Healthcare Analytics Market Size, Share & Trends Analysis Report By Component, By Type, By Application, By Delivery Mode, By End User, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global healthcare analytics market size was valued at USD 23.6 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 23.8% from 2021 to 2028. The growing adoption rates of analytical solutions in the industry, building databases and historic trends using descriptive analysis estimating future market dynamics and outcomes using predictive and prescriptive analysis, are expected to boost growth. The healthcare industry is witnessing a significant impact of social media and the internet in driving awareness and sourcing data, which is utilized in patient engagement strategies. The growing need for enhancing patient outcomes while curbing expenses by using data analytics is driving the market for healthcare analytics.

Advanced analytical solutions designed for specific requirements of healthcare companies and facilities delivering financial, clinical, operational, and administrative services are bolstering the growth. The surge in adoption rates of data mining techniques and big data analytics to analyze populations at high risk and devise strategies is driving the market for healthcare analytics. Government organizations and financing institutions are utilizing predictive analytics solutions in various applications, such as risk assessment and reduce payment frauds.

The covid-19 pandemic has tremendously burdened the overall healthcare industry. The pandemic has contributed to the surge in adoption rates of analytical solutions by market players. For example, Moderna is collaborating with IBM for vaccine management solutions using advanced analytics and hybrid computing. In addition, the geriatric population is growing as well as the incidence rate of chronic diseases is rising, boosting the demand for enhanced patient experience. Analytics solutions are being widely used in revenue cycle management programs and population health management programs.                         

The demand for personalized medicine catering to different human genome combinations is growing and the use of data-rich tools, such as eHealth records, mHealth, and Electronic Medical Records (EMRs), to improve patient care is expected to drive the demand for analytical solutions over the forthcoming years. Furthermore, artificial intelligence solutions engulfed in data analytics solutions are being used in health data mining to further support the customized treatment plans, which is expected to drive the demand for analytical solutions.

COVID19 healthcare analytics market impact: 13.5% increase in revenue in 2020

The key players are focusing on technological collaborations, mergers and acquisitions, and partnerships to propel the growth and development of the market for healthcare analytics. For instance, in February 2021, IBM and Palantir Technologies partnered over IBM’s hybrid cloud data platform and Palantir’s advanced operations platform. The product would focus on simplifying the deployment of artificial intelligence in businesses. 

Component Insights 

In 2020, the services segment dominated the market for healthcare analytics and accounted for a revenue share of 37.0%. Healthcare and life science companies lack the expertise and resources to deploy analytics and outsource these services to other leading analytical solutions companies. In addition, the services segment is expected to record the fastest growth rate during the forthcoming years. Outsourcing companies are introducing multi-package services to life science companies, and it is expected to contribute to the growth of the segment over the forecast period.

The healthcare industry is under a tremendous workload, and it is surging the demand for analytical solutions in these organizations. Healthcare infrastructure is advancing and adopting analytical solutions and AI-based solutions for managing patient records. The services segment is expected to record the fastest growth rate over the forecasted period due to the outsourcing of services for short-term and long-term-based contracts. These packages include services covering social media analytics, manufacturing process, preventive maintenance, benchmarking, promotional spending, and predictive analysis for medical device failure.

Type Insights

In 2020, the descriptive analysis segment dominated the market and accounted for the largest revenue share of 38.0%. This is owing to the rising demand for descriptive analysis based on historic trends and datasets to acquire data-enriched insights to help businesses understand the current scenario more accurately. Market players use data mining tools on descriptive data siloes to estimate future market outcomes. For example, in December 2020, Trifecta and Accenture collaborated to deliver high-quality data mining solutions for improved drug discovery procedures. Descriptive analytics is widely used by companies to convert raw data and trends into interpretable data-driven insights helping companies understanding past business performance, consumer behavior, and analyze market impacts. Since the cost involved in purchasing descriptive datasets is comparatively lower than predictive and prescriptive analyzed datasets, it is expected descriptive analysis to significantly grow over the forthcoming years.

On the other hand, the predictive analysis segment is expected to register a lucrative growth rate over the forecast period. Growing utilization of advanced analytical solutions in predicting future market dynamics and outcomes allows players to devise appropriate strategies and tactics to improve business performance. Predictive analysis allows stakeholders to align their strategies and decision-making as per the market performance. Predictive analytics is heavily dependent on descriptive analysis and past business trends to predict future outcomes. Since predictive analysis is based purely on probabilities and trends, the analysis is not 100.0% accurate and needs logical reasoning and forecasting models to support predictions. Predictive analysis plays a key role in healthcare by determining product adoption rate, epidemiology of the disease, and changes in physician perception and buying behavior.

Application Insights

In 2020, the financial services segment dominated the market for healthcare analytics and accounted for the largest revenue share of 35.4%. These solutions are used by financial and government organizations in revenue cycle management, claim settlement, fraud prevention, and risk assessment. The financial services segment is anticipated to register the fastest growth rate for the forecasted period due to the rising adoption of these services in the prevention of fraud and reduce costs incurred by healthcare facilities.

Healthcare systems are undertaking various initiatives to adopt analytical solutions, which would help in reducing the occurrence of fraud and maximize cost savings. Since organizations are facing burdens in the form of rising costs and tight budgets, the need to adopt and implement analytical solutions to save costs and excess expenses in the form of frauds or improper payments is boosting the demand for healthcare analytics.

Delivery Mode Insights

In 2020, the on-premises delivery segment dominated the market for healthcare analytics and accounted for the largest revenue share of 50.1%. This is due to increased ease of access from remote locations with minimum maintenance and reduced costs. On-premise deployment involves installing systems and solutions on computers present within the organization. Generally, on-premise deployed software solutions are termed shrinkwrap software. These software solutions, although installed on-premise can be accessed from a remote location with reduced costs and low maintenance. In addition, the need for large physical areas for server rooms increases costs on deploying on-premise software solutions, which is expected to restrain growth. Server rooms house hardware that requires continuous maintenance and is expected to render growth of the segment.

On the other hand, the cloud-based segment is expected to witness the fastest growth rate over the forthcoming years. Cloud computing and web-based applications are witnessing a surge in adoption with the enhanced accessibility of the internet and improved ease-of-access from remote locations are driving the growth of the segment. Cloud deployed software solutions store data remotely, allowing free space on users’ devices and facilitating data retrieval as per need. Cloud-deployed technologies are comprised of Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and Software as a Service (SaaS). For example, IBM Watson Analytics is offered on a SaaS platform. The benefits associated with cloud-deployed software solutions are increased access, storage capacity, and enhanced security. These benefits help organizations optimize process efficiency and reduce mundane tasks.

End-user Insights

In 2020, the life science companies segment dominated the market for healthcare analytics and accounted for the largest revenue share of 50.8%. This is due to the rising adoption of analytical solutions by life science companies to enhance the accuracy and efficacy of products. For example, in November 2020, SAS Life Science Analytics Framework supported Covid-19 vaccine clinical trial management by transforming collected data into real-time information by providing data-driven insights. Life science companies are constantly investing in their R&D functionalities to improve product quality and efficiency, which is expected to boost the penetration and adoption of healthcare analytics in life science companies. The growing need to reduce costs, increase clinical trial efficiency, and deliver personalized care experiences are some of the factors boosting the growth of the segment.

On the other hand, the healthcare providers segment is anticipated to register the fastest growth during the forecast period owing to the rising adoption of analytical solutions by hospitals and other care facilities. Healthcare analytics has witnessed a surge in adoption rates amongst providers due to the associated application of analytical solutions such as diseases surveillance, chronic care management, population health management, operational intelligence, performance management, and financial management. Analytical solutions enable hospitals and clinics to improve workflow efficiency and minimize costs, and therefore it is expected to witness significant growth over the forthcoming years.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 50.3% in 2020.  It is mainly attributable to the evolving and developed healthcare facilities, rising geriatric population, increasing prevalence of chronic disorders, growing adoption of analytical solutions, technological advancements, and presence of market key players. North American market players are focusing on developing advanced analytical solutions for healthcare organizations. 

On the other hand, Asia Pacific is anticipated to register the fastest growth during the forecast period. Advancements in infrastructure, rising expenditures, the adoption of advanced analytical solutions, the emergence of start-ups are boosting the growth and development of the healthcare analytics market. Furthermore, public and private investments in advancing infrastructure, regional expansions, availability of highly skilled labor, and economic development are additional factors driving the market in the region.

Key Companies & Market Share Insights

Market players are constantly innovating and developing advanced analytical solutions and expanding their product offerings. The companies are focusing on their partnerships, technological collaborations, and product launch strategies to support healthcare companies adopt data analytical solutions, tackle the Covid-19 pandemic, and maintain competitive leverage in the market.

For instance, In January 2021, Optum and Change Healthcare, a healthcare technology provider, announced their collaboration. Under this partnership, Change Healthcare would join Optum Insight in delivering software and data analytics, technology-based services, research, and revenue cycle management offerings to strengthen Optum’s healthcare analytics portfolio. Some of the prominent players in the healthcare analytics market include: 

• McKesson Corporation

• Optum, Inc.

• IBM

• Oracle

• SAS Institute, Inc.

• IQVIA

• Verisk Analytics, Inc.

• Elsevier

• Medeanalytics, Inc.

• Truven Health Analytics, Inc.

• Allscripts Healthcare Solutions, Inc.

• Cerner Corporation 

Healthcare Analytics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2028. For the purpose of this study, Grand View Research, Inc. has segmented the global healthcare analytics market report on the basis of component, type, application, delivery mode, end-user, and region:

• Component Outlook (Revenue, USD Million, 2014 - 2028)

  • Software

  • Services

  • Hardware

• Type Outlook (Revenue, USD Million, 2014 - 2028)

  • Descriptive Analysis

  • Predictive Analysis

  • Prescriptive Analysis

• Application Outlook (Revenue, USD Million, 2014 - 2028)

  • Clinical

  • Financial

  • Operational & Administrative

• Delivery Mode Outlook (Revenue, USD Million, 2014 - 2028)

  • Web Hosted

  • Cloud Based

  • On-premise

• End-user Outlook (Revenue, USD Million, 2014 - 2028)

  • Life science Companies

  • Healthcare Payers

  • Healthcare Providers

• Regional Outlook (Revenue, USD Million, 2014 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE