Healthcare Analytics Market Overview
Governments’ initiatives to increase electronic medical record adoption, increasing healthcare information technology (HIT) capital investments, growing need to reduce healthcare expenditures and increase patient outcomes, and rising demand of big data in healthcare domain are the major factors driving the growth of the global healthcare analytics market.
Based on type, the healthcare analytics market is categorized into descriptive, predictive, prescriptive, and cognitive. The descriptive analytics category is expected to hold the largest share in the market; however, the prescriptive analytics category is expected to witness the fastest CAGR during the forecast period.
The healthcare analytics market comprises various components, which include services, software, and hardware. Services category is expected to hold the largest share, and the demand for healthcare analytics in services is projected to showcase the fastest growth. The increasing demand and rising adoption of HIT are the key factors expected to drive the growth of the market.
On the basis of application, the healthcare analytics market is differentiated into three major categories: financial, operational and administrative, and clinical management. The financial category is estimated to hold the largest share in the market in 2018. This category is further sub-divided into claim, revenue cycle management, payment integrity and fraud, waste, abuse, and risk adjustment and assessment. The operational and administrative category is further sub-categorized into supply chain, workforce, and strategic analysis. The clinical management includes quality improvement and clinical benchmarking, clinical decision support, reporting and compliance, comparative analytics/effectiveness, precision health, medical imaging analytics, and population health.
Based on end user, the healthcare analytics market is categorized into payers, providers, and others. The payers category is estimated to hold the largest share in the market in 2018. Major factors such as increasing healthcare costs and reducing fraudulent claims are playing significant role in the growth of the market. This category includes private insurance companies, government agencies, and employers. The providers mapped in this arena are hospitals and clinics, post-acute care organizations, ambulatory settings, and others.
Geographically, the healthcare analytics market is classified into North America, Europe, Latin America (LATAM), Asia-Pacific (APAC), and Middle East and Africa (MEA). North America holds the largest market share as there has been an increase in adoption of electronic health record (EHR) in the U.S. and Canada. This has led to an increase in healthcare data, which in turn, will help the growth of the market. Moreover, strict legislations for the implementation of HIT, and presence of a large number of IT companies in the region are also playing significant role in the growth of the market. APAC is the fastest growing market for healthcare analytics. This is mainly due to increasing research and development (R&D) investments, and growing presence of international HIT players in the region.
Healthcare Analytics Market Dynamics
Increasing investment and growing HIT in the healthcare analytics industry are the key factors propelling the growth of the market. For instance, the Society of Actuaries dedicated over 15% of their budget to predictive analytics in 2018, a 5% increase from 2017. Predictive analytics is expected to save 15% of operational and financial costs of healthcare organizations in next five years Moreover, increased technical advancements and awareness to use data analytics in healthcare sector, and increasing digitalization are also contributing to the growth of the market. For instance, new technologies, including machine learning and big data analytics are being used in order to efficiently analyze huge amount of data being generated by the healthcare sector.
Lack of skilled professionals, high cost of analytical solutions, easy and free conventional exchange of information are the major factors hindering the growth of the healthcare analytics market.
Healthcare Analytics Market Competitive Landscape
Players operating in the healthcare analytics industry are focusing on partnerships and collaborations to maintain their leading position. For instance, in January 2019, the International Business Machines (IBM) Corporation entered into a partnership with Michael J Fox Foundation with an aim to develop technologies for better tracking of Parkinson’s disease progression in individuals. The foundation will provide large amount of data related to progression of disease and the IBM will develop artificial intelligence for better tracking of disease progression.
The key players which dominate the global healthcare analytics market are International Business Machines (IBM) Corporation, Oracle Corporation, Verisk Analytics Inc., Cerner Corporation, McKinsey & Company, Koninklijke Philips N.V., SAS Institute Inc., Dell Technologies Inc., Napier Healthcare Solutions Pte. Ltd., Sisense Inc., Allscripts Healthcare Solutions Inc., NextHealth Technologies Inc., UnitedHealth Group, Oracle Corporation, SAP SE, SCIOInspire Corp., Tableau Software Inc., TIBCO Software Inc., Verscend Technologies Inc., VitreosHealth, and Wipro Limited.
The study provides the historical as well the forecast market size data for various countries including the U.S., Canada, Spain, Italy, the U.K., France, Germany, Japan, China, India, Brazil, Mexico, and South Africa.