Big Data Analytics in Healthcare Market Overview
The global big data analytics in healthcare market was valued at $7,013.5 million in 2017, and it is expected to reach $22,743.1 million by 2023, registering a CAGR of 21.8% during 2018–2023. Some of the major factors contributing in the market growth are the increasing government initiatives to speed up the electronic health record (EHR) adoption in the healthcare industry, need to curb the high spending on healthcare services, demand for improved patient outcomes, and increasing adoption of financial analytics in the healthcare industry.
On the basis of component, the big data analytics in healthcare market is categorized into services, software, and hardware, wherein the services category accounted for the largest share in 2017, attributed to the growing demand for descriptive and predictive analytics to gain useful and qualitative insights from a patient’s historical health data. For instance, if a patient is ailed with chest pains, then it would be easier for the doctor to better diagnose the condition.
Based on analytics type, the market has been classified into descriptive analytics, prescriptive analytics, and predictive analytics. Of which, descriptive analytics category accounts for the largest market, reaching $3,257.3 million in 2017, of which North America had the largest contribution. This category is driven by the increasing demand for visualization of data and evidence-based healthcare, which provides patterns of patients’ health history. On the other hand, prescriptive analytics is expected to record the fastest growth in the big data analytics in healthcare market, at a CAGR of 22.3%, over the forecast period. The growth of this category is expected to be driven by the fact that the healthcare industry as well as patients are demanding more-efficient and best possible treatment for the disease.
Big Data Analytics in Healthcare Market Dynamics
Big data analytics in healthcare enables in efficient clinical studies, where researchers who conduct clinical studies can consider wide range of factors to attain accuracy and precision in their studies. The wide range of factors includes EHR, genomic data, and information about DNA (deoxyribonucleic acid), combined with multiple statistics such as population estimates. This would reduce lab testing and the genome analysis cost by providing vital values of genome tests that are generally expensive. Big data analytics is also reshaping inventory management in the healthcare industry. With the use of inventory management analytical tools, the supplies required for each treatment gets reduced, thus enabling a just-in-time inventory model, which also reduces costs significantly.
The government of various countries are pushing for the adoption of EHR in public and private healthcare organizations, thereby driving the big data analytics in healthcare market. To ensure uniformity in EHR standards, governments have set-up bodies, such as National e-health Authority, in India, which is dedicated to developing rules and standards to be used in implementing EHR. This uniformity in implementing the EHR model enables a uniform distribution of government-funded healthcare schemes. Doctors, sharing EHRs, can analyze the data for upcoming trends in the industry, which can reduce the healthcare cost for patients. The sharing of data between healthcare service providers can reduce duplicate tests and improve patient care.
In U.S., under the Health Information Technology for Economic and Clinical Health (HITECH) Act, federal government has initiated incentive-based programs, where physicians and healthcare organizations are rewarded for adopting the EHR model. Medicare Access and CHIP Reauthorization Act (MACRA) looks after the reimbursement of payment to patients incurred during the treatment. EHR has streamlined this reimbursement process by providing the patient’s history, which reflects the treatment and medicine offered to them, thus eliminating the fraudulent activities involved in the claims process. Initiatives such as this are expected to continue driving the big data analytics in healthcare market in the coming years.
The lack of skilled data analysts is hampering the growth of the big data analytics in healthcare market. With the amount of structured and unstructured data increasing at a rapid pace, it is essential to have skilled people, who can transform it into meaningful insights to be used for making business decisions. This leads to a delay in adopting big data analytics in the healthcare sector. The data science and analytics (DSA) field was developed in recent years, and hence several economies couldn’t predict the actual demand for DSA.
A recent study by Asia-Pacific Economic Cooperation reveals that there is a shortage of data scientists in the region. The study also revealed that nearly 40% of the vacancies in big data analytics remained unfilled. Furthermore, the shortage is expected to rise in the coming years with countries such as India, Singapore, Australia, and Indonesia lagging behind in developing skilled professionals for industries including healthcare. Hence, the lack of skilled professionals is a key restraint in the growth of the big data analytics in healthcare market.
Big Data Analytics in Healthcare Market Competitive Landscape
The competition in the big data analytics market is moderate. In the recent past, acquisitions and partnerships have been the major activities in big data analytics in healthcare market. McKesson Corporation, All Scripts Healthcare Solutions, Koninklijke Philips N.V., and Cerner Corporation were witnessed as the leaders in recent strategic development activities. There is a growing demand for enhanced patient care, improved patient outcomes, and lower cost of healthcare services. To make this possible, service providers are focusing on differentiated products and services. This would ensure the ease of accessibility to patients’ EHR and structured data sets for better in-sight about patient history, which would result in advanced patient care management.
Some of the key players operating in the global big data analytics in healthcare market are McKesson Corporation, Cognizant Technology Solutions Corporation, Epic System Corporation, Cerner Corporation, Dell Inc., GE Healthcare, Siemens AG, Koninklijke Philips N.V., and Xerox Corporation.
Key questions answered in the report:
What is the current scenario of the global big data analytics in healthcare market?
What are the major catalysts for the global big data analytics in healthcare market and their impact during the short, medium, and long terms?
What are the historical size and present size of the categories within the market segments and their comparative future potential?
What are the key strategies being adopted by the major players to expand their market share?
What are the emerging technologies in the global big data analytics in healthcare market?
What are the evolving opportunities for the players in the global big data analytics in healthcare market?
What are the key regions from the investment perspective?