IT Spending on Clinical Analytics Market Overview
IT Spending on Clinical Analytics Market size is estimated to reach $36.6 billion by 2027, growing at a CAGR of 11.2% during the forecast period 2022-2027. Clinical analytics, also known as clinical decision support (CDS), is a fast-growing subject that uses real-time medical data to run inference systems in order to make fact-based diagnostic and treatment decisions, increase revenue and cut costs. Healthcare produces a vast amount of data with better healthcare infrastructure, integrated connected devices, software solutions, and analytical tools. According to the World Economic Forum hospitals produce 15 petabytes of data worldwide every year. This data consists mostly of the patient electronic health record (EHR), and other data of the hospital such as admission period of patient, types of diseases treated, device usage, drug usage, imaging data, financial data, and others. An increasing number of diseases, frequent hospitalization, advanced infrastructure, privacy, and security, increasing attacks of cyber theft, and use of IT services in predictive Analytics, financial analytics, and prescriptive analytics need an increase in IT spending on healthcare services. To better the healthcare system, the Indian government has implemented major structural and long-term reforms. In developed countries, the rapid digitization of health IT infrastructures has accelerated IT investment in clinical analytics. Most healthcare industries adopt dynamic data analytic platforms to improve specialty practice and to enhance the healthcare experience. For example, in May 2021, Google Cloud and HCA Healthcare announced a partnership to improve data analytics and clinical decision support technologies at HCA Healthcare. The companies will work together to build a secure and dynamic data analytics platform for HCA Healthcare, which will enable innovative operational models based on actionable insights and more productive workflows by analysing HCA Healthcare's 32 million annual encounters to find ways to improve clinical care and support its 93,000 nurses and 47,000 active and affiliated physicians.
The emerging acceptance of digital data management tools in healthcare owing to heightening expenditure on clinical analytics systems and solutions is set to drive the IT Spending on Clinical Analytics Market. The accelerated digital transformation in the healthcare industry is set to propel the growth of the IT Spending on Clinical Analytics Market during the forecast period 2022-2027. This represents the IT Spending on Clinical Analytics Industry Outlook.
IT Spending on Clinical Analytics Market Report Coverage
The report: “IT Spending on Clinical Analytics Market Forecast (2022-2027)", by Industry ARC covers an in-depth analysis of the following segments of the IT Spending on Clinical Analytics Market.
- Geographically, North America IT Spending on Clinical Analytics Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027 owing to the advanced healthcare infrastructure and the increasing amount of patient data in the North American region.
- IT Spending on Clinical Analytics Market growth is being driven by an increasing count of hospitalisations across the world. However, the high capital required for cloud storage and maintenance is one of the major factors hampering the growth of the IT Spending on Clinical Analytics Market.
- IT Spending on Clinical Analytics Market Detailed Analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the IT Spending on Clinical Analytics Market report.
IT Spending on Clinical Analytics Market: Market Share (%) By Region, 2021
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IT Spending on Clinical Analytics Market Segment Analysis - By Platform:
The IT Spending on Clinical Analytics Market based on platform can be further segmented into Stand Alone, and Integrated. The Stand-Alone Segment held the largest market share in 2021. This growth is owing to the increasing demand for clinical data analytic companies and various key market companies providing analytics and data service for contract research organizations and pharmaceutical companies. Standalone offers to control and monitor the performance of medical devices remotely, and patient management activities, and also helps in planning treatment. These attributes are further propelling the growth of the Stand Alone segment.
Furthermore, the Integrated segment is estimated to grow with the fastest CAGR of 12.5% during the forecast period 2022-2027 owing to its attribute to operate a network of one or more healthcare facilities and its design to provide a variety of care services, with many different types of inpatient and outpatient care facilities in hospitals, physician group, health clinics, ambulatory surgery centers, and imaging centers.
IT Spending on Clinical Analytics Market Segment Analysis - By Application:
The IT Spending on Clinical Analytics Market based on the application can be further segmented into Payer and Provider. The Payer held the largest market share in 2021. This growth is owing to the increasing number of insurance companies and supportive government policies toward national health. According to the National Association of Insurance Commissioners, in 2020 there are around 5,929 insurance companies in the U.S. As per the Insurance Information Institute, the total count of employment in insurance increased from 1,171 in 2018 to 1,234 in 2021. The proliferating count of insurance companies and their surging efficiency to provide service is further propelling the growth of this segment.
Furthermore, the Provider segment is estimated to grow with the fastest CAGR of 13.1% during the forecast period 2022-2027 owing to the increasing count of healthcare services like hospitals and health clinics in past years offering effective healthcare services to cure acute and complex conditions together with the growing count of hospitalisations and readmissions.
IT Spending on Clinical Analytics Market Segment Analysis - By Geography:
The IT Spending on Clinical Analytics Market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and Rest of the World. North America (IT Spending on Clinical Analytics Market) held the largest share with 35% of the overall market in 2021. The growth of this region is owing to the advanced healthcare infrastructure and facilities available in the North American region. The importance of IT spending on clinical analytics s is owing to the rising cost of healthcare in the U.S. According to the Centres for Disease Control And Prevention (CDC), six out of ten persons in the U.S. suffer from a chronic illness. Heart disease, cancer, and diabetes are the top causes of mortality and disability in the country, and the healthcare system costs $3.8 trillion annually. Improved health services can make strategic decisions to mitigate and reduce chronic disease-related expenditures while also improving healthcare services. With the use of IT systems like Integrated Delivery Networks (IDNs), their extensive network can be utilized by healthcare providers to coordinate patient care and provide high-quality services to a variety of regions. This is further propelling the growth of the IT Spending on Clinical Analytics Market in the North American region.
Furthermore, the Asia-Pacific region is estimated to be the region with the fastest CAGR over the forecast period 2022-2027. This growth is owing to factors like the growing prevalence of various chronic diseases, rapidly increasing population, and rising investment in R&D activities by governments and private organizations. According to the Union Budget 2021, Rs 2.23 lakh crore has been set out for healthcare and wellness initiatives in the Union Budget 2021-22, an increase of 137 % over the previous year. These factors are further propelling the growth of the IT Spending on Clinical Analytics Market in the Asia-Pacific region.
IT Spending on Clinical Analytics Market Drivers
Increasing Number of Chronic Diseases Around the World is Driving the Market Growth
Chronic diseases like cancer, diabetes, and heart disease are the leading cause of mortality and disability around the world. As per World Health Organization (WHO), cancer is a leading cause of loss of life globally, being responsible for almost 10 million deaths in 2020, or almost one in six deaths. Further updates by WHO indicate that about one-third of demises from cancer are owing to tobacco use, high body mass index, alcohol intake, low fruit, and vegetable intake, and lack of physical activity. The increasing smoking habits, exposure to second-hand smoke, and poor nutrition in diets are major issues. Every second someone dies from cardiovascular disease (CVD) in the U.S as per American Heart Association. The increasing predominance of chronic diseases leading to rising hospitalisation and readmission of patients is therefore driving the growth of the IT Spending on Clinical Analytics Market during the forecast period 2022-2027.
The Emergence of Clinical Analytics In Healthcare Is Propelling The Growth Of The IT Spending on Clinical Analytics Market
As per “Must-Know Healthcare Statistics in 2021” maintained on policyadvice.net, the internet of things (IoT) can decrease the costs of operational and clinical inefficiencies by $100 billion per year. Clinical analytics has risen as a vital area of focus for IT leaders among healthcare providers, who are moving towards accepting responsible care. Numerous leaders have pronounced that they are prioritizing clinical analytics over other systems in their organizations. Clinical analytics is a field that utilizes real-time medical data to produce insights, take decisions, boost revenues, and save on costs. The application of clinical analytics in organizations has resulted in decreased medication errors, enhanced population health, and cost savings for numerous organizations. The accelerated progress in key technologies and acceptance of electronic health records (EHRs) has resulted in the growth of clinical analytics in current years. Owing to the rise of smart mobile devices and the app economy, patients anticipate high-quality care in hospitals. The outcome will be a revolution in healthcare with principal advantages, like personalized care, for patients. Presently, it is the right time for hospitals to adopt clinical analytics, which is crucial for organizations to survive and thrive in the midst of altering governmental regulations. Attending to the challenges posed by the reforms will mean reduced costs and enhanced quality of care delivered. The benefits of applying clinical analytics practices are numerous. It can assist in decreasing administrative costs, improving care coordination, enhancing patient wellness, offering clinical decision support, and decreasing abuse and fraud. It could also assist in reducing costs by eliminating differences in supplies, overheads, and labor. The emergence of clinical analytics in healthcare is therefore propelling the growth of the IT Spending on Clinical Analytics Market during the forecast period 2022-2027.
IT Spending on Clinical Analytics Market Challenges
Challenges Pertaining To Data Technologies And Staff Are Hampering The Growth Of The IT Spending on Clinical Analytics Market
As per “Must-Know Healthcare Statistics in 2021” the global healthcare spending could amount to over $10 trillion by 2022. Medical organizations are required to buy analytics products and solutions. On the other hand, in order to examine healthcare data, specially-designed tech teams inclusive of data scientists and analysts are required to be hired which can be quite expensive relying on the size of the medical facility. Furthermore, it is crucial to select the right analytics technology in healthcare owing to the rarity of healthcare data and its measurement hardship. These issues are restraining the growth of the IT Spending on Clinical Analytics Market.
IT Spending on Clinical Analytics Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the IT Spending on Clinical Analytics Market. The top 10-IT Spending on Clinical Analytics Market companies are:
- Allscripts Healthcare Solutions, Inc.
- Cerner Corporation
- Health Catalyst
- IBM Corporation
- Inovalon Holdings, Inc.
- Mckesson Corporation
- Medeanalytics, Inc.
- Optum, Inc. (Unitedhealth Group)
- Oracle Corporation
- SAS Institute Inc.
- In May 2022, Health Catalyst – a leading provider of data and analytics technology and service to health care organisation declared to acquire ARMUS Corporation - a Silicon Valley-based clinical registry development and data management technology company. ARMUS offers data abstraction, data validation, data management, data submission, and data reporting services to back participation in clinical quality registries for healthcare institutions across the world, inclusive of health systems, payers, medical device firms, and premier medical societies.
- In March 2022, Allscripts, a health IT vendor sealed a deal with Constellation Software subsidiary, N. Harris Computer Corporation (Harris), selling its hospitals and large physician practices business segment for a price consideration of up to $700 million. Harris will gain most of the Allscripts hospital EHR business, inclusive of Sunrise, Paragon, Touchworks, Opal, Star, HealthQuart, and Db Motion. The sale does not involve assets of the Allscripts Veradigm business segment, which is a health information technology integration that transfers data to providers to increase clinical efficiency and care quality.
- In December 2021, Oracle Corporation and Cerner Corporation presently jointly declared an agreement for Oracle to gain Cerner by way of an all-cash tender offer for $95.00 per share, or nearly $28.3 billion in equity value. Cerner is a leading provider of digital information systems utilized within hospitals and health systems to allow medical professionals to deliver superior healthcare to individual patients and communities. Oracle brings important experience assisting in powering the biggest industries.
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