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Healthcare Predictive Analytics Market

Healthcare Predictive Analytics Market Size, Share & Trends Analysis Report By Component (Software, Hardware), By Application (Clinical Analytics, Financial Analytics, Operational Analytics), By End User (Payers, Providers) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRHI55477DR
Study Period 2019-2031 CAGR 26.4%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 10.8 Billion
Forecast Year 2031 Forecast Year Market Size USD 70.3 Billion
Largest Market North America Fastest Growing Market Europe
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Market Overview

The global healthcare predictive analytics market size was valued at USD 10.8 billion in 2023 and is projected to reach USD 70.3 billion by 2031, registering a CAGR of 26.4% from 2023 to 2031. The need for advanced analytics to enhance the patient outcomes is anticipated to drive the market growth.

Healthcare predictive analytics is a subset of data analytics and advanced statistical approaches used in healthcare. It entails predicting future occurrences, trends, and outcomes using historical and real-time healthcare data. Healthcare predictive analytics uses a variety of data sources, such as medical imaging data, electronic health records (EHRs), patient demographics, and more, to make informed decisions that improve patient care, save costs, and increase operational efficiency.

Healthcare predictive analytics market share is anticipated to rise at 24.5% CAGR due to the surge in the need for advanced analytics solutions to enhance patient outcomes and decrease costs. The necessity to curb rising healthcare expenditures while maintaining the quality of service delivered has also played a role in the emergence of predictive analytics. Another reason driving development is the rise of tailored care, which benefits patients and decreases the expenses of unneeded treatments, resulting in the best outcomes.

Market Dynamics

Global Healthcare Predictive Analytics Market Drivers

Rising Demand for Improved Patient Outcomes

The healthcare predictive analytics market trend is expected to continue as healthcare providers worldwide focus on providing better patient care and improving health outcomes. Predictive analytics is critical to attaining these aims since it identifies patients at risk of adverse events and allows for early intervention. Predictive analytics is commonly employed to treat chronic diseases such as diabetes. Healthcare providers can use patients' data and predictive models to identify individuals at risk of problems or noncompliance with treatment programs. They can enhance diabetes patients' health outcomes through individualized care and education.

The Centers for Medicare and Medicaid Services (CMS) in the United States launched the Hospital Readmissions Reduction Program (HRRP), which penalizes hospitals with high readmissions. This program has motivated healthcare professionals to use predictive analytics to reduce readmissions and improve patient outcomes. Healthcare providers can enhance the quality of care, lower healthcare costs, and ultimately improve patient happiness and well-being by identifying at-risk patients and enabling early interventions. The successful application of predictive analytics in lowering readmissions and managing chronic diseases indicates its efficacy in attaining these objectives.

Global Healthcare Predictive Analytics Market Restraints

Data Privacy and Security Concerns

Healthcare data, which includes patient records, medical histories, and other confidential facts, is among the most sensitive and personal information. Predictive analytics heavily relies on large amounts of data, such as electronic health records (EHRs) and patient health information (PHI), which poses serious concerns regarding data privacy and security.

The Health Insurance Portability and Accountability Act (HIPAA) of the United States establishes stringent criteria for protecting patient data. To guarantee the privacy and security of patient information, healthcare institutions and their technology partners must follow HIPAA standards, which include encryption, access limits, and data breach notification. According to the U.S. Department of Health and Human Services (HHS), there were 11 documented healthcare data breaches involving more than one million records in 2022, with another 14 involving more than 500,000. The vast majority of such breaches involved hacking, with many including ransomware or attempted extortion. According to IBM Security's Cost of a Data Breach Study, the average cost of a healthcare data breach in the United States in 2023 will be $4.45 million. Data privacy and security issues significantly constrain the healthcare predictive analytics market growth.

Global Healthcare Predictive Analytics Market Opportunity

Personalized Medicine and Precision Healthcare

Personalized medicine, or precision medicine, tries to tailor healthcare interventions and treatments to individual patients' genetic, clinical, and lifestyle factors. Predictive analytics is critical for discovering effective treatment strategies, minimizing side effects, and increasing patient outcomes. The National Institutes of Health (NIH) in the United States has initiated the All of Us Research Program, which intends to collect and analyze health data from one million or more participants to develop precision medicine. Predictive analytics will be critical in deriving insights from this massive information.

Moreover, according to a study published in Cancer Discovery, tailored therapy regimens guided by predictive analytics and genetic testing enhanced progression-free survival rates in patients with advanced-stage lung cancer. This shows customized medicine's potential to improve treatment outcomes. Predictive analytics, powered by genetics and data analysis improvements, is a crucial facilitator of these personalized approaches, allowing healthcare professionals to make data-driven decisions suited to individual patients, according to healthcare predictive analytics market insights. As the discipline evolves, it holds enormous promise for the future of healthcare.

Regional Analysis

The global healthcare predictive analytics market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Market

North America occupies a moderate market share with a CAGR of 27.3% during the forecast period. The dominance of North America is attributable to an expanding patient population with chronic conditions, the presence of important market participants, and the market players' constant focus on strategic alliances to develop innovative solutions in the region. Factors such as an aging population, an increase in medication errors, the adoption of healthcare IT solutions, the prevalence of chronic illnesses, an increase in prescriptions and hospitalization rates, and a greater awareness of technology innovations all contribute to market growth. Advances, increased usage of digital health technology, and an increasing number of emerging and leading firms entering the healthcare predictive analytics industry all contribute to this region's market growth. For example, in September 2021, Health Choice Network (HCN) announced a USD 400.0 million deal with Epic. Epic will provide comprehensive solutions to more than 44 organizations in 16 states across the United States.

Europe significantly contributes to the market growth at a CAGR of 26.1% during the forecast period. The increased awareness of healthcare solutions, strategic collaborations, and government-initiated projects are important contributors to its large healthcare predictive analytics market share. The increasing prevalence of acute and chronic infections, increased hospital admissions, increased prescriptions, medication errors, and drug abuse, and increased awareness of telehealth, telemedicine, and other technologies all contribute to the market growth in this region. Germany, the United Kingdom, Italy, France, and Spain dominated the European market. For example, the World Health Organization (WHO) and the Federal Republic of Germany will open the WHO Hub for Pandemic and Epidemic Intelligence in Germany in September 2021. The new center will serve as a global pandemic and epidemic intelligence platform. It anticipates, prevents, detects, plans for, and responds to global health threats.

Asia-Pacific is expected to have the greatest CAGR during the forecast period. Increased chronic disease cases and improved healthcare infrastructure have resulted in the growing use of healthcare predictive analytics to minimize rising healthcare expenditures and improve the outcomes of treatments supplied to patients. This element also contributes to market expansion in the Asia Pacific area. Furthermore, the growing e-health initiatives in countries such as China and India and the increasing need for healthcare analytics in healthcare facilities to manage enormous amounts of patient data are driving growth in this market. This and an increase in EHR product introductions are expected to fuel the use of healthcare predictive analytics solutions shortly. Epillo Health Systems, for example, will launch integrated healthcare solutions for patients and doctors in June 2021. The new solution includes EHR systems for clinics and pharmacies and a patient-facing mobile app.

Growth in Latin America and the Middle East is expected to be slower. The active involvement of government agencies in deploying analytics and AI-based healthcare solutions is propelling market growth in these regions. For example, in November 2020, the Brazilian Ministry of Health, the State funding agency, and the Bill & Melinda Gates Foundation, the National Council for Scientific and Technological Development, funded and launched a project in Brazil under the Grand Challenge Explorations for the evaluation of public healthcare policies to assess the impact of hospital-based breastfeeding interventions on infant health.

Report Scope

Report Metric Details
Segmentations
By Component
  1. Software
  2. Hardware
By Application
  1. Clinical Analytics
  2. Financial Analytics
  3. Operational Analytics
By End User
  1. Payers
  2. Providers
Company Profiles  IBM Cerner Corp. Verisk Analytics Inc. McKesson Corp. SAS Oracle Allscripts Optum Inc. MedeAnalytics Inc.
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 predictive analytics market is segmented based on component, application, end-user, and region.

The component is further segmented into software and Hardware.

Software occupies the largest share of the market. The digital programs, applications, and systems run on computers, servers, and other computing devices are software components. These applications are intended to carry out specific operations, processes, or functions.

Hardware components are the actual, tangible, and electronic equipment or devices utilized to support and run software programs. Computers, servers, storage devices, networking equipment, medical devices, sensors, and other physical infrastructure are examples of Hardware.

The segment can be bifurcated by application into Clinical Analytics, Financial Analytics, and Operational Analytics.

Financial Analytics accounts for the highest market share. Predictive analytics to manage and optimize financial elements of healthcare organizations is referred to as financial analytics in healthcare. Revenue cycle management, billing, claims processing, and cost-cutting techniques are all part of this. Healthcare providers can use predictive analytics to predict and reduce claim denials, optimize pricing strategies, detect fraudulent invoicing, and estimate revenue trends.

The goal of operational analytics is to improve the efficiency and efficacy of healthcare operations. Predictive models improve resource allocation, labor management, and overall healthcare delivery.

Based on end-users, the market is sub-segmented into payers and providers.

Payers are the major end-users of the market. Payers are companies or groups that manage and fund healthcare costs and insurance coverage. Health insurance companies, managed care organizations, government payers (such as Medicaid and Medicare), and other institutions reimbursing healthcare services fall into this category. Payers use predictive analytics to analyze risk, manage claims, detect fraud, optimize pricing structures, and make informed decisions about coverage and reimbursement policies. Predictive analytics can assist payers in identifying high-cost patients, preventing fraudulent claims, and improving premium pricing accuracy.

Healthcare organizations and facilities that provide patient care are considered providers. Hospitals, clinics, medical practices, nursing homes, and other healthcare providers fall into this category.

Market Size By Component

Market Size By Component
  • Software
  • Hardware
  • Recent Developments

    • September 2023- IBM advanced Watsonx AI and Data Platform with Tech Preview for Watsonx. Governance and New Models and Generative AI in WatsonX Data on the Way.
    • February 2023- Nova Scotia and Oracle Cerner Launched a New Healthcare Era.
    • September 2023- Verisk introduced a groundbreaking predictive SRCC data model for political violence insurance.

    Top Key Players

    Healthcare Predictive Analytics Market Share of Key Players

    Healthcare Predictive Analytics Market Share of Key Players
     IBM Cerner Corp. Verisk Analytics Inc. McKesson Corp. SAS Oracle Allscripts Optum Inc. MedeAnalytics Inc. Others

    Frequently Asked Questions (FAQs)

    What is the growth rate for the healthcare predictive analytics market?
    The global healthcare predictive analytics market growing at a CAGR of 26.4% from (2023–2031).
    North America region has the highest growth rate in the healthcare predictive analytics market.
    Rising demand for improved patient outcomes are the major growth factors of the healthcare predictive analytics market.
    Personalized medicine and precision healthcare is one of the key opportunities in healthcare predictive analytics market.
    IBM , Cerner Corp. , Verisk Analytics Inc. , McKesson Corp. , SAS , Oracle , Allscripts , Optum Inc. , MedeAnalytics Inc.are the prominent players in the healthcare predictive analytics market.


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