The global healthcare business intelligence market size was valued at USD 4.61 billion in 2018 and is projected to expand at a CAGR of 12.8% over the forecast period. Increasing need to attain improved operational workflow and enhanced patient care mainly by healthcare providers, payers, and manufacturers are some of the key factors propelling the growth. Emergence of cloud-based business intelligence (BI) solutions, rising adoption of mobile based BI solutions along with increasing requirement for better cost management are a few key factors boosting the growth. Moreover, advancements in analytics and emergence of big data is expected to drive the healthcare business intelligence (BI) market. These solutions enable a user to attain improved productivity and efficiency across various applications including patient care, financial, workforce, and administration.
Increasing adoption of these software by hospitals, health providers, payers, and life sciences manufacturers to convert their data into insightful dashboard and graphs is a significant factor anticipated to drive the growth. Implementation of BI platform offer end users with the dashboard’s interactive graphs that allows them to directly manage revenues, patient care status, service rate comparisons, patient admission trends, and easy access to patient data by age, gender, Emergency Room (ER) visits without going through the endless information. The graphs in BI-enabled analytics allow end users to efficiently make data supported decisions so as to reduce operating costs, improvise service, and propel the market growth. Moreover, introduction of mobile-friendly BI solution for staying updated and notified while on-the-go is another vital factor driving the revenue growth.
Business intelligence and big data are expected to play key roles in future of healthcare industry as they have the potential to positively impact all the stakeholders including patients, clinical staff, physicians, employers, payers, and providers. This is projected to boost the market growth.
BI solutions heavily rely on big data owing to the ever-growing volume of digital information generated by the providers, manufacturers, pharmaceutical professionals, and private insurance companies. Lately, the insurance and clinical trial data has been made available to public by the federal government and other regulatory bodies. Furthermore, Electronic Health Records (EHRs) have gained widespread implementation over the past few years. Owing to the introduction of advanced analytics in healthcare, it has now become easier to analyze patient data from multiple facilities, such as hospitals, post-acute care organizations, and private providers. Thus, the demand for these solutions is expected to rise in the forthcoming years.
These tools provide critical information in a simplified manner that can be easily interpreted by the users. They allow flexible integration and inter-operability within multiple modules such as HR, sales, and finance. This provide users with the option to gather data from any department either individually or in combination with other modules. Moreover, these solutions support large scale data distribution, wherein large volumes of personalized BI content can be efficiently shared with multiple end users. Thus, owing to the valuable new data insights offered by healthcare BI, the demand for these software solutions and services is expected to increase at a steady pace over the forecast period.
Moreover, increasing adoption of cloud computing across the globe has transformed the industry. Easy availability of cloud-based analytics and BI solutions and their vast applications are transforming the industry. The demand for cloud-based software is increasing due to focus of manufacturers and providers on achieving higher patient care and revenue optimization. Adoption of the cloud-based healthcare BI solutions among providers to optimize revenue cycle management, supply chain management, performance management, and clinical decision support has added to the significant growth in the market revenue.
In 2018, software emerged as one of the key potential segments, mainly owing to its wide usage in healthcare industry. The growing adoption of software such as SaaS that offers next generation cloud computing applications such as revenue cycle management, supply chain management, enterprise performance management, enterprise resource planning, and business process management are among few key factors boosting the healthcare business intelligence (BI) market growth.
Moreover, growing need for efficient management of workflows in the healthcare facilities, and increasing demand for personalized and customized information in emerging economies are driving growth of the software market. The adoption of healthcare BI software is majorly increasing due to the growing need to manage financial operations. These applications are continuously evolving and focus on enhancing the patient outcomes along with real-time sharing of patients’ data. BI software further allows to identify which services offered by healthcare organizations are most profitable and which ones are underused. This allows organizations to make necessary changes and to generate maximum profit.
Services segment is expected to emerge at a steady growth rate of 11.3% over the forecast period. Owing to increasing advancements in BI software, the demand for the services such as modernizing data infrastructure and legacy data migration is expected to increase. The development of next-gen customized solutions such as intuitive data modeling, robust database design for all the enterprise systems, and smart data visualizations, is a key factor boosting the growth of services segment.
In 2018, cloud-based delivery mode was the largest segment with a revenue share of 46.4% in the healthcare business intelligence market. However,hybrid (cloud-based/On-premise) mode of delivery is expected to be the fastest growing segment over the forecast period. Companies are increasingly adopting cloud-based business intelligence tools, such as Customer Relationship Management (CRM) applications by salesforce, patient engagement CRM, analytics cloud for HR, and others. This is due to the properties such as agility and accessibility of cloud-based tools. Increasing demand for cost-effective, user-friendly technology, and higher acceptance rate are the key factors contributing to the high share of the segment. Increasing penetration of cloud computing among healthcare providers for managing the revenue cycle and enhancing patient care is further boosting the market growth.
On-premise deployment is expected to register a moderate growth rate of 12.1% over the forecast period. Distinct challenges such as ineffective implementation and governance, staff recruitment, training, retention, and constant policy and process challenges along with high upfront infrastructure and set up costs, are a few key factors responsible for lower adoption of in-premise mode of delivery. In addition, due to the risk of security breaches in on-premise deployment, interrupted network performance, high costs associated with hosting servers; majority of the healthcare organizations are shifting towards cloud-based deployments. This is expected to positively impact the cloud-based segment growth over the forecast period.
In 2018, financial analysis was the largest application segment with a revenue share of 37.2%. Whereas,patient care is expected to witness the fastest growth over the forecast period. According to a study published by McKinsey Global Institute, it is estimated that healthcare organizations opting for business intelligence and big data are capable of collectively saving between USD 300 to USD 450 billion annually, in U.S. Increasing adoption of financial analytic software among the providers for the management of revenue cycle, risk assessment and claims processing is further boosting the growth of healthcare business intelligence application in financial analysis.
However, revenue share in patient care segment is expected to register the fastest CAGR over the forecast period. Healthcare organizations are focused on providing advance patient and clinical care, decreasing readmissions, improving personnel distribution, and managing patient expenses. Thus, they require business intelligence tools in life science industry to offer enhanced patient care as well-analyzed data offers better insights.
Using a business intelligence tool in healthcare for patient care offer insights regarding time optimization. This allows the efficient implementation of labor distribution thereby offering more efficient patient management. Thus, the segment is expected to expand at the fastest growth rate over the forecast period.
In 2018, healthcare payers accounted for the largest revenue share and the manufacturers is expected to be the fastest growing segment over the forecast period. Increasing healthcare costs coupled with rising need to increase memberships and reduce fraudulent claims are some of the factors propelling the adoption of healthcare business intelligence solutions among the payers. Moreover, the increasing need to optimize provider networks, efficiently reduce the operational costs and increasing competition among the payers is further expected to boost the segment growth in the forthcoming years.
Healthcare manufacturers segment is expected to expand at a significant growth rate over the forecast period. Presence of a large number of pharmaceutical and medical device manufacturers in the developed as well as emerging economies is a major factor responsible for the rapid revenue generation in the segment. Increasing adoption of Software as a service (SaaS) software by healthcare manufacturers have enabled them to reduce maintenance and development cost, thus expected to boost the segment growth.
Furthermore, customer analytics tools including direct marketing and Customer Relationship Management (CRM) dashboards help the providers such as hospitals, government agencies, employers and private exchangers, and others to maximize their efficiency, improve revenue, and save costs. This in turn, is further expected to encourage the adoption of business intelligence tools among providers.
In 2018, North America accounted for the largest market share in terms of revenue. The increased implementation of healthcare BI solutions and services by the providers to offer enhanced patient care and reduced expenses coupled with the presence of large manufacturing hubs are among the key factors driving the regional growth. Moreover, constantly upgrading healthcare and IT infrastructure along with increased adoption of cloud computing is contributing significantly to the market growth.
U.S. accounted for the highest revenue share in North America market in 2018 owing to the easy availability of BI infrastructure and professional BIG data crowd. In addition, rapid technological advancements in the fields of biotechnology, high adoption of advanced BI technology coupled with changing analytics protocols is further anticipated to boost revenue growth in U.S.
However, Asia Pacific is anticipated to be the most lucrative market accounting for the fastest CAGR of 13.6% during the forecast period. This is due to increased penetration of mobile-based solutions and increased implementation of technologically advanced BI solutions in the countries including India, China, and Japan. Rising awareness about BI tools among healthcare providers and organizations due to increasing government initiatives is also expected to propel the regional market growth.
Oracle Corporation; SAP; Microsoft; Salesforce; Tableau Software; TIBCO Software Inc.; Sisense Inc.; Domo, Inc.; Looker Data Sciences Inc.; and Infor Inc. are among few key players accounting for majority of the market share owing to their strong global footprint, extensive product portfolios, and increased focus on advancements in healthcare business intelligence solutions. Moreover, the development of mobile-based business intelligence applications by key vendors that allow users to access high-quality analytic services remotely is key factor driving the revenue growth.
Base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD Million and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, U.K., Germany, Spain, Russia, France, Italy, China, Japan, India, Australia, Singapore, South Korea, Brazil, Mexico, Argentina, South Africa, Saudi Arabia, UAE
Revenue forecast, company share, competitive landscape, growth factors, and trends
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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 2025. For the purpose of this study, Grand View Research, Inc. has segmented the global healthcare business intelligence market report on the basis of component, mode of delivery, application, end use, and region:
Component Outlook (Revenue, USD Million, 2014 - 2025)
Mode of Delivery Outlook (Revenue, USD Million, 2014 - 2025)
Application Outlook (Revenue, USD Million, 2014 - 2025)
Revenue Cycle Management
Payment Integrity and Fraud, Waste, & Abuse (FWA)
Risk Adjustment and Risk Assessment
Supply Chain Analysis
Quality Improvement and Clinical Benchmarking
Clinical Decision Support
Regulatory Reporting and Compliance
End Use Outlook (Revenue, USD Million, 2014 - 2025)
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Middle East & Africa
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