Healthcare Predictive Analytics Market Size, Share & Trends Analysis Report By End-use (Payers, Providers), By Application (Clinical, Financial Management), By Region (Europe, North America, Asia Pacific), And Segment Forecasts, 2023 - 2030

Report Overview

The global healthcare predictive analytics market size was valued at USD 11.7 billion in 2022 and is expected to grow at a compounded annual growth rate (CAGR) of 24.4% from 2023 to 2030. The rise in demand for advanced analytics systems in the industry to improve patient outcomes as well as for reducing costs has been a major driver of the market. The need for containment of rising healthcare costs without compromising on the quality of care provided has also been a key factor in the growth of predictive analytics. Another factor contributing to the growth is the rise in personalized medicine, which has not only proven to be better for the patient but also reduces the costs of unnecessary treatments, thereby giving the best outcomes.

There has been a noticeable increase in healthcare spending across all countries. In the U.S., the National Health Expenditure for 2021 was USD 4.3 trillion, amounting to 18.3% of the nation’s GDP. Japan’s healthcare expenditure has also increased from 7% in 2000 to 10.7% of GDP in 2019. The increasing expenditures are currently aimed at making the health systems of the countries more robust, thereby increasing the efficiency of the industry. The adoption of predictive analytics solutions can be instrumental in significantly reducing the cost of healthcare procedures. The predictive analysis combined with personalized medicine can not only result in a reduction of unnecessary medical costs but also give better patient outcomes and results.

Another key factor driving the growth of the market is the adoption of evidence-based medicine to deliver the right kind of care to the right patient. The use of Electronic Health Records (EHRs) for patient data has risen in recent years, in the U.S., the adoption of EHRs in the case of office-based physicians rose from 42% in 2008 to nearly 86% in 2017. Healthcare predictive analytics uses EHRs to provide the best possible course of action in case of any medical procedure or medication. This not only reduces the costs for patients significantly but also results in better outcomes. The use of electronic health systems along with analytics tools and AI are poised to propel the growth of the market. Healthcare costs have risen over the years owing to the increasing burden of chronic diseases on a global level.

The COVID-19 pandemic resulted in massive costs for the industry. Predictive analytics has played a major role in combating issues related to COVID-19, reducing the number of poor outcomes for patients, and addressing the management of resources during the crisis. The enormous amount of patient data generated during the pandemic not only provided analytics companies and the healthcare industry with data to correctly analyze the spread of disease but also helped in the correct allocation of resources. Various institutions, as well as hospitals, used predictive analytics to access the likelihood of the patient developing serious symptoms, their infection/disease trajectory along with several other parameters. In 2020, in Cleveland Clinic, USA, researchers worked on a predictive analytics model that determined an individual’s likelihood of testing positive for COVID-19 along with the outcomes from it.

Application Insights

On the basis of applications, the global market has been further categorized into operations management, financial, population health, and clinical. The financial application segment dominated the market in 2022 and accounted for the largest share of more than 35.6% of the global revenue in 2022. Financial applications in the healthcare industry include revenue cycle management, assessing the risk of fraud, and reducing fraudulent claims, which cost billions per year. In the U.S., nearly USD 80 billion worth of fraud occurs each year, as per the National Healthcare Fraud Association.

This application type is not only beneficial for private establishments but also for the public, and government-funded organizations as well. Predictive analysis in its financial application has also resulted in the growth of the market. Population health management is another application that has been gaining a lot of traction and is expected to grow at the fastest CAGR from 2023 to 2030. With the generation of large amounts of patient data through telehealth and other online platforms and connected devices, population health management can be done by identifying populations that need proper medical care. Patient outcomes can be greatly improved and are thus propelling the growth of the market.

End-use Insights

On the basis of end-uses, the global market for healthcare predictive analytics has been further sub-segmented into payer, provider, and other end-uses. The payers end-use segment dominated the global market in 2022 and accounted for the maximum share of more than 36.3% of the overall revenue. Payers, including insurance companies, health plan sponsors, and other third-party payers are one of the key benefiting parties, through the use of predictive analytics in healthcare settings. Fraudulent claims can be tracked and billions can be saved from the payer perspective.

Regional Insights

On the basis of geographies, the global market for healthcare predictive analytics has been further categorized into Asia Pacific, North America, Middle East & Africa, Latin America, and Europe. The global market was dominated by the North America region in 2022. The region accounted for the maximum share of more than 48.2% of the global market revenue in the same year. The major contributor to the growth of this regional market includes the presence of key players across various countries in North America.

The developed structure of the healthcare system and the trained staff for performing predictive analysis, paying capacity in terms of training staff to use these analytics tools has been a key reason for the growth of the market. The Asia Pacific region is estimated to register the fastest growth rate during the forecast period. An increase in the number of chronic disease cases and improving healthcare infrastructure have led to the rapid adoption of healthcare predictive analytics to reduce the rising health-related costs and for achieving better outcomes of treatments offered to patients. This factor also supports market growth in the Asia Pacific region.

Key Companies & Market Share Insight

A growing number of collaborations and partnerships among industry players are enabling them to gain a competitive edge in the market. For instance, in June 2018, MedeAnalytics announced its partnership with HealthEdge with an aim to enable payers to lower costs, reduce gaps in care, enhance broker & employer plan engagement, improve quality outcomes, and increase member satisfaction by leveraging each company’s complementary capabilities. The growth of the market has been credited to strategic initiatives and expanding offerings in terms of services and tools. Some of the key players in the global healthcare predictive analytics market include:

• IBM

• Cerner Corp.

• Verisk Analytics, Inc.

• McKesson Corp.

• SAS

• Oracle

• Allscripts

• Optum, Inc.

• MedeAnalytics, Inc.

Healthcare Predictive 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 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global healthcare predictive analytics market report on the basis of applications, end-use, and region:

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • 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, 2018 - 2030)

  • Payers

  • Providers

  • Other End-user

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • Italy

    • Spain

    • France

    • Sweden

    • Denmark

    • Norway

  • Asia Pacific

    • China

    • India

    • Japan

    • Thailand

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait