Healthcare/Medical Analytics Market Size, Share & Trend Analysis Report By Type, By Component, By Delivery Mode, By Application, By End-Use And Segment Forecasts, 2018 - 2025

Industry Insights 

The global healthcare/medical analytics market size was estimated at USD 7.04 billion in 2016. Increasing need to reduce healthcare expenditure, including cost associated with medical product flaws and hospital workflow inefficiencies, is anticipated to increase the usage of big data in the healthcare sector.

The digitalization of healthcare data is also one of the primary drivers of healthcare analytics. According to Intel, approximately more than 80.0% of the healthcare organizations in the U.S. have adopted Electronic Medical Records (EMR) systems. These systems collect a lot of data, which can be analyzed using various types of healthcare analytics to develop personalized medicine.

Healthcare Analytics (HA) is used by providers to be able to identify clinically meaningful outcomes in relation to costs through investigational mining of electronic patient records for identifying inherent medical inaccuracies in the system so as to offer cost-effective treatments to patients, while reducing the amount of resources wasted.

HA can be used to reduce time to treatment, improve performance of healthcare providers, there is risk mitigation, reduced rate of hospital readmissions, increasing use of personalized medicine, it eliminates the need of conducting additional diagnostic tests.

Advanced methods such as predictive analytics are widely used in government organizations such as healthcare financing systems primarily to avoid frauds in payments. For instance, in 2011, the Centers of Medicare and Medicaid Services (CMS) reported that under its Fraud Prevention System (FPS), predictive analytics helped in saving USD 1.5 billion through improper payments. Moreover, the CMS is developing next generation predictive analytics, which is expected to boost the usage of predictive analytics.

Type Insights

On the basis of type, the industry can be segmented into descriptive, prescriptive and predictive analytics. Descriptive analytics is most widely used system amongst the three and held substantial share in 2016. These systems are mostly used for process optimization and administrative activities. The descriptive method tells us about the progression of an event, which has occurred in the past. On the other hand, predictive analytics is anticipated to witness lucrative growth over the forecast period. This method is widely used by organizations such as government organizations, insurance providers, life science companies, hospitals, and clinics.

Prescriptive analytics is used in the insurance sector to understand, analyze, and predict customer action in a particular situation. This method also aids in framing and improvising strategies in order to supplement business growth. Prescriptive analytics aids in diagnosis, maintenance of electronic health records, and helps in the determination of personalized clinical solutions.

Components Insights

Key component segments analyzed in the report are software, hardware, and services. Services held substantial share in 2015 and are expected to grow with a sturdy rate over the forecast period. Outsourcing of big data services is expected to dominate the service segment

Outsourcing saves cost, time and offers qualified staff which eliminates the need for training. Services are followed by hardware components in terms of market share. The high cost associated with infrastructures such as computer system, and high-speed internet governed their growth.

Delivery Mode Insights

Delivery modes of HA include on-premises, web based and cloud based delivery. On-premises delivered services contributed to around 48.0% shares in 2015. On the other hand, cloud based analytics is anticipated to exhibit remunerative growth over the forecast period. Remote access to data, real-time data tracking and avoidance of complex physical ecosystem are the notable benefits associated with cloud-based systems

Cloud-based technology helps in storing large amount of data remotely to allow free space on the devices and later facilitates the data retrieval according to the need of the clients. The technology comprises three services including Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and Software as a Service (SaaS). The analytics software are SaaS based services. IMB offers its Watson Analytic services on SaaS platform.

Application Insights

The application segment includes clinical, operational & administrative and financial systems. Operational & administrative services dominated the application segment in 2015. This can be attributed to their wide applications encompassing supply chain management, workforce and strategic analytics.

Financial applications are anticipated to exhibit maximum growth over the forecast period. This is attributed to their growing adoption in government as well as private health settings. . The key financial applications of healthcare analytics include revenue cycle management, claim settlement, fraud prevention, risk assessment and prevention.

End-use Insights

End users in medical analyticsmarket include payers, providers, and other end users such as the Accountable Care Organizations (ACOs), Managed Care Organizations (MCOs) and Third Party Administrators (TPA).

Healthcare payers held a substantial share of the market in 2015, however, the providers segment is anticipated grow at a lucrative rate. The increasing adoption of these systems in hospitals is expected to propel the growth of this segment

Payers use analytics for settlement of insurance claims, risk assessment, and fraud prevention. Management of high utilizer and high risk patient population has always been a challenge for payers. In addition, rising healthcare expenditure creates pressure on payers to reduce costs. Therefore, payers have to use analytics to reduce their costs

Regional Insights

North America held the largest share of around 60.0% in 2016. High per capita healthcare cost, increasing cases of payment frauds, and growing demand to reduce rising healthcare costs have resulted in the rapid adoption of these systems.

On the other hand, Asia Pacific is anticipated to grow at a lucrative rate of around 29.0% over the forecast period. The presence of supportive government initiatives being undertaken to improve the medical infrastructure and promote economic growth are factors anticipated to increase the adoption of analytics in this region.

Healthcare/Medical Analytics Market Share Insights

There are many large and small players in the healthcare analytics sector. Large players include companies such as IBM, Oracle, and Allscripts. Small players include companies such as Health Catalyst and CloudMedx. Additionally, large market players are offering technologically advanced products with greater utility to gain edge over competitors.

Some of the key companies present in the industry are IBM Corporation, OptumHealth,Inc., Oracle Corporation, VeriskAnalytics, Inc., MEDai, Inc., MedeAnalytics, Inc., McKesson Corporation, Inc., Truven Health Analytics, Inc., Allscripts Healthcare Solutions, Inc., Cerner Corporation, SAS Institute, Inc.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global healthcare/Medical analytics market report on the basis of type, component, delivery mode, application, end-use and region:

• Type Outlook (Revenue, USD Million; 2014 - 2025)

  • Prescriptive

  • Descriptive

  • Predictive

• Component Outlook (Revenue, USD Million; 2014 - 2025)

  • Software

  • Hardware

  • Services

• Delivery Mode Outlook (Revenue, USD Million; 2014 - 2025)

  • On-premise

  • Web-based

  • Cloud-based

• Application Outlook (Revenue, USD Million; 2014 - 2025)

  • Clinical

  • Financial

  • Operational and Administrative

• End-use Outlook (Revenue, USD Million; 2014 - 2025)

  • Healthcare Payers

  • Healthcare Providers

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

  • Europe

  • Asia Pacific

  • Latin America

  • Middle East & Africa