative care services to the patient population. According to a WHO report, global healthcare spending was USD 7.8 trillion in 2017, which increased to USD 8.3 trillion in 2018. According to various reports, approximately 70% of the senior population is expected to use some form of long-term care during their lifetime. Based on the abovementioned scenario, an average retired couple is anticipated to spend over USD 295,000 in healthcare over their retirement course. Moreover, political instability, economic stress, and lack of proactive initiatives may reduce healthcare funding. The cost of healthcare in the United States has been rising steadily despite increased insurance and funding initiatives. It is higher than the average for the world and is projected to rise by 68.0% over the next ten years.

Furthermore, healthcare providers may now give the appropriate care at a reasonable cost thanks to healthcare analytics, which lowers overall healthcare spending. Healthcare expenditures in the U.S. were around USD 1.4 trillion in 2000 and reached USD 3.8 trillion in 2019. The growth rate of health costs is much higher than the annual income due to changing lifestyles and government policies. The growth rate of medical costs in North America and Europe was lower than in the rest of the world. In 2017, North America faced a surge of 4.7%, while Europe saw a hike of 4.1%.

The Latin America region experienced a hike of 8.2% in medical costs owing to a significant recession in various countries, such as Brazil and Venezuela, in 2018. Brazil's medical cost growth rate was likely 14.7% from 11% in 2017. In 2017, approximately 7.6% was the growth rate in the Middle East region, the second highest globally. However, South Africa saw quite lower growth than the rest of the Middle Eastern region, approximately 4%. In this country, non-communicable diseases are not the major cause of death, unlike the rest of the world. Growing healthcare costs are boosting the demand for healthcare analytics to streamline third-party processes and optimize the overall cost.

Rising Impact of Internet and Social Media on Healthcare

Social media is an integral part of life nowadays, and this has shifted from being just a tool to share private data to becoming a serious discussion and business platform. Although regulatory protocols restrict the healthcare industry, social media still greatly impacts modern healthcare. Developed economies like the U.S. use social media extensively to create awareness and source data. The common public can research various symptoms, medications, and nearby doctors on the internet, which has expanded the horizon and accessibility for patients. According to various reports, approximately 80% of users search online for medical information such as medications, side effects, doctors, and nearby hospitals. Nearly half of that population seeks information regarding healthcare professionals. These statistics highlight the role of social media in healthcare.

Social media is responsible for creating large amounts of data; thus, social media analytics is emerging as a new field. Social media analytics is primarily used for understanding customer sentiment across online resources, and the advent of social media analytics is anticipated to increase efficiency in healthcare analytics. The penetration of social media has grown public scrutiny in the industry. Until a few years ago, few incidences of drug recall and adverse reactions in clinical trials went unnoticed by the common public. However, in the recent social media trend, everything is receiving public attention, and pharmaceutical and medical device companies' brand value and reputation are at stake. This is expected to improve medical outcomes over the forecast period, mainly owing to stringent regulations implemented by the government and private players to avoid any product recalls/adverse reactions.

Global Healthcare Analytics Market Restraint

Data Privacy and Theft Issues

Healthcare analytics involves the mass participation of end users, which may lead to various new potential risks concerning data privacy and security issues. Security and confidentiality of collected data are of utmost importance. The growing incidence of data privacy and security issues is one of the key factors expected to hinder the growth of IoT in the healthcare market. The Internet of Medical Things Resilience Partnership Act of 2017 is a new piece of legislation introduced in the U.S. Senate. Under this Act, the FDA and the National Institute of Standards and Technology shall select a group of individuals who have worked in the healthcare industry. This group is expected to issue guidelines and create a framework to increase the security of healthcare devices that store patient information.

Another Act that aims to preserve and ensure patient confidentiality is the Health Insurance Portability and Accountability Act (HIPAA), which protects patients' rights concerning the confidentiality of their information. This Act includes cloud service and other web service providers. Violating this Act can lead to monetary fines of up to USD 4.0 million. Moreover, despite the huge benefits of EHRs, a significant inhibition toward public acceptance of EHR technology has been noticed because the risk to the privacy and security of protected health information hampers the market growth.

Global Healthcare Analytics Market Opportunities

Growing Demand for Personalized Medication and Treatment

Every person has a unique combination of the human genome. Although this variation usually does not affect the normal dosage regimen, it may have an impact in the long term. The introduction of data-enriched tools like mobile applications, mHealth, eHealth, and Electronic Health Records (EHRs) has decreased the communication gap between patients and caregivers. These tools generate massive amounts of data, which can be utilized to tailor treatments. The volume of this data is increasing by 48% per year, according to the Healthcare Information and Management Systems Society (HIMSS) survey. Moreover, the adoption of smart and wearable devices is growing rapidly, creating additional patient-related data.

Patients may be reluctant to use these tools, which could impact analytics applications. However, the need for these tools is expected to increase over the forecast period due to the combination of artificial and human intelligence data analytics, which offer numerous opportunities to customize various medical approaches. According to the Personalized Medicine Coalition, the number of drugs manufactured by personal medicine approaches has grown 62% since 2012. Globally, the demand for personalized and precision medicines is growing. The proliferation of sequencing methodologies such as next-generation sequencing, which delivers data on genetic makeup and drug response, can become major parameters for the growth of personalized medicines.

Moreover, the number of diagnostic and therapeutic products in the market is rapidly increasing. According to the Personalized Medicine Coalition (PMC), available personalized medicine treatments, drugs, and diagnostic products were 13 in 2006, which increased to 113 in 2014. Such instances provide lucrative market opportunities.

Regional Analysis

Region-wise, the global healthcare analytics market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global healthcare analytics market shareholder and is predicted to exhibit a CAGR of 22.20% during the projected period. North America dominates the market for healthcare analytics, and some of the critical reasons for this growth are the region's highly developed IT infrastructure, sophisticated healthcare infrastructure, government regulations that encourage the use of telehealth, and high levels of digital literacy. For instance, in Canada, The Centre for Future Health (CFH) promotes "Digital Health" by integrating information technology, involving electronic communication tools, into healthcare networks to deliver high-quality care. This is likely to enhance data aggregation and healthcare analytics. Moreover, the adoption of healthcare analytics has increased due to pressure to reduce the region's rising healthcare costs. The penetration and adoption of AI and machine learning in healthcare analytics solutions are estimated to create growth opportunities in the market.

Europe is expected to grow at a CAGR of 24.60% during the forecast period. The healthcare industry in Europe is under pressure, owing to various key factors such as rising costs, increasing prevalence of chronic conditions, rapidly aging population, growing demand for treatments, and stagnating or shrinking healthcare workforce threatening its sustainability. The industry also faces issues due to structural inefficiencies in certain European countries. The move to value-based healthcare is expected to strengthen the demand for better patient outcomes at a more sustainable cost. Incorporating analytics into innovative medical technologies can address pressing healthcare issues. According to the information reported by the Centre for Promotion of Imports (CPI), many European countries face a huge financial disadvantage due to the increasing healthcare expenditure. Numerous government programs are being implemented to support technology development and offer top-notch healthcare services, which are expected to promote market expansion.

The Asia-Pacific region's political systems, cultural settings, economic development, and disease profiles vary. Healthcare has been constantly advancing and making its presence in developing and underdeveloped regions and is expected to overtake the EU region as the world's second-largest healthcare market. This region's market is experiencing growth due to the rising prevalence of chronic illnesses and supportive government policies. Moreover, the Asia-Pacific healthcare market is anticipated to expand fastest due to rising government spending on healthcare and growing demand for healthcare analytics and related services. Therefore, healthcare analytics are expected to become more in demand due to rising unmet healthcare needs and enormous healthcare expenditures.

Moreover, China is considered the home for low-cost electronic devices and components, which is expected to attract more investors in China and other Asian countries. Due to low manufacturing costs and the availability of cheap labor, it is easier to do business in the region. This is another important factor expected to boost this regional market's growth.

Report Scope

Report Metric Details
Segmentations
By Type
  1. Descriptive
  2. Predictive
  3. Prescriptive 
By Component
  1. Hardware
  2. Software
  3. Services 
By Delivery
  1. Web Hosted
  2. On-premises
  3. Cloud-Based
By Applications
  1. Clinical
  2. Financial
  3. Operational and Administrative
By End-User
  1. Healthcare Payers
  2. Healthcare Providers
  3. Life Science Companies
Company Profiles IBM Corporation OptumHealth, Inc. Oracle Corporation Verisk Analytics, Inc. MEDai, Inc. MedeAnalytics, Inc. Truven Health Analytics, Inc. McKesson Corporation Allscripts Healthcare Solutions, Inc. Cerner Corporation SAS Institute, Inc. IQVIA
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global healthcare analytics market is segmented by type, component, delivery, application, and end-user.

Based on type, the global market is categorized into descriptive, predictive, and prescriptive. 

The descriptive segment dominates the global market and is estimated to grow at a CAGR of 18.30% during the forecast period. Descriptive analytics involves the conversion of raw data into interpretable information. It creates conclusions on what has happened in the market in the past, which helps in understanding the past behavior of consumers and factors that influence market dynamics, which helps build critical queries. This process usually involves data mining and aggregation and has become a fundamental offering of all analytics companies. Moreover, the descriptive analytics segment is expected to witness rapid growth in the healthcare analytics market, owing to a large customer pool interested in understanding the current market scenario.

By components, the global market is categorized into hardware, software, and services. 

The services segment owns the highest healthcare analytics market share and is predicted to grow at a CAGR of 21.90% during the forecast period. Due to the widespread practice of outsourcing these services, the services market is predicted to expand at a profitable rate. Healthcare companies may lack the resources and skillsets required to deploy analytics; therefore, these services are outsourced. Outsourcing can be short-term project-based or long-term contracts. These services include compliance on promotional spending, social media analytics, manufacturing processes, preventive maintenance, predictive analytics for medical device failure, and benchmarking services.

Based on delivery, the global market is categorized into web-hosted, on-premises, and cloud-based. 

The on-premises segment dominates the global market and is estimated to exhibit a CAGR of 19.30% during the forecast period. On-premise delivery mode involves installing services and solutions on computers present within the organization. On-premise-delivered software is generally termed shrinkwrap software. Although the software needs to be installed within the organization's premises, it can be accessed from remote locations, providing the benefits of reduced cost, low power consumption, and low maintenance.

Based on applications, the global market is categorized into clinical, financial, and operational and administrative. 

The financial segment owns the highest healthcare analytics market share and is estimated to grow at a CAGR of 18.20% during the forecast period. Rising healthcare costs are a significant concern among healthcare organizations. Organizations currently run on tight budgets and must avoid excess expenses. The key financial applications of healthcare analytics include revenue cycle management, claim settlement, fraud prevention, and risk assessment and prevention. Implementation of analytics can help organizations save costs, especially in cases of fraud or improper payments, which leads to segmental growth.

By end-users, the global healthcare analytics market is categorized into healthcare payers, providers, and life science companies. 

The life science companies segment dominates the global market and is estimated to grow at a CAGR of 24.50% during the forecast period. Concerning experiments and clinical trials in biotechnology, healthcare analytics can be beneficial in providing accurate, timely, and quick responses. It also helps detect errors in experiments, reduce costs, etc.; hence, biotechnology companies utilize data analytics tools and solutions owing to these and many other advantages. For instance, genome analysis and sequencing through conventional methods cost billions of dollars. Hence, many biotechnology companies use healthcare data analytics tools to decode genomic data, costing thousands of dollars. This cost difference is highly advantageous for biotechnology companies, increasing the adoption of healthcare analytics tools by these companies.

Market Size By Type

Market Size By Type
  • Descriptive
  • Predictive
  • Prescriptive 
  • Recent Developments

    • January 2023- Optum Rx, UnitedHealth Group's pharmacy services company, launched Price Edge. This technology seamlessly compares insurance pricing with direct-to-consumer prices for conventional generic drugs to ensure that members always pay the lowest cost for prescription pharmaceuticals. The Price Edge service is available to all Optum Rx customers.

    Top Key Players

    Healthcare Analytics Market Share of Key Players

    Healthcare Analytics Market Share of Key Players
    IBM Corporation OptumHealth, Inc. Oracle Corporation Verisk Analytics, Inc. MEDai, Inc. MedeAnalytics, Inc. Truven Health Analytics, Inc. McKesson Corporation Allscripts Healthcare Solutions, Inc. Cerner Corporation SAS Institute, Inc. IQVIA Others

    Frequently Asked Questions (FAQs)

    How big is the healthcare analytics market?
    The global healthcare analytics market revenue was valued at USD 36.12 billion in 2022. It is estimated to reach USD 243.13 billion by 2031, growing at a CAGR of 23.60% over the forecast period (2023–2031).
    The global healthcare analytics market is segmented by type, component, delivery, application, and end-user.
    Growing demand for personalized medication and treatment is opportunity in market.
    The key players in the global healthcare analytics market include IBM Corporation, OptumHealth Inc., Oracle Corporation, Verisk Analytics, Inc., MEDai Inc.
    North America region has the largest market share in the healthcare analytics market.


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