Population Health Management Market Size and Share Analysis by Delivery Mode (On-Premise, Cloud Based), Component (Software, Services), End User (Healthcare Provider, Healthcare Payer) - Global Industry Revenue Estimation and Demand Forecast to 2030

Market Overview

The global population health management market size stood at $29.19 billion in 2021, which is expected to reach $101.89 billion by 2030, advancing at a CAGR of 14.9% during 2021–2030. This is primarily ascribed to the swift transformation in the medical industry from a paper-based structure to the digital one, thereby burgeoning the demand for healthcare IT services.

Furthermore, stakeholders in the medical industry are shifting from free-for-services to value-based payment models driven by the high demand for services comprising value-based care delivery. Moreover, in the recent few years, there is a huge demand for effective disease management solutions, which is projected to improve the domain size.

The growing preference for value-based reimbursement structures and accountable care is driving the adoption of healthcare IT solutions. Also, the surging awareness about better-personalized medicines is projected to offer significant potential opportunities for players operating in the market in the near future. Furthermore, various instruments are available, each with its own set of functions in various medical facilities. The wellness programs, in addition to ensuring access to effective wellness solutions, ensure that these are affordable to the general public, which is driving the market.

Individual patients demand affordable solutions from organizations; therefore, different governments and various insurance organizations have been trying to formulate regulations to address their concerns. From medical plans to life insurance, organizations also have been trying to provide affordable options and personalized support to individuals for well-being maintenance. However, a lack of understanding of individual well-being and patient history created an additional burden on the system. The passage of the Patient Protection and Affordable Care Act (ACA) in the U.S. has addressed this challenge. It also has expanded insurance coverage, aiming to improve population well-being by improving access to healthcare delivery systems.

In addition, the Act has focused on improving the quality of treatment by establishing the Patient-Centered Outcomes Research Institute, CMS Center for Medicare and Medicaid Innovation, and National Strategy for Quality Improvement. It focuses on prevention and health promotion measures, and well-being education, training, and preventive services. Also, it implemented Accountable Care Organizations (ACOs) to provide incentives to providers. These factors increased the responsibilities of providers for population health outcomes.

Software Being Used the Most

The software category held a larger population health management market share, in 2021. This is due to the surging adoption of software solutions by providers and payers for the reduction of readmissions, improvement in operational efficiency, and cost-effectiveness. In addition, several benefits offered by this software, such as enhancement of patient engagement and assistance in data integration and analysis, are burgeoning the market growth in this category.

Furthermore, various initiatives taken by prominent players in the introduction of innovative software are also augmenting the industry size. This software enables institutions to provide targeted care to their patients while also allowing organizations to save money. Several market participants are also concentrating their efforts on home healthcare, which greatly aids physicians in making even better clinical decisions, thereby augmenting the domain size. Moreover, manufacturers are investing in research and development to launch innovative products to assist organizations, as treatment costs rise. For example, Health Catalyst Inc. recently announced the release of its Population Health Foundations solution.

However, the services category is expected to witness faster growth in the forecast period, owing to the rising preference for in-house systems in hospitals to evade third parties to evaluate patient data.

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On-Premise Dominates the Market

The on-premise category accounted for the largest revenue share, in 2021. This is due to the several advantages associated with it like diminishing the risk of data breaching, the customization of medical solutions, and the ability to reuse existing storage hardware and servers. In addition, the higher security credited to the on-premise mode of delivery is expected to augment the industry growth during the forecast period.

However, the cloud-based category is expected to register the highest CAGR during the forecast period. Cloud-based wellness management programs are available via the internet and do not require active participation from institutions. This enables effective health supervision access across diverse specialties and institutions. As a result, the proven effectiveness of the cloud-based delivery mode in home healthcare, combined with seamless data access across multiple platforms, is the major reason for its dominance in the industry.

In addition, medical organizations are rapidly adopting cloud-based computing systems, seeking faster operation, improved productivity, and reduced maintenance charges. A cloud-based computing system provides reduced IT cost, enhanced productivity, and faster and smoother implementation, thereby propelling the market growth.

Healthcare Providers Generate Highest Revenue

Healthcare providers held the largest market size in 2021, with a revenue share of more than 45%. This is on account of the enactment of the Hospital Readmissions Reduction Program and Affordable Care Act in countries like the U.S., aiming to lower medical costs with the use of novel software in hospitals. This is increasing the adoption of population health management (PHM) solutions among healthcare providers. Also, regulatory norms, surging focus on reducing hospital readmission rates, and high pressure of medical bills are leading to significant adoption of these solutions by the providers.

Moreover, the increasing traction of the cloud-based delivery mode would further drive the adoption of PHM solutions by healthcare providers. They use PHM for the identification of subpopulations of patients who largely benefit from these services. The providers categorize patients into sub-population groups such as patients who require reminders for preventive treatment; patients requiring follow-ups; and patients who need overdue management and risk management services. Grouping patients into different categories helps providers in delivering better treatment services at a lower cost.

North America Is the Market Leader

North America accounted for the largest population health management market revenue share, of more than 45%, in 2021, owing to the rising federal mandate to reduce the increasing medical costs and high implementation of electronic health records and electronic medical records in the region. In addition, promulgating initiatives taken by government organizations to focus on personalized medicines and their value-based reimbursements are other factors driving the regional market growth. Furthermore, the surging utilization of IT and cloud computing in hospitals and the high prevalence of chronic diseases are expected to drive the domain expansion in North America.

However, the APAC market is expected to register the highest CAGR, of around 15%, during the forecast period. This can be propelled by the increasing medical tourism in the region. In APAC, Japan, China, and India hold the majority of the market share, driven by the high adoption of new ICT guidelines in Japan, the rising investments to revolutionize China’s medical infrastructure, and the swift growth in India’s medical sector.

Top Players in Population Health Management Market Are:

• McKesson Corporation
• Cerner Corporation
• Wellcentive Inc.
• Allscripts Healthcare Solutions Inc.
• IBM Corporation
• Optum Inc.
• Health Catalyst LLC
• Conifer Health Solutions LLC
• Koninklijke Philips N.V.
• Epic Systems Corporation

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Delivery Mode

• On-Premise
• Cloud Based

Based on Component

• Software
• Services

Based on End User

• Healthcare provider
• Healthcare payer
• Other end users

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa