Predictive Disease Analytics Market Size, Share & Trends Analysis Report By Component (Hardware, Software & Services), By Deployment, By End-user, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global predictive disease analytics market size was valued at USD 2.0 billion in 2022 and is projected to grow at a CAGR of 22.7 % over the forecast period. Predictive analytics is a branch of advanced analytics that helps make predictions and better decision-making by using various techniques such as modelling, data mining, statistics, and artificial intelligence (AI). Big data and predictive analytics help in improving the operational management of healthcare organization, the accuracy of diagnosis and treatment in personal medicine, and increased insights to enhance cohort treatment.

The healthcare industry has been challenged with issues like skyrocketing treatment costs, lack of better patient care, and less patient retention and engagement. Thus, predictive disease analytics are being adopted throughout the industry to provide better care to patients and improved operations. These factors are the major reasons for the growth of the healthcare analytics industry. For instance, in November 2022, Hartford HealthCare and Google Cloud announced their long-term partnership to improve their healthcare system's digital transformation to improve data analytics and enhance patient care. 

The rapid advancement in technology and huge investment by the healthcare industry helps in the rapid digitization of the healthcare sector. These analytical platforms are deployed throughout the globe that will help manage patient and their retention. Furthermore, the deployment of healthcare analytics increases staff productivity, improves patient management and reduces caregivers' burden. In March 2022, Databricks introduced Lakehouse paradigm for Healthcare and Life Science industry to deliver innovation in research and care. The single platform can be used for analytics, data management and advanced AI for disease prediction, medical image classification and biomarker discovery.

The rise in government initiatives and an increasing amount of money being invested in the healthcare industry are two key reasons for increasing adoption of predictive analytical tools in the healthcare sector. For instance, February 2023, European Commission has invested USD 7.2 million for a new project that focuses on developing AI based platform that will be used for collecting and analyzing clinical data on new oncology medicines to support their assessment through regulators and health technology assessment (HTA) agencies. Similarly, the U.S. government is taking various initiatives in this direction, such as introducing the HealthData.gov portal that collects information from several federal databases on topics such as clinical data, community health performance, and medical and scientific knowledge. Other than hospitals, policy makers are also adopting these platforms for analyzing statistics and models for making better decisions and policies regarding healthcare establishments and delivering care to patients. Major key players also focus on developing technologically advanced tools to expand their market dominance. 

COVID-19 boosted the industry's market growth due to the rising need for digital solutions and advanced analytical tools for managing the patient population. A huge amount of clinical data was generated during the pandemic that required proper management with the help of analytics solutions; this will help researchers and caregivers to derive greater outcomes, predict trends and understand the dynamics of the spread of disease. For instance, in June 2020, NIH introduced a healthcare data analytics platform to collect patient data for actionable insights on COVID-19. However, factors such as privacy issues, lack of regulations, and algorithm bias are projected to hamper the market growth. 

Component Insights

On the basis of component, software and services held the largest share of 69.9% in 2022 and the segment is also projected to forecast fastest CAGR over the forecast period. The development of platforms and the digitalization of data for analytics have drawn significant investments from the healthcare sector into the IT sector. Due to the fact that the majority of businesses do not have a data analytics division, they outsource the data analytics portion of their IT. Because of this, the number of data analytics firms is growing and providing a full range of services to businesses. Expanding the services provided by data analytics further boosts the segment’s growth. 

Increasing patient load on the healthcare system, rising disease prevalence, and others lead to large data generation. Growing pressure on the healthcare industry to provide better patient care at lower costs further opens new opportunities for the market. 

Deployment Insights

On-premise segment dominated the industry with the revenue share of 65.9% in 2022. The growth is attributed to the convenience of access and security; most institutions are currently installing software and instruments to store data at their premises, leading to segment growth. The current technologies are useful in small businesses, but when scaled up, they can make data management challenging and laborious if the firm works with a sizable dataset. This may need significant financial investment for data security and storage. 

Cloud-based solutions are expected to show fastest CAGR over the forecast period. The growth is attributed to its ease of storage, low capital requirements, enhanced flexibility, and efficiency. Cloud-based solution helps to increase user engagement and gives access to medical information from anywhere and at any time. Key players are highly focusing on various strategic initiatives to boost the segments growth, which further impacts the market positively. For instance, post the acquisition of Cerner, Oracle’s Q2 of 2022 revenue grew by 18% y-o-y, which would have been just 9% excluding Cerner. The overall growth is highly boosted by their infrastructure and applications cloud businesses, which grew by 59% and 45% respectively. Its total cloud revenue, including Cerner, grew by 48%, which was up 25% without Cerner. 

End User Insights

On the basis of end user, payer segment dominated the market growth with 40.9% of market share in 2022. Payer includes insurance companies, health plan sponsors (employers and unions), government agencies, and third-party payers. Payers adopt predictive disease analytics tools for evaluating insurance claims prior to payment settlement, disease risk assessment, and preventing and detecting fraudulent claims. Payers use historical and current data as a predictor of the future. 

However, the provider segment is projected to increase the fastest CAGR over the forthcoming year. Growing healthcare expenditure and rising investment in healthcare infrastructure are two major factors that boost the segment's growth. An increasing percentage of the geriatric population and increasing cases of chronic conditions also boost the market growth. Predictive disease analytics help providers identify trends and patterns, make better decisions about treatments and allocation of resources, and provide insights that predict demand for healthcare services and plan for future needs. In October 2022, research team from the University of Florida (UF) Health and the University of Pennsylvania Perelman School of Medicine (Penn Medicine) have proclaimed that they are going to develop a set of predictive analytics algorithms to forecast which patients appear likely to develop any kind of rare diseases.

Regional Insights

North America had the largest market share of 45.3% as of 2022. The region has most advanced healthcare facilities which boost the adoption rate of the platforms. The increasing burden of chronic diseases and rising percentage of geriatric population have also increased the demand for hospitals and other organizations to adopt analytics tools. The presence of major players in the market has also been a factor contributing to the large share of the revenue. In September 2020, Microsoft, based out of the U.S., launched Microsoft Cloud for Healthcare which will be an alliance between providers and patients that will help in delivering better insights related to patient care. 

On the other hand, Asia Pacific is anticipated to register the fastest growth rate over the forthcoming years. The market growth is attributed to increasing favorable government initiatives & support. Furthermore, rise in healthcare spending further boost the market growth and opens new opportunities for the market over the coming years. The growing geriatric population and rising incidences of chronic conditions are two major factors that contribute to the regional expansion. According to a survey by the U.S. Census Bureau, in 2020 there were 414 million people in Asia who were 65 or older, and by 2060, that figure is projected to rise to 1.2 billion. 

Key Companies & Market Share Insights

The key players are focusing on developing new tools and solutions to meet the growing demand for predictive disease analytics in the healthcare and life science industry. Furthermore, regional expansions and mergers & acquisitions are key strategic undertakings these players adopt. For instance, in January 2023, Ardent Health Service partnered with SwitchPoint Ventures to launch an innovation studio. The studio will focus on developing and deploying data-driven solutions. Ardent has also adopted Polaris, SwitchPoint’s novel solution for accurately predicting patient volume in any clinical setting. Rising investment in healthcare further boost startups to enter the industry, increasing market competition. Some prominent players in the global predictive disease analytics market include:

• Oracle

• IBM

• SAS

• Allscripts Healthcare Solutions Inc.

• MedeAnalytics, Inc.

• Health Catalyst.

• Apixio Inc. 

Predictive Disease Analytics Market Report Scope

Global Predictive Disease Analytics Market Report Segmentation

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of industry trends in each of the subsegments from 2018 to 2030. For the purpose of this study, Grand View Research, Inc. has segmented the global Predictive Disease Analytics report on the basis of indication, end user, and region:

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

  • Software & Services

  • Hardware

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

  • On-premise

  • Cloud-based

• End User Outlook (Revenue, USD Million, 2018 - 2030)

  • Healthcare Payers

  • Healthcare Providers

  • Other End Users

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Spain `

    • Italy

    • Sweden

    • Norway

    • Denmark

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE