The global population health management market size was valued at USD 29.6 billion in 2022. It is projected to reach USD 156.2 billion by 2031, growing at a CAGR of 20.3% during the forecast period (2023–2031).
Population health management (PHM) is a focused, comprehensive approach to gathering and examining a patient's health-related data. Population health management collects and analyzes patient data from various health information technology resources to improve patient health and lessen their financial burden. A technology that supports data collection, governance, and analysis serve as the foundation for population health management. Additionally, it emphasizes patient engagement, actionable insights, patient-centered care management, and data integration and analysis. It includes data analytics, health information management, care coordination, integration, and measurement of value-based care. It strongly emphasizes enhancing patient satisfaction, population health, and healthcare outcomes. PHM provides several solutions that help deliver patient-centered care by lowering readmission rates and guaranteeing appropriate and effective interventions. Additionally, it helps in giving patients and healthcare professionals access to medical information in real-time. Therefore, PHM is extensively used by public and private healthcare organizations.
| Report Metric | Details |
|---|---|
| Base Year | 2022 |
| Study Period | 2021-2031 |
| Forecast Period | 2023-2031 |
| CAGR | 20.3% |
| Market Size | USD 156.2 billion by 2031 |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
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It is anticipated that the growing geriatric population and the ensuing rise in disease burden will significantly impact the healthcare systems in various nations. Given the growing strain on government budgets, the decline in healthcare workers in various regions, and the higher prevalence of chronic diseases, the effects of the growing geriatric population are even more pronounced. The cost of healthcare per person is anticipated to rise in many countries due to the enormous pool of geriatric people needing health and long-term care services. Moreover, the burden on healthcare systems worldwide is rising due to citizens' rising expectations for social and healthcare services. Stakeholders are pursuing a variety of strategies in this regard to keep costs under control while preserving care quality. Population health management is one strategy that might improve care quality while cutting costs. Most nations use population health management and EHR solutions to lessen the strain on their overburdened healthcare delivery systems. These market circumstances are increasing population health management solution adoption worldwide.
Additionally, the growing emphasis on personalized medicines will present good chances for population health management to advance (PHM). Businesses in the healthcare industry can treat each patient uniquely using advanced analytics and predictive modeling technologies, resulting in the best possible outcomes. Analytics are increasingly being used to customize cancer treatment and other diseases. The increasing emphasis on value-based healthcare and the rise in emerging markets will create more favorable conditions for the population health management (PHM) market's expansion over the forecast period. Technological development and numerous government initiatives to promote public health will boost the market's growth rate.
A lack of internal control over patient information, a lack of top management support, out-of-date policies and procedures or non-adherence to existing ones, and inadequate staff training are the main reasons why one-third of data breaches in the healthcare sector result in medical identity theft. These factors contribute to the sector's rise in data breaches and medical identity theft cases. As a result, maintaining patient confidentiality in the healthcare sector is extremely difficult. Data hosted by vendors is not as secure as its on-premise counterparts, which is a significant concern with cloud-based population health management solutions. Because patient information is so delicate, it must be kept in the strictest of confidences so that only those with permission can access it. Digitizing patient and medical records have raised data risks and liabilities and increased the likelihood of data breaches. As a result, developing a secure communication platform is a significant challenge for IT vendors serving the healthcare sector. Therefore, the adoption of cloud-based population health management solutions is constrained by worries about the security and privacy of sensitive patient information.
Value-based medicine is redefining healthcare and capturing and making usable data that is results-oriented. Healthcare organizations can use business intelligence (BI) to identify the required data and analyze, evaluate, and use that data to understand costs and benefits and gain a competitive edge. Additionally, it makes all processes transparent, allowing for a value, utility, and outcomes analysis of every purchase. The current healthcare model is unsustainable globally, so governments, health insurance providers, and healthcare providers are also looking for new ways to cut costs. Additionally, healthcare organizations will increasingly be forced to rely on these new methodologies due to the expanding volume and accessibility of healthcare data and the growing demand to provide patients with quality care. This will help them stand out from the competition and take advantage of the growth opportunities as a strategic competency. The market for population health management will experience rapid growth due to the quick shift from fee-for-service (FFS) payments to value-based reimbursement models and the crucial role analytics play in new pay-for-performance models like Accountable Care Organizations (ACOs).
The global population health management market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.
North America is the most significant shareholder in the global market and is expected to grow at a CAGR of 18.7% during the forecast period. The U.S. and Canada are included in the analysis of the population health management market in North America. The demand for an efficient PHM is rising due to the alarming rise in healthcare costs. By precisely tracking the health of the population and its subgroups, the government is putting more effort into providing incentives and investing to enhance the nation's health. The government is working harder to offer incentives and invest in improving the country's health by carefully monitoring the health of the population and its subgroups. Pressure on the healthcare industry to reduce medical costs, the expanding use of information technology in healthcare, cloud computing, the regulatory environment, and the rise in diseases are the main factors driving the market for population health management in North America. The Affordable Care Act (ACA), which the American government implemented to prevent disease and promote the use of IT in healthcare, will spur market expansion and present opportunities for service providers to efficiently gather and maintain patient data.
Asia Pacific is expected to grow at a CAGR of 21.34% during the forecast period. The UK, Germany, France, Italy, Spain, and the rest of Europe are all included in the analysis of Europe's market. Because of rising healthcare costs and expanding healthcare infrastructure, the Asia Pacific market is anticipated to grow fastest during the forecast period. The region's overall market growth is significantly influenced by factors such as increasing medical tourism, infrastructure modernization efforts in China, adopting new ICT regulations in Japan, expanding the healthcare sector in India, and introducing IT initiatives in New Zealand and Australia. Advanced data analytics will be needed to manage the data produced by this sudden increase in the number of patients with chronic diseases, which is expected to drive the market's expansion in the area.
The market is segmented by component, end-user, and mode of delivery.
Based on components, the global population health management market is bifurcated into software and service.
The service segment is the highest contributor to the market and is expected to grow at a CAGR of 19.8% during the forecast period. Additional service categories include consulting, training and education, post-sale and maintenance, and implementation services. It is due to rising R&D efforts to offer a comprehensive software program for population health management. IoT and wearable technology integration are creating more lucrative market opportunities. Wearable technology monitors various health indicators, including heart rate and sleep patterns, which are essential for keeping track of health. The creation of cutting-edge population health-based software will enable the health system to gather, monitor, and analyze this data to create a patient treatment therapy. Additionally, end-user spending on wearable technology is anticipated to rise in the upcoming years.
Based on end-user, the global population health management market is bifurcated into healthcare providers, payers, and employers.
The healthcare providers segment is the highest contributor to the market and is expected to grow at a CAGR of 20.1% during the forecast period. With a revenue share of 48.7% in 2022, the healthcare providers segment dominated the market. PHM reduces in-patient stays and the number of hours doctors must spend observing patients, improving clinical outcomes. Thus, providers can concentrate more on providing patient-centered care while lowering overall costs. Healthcare providers also heavily invest in the cost of enhancing this result and implementing EHR solutions. The adoption of population health management solutions among healthcare providers is anticipated to benefit from several initiatives supporting the adoption of EHR and data interoperability. Several federal governments are providing various incentive and reimbursement programs to encourage the adoption of the HER.
Based on the mode of delivery, the global market is bifurcated into on-premise, web-based, and cloud-based.
The cloud-based segment is the highest contributor to the market and is expected to grow at a CAGR of 21.4% during the forecast period. Online access to the cloud-based population and health management programs is possible without the involvement of healthcare management. Due to this, population health management is effectively accessible to a variety of healthcare specialties and organizations. Therefore, the demonstrated effectiveness of cloud-based population health management in-home healthcare, along with the ease of data accessibility across numerous platforms, is the primary factor driving the cloud-based platform segment's market dominance. On-premise is another significant platform subsegment. The increased security and greater customization flexibility of the on-premise platform for PHM solutions are anticipated to propel the segment's growth rate during the forecast period.
