Healthcare Analytics Market Growth & Forecast | 2023-2028

Market Insights

The healthcare analytics market is estimated to grow from USD 32.67 billion in 2023 to reach USD 99.3 billion by 2028 & is likely to grow at a CAGR of 24.90% during the forecast period.

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What is healthcare analytics?

The effective use of data and related business insights derived from statistical, quantitative, predictive, comparative, cognitive, and other emerging applied analytical models is referred to as healthcare analytics. Healthcare analytics tools aid in the discovery and comprehension of historical data patterns, the prediction of future outcomes, and the provision of actionable insights to drive fact-based decision-making in healthcare organizations for improved clinical, financial, and operational performance. The use of analytics assists healthcare systems in lowering healthcare costs and improving care quality.

Key Players

The following are some of the key players operating in the market-

• IBM (US)
• Optum (US)
• Cerner (US)
• SAS Institute (US)
• Allscripts (US)
• McKesson (US)
• MedeAnalytics (US)
• Inovalon (US)
• Oracle (US)
• Health Catalyst (US)
• SCIO Health Analytics (US)

Market Dynamics

The market is driven by a host of factors, some of which are noted below:

• The increasing adoption of analytical solutions in the industry
• Creation of databases and historical trends through descriptive analysis
• The prediction of future market dynamics and outcomes through predictive and prescriptive analysis.
• The growing need to improve patient outcomes while lowering costs through data analytics.
• The healthcare industry is seeing a significant impact from social media and the internet in terms of driving awareness and sourcing data for patient engagement strategies.

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Challenges & Solutions of Healthcare Analytics

The market is facing several challenges, including data quality, data security, data privacy, lack of expertise, and cost.
Some of the solutions that can be used to address the challenges of healthcare analytics:

• Data quality: Organizations can improve the quality of their healthcare data by implementing data quality initiatives, such as data cleansing and validation.
• Data security: Organizations can protect their healthcare data by implementing security measures, such as encryption and access controls.
• Data privacy: Organizations can comply with data privacy regulations by implementing privacy policies and procedures.
• Lack of expertise: Organizations can address the shortage of skilled healthcare data analysts by training their own employees or hiring third-party consultants.
• Cost: Organizations can reduce the cost of healthcare analytics solutions by choosing open-source solutions or by implementing cloud-based solutions.

By addressing the challenges of healthcare analytics, organizations can unlock the potential of this technology to improve patient care, reduce costs, and improve the efficiency of healthcare delivery.

Opportunities:

• Precision medicine: Healthcare analytics can be used to identify patients who are at risk for certain diseases, and to develop personalized treatment plans. This can lead to improved outcomes for patients and reduced costs for healthcare providers.
• Fraud detection: Healthcare analytics can be used to identify fraudulent claims and prevent fraud. This can save healthcare providers millions of dollars each year.
• Risk assessment: Healthcare analytics can be used to assess the risk of patients developing certain diseases, and to identify patients who are at risk of readmission to the hospital. This can help healthcare providers to allocate resources more efficiently and to improve patient outcomes.
• Population health management: Healthcare analytics can be used to track the health of populations, and to identify trends and patterns. This can help healthcare providers to improve the overall health of the population and to reduce the incidence of chronic diseases.
• Decision support: Healthcare analytics can be used to provide decision support to healthcare professionals. This can help professionals to make better decisions about patient care, and to improve patient outcomes.

Segment Analysis

By Type

The market has been classified into descriptive analytics, predictive analytics & prescriptive analytics. Under these, the descriptive analysis segment held a significant market share in 2022 & is expected to maintain its dominance during the forecast period.

Descriptive analytics has been used extensively during the pandemic to examine historical data and medical history to study the spread of the virus, which has been a key growth driver in this segment. 

By Component Trends

The market has been classified into hardware, software & service, Under these service segments accounted for the largest market share in 2022 & are expected to remain dominant during the forecast period. 

The healthcare sector is investing significant capital in IT to develop platforms and digitize data for analytics. This has led to the development of data analytics companies offering a full range of business services. The growth of the services offered by data analytics companies is responsible for the growth of this segment.

By Application Trends

The market has been classified into financial analysis, operational & administrative analysis, and clinical analysis) by end-use (healthcare payers, healthcare providers, others. Under these financial analyses segment accounted for the highest market share in 2022 & is expected to remain the largest market for healthcare analytics during the forecast period. 

Healthcare institutions and organizations are constantly striving to minimize treatment costs while providing better patient care, which explains the development of this segment. The financial aspect of management continues to be the biggest contributor, enabling companies to achieve better results by reducing costs and preventing fraud.

By End User Trends

The market has been classified into healthcare payers, healthcare providers, Other. Under these, the healthcare payers segment dominated the market in 2022 & is expected to maintain its dominance during the forecast period.

This is due to the increasing use of analytical solutions by life science companies to improve product accuracy and efficacy.

Regional Analysis

North America accounted for the largest market share in 2022  and is expected to grow at a significant CAGR during the review period. North America's dominance in the market can be attributed to the implementation of federal health mandates encouraging the adoption of HCIT solutions, an increased focus on PHM, significant VC investments, growing pressure to reduce healthcare costs, technological advancements, and high product and service availability in this region. 

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Furthermore, the majority of the leading players in the healthcare analytics market are headquartered in North America.

Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The market is segmented into the following categories:

By Type

• Descriptive Analytics
• Predictive Analytics
• Prescriptive Analytics 

By Component

• Hardware
• Software
• Service 

By Application

• Financial Analysis
• Operational & Administrative Analysis
• Clinical Analysis

By End-use

• Healthcare Payers
• Healthcare Providers

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and Rest the of Asia-Pacific
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others).

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Target Audience

The target audience of the healthcare analytics market includes-

• Healthcare Analytics companies
• Healthcare Analytics distributors
• Hospitals
• Government organizations
• Diagnostic Labs

COVID-19 Impact Analysis

The pandemic of COVID-19 has had a significant impact on the world's population and economy. As a result of the pandemic, the importance of big data in the healthcare industry has grown. Predictive and prescriptive analytics were used to create prediction models for the spread of subsequent waves of COVID-19 infection in various parts of the world.

The increased adoption of EHR in developing and developed countries during the pandemic has influenced market growth in 2020. During the pandemic, operational analytics was useful in managing patient data and allocating COVID-19 beds in ICU units.

Customization Options

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

Recent Developments

In August 2022, Stratasan Healthcare Solutions, a healthcare market intelligence and data analytics company, was acquired by Syntellis Performance. Benefitting from this acquisition, Syntellis expanded its healthcare data solutions with data and intelligence solutions for improving operational, financial, and strategic growth planning.

In June 2022, Cerner Corporation was acquired by Oracle Corporation. This acquisition combined Cerner’s clinical capabilities with enterprise platform analytics and the automation expertise of Oracle.

In January 2022, A definitive agreement was signed by IBM and Francisco Partners. Under the terms of the agreement, Francisco Partners will acquire healthcare data and analytics assets from IBM that currently are part of the Watson Health business.