Propelled by Surge in Demand for Structured and Unstructured Dataset Analysis, Big Data Analytics in Healthcare Market to Surpass $22.7 Billion by 2023
- Published: June 2018
The global big data analytics in healthcare market was valued at $7.0 billion in 2017, and it is expected to generate $22.7 billion in revenue by 2023, exhibiting a CAGR of 21.8% during 2018–2023. Prescriptive analysis is expected to record the fastest growth, at a 22.3% CAGR, during the forecast period, based on analytics type. The growth of this segment category is predicted to be driven by the fact that healthcare institutions as well as patients are demanding more-efficient measures for treatment.
Government initiatives for adoption of electronic health records (EHR) are driving the market
The governments of various countries are pushing for the adoption of EHRs in public and private healthcare centers, thereby helping the big data analytics in healthcare market grow. To ensure uniformity in EHR standards, governments have set up regulatory bodies in their respective countries like the National e-health Authority in India which are dedicated to developing rules and standards for EHR. Using big data analytics to drive insights from EHR, healthcare entities are able to predict inpatient mortality and unexpected readmissions, reduce duplicate tests, and improve patient care.
Increasing demand for value-based, patent-centric care models is offering growth opportunities to market players
Lucrative opportunities are being offered to the big data analytics in healthcare market by the rising requirement for value-based and patient-centric healthcare models. Every day, a large volume of data is generated, such as clinical data from EHRs, claims data, imaging data, genomics data, and socioeconomic data. These data sets require proper structuring to extract valuable analysis and significant insights. The usage of big data analytics allows healthcare organizations to transform this large volume of data into insights that reduce costs, improve clinical workflow, identify the best medical tests for patients, and help deliver personalized care to every individual.
Segmentation Analysis of Big Data Analytics in Healthcare Market
- The software category is expected to witness the fastest growth in the market during the forecast period, based on component, on account of the increasing demand for electronic medical records (EMR).
- The on-demand category is expected to witness faster growth in the big data analytics in healthcare market during the forecast period, on the basis of deployment type. On-demand is the most viable choice due to its several advantages, including easy scalability, replicability, and quick deployment, when compared to on-premises deployment.
- The financial analytics category held the largest share in the market in 2017, based on application. This was driven by the high provision rate of value-based care and risk-based reimbursements and increasing demand for fraud detection, risk adjustment, and claims processing.
Geographical Analysis of Big Data Analytics in Healthcare Market
Together, North America and Europe are expected to account for over 70.0% share in the global big data analytics in healthcare market by 2023. Technological advancements, strong digitalization, presence of large healthcare institutions, and surging IT spending in the healthcare industry are some major factors driving the market in the regions. APAC is expected to witness the fastest growth during the forecast period. This can be credited to the increasing demand for better healthcare solutions in developing countries. Furthermore, the rising economic growth rate and increasing investments in healthcare IT infrastructure are supporting the growth of the regional market.
Competitive Landscape of Big Data Analytics in Healthcare Market
The big data analytics in healthcare market has a fragmented landscape, with the presence of a large number of firms. Some of the prominent players include McKesson Corporation, Epic Systems Corporation, Cerner Corporation, Allscripts Healthcare Solutions Inc., Koninklijke Philips N.V., and Cognizant Technology Solutions Corporation.
In recent years, the major players in the market have undertaken partnerships, mergers and acquisitions, and product and service launches to gain a competitive edge in the industry. For instance, in June 2018, Koninklijke Philips N.V. acquired Remote Diagnostic Technologies (RDT) Limited, a U.K.-based cardiac therapy and data management solution provider. RDT’s connected emergency care solutions are being added to Philips’s therapeutic care business.
Moreover, in March 2018, Allscripts Healthcare Solutions launched a machine learning-based EHR solution, Avenel. It is a cloud-based solution, which uses machine learning to reduce the time taken for clinical documentation. It analyzes clinicians’ treatment patterns and facilitate faster documentation and decision making.
Apart from the aforementioned companies, other prominent players in the big data analytics in healthcare market are Wipro Limited, Siemens AG, International Business Machines Corporation, Hewlett Packard Enterprise Company, Microsoft Corporation, Oracle Corporation, and Dell Technologies Inc.