Healthcare Analytics Market Segments And Regional Revenue Forecasts To 2030

Healthcare Analytics Market Growth & Trends

The global healthcare analytics market size is expected to reach USD 167.0 billion by 2030, expanding at a CAGR of 21.4% during the forecast period, according to a new report by Grand View Research Inc. The increase in capital investments by the healthcare industry in the IT sector for better management and cost-effective patient care are key growth factors for the healthcare analytics market. 

Healthcare Analytics Market Segmentation

Grand View Research, Inc. has segmented the healthcare analytics market report based on component, type, application, delivery mode, end-use, and region.

Based on the Component Insights, the market is segmented into Software, Services, Hardware.

• The largest component in the healthcare analytics was the services segment with a market share of 37.5% as of 2022. The healthcare industry has been investing substantial amount of capital in the IT industry for the development of platforms, digitization of data for analytics. The majority of the companies do not have a data analytics component in their companies due to which they are outsourcing the data analytics aspect of their IT. This has resulted in the growth of the data analytics companies offering a complete set of services to companies. The increase in services offered by the data analytics companies have been responsible for the growth in this segment.
• The services is anticipated to register the fastest growth rate of 22.1% due to the increase in the patient load on the health industry, increase in disease prevalence etc. has resulted in massive amounts of clinical data generated, the insurmountable pressure on the industry to give better care, better results and cost-effective treatments to patients is further propelling this market towards growth. The need for adoption of analytical methods and tools for better patient monitoring, delivering better treatments etc. are key factors for the growth of this segment.

Based on the Type Insights, the market is segmented into Descriptive Analysis, Predictive Analysis, Prescriptive Analysis.

• The descriptive analysis type had the largest market share of 36.1% in 2022. Descriptive analytics has been widely used during the pandemic to study historical data and patient histories to study the spread of virus, which has been a key factor driving growth in this segment. Descriptive analytics has proved to be a valuable tool in understanding what happened by accessing historical data and turning it into actionable insights. It is also being used by hospitals to monitor performance of insurance claims by detecting irregularities and errors in the claims. The descriptive analysis tools are being used by a rising number of organizations to increase market growth potential.
• Predictive analysis is anticipated to register the fastest growth rate of 24.4% due to the fact that it uses data sets created by using descriptive analytics by analyzing data for actionable future insights. More and more companies are adopting analytics for better growth prospects have been key propellants for growth of this segment. It has become a necessity to adopt these platforms to predict future trends in the market for the company to take an appropriate measures which foster overall growth.

Based on the Application Insights, the market is segmented into Clinical, Financial, Operational & Administrative.

• The largest market share of 36.0% was held by financial applications in 2022 and is anticipated to register the fastest growth rate of 22.2%. The healthcare institutions and organizations are continually striving to minimize cost of treatment, yet delivering better care to patients, this has been the reason for growth of this segment. The financial aspect of management still accounts for the largest share so that the companies perform better by reducing costs and prevention of frauds.
• Healthcare institutions incur costs in the form of insurance claims which can also be fraudulent, to mitigate such risks and to minimize such occurrences the healthcare organizations deploy analytical tools for predictive and descriptive analysis to deliver better care to patients as well as reduce overall costs of operations and minimal frauds in insurance claims. The need to perform financially well has been a key driver for the adoption of this application type.

Based on the Delivery Mode Insights, the market is segmented into On-premises, Web-hosted, Cloud-based.

• The largest market share of 48.6% was held by on-premises delivery mode in 2022. Majority of institutions are currently installing software and tools to store data at their own premises due to ease of access and security, resulting in the large market share of this type of delivery. Current systems in small organizations are practical, but when scaled up it can be difficult and cumbersome to manage data if the organization is dealing with a large dataset. This can mean large capital investment in storage and security of data.
• The cloud-based is anticipated to register the fastest growth rate of 24.8% due to ease of storage, less capital investment, and increased flexibility and efficiency, these factors also add up to continuous growth in this delivery mode. Cloud based storage can also be on-premises, but the issue of scalability comes into picture, even though public cloud storage solutions are a key factor for the growth of cloud-based storage solutions becoming the fastest growing sub-segment, limitations of the same include less privacy, more security concerns regarding loss of data.

Based on the End User Insights, the market is segmented into Life science Companies, Healthcare Payers, Healthcare Providers.

• In 2022, the largest market share of 46.5% was held by life science companies. Currently, the largest users of analytical tools and platforms are the life-science companies for reducing costs of their products, increasing profit margins, and producing better products, which are driving faster adoption and growth in the segment. The companies are constantly investing money in improving their product portfolios, and offerings to cater to a wider population. This gives rise to the need of analytical tools to better understand and predict the market and also drive value-based decisions.
• The healthcare providers are anticipated to register the fastest growth rate of 26.2%, this is due to the fact that during the pandemic and even after that, the burden of delivering cost-effective care, better patient management has been tremendous on the hospitals and healthcare professionals, this has resulted in the growth of this end user segment. The need to manage patient records, disease surveillance, and deliver cost-effective care to patients have been key factors for the wider adoption of healthcare analytics and is foreseen to propel growth in the segment.

Healthcare Analytics Regional Outlook

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)

Key Companies Profile & Market Share Insights

Key players in the industry are constantly innovating and bringing up new technologies to better understand data derived from patient information, understand the spread and containment of the disease, etc. to deliver better care solutions to healthcare providers and institutions. The use of big data analytics and AI has also given rise to new platforms being made to better understand and analyze data.

Some of the prominent players operating in the global healthcare analytics market include,

• McKesson Corporation
• Optum, Inc
• IBM
• Oracle
• SAS Institute, Inc
• IQVIA
• Verisk Analytics, Inc
• Elsevier
• Medeanalytics, Inc
• Truven Health Analytics, Inc
• Allscripts Healthcare Solutions, Inc
• Cerner Corporation

Order a free sample PDF of the Healthcare Analytics Market Intelligence Study, published by Grand View Research.