Population Health Management Market Overview
The global population health management market size is projected to cross $48.1 billion by 2022, growing at a CAGR of 23.3% during the forecast period. The growing geriatric population, increasing prevalence of chronic diseases, Affordable Care Act, increasing investments by HIT players and increasing healthcare spending are driving the growth of the global market.
Based on delivery mode, the global population health management market has been segmented into web based, cloud based and on-premise. The web-based delivery mode was the largest contributor to the global market in the historical period and by 2022, it is projected to hold a market share of over 65%. The cloud-based delivery mode is expected to witness the fastest growth during the forecast period.
Based on component, the population health management market has been segmented into software and service. The software component held the major share in the global market during the historical period and by 2022, it is expected to hold a market share of over 80%. The segment is also expected to witness the fastest growth during the forecast period.
Geographically, North American region was the largest contributor to the global population health management market in the historical period and by 2022, the region is projected to hold a market share of over 80%. The North American market is growing significantly due to the favorable government regulations, high healthcare expenditure, developed healthcare infrastructure and growing prevalence of chronic diseases. The U.S. is the largest market for population health management among all the countries of the region. The U.S. population health management industry is primarily driven by the Patient Protection and Affordable Care Act.
Population Health Management Market Dynamics
Personalized medicine separates patients into different groups. The advent of personalized medicine has led to precise, better, predictable healthcare. With the increasing understanding of genes and enhanced healthcare analytics capabilities, providers can understand the drug responses, impact of pathogens, impact of diseases, and possible health outcomes in individual patient. This has led to the increasing demand for personalized medicine. Population health management plays a vital role in the development of personalized medicine. It is important to understand the care gaps, health record of population groups to develop personalized medicine. Therefore, increasing compliance for personalized medicine-based analytics is creating ample growth opportunity for the global population health management market.
The growing geriatric population is bolstering the growth of the population health management market. The elderly population requires extensive care as they are prone to illness due to low immunity levels and high recovery time. The elderly people are more susceptible to chronic diseases, such as cancer and cardiovascular diseases, thus leading to increase in demand for better diagnosis, prevention and treatment. The older population also has increased need for personalized medicine, as they have low immunity and are more susceptible to drug allergy. Therefore, growing geriatric population creates increased demand for PHM.
With the increasing popularity of cloud-based services and wireless connectivity in the healthcare sector, there has been a critical increase in the usage of handheld devices globally among healthcare professionals and patients. This raises concerns for security of private patient information, which is a key concern for population health management vendors. A hacker can have the ability to control or destroy critical information stored in systems. In addition, threat posed by computer viruses is also growing, which can prompt deterioration in the proficiency of population health management. This risk of low information security is expected to limit the growth of the population health management market during the forecasted period.
Population Health Management Market Competitive Landscape
Some of the key companies operating in the global population health management market include McKesson Corporation, Cerner Corporation, Wellcentive Inc., Allscripts Healthcare Solutions Inc., IBM Corporation, Optum, Inc., Health Catalyst LLC and Conifer Health Solutions LLC.