Healthcare/Medical Analytics Market - Forecast(2024 - 2030)

Report Code: HCR 0487 Report Format: PDF + Excel

Healthcare/Medical Analytics Market Overview

The Healthcare/Medical Analytics market size is estimated to reach $72.4 billion by 2027, growing at a CAGR of 16.1% during the forecast period 2022-2027. Medical Analytics is the process in which current and historical medical data is analyzed to gain micro and macro insights into various trends in the industry. This will help improve outreach, reduce treatment time, limit the spread of diseases, control costs and enhance efficiency by avoiding the need to conduct additional diagnostic procedures. Precision health analytics provide the user with a wide array of tools for data storage, integration, and visualization. Moreover, clinical analysis can also be vital for claims processing as it provides an effective and granular approach to track claims, premiums, and clients in real-time. The rise in the use of big data technologies in the healthcare sector is driving the market for Healthcare Analytics during the forecast period. However, the lack of skilled professionals necessary for system operation in developing regions acts as a key challenge for the Healthcare/Medical Analytics industry. 

Report Coverage

The report: “Healthcare/Medical Analytics Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Healthcare/Medical Analytics Market.

By Type: Descriptive Analytics, Predictive Analytics, Cognitive Analytics, and Prescriptive Analytics.
By Component: Hardware, Services, and Software.
By Delivery Model: On-Premise, Cloud-Based, and Web Hosted.
By Application: Clinical Analytics, Financial Analytics, Operational, and Administrative Analytics, and Population Health Analytics.
By End User: Hospitals, Healthcare providers, Healthcare payers, Government Agencies, and Others.
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, and Rest of South America) and Rest of World (the Middle East and Africa).

Key Takeaways

  • Geographically, the North American Healthcare/Medical Analytics market accounted for the largest share in 2021 owing to the presence of a highly developed healthcare infrastructure in the US and Canada.
  • The rise in the implementation of Electronic Health Records (EHRs) in medical facilities is driving the market for Healthcare Analytics. However, the growing concern regarding data security is challenging demand generation.
  • Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Healthcare/Medical Analytics Market Report.

Healthcare/Medical Analytics Market Share, By Type, 2021(%)

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Healthcare/Medical Analytics Market Segment Analysis-By Type

Based on Type, The Healthcare/Medical Analytics Market can be segmented into Descriptive Analytics, Predictive Analytics, Cognitive Analytics, and Prescriptive Analytics. The Descriptive Analysis segment is anticipated to have the largest share of the market in 2021 and is poised to dominate the market during the forecast period 2022-2027. Descriptive analytics is used to provide insights into the progression of an event that has already occurred. They are used for increasing the efficiency of various processes and administrative activities. The lower cost of acquiring descriptive datasets when compared to predictive and prospective datasets is further contributing to the growth of the segment. However, the Predictive Analytics segment is projected to grow the fastest at a CAGR of 16.9% owing to the rising use of advanced analytical methods to enhance decision making by accurately predicting future market dynamics and outcomes.

Healthcare/Medical Analytics Market Segment Analysis-By Delivery Mode

The Healthcare/Medical Analytics Market based on Delivery Mode can be further segmented into On-Premise, Cloud-Based, and Web Hosted. The On-Premise segment accounted for the largest share of the market in 2021. On-Premise software requires the medical facilities to have a license of the software. As this licensed copy stays within the facility, it can provide much higher data protection than Cloud-based and Web-hosted delivery modes. This is essential as the patient data being stored is highly sensitive and protected by law. However, the Cloud-based delivery mode segment is also anticipated to witness significant growth at a CAGR of 17.2% during the forecast period owing to their significantly lower costs. On-Premise solution requires in-house server hardware and dedicated server rooms, software licenses, integration capabilities, and IT employees in order to function properly. However, in Cloud-based, a third-party host will provide the services.

Healthcare/Medical Analytics Segment Analysis-By Geography

The Healthcare/Medical Analytics Market based on Geography can be segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. The North American segment is projected to dominate the Healthcare/Medical Analytics market during the forecast period 2022-2027 with a market share of 34% owing to the presence of a highly developed healthcare infrastructure, the rising rate of chronic diseases, high awareness levels, and the high integration of IT in the healthcare sector in the region. Moreover, the presence of key industry players such as IBM Corporation, Optum, Cerner, SAS Institute, McKesson Corporation, Oracle Corporation, and SCIO Health Analytics in the region ensures lower costs, higher innovation, and more choices for the end-user industries. The Asia Pacific region is predicted to register the fastest growth owing to the growth in public healthcare funding in major emerging economies like China and India.

Healthcare/Medical Analytics Market Drivers

Increase in Use of EHRs is Projected to Drive Market Growth.

The rise in the adoption of EHRs and other digital systems in the healthcare sector is boosting the demand for Healthcare/Medical Analytics. EHRs contain valuable information regarding a patient’s medical history, demographics, medication, vital signs, and diagnostic test results. These data are essential for obtaining accurate results for predictive, descriptive, cognitive, and prescriptive analysis. In 2009, only 12.2% of US non-federal acute care hospitals had EHR systems, according to the American Hospital Association (AHA). However, by 2015, this number increased to 83.8% and around 96% of them had EHRs certified by the Centers for Medicare and Medicaid Services (CMS). The penetration of this system in the US is estimated to have risen to more than 89% in 2020.

Increase in Global Healthcare Expenditure is Projected to Drive Market Growth.

An increase in the healthcare expenditure of developed and major developing countries is driving the demand for Healthcare Analytics to enhance treatment effectiveness and improve decision making. The annual healthcare expenditure in the US is projected to grow at a rate of 5.4% between 2019 and 2028. The healthcare expenditure was around $4 trillion in 2020 and is poised to reach $6.19 trillion by 2028. India only spent around 1.2% of its GDP on healthcare in 2021. However, this is projected to reach 3% by 2022. Furthermore, the Indian government is planning to introduce a credit incentive program worth $6.8 billion to boost the country’s healthcare infrastructure. The healthcare expenditure of the UK increased by 20% in 2020 to reach $344 billion.

Healthcare/Medical Analytics Market Challenges

The Risk of Cyberattacks is Anticipated to Hamper Market Growth.

The growing concern regarding the leak of confidential patient information from healthcare facilities owing to cyber-attacks is a major challenge that can hamper the market growth. For instance, on average, more than 3.34 million healthcare records were breached every month in the US between July 2020 and June 2021 by ransomware attacks. The leaked information includes patient names, addresses, diagnosis information, contact details, and insurance information. The American health service provider UHS lost around $67 million in 2020 owing to network shutdowns caused by ransomware attacks. The data can be sold for up to $1,000 per record in order to be used for illegal activities such as forging passports and insurance fraud. This is reducing the confidence of healthcare providers in implementing more IT technologies such as healthcare analytics in their facilities.

High Initial Investment Costs is Projected to Limit Growth Opportunities

The high initial investments for the hardware systems, software licenses, and IT employees required for the healthcare analytics program are limiting growth opportunities. Furthermore, the covid-19 pandemic and the resulting straining of the healthcare sector have made the end-user industries such as hospitals extremely price sensitive. The AHA estimates that around $202.6 billion of revenue was lost for US hospitals and healthcare systems owing to the pandemic while developing regions require around $52 billion every 4 weeks to contain the disease. This has resulted in making the analytics systems unaffordable for a large portion of the market.

Healthcare/Medical Analytics Market Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Healthcare/Medical Analytics Market. The top 10 companies of the industry include:

  1. IBM
  2. Optum
  3. Cerner
  4. SAS Institute
  5. Allscripts
  6. McKesson Corporation
  7. Oracle
  8. Health Catalyst
  9. CitiusTech
  10. Wipro

Partnerships/Product Launches:

  • In October 2020, Prognos Health announced the launch of their new integrated platform to transform healthcare analytics called prognosFACTOR. The platform unifies data across the healthcare landscape, allowing pharmaceutical companies, providers, and payers to pinpoint insights for fast and effective decision-making.
  • In May 2020, Apixio announced the release of HCC Complete to its portfolio of risk adjustment solutions. HCC Complete uses AI to support a comprehensive chart review experience for Medicare Advantage (MA) and Affordable Care Act (ACA) organizations. Moreover, the system identifies potential missed and unsupported, previously reported acute and chronic conditions used for risk adjustment.

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1. Healthcare/Medical Analytics Market - Overview
    1.1 Definitions and Scope
2. Healthcare/Medical Analytics Market - Executive Summary
    2.1 Market Revenue and Key Trends by Company
    2.2 Key trends by Type
    2.3 Key trends by End User
    2.4 Key trends by Geography
3. Healthcare/Medical Analytics Market – Comparative Analysis
    3.1 Company Benchmarking – Key Companies
    3.2 Financial Analysis – Key Companies
    3.3 Market Value Split by Key Companies
    3.4 Patent Analysis
    3.5 Pricing Analysis – Average Selling Price
4. Healthcare/Medical Analytics Market - Startup Companies Scenario   Premium
    4.1 Key Startup Company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Venture Capital and Funding Scenario
5. Healthcare/Medical Analytics Market – Industry Market Entry Scenario Premium  Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Case Studies of Successful Ventures
6. Healthcare/Medical Analytics Market - Forces
    6.1 Market Drivers
    6.2 Market Constraints/Challenges
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Healthcare/Medical Analytics Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Market Life Cycle
8. Healthcare/Medical Analytics Market – By Type (Market Size –$Million/$Billion)
    8.1 Descriptive Analytics
    8.2 Predictive Analytics
    8.3 Cognitive Analytics
    8.4 Prescriptive Analytics
9. Healthcare/Medical Analytics Market – By Component (Market Size –$Million/$Billion)
    9.1 Hardware
    9.2 Services
    9.3 Software
10. Healthcare/Medical Analytics Market – By Delivery Mode (Market Size –$Million/$Billion)
    10.1 On-Premise
    10.2 Cloud-Based
    10.3 Web Hosted
11. Healthcare/Medical Analytics Market - By Application (Market Size –$Million/$Billion)
    11.1 Clinical Analytics
    11.2 Financial Analytics
    11.3 Operational and Administrative Analytics
    11.4 Population Health Analytics
12. Healthcare/Medical Analytics Market - By End User (Market Size –$Million/$Billion)
    12.1 Hospitals
    12.2 Healthcare providers
    12.3 Healthcare payers
    12.4 Government Agencies
    12.5 Others
13. Healthcare/Medical Analytics Market - By Geography (Market Size –$Million/$Billion)
    13.1 North America
        13.1.1 U.S.
        13.1.2 Mexico
        13.1.3 Canada
    13.2 Europe
        13.2.1 U.K.
        13.2.2 France
        13.2.3 Germany
        13.2.4 Italy
        13.2.5 Spain
        13.2.6 Russia
        13.2.7 Rest of Europe
    13.3 Asia Pacific
        13.3.1 China
        13.3.2 India
        13.3.3 Japan
        13.3.4 South Korea
        13.3.5 Australia & New Zealand
        13.3.6 Rest of Asia Pacific
    13.4 South America
        13.4.1 Brazil
        13.4.2 Argentina
        13.4.3 Rest of South America
    13.5 Rest of the World
        13.5.1 Middle East
        13.5.2 Africa
14. Healthcare/Medical Analytics Market - Entropy
15. Healthcare/Medical Analytics Market – Industry/Segment Competition Landscape     Premium
    15.1 Market Share Analysis
        15.1.1 Global Market Share – Key Companies
        15.1.2 Market Share by Region – Key companies
        15.1.3 Market Share by Countries – Key Companies
        15.1.4 Competition Matrix
        15.1.5 Best Practices for Companies
16. Healthcare/Medical Analytics Market – Key Company List by Country Premium     Premium
17. Healthcare/Medical Analytics Market Company Analysis
    17.1 Company 1
    17.2 Company 2
    17.3 Company 3
    17.4 Company 4
    17.5 Company 5
    17.6 Company 6
    17.7 Company 7
    17.8 Company 8
    17.9 Company 9
    17.10 Company 10
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