The huge influx of data in the healthcare industry is providing a significant impetus to the global healthcare analytics market. With the advent of digitization, the entire medical space has been flooded with data via innumerable platforms such as social media, online healthcare portals, professional medical sites, etc. In this regard, precision medicine industry is also substantially contributing toward the growth of healthcare analytics market, owing to the large volume of digital genome data inflow which requires accurate and precise analysis to be converted into actionable insights.
The rising healthcare cost, which has been addressed as a global concern by both the government as well as private bodies, is another pivotal driver for the healthcare analytics industry. Healthcare analytics has witnessed a rapid surge in its adoption rate over the past few years. The trend is likely to continue attributed to the growing use of this technology to curtail the global healthcare expenditure by providing accurate clinical outcomes, improving the efficiency of current treatment models, and significantly reducing the number of hospital visits and unwanted medical testing procedures.
Germany Healthcare Analytics Market Size, By Product, 2013-2024 (USD Million)
Big data has significantly occupied a commendable space in every industry, healthcare being a major name in the list. The use of traditional medical approaches such as paper charts has been phenomenally replaced by digital healthcare tools such as real-time monitoring systems, Electronic Health Records (EHRs), etc. With the increasing medical data via these digitized sources, healthcare analytics industry is certain to grow stupendously over the years ahead. As per Global Market Insights, Inc., “Global Healthcare analytics market is estimated to register a CAGR of 12% over 2016-2024, with a target revenue of USD 16 billion by 2024.”
The government backing for the technological developments in the medical space is further boosting healthcare analytics industry share. Reportedly, huge investments are being made in digital healthcare firms for the development of mhealth apps, IOT based healthcare solutions, and big data analytics. Both the government and venture capitalist firms are spending heftily in this industry, owing to the assured ROI and evident benefits of this technology. Predictive analytics is one of the major healthcare analytics tool being immensely deployed across medical organizations. The report estimates the healthcare predictive analytics market to surpass a revenue of USD 5 billion by 2024.
Descriptive analytics which is precisely referred to as a precursor for prescriptive and predictive analytics is forecast to grow lucratively over the years ahead, having contributed to over 55% of the overall share in 2015. With this contribution, it was also the dominant tool in the overall healthcare analytics product landscape. As per the projection, healthcare descriptive and prescriptive analytics markets are anticipated to register CAGR of 11% and 14% respectively over the period of 2016-2024.
Hospitals were the primary end-users of the healthcare analytics industry with a contribution of 70% to the overall revenue. The need of curtailing healthcare costs and enable optimized clinical decisions are the chief drivers for the wide adoption of this tool in hospitals. Clinics are also one of the major end-users witnessing a heavy adoption rate of this technology, owing to the focus toward evidence-based practicing and enhanced patient care models. Healthcare analytics market share from clinics is estimated to record a CAGR of 13% over the coming seven years with a target revenue of USD 2 billion by 2024.
In response to the heavy adoption in clinics, one of the significant applications of the healthcare analytics technology i.e. clinical management is likely to observe a lucrative path ahead. The increasing investments in clinical solution provider firms will also augment the growth arenas for this application. Clinical management market is forecast to register a CAGR of 13% over 2016-2024.
The other application arrays of healthcare analytics market include population health management, financial management, and operations management. The prime driver for the adoption of this technology remains the global concern regarding the increasing healthcare expenditure. On this ground, financial management accounted for 30% of the overall application landscape and is expected to surpass USD 5.5 billion by 2024. In addition to the need of curbing healthcare cost, the rising demand for detection and prevention of healthcare frauds will also be a key factor driving the growth of healthcare analytics market in financial management applications.
Developing economies are expected to witness a heavy growth in the healthcare analytics industry. However, having an upper hand pertaining to the technological advancements along with developed healthcare infrastructure and huge capital investments in the medical space, U.S. is one of the major regions partaking in the healthcare analytics industry development.
Germany healthcare analytics industry also witnessed appreciable growth in the recent years and accounted for over 25% of the European market share in 2016. Taking Asia Pacific growth trends into consideration, Japan is likely to emerge as one of the chief regional drivers attributed to the ongoing advancements in healthcare IT and adoption of prescriptive and predictive analytics tools across most of the regional hospitals. In addition, huge geriatric patient base and rising healthcare expenditure will further boost Japan healthcare analytics market share. The region is predicted to register an annual growth rate of 12% over the period of 2016-2024.
Some of the renowned companies sharing the healthcare analytics industry space are IBM, McKesson Corporation, OptumHealth Financial, Allscripts, Athenahealth, Athenahealth, Cerner Corporation, Inovalon, and Computer Programs and Systems, Inc. Geographical expansion, particularly across commercially untapped regions along with focus on developing customized healthcare solutions are the major growth strategies adopted by the healthcare analytics market participants.
The data integrity issues, dearth of skilled IT professionals, and unorganized data sharing procedures are the factors that may hamper the healthcare analytics market demand in the years to come. However, the growing investments of the companies in developing safe and secured analytics tool along with the commendable adoption of healthcare analytics technology across a series of applications is certain to draw a strong trajectory for global healthcare analytics industry in the coming years.