Healthcare Analytics Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast 2024-2028

Healthcare Analytics Market Forecast 2024-2028

The global healthcare analytics market is projected to reach a value of USD 66.54 billion with a compound annual growth rate (CAGR) of 24.79% between 2023 and 2028. The growth rate of the global market share depends on several factors, including the growing integration of Big Data with healthcare analytics, increasing adoption of EHRs and the presence of favorable government initiatives. Healthcare analytics efficiently uses statistical, quantitative, predictive, comparative, cognitive, and other newly applied analytical models to data and related business insights. Healthcare analytics software can assist in disclosing and comprehending historical patterns, forecasting future results, and delivering actionable insights to help companies make better clinical, financial, and operational decisions. Analytics aids organizations in lowering costs and improving the quality of care.

What will be the size of the Market During the Forecast Period?

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The market is driven by the need for improved patient retention & engagement, and clinical care. Leveraging clinical data and artificial intelligence, healthcare analytics enhances patient compliance and assists in medication selection, therapeutic strategies, and treatment consistency. By optimizing outcomes and disease management, healthcare analytics enables healthcare providers to implement effective outreach programs and deliver personalized care, ultimately leading to better patient outcomes and enhanced clinical care delivery.

Market Dynamics and Customer Landscape

The market is propelled by key stakeholders seeking to address challenges such as inaccurate and inconsistent data in healthcare systems. With the integration of Electronic Health Records (EHR), precision and personalized medicine are becoming more feasible. Advanced analytics, including descriptive, predictive, and prescriptive analytics, empower decision-making across financial, clinical, and population health domains. Leading organizations like NIH, WHO, and Change Healthcare are driving innovation in health data analytics to enhance patient care and optimize treatment costs. By leveraging digital solutions and artificial intelligence, healthcare providers can achieve actionable insights for disease management and improve clinical care outcomes.

Key Market Driver

The growing integration of Big Data with intelligence is notably driving the global market size. Big Data refers to the use of specific analytical tools to consolidate and analyze a significant amount of information created by the digitalization of business processes. These facilitate personalized treatment strategies, ultimately improving community health outcomes and disease analysis. Big Data has transformed the way of managing, analyzing, and leveraging information in every industry, and healthcare is one such sector that produces a significant amount of information. Factors such as up-to-date electronic health records of patients for better medical treatment, compulsory documentation owing to stringent policies of governments, and the increasing use of wearable devices to track patients' conditions are expanding the volume of health-related information.

Moreover, apart from reducing the costs of treatment processes, Big Data analytics on population health data consortium also helps predict epidemics and improve the quality of life in general. As a result, the adoption of this technology is expected to increase which in turn, propellant the growth of the during the forecast period.

Significant Market Trends

A growing number of acquisitions and partnerships is one of the major market trends. Competition between existing vendors is intense. Strategic partnerships and acquisitions help vendors with product development and geographical expansion and offer access to technological expertise. For instance, in April 2021, Cerner Corp. announced the acquisition of Kantar Health, a division of Kantar Group, for USD 375 million. It is anticipated that the combination of Cerner's extensive real-world data (RWD) and technology collection with Kantar Health's extensive life sciences knowledge will speed up innovation in life sciences research and enhance patient outcomes across the world.

However, such collaborations also enable vendors to explore new opportunities for their products and services and generate revenue through the sales of their products and services to a wider customer base. The growing number of strategic partnerships and acquisitions between vendors and market participants will drive the market growth and trends.  

Major Market Restrain

The availability of open-source is a significant challenge hindering the market. The high cost of proprietary software has prevalent the adoption of open-source applications, especially among organizations that have low IT budgets. OpenEMR, OpenMRS, OpenHospital, and MedinTux are some open-source medical records and information software solutions that are available in the market. Such solutions are cost-effective but offer limited functionalities and lack advanced features. Organizations must customize the information software solution or pay extra for additional functions. For instance, OpenEMR is a free and open-source software solution that is used for EHR and medical practice management. It is used by the International Planned Parenthood Federation (IPPF) and the Peace Corps.

Furthermore, OpenHospital is an open-source software project for hospitals in poor and rural areas. It is deployed at St. Luke Hospital, Angal, Nebbi District, Northern Uganda. OpenHospital can be used for the computerization of patient data, visits, hospitalizations, and medicines for the management of daily activities at hospitals. The use of such open-source analytics solutions will impede the growth of the market during the forecast period.

Customer Landscape

The market forecasting analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Customer Landscape

Market Segmentation

In the component segment of the market, key stakeholders recognize the significance of accurate data for informed decision-making. Despite challenges like inaccurate data, Electronic Health Records (EHR) remain crucial for precision and personalized medicine initiatives. Various analytics techniques such as descriptive analytics, predictive analytics, and prescriptive analytics, along with financial analytics and clinical analytics, help extract actionable insights from healthcare data. Additionally, population health analytics and health data analytics aids in addressing public health concerns. Leveraging digital solutions and collaborations with organizations like NIH and WHO enhance the efficacy of healthcare analytics in improving patient care, reducing treatment costs, and advancing population health management.

By Component

The market share by the services segment will be significant during the forecast period. It include consulting services, learning and training, development and integration, hardware maintenance and support, IT management, process management, and software support. The major areas are consulting and software support. 

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The services segment was the largest and was valued at USD 5.82 billion in 2018. The changing lifestyle of individuals is generating significant demand for remote services, especially in developed countries that have developed and advanced telecommunication and Internet infrastructure. Healthcare service providers are expected to spend more on the telecommunications segment to support their telehealth and mHealth offerings. Using the telehealth platform, physicians and doctors monitor patients, offer real-time consultations, and track patient's progress from distant locations. It also helps patients save time, money, and effort. Moreover, patients can access services through the platform at any time. Thus, the above-mentioned factors will boost the propel of the market through the services segment during the forecast period.

Regional Overview

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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The demand for security, easy access to data, and the need for effective management of patient information management drive the market in North America. The US and Canada are the key contributors to the in North America. SAS Institute, Oracle, and Veeva Systems are some of the major vendors in the region. North America is highly regulated with the presence of stringent regulatory standards. 

The market across Sweden, the United Arab Emirates (UAE), Spain, South Africa, South Korea, and Saudi Arabia showcases a global trend towards leveraging information-driven insights in diverse landscapes. The UAE spearheads rapid digital transformation, utilizing analytics for predictive modeling and personalized medicine. Spain integrates analytics solutions for enhanced delivery, while South Africa focuses on addressing disparities through population health management. South Korea leverages analytics for precision medicine, and Saudi Arabia employs analytics for improved clinical decision-making and management.

In addition, consumers can optimize operations with real-time visibility and transparency, collaborate with the global manufacturing and supply chain networks, and reduce overall costs. Through integrated automation, the organization can support machine-to-machine communication, implement Industry 4.0, execute manufacturing solutions, and connect with the IoT in the cloud. Thus, such developments in the industry will drive the propel of the regional market during the forecast period. 

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ALLSCRIPTS HEALTHCARE SOLUTIONS INC. - The company offers Electronic Health Records or EHR, financial management, patient engagement, and Veradigm-analytics. 

Cerner Corp.- The company offers clinical, financial, operational, care continuum, and population health data through the HealtheAnalytics application.

CitiusTech Healthcare Technology Pvt. Ltd. - The company offers analytics through scalability data management, AI, and ML specialists.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Avgi Solutions Inc.
• Cotiviti Inc.
• ExlService Holdings Inc.
• Gainwell Technologies LLC
• General Electric Co.
• Health Catalyst Inc.
• Inovalon
• International Business Machines Corp.
• IQVIA Holdings Inc.
• Komodo Health Inc.
• McKesson Corp.
• Medeanalytics Inc.
• Oracle Corp.
• RELX Plc
• SAS Institute Inc.
• UnitedHealth Group Inc.
• Wipro Ltd.

Market Analyst Overview

The market involves various key stakeholders aiming to address challenges such as inaccurate and inconsistent data by leveraging advanced analytics techniques. With a focus on precision and personalized medicine, organizations utilize descriptive analytics, predictive analytics, and prescriptive analytics to optimize financial analytics, clinical analytics, health data analytics, and population health analytics. These insights are crucial for enhancing patient care, managing treatment costs, and improving patient retention & engagement. Through digital solutions and access to comprehensive clinical data, entities like NIH and Change Healthcare facilitate informed decision-making, ensuring patient compliance, enhancing medication selection, and refining therapeutic strategies for better treatment consistency and optimal outcomes in clinical care and disease management. Artificial intelligence plays a pivotal role in driving innovation and efficiency in healthcare analytics.

In the market, various stakeholders like payers, ASCOs, HIEs, and TPAs collaborate with AI experts to harness the power of analytics. Through descriptive analysis and predictive analysis, they derive actionable insights to drive decision-making. Entities including life science companies and healthcare providers leverage analytics solutions delivered via on-premises delivery mode or cloud-based delivery mode for financial applications, prospection, and outreach initiatives. Healthcare professionals utilize analytics for operations management and clinical management, particularly in clinics focusing on chronic diseases. With a strong emphasis on machine learning, the market continues to evolve, facilitating better healthcare delivery and patient outcomes worldwide.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and opportunities from 2018 to 2028. 

• Component Outlook 
  • Services
  • Software
  • Hardware 

• Deployment Outlook 
  • On-premise
  • Cloud-based

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	181
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 24.79%
Market growth 2024-2028	USD 66.54 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	20.86
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 38%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ALLSCRIPTS HEALTHCARE SOLUTIONS INC., Avgi Solutions Inc., Cerner Corp., CitiusTech Healthcare Technology Pvt. Ltd., Cotiviti Inc., ExlService Holdings Inc., Gainwell Technologies LLC, General Electric Co., Health Catalyst Inc., Inovalon, International Business Machines Corp., IQVIA Holdings Inc., Komodo Health Inc., McKesson Corp., Medeanalytics Inc., Oracle Corp., RELX Plc, SAS Institute Inc., UnitedHealth Group Inc., and Wipro Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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