Healthcare Predictive Analytics Market Analysis By Application (Operations Management, Financial, Population Health, Clinical), By End-Use (Payers, Providers), By Region (North America, Europe, Asia Pacific, Latin America, MEA) And Segment Forecasts, 2018 - 2025

Industry Insights

The global healthcare predictive analytics market was valued at USD 1.48 billion in 2015 and is expected to grow at a CAGR of 29.3% over the forecast period. Pressure to contain soaring health-care costs, introduction of advanced analytics, and increasing demand for personalized medication is expected to propel the lucrative growth of the healthcare predictive analytics market.

The rising cost of medication is the biggest issue several countries are facing. Developing as well as developed regions are struggling to provide cost-effective quality care. Moreover, political instability, economic stress, and lack of proactive government-led initiatives question the availability and accessibility of adequate funding. Despite there being certain health funding and insurance programs, a constant increase in healthcare costs has been observed, which is influencing health-care providers to lean toward the adoption of cost curbing tools such as predictive analytics.

U.S. healthcare predictive analytics market, 2014 - 2025

Every individualis characterized with a unique human genome. Although underlying genetic variations do not always engender adverse effects in response to the normal drug dosage regimen; however, they do exertlong-term effects. With the advent of data enriching tools such as mHealth, eHealth, Electronic Health Records (EHR), and mobile applications, the gap between caregivers and patients has reduced significantly. These tools generate data to a large extent, which is analyzed and used to offer personalized care. This personalization is better realized using predictive modeling that brings in more efficiency at the provider’s end.

Today social media forms an integral part of an individual’s life as people now are connected round the clock through smart phones and various social networking tools. Although, the health industry is restricted by privacy protocols, the utility of social media is creating a huge impact on modern health-care. Social media generates massive amounts of patient data,which can be accumulated through wearable devices, remote monitors, health applications, and patient portals. Social media analytics are primarily used by enterprises to gain an insight into customer sentiments and harness social media trends to optimize their performance.

On the contrary, data theft & privacy issues and lack of skilled professionals are key restraining forces, which have a serious impact on the dynamics of the health-care predictive analytics market.To combat the challenge of data theft, the Health Insurance Portability and Accountability Act (HIPAA) was incorporated in 1996 in the U.S. Initiatives such as the HIPAA are making systems more credible, pulling more and more users toward the big data space.

Application Insights

Financial applications of predictive analytics spearheaded the application segment. The key financial applications include Revenue Cycle Management (RCM) and fraud detection & prevention. This system saves costs for private and public medical organizations through fraud prevention and proper payment management of claims. For instance, in two years, 2014-2016, the Centers for Medicare & Medicaid Services (CMS) reported that under its fraud prevention system, predictive analytics helped in saving USD 1.5 billion through improper payments.

Population health management using predictive modeling is anticipated to witness lucrative growth over the forecast period. The important applications of population health management include risk management, patient engagement, and population therapy management. The key objectives for population health achieved using predictive modeling include evaluation of disease and treatment patterns, root cause analysis, and reduction in readmission rates.

End-use Insights

Payers are one of the key users of these systems accounting for over 38.0% of the end-user segment. Payers comprise insurance companies, health plan sponsors (employers and unions), and third-party payers. They use these utilities for evaluation of insurance claims prior to their payment settlement, disease risk assessment, and prevention and detection of fraudulent claims.

Global healthcare predictive analytics market, by end-use, 2015

Providers comprise health professionals such as physicians and clinicians, hospitals, and clinics. This segment is expected to witness lucrative growth owing to increased usage of these services especially in hospitals.The applications include population health management, operational intelligence, performance management, and financial management.

Regional Insights

North America held a substantial shareof around 60.0% in 2015. The U.S. is the major contributor in rendering this region the leading segment in the global healthcare predictive analytics market. Streamlined health-care systems, updated regulatory policies, and availability of trained workforce in this region helped it attain a lucrative market share.

On the other hand, the Asia Pacific region is anticipated to exhibit remunerative growth over the forecast period. Policy reforms and economic development are expected to contribute positively toward sector growth. Moreover, booming Information Technology (IT) industry and prevalent IT outsourcing in this industry are vital factors leading to swift growth of this regional segment.

Competitive Insights

Some of the key players in this space include IBM, Cerner Corporation, Verisk Analytics, Inc., McKesson Corporation, SAS, Oracle, Allscripts, Optum, Inc. and MedeAnalytics, Inc. New product launches and collaborations are the key strategic undertakings of the participants in this vertical.

For instance, in May 2016, MedeAnalytics partnered with Presbyterian Healthcare Services, in New Mexico, to provide analytics services. This initiative is anticipated to open new avenues for the firm to cater to the untapped markets in this region.

Report Scope

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Segments Covered in the Report

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented healthcare predictive analytics market on the basis ofapplications, end-use,and region: 

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

  • Operations Management

    • Demand Forecasting

    • Workforce Planning and Scheduling

    • Inpatient Scheduling

    • Outpatient Scheduling

  • Financial

    • Revenue Cycle Management

    • Fraud Detection

    • Other Financial Applications

  • Population Health

    • Population Risk Management

    • Patient Engagement

    • Population Therapy Management

    • Other Applications

  • Clinical

    • Quality Benchmarking

    • Patient Care Enhancement

    • Clinical Outcome Analysis and Management

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

    • Payers

    • Providers

    • Other EndUsers

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

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • UK

    • Asia Pacific

      • Japan

      • China

    • Latin America

      • Brazil

      • Mexico

    • Middle East and Africa (MEA)

      • South Africa