Prognostics and Health Management Market - Forecast(2024 - 2030)

The Prognostics and Health Management market size is forecast to reach USD 92,940 million by 2029, after growing at a CAGR of 12% during 2024-2029. The Prognostics and Health Management (PHM) market uses modern technologies like predictive analytics, machine learning, and artificial intelligence to monitor and manage the health of humans, assets, and systems. It has uses in a variety of industries, including healthcare, aerospace, automotive, and manufacturing. In healthcare, PHM solutions are used for remote patient monitoring, chronic illness management, population health management, and personalised medication. These solutions help healthcare providers forecast and prevent bad health occurrences, optimize treatment approaches, and improve patient outcomes. GE Aviation uses PHM technologies to monitor the health and performance of aircraft engines in real time. The Predix platform receives and analyzes data from engine sensors to detect anomalies, predict probable problems, and optimize maintenance plans. 

GM uses PHM systems at its manufacturing sites to monitor the condition of equipment and machinery. By evaluating sensor data and machine performance parameters, GM can foresee equipment breakdowns, schedule maintenance actions, and optimise production processes to ensure optimal uptime and efficiency. Overall, the Prognostics and Health Management market is expanding rapidly, driven by technology improvements, rising demand for digital health solutions, and government initiatives to enhance healthcare outcomes and increase operational efficiency across industries.

The report “Prognostics and Health Management Market – Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of the Prognostics and Health Management market.

By Component: Hardware, Software

By Deployment: PHM – SaaS, PHM-PaaS, PHM-IaaS, Digital Twin

By Application: Structural Health Monitoring, Machinery Health Monitoring, Vehicle Health Monitoring, Others

By End User: Aerospace and Defense, Automotive, Energy and Utilities, Healthcare, Manufacturing, Oil and Gas, Transportation, Others

By Geography:  North America, South America, Europe, Asia-Pacific, RoW

• The PHM market is experiencing significant technological breakthroughs such as predictive analytics, artificial intelligence (AI), and the Internet of Things (IoT), which are driving innovation and growth. Real-time data analysis capabilities enable healthcare providers and other companies to make better decisions and manage their health and assets more proactively. In the United States, the Centers for Medicare and Medicaid Services (CMS) has undertaken a number of efforts to encourage the use of PHM technologies. For example, the CMS Medicare Shared Savings Program (MSSP) encourages accountable care organizations (ACOs) to use PHM solutions to enhance patient outcomes and lower healthcare costs.

• The demand for effective asset management across sectors and rising awareness of preventive healthcare are driving the worldwide PHM market's expansion. PHM solutions are being widely adopted by emerging economies as they work to modernize their healthcare systems and increase operational effectiveness. The Chinese government's Healthy China 2030 plan seeks to increase population access to healthcare services and encourage preventive healthcare. In order to solve the nation's healthcare concerns, this strategy has led to an increase in investments in PHM technologies by both public and private healthcare companies.

• Value-based care models are increasingly reliant on PHM solutions, which emphasize proactive resource and health management to produce better results at lower costs. PHM technology are being used by healthcare providers more frequently to help them switch from fee-for-service to value-based reimbursement schemes. Value-based care initiatives are being implemented in EU member states, including Germany, to enhance the effectiveness and quality of healthcare. In line with the tenets of value-based care, healthcare companies are implementing PHM platforms to optimize care delivery, avoid hospital readmissions, and remotely monitor patient health.

Software dominated the Prognostics and Health Management market in 2023. Because of its adaptability, scalability, and capacity to produce sophisticated analytics and insights from data gathered by hardware components, software frequently commands a large share of the PHM industry. Applications for data analysis, predictive modeling, decision assistance, and remote monitoring are among the features of PHM software. Patterns, trends, and anomalies in health data can only be found by using PHM software's advanced analytics features, which include predictive analytics and machine learning algorithms. 

In the PHM software industry, IBM Watson Health is a well-known provider that provides healthcare organizations with powerful analytics and cognitive computing solutions. With Watson Health's platform, physicians can make evidence-based decisions and enhance patient outcomes by using AI-powered algorithms to analyze massive volumes of patient data in real-time. Leading supplier of electronic health record (EHR) software, Epic Systems, has been adding PHM features to its software suite so that healthcare companies can enhance population health management, expedite care coordination, and track patient health data in real-time. Epic hopes to improve clinical decision-making and patient outcomes by integrating PHM functions into its EHR platform.

PHM-SaaS dominated the Prognostics and Health Management market in 2023. PHM-SaaS provides an affordable option for businesses, particularly for smaller healthcare providers or those with constrained IT budgets. Software as a Service (SaaS) allows consumers to subscribe to online access to PHM platforms, doing away with the requirement for large upfront investments in software licenses or infrastructure. When comparing PHM-SaaS solutions to conventional on-premises deployments, faster implementation times are usually observed. The service provider may smoothly push out updates and new features, guaranteeing that companies always have access to the newest developments in PHM technology without requiring manual upgrades.

The alliance between Amazon Web Services (AWS), a well-known cloud services provider, and Cerner Corporation, a top healthcare technology business, is a new development in the PHM sector. Cerner said in December 2023 that it will improve its PHM capabilities and quicken the pace of advancement in healthcare analytics by utilizing AWS's cloud infrastructure. Through this partnership, AWS's scalable cloud platform and cutting-edge AI capabilities will be combined with Cerner's expertise in population health management and healthcare data analytics. Cerner wants to provide more reliable and scalable PHM solutions to healthcare organizations so they may lower costs, improve operational efficiency, and improve patient outcomes. Cerner will do this by utilizing AWS's cloud infrastructure.

Machinery health dominated the Prognostics and Health Management market in 2023. Monitoring the health of machinery is essential in a number of industries, including manufacturing, mining, oil and gas, and power generation. Safety, operating expenses, and production efficiency are all directly impacted by the condition and performance of machinery. As a result, businesses give investing in monitoring solutions top priority in order to guarantee the dependability and durability of their assets. Technology developments in sensor systems, data analytics, and networking have greatly improved machinery health monitoring. By enabling proactive maintenance and reducing downtime, real-time monitoring of parameters like vibration, temperature, and lubricant state enables the early detection of potential defects or failures.

A prominent provider of seals, lubrication systems, and bearings, SKF recently unveiled SKF Enlight AI, an AI-powered predictive maintenance program. By predicting equipment breakdowns and recommending maintenance procedures using advanced analytics, this platform assists industrial clients in optimizing maintenance plans and cutting expenses. Furthermore, SKF works with industry partners and governmental bodies to encourage the implementation of predictive maintenance techniques and advance digital transformation in the manufacturing sector.

Healthcare dominated the Prognostics and Health Management market in 2023. There is an urgent need for ongoing patient monitoring and care due to the aging population and rising prevalence of chronic diseases. PHM systems make early intervention, illness management, and remote patient monitoring possible, improving patient outcomes and lowering medical expenses. PHM technologies are attracting a lot of innovation and investment from the healthcare sector because they have the potential to lower healthcare costs and improve patient outcomes. PHM solutions that are customized to the requirements of patients and healthcare organizations are developed and implemented in partnership with payers, technology companies, and healthcare providers.

Predictive analytics and artificial intelligence (AI) are being incorporated into electronic health record (EHR) systems to improve patient care and clinical decision-making, which is a recent development in the healthcare PHM industry. A noteworthy instance is the collaboration between Nuance Communications, a supplier of AI-driven clinical documentation and speech recognition systems, and Epic Systems, a top EHR vendor. In order to facilitate real-time clinical decision support, automate documentation duties, and enhance the precision and effectiveness of healthcare workflows, Nuance's AI technology is linked with Epic's EHR platform through this cooperation. Healthcare professionals may analyze enormous volumes of patient data to find trends, anticipate health hazards, and customize treatment approaches by utilizing AI and predictive analytics. This will ultimately improve patient outcomes and reduce costs.

North America dominated the Prognostics and Health Management market in 2023. North America is a favorable place to employ PHM solutions because of its sophisticated healthcare infrastructure and high rate of technological adoption. PHM solutions are widely used in the area because of the existing healthcare infrastructure and significant investments made in healthcare IT. Leading healthcare technology business Change Healthcare was set to be acquired by UnitedHealth Group for roughly $13 billion in January 2021. Through this acquisition, UnitedHealth hopes to improve its skills in population health management, revenue cycle management, and data analytics, as well as to solidify its position in the healthcare technology market.

The acquisition is anticipated to spur innovation and enhance healthcare outcomes in North America by uniting UnitedHealth's vast network of payers and providers with Change Healthcare's experience in data analytics and revenue cycle management. It further establishes North America's dominance in the PHM industry by showing the continuous expansion and consolidation of PHM capabilities by significant firms in the area.

The PHM industry is expanding as a result of technological developments, particularly in the areas of artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT). Large-scale healthcare data can now be collected, analyzed, and interpreted thanks to these technologies, which improves forecast accuracy, early disease identification, and individualized treatment regimens. The effectiveness of PHM solutions is further increased by the integration of wearables, smart sensors, and remote monitoring devices, which enables proactive intervention and continuous health monitoring.

Google Health announced the release of its AI-driven PHM platform in 2023. This platform analyzes medical data from wearables, electronic health records (EHRs), and other sources using sophisticated algorithms. This platform seeks to support medical professionals in illness prediction and prevention, treatment route optimization, and patient outcome improvement. With its introduction into the PHM market, Google Health has demonstrated the growing influence of these tech behemoths on innovation and PHM solution capabilities.

Another significant factor propelling the PHM market is the transition from fee-for-service to value-based care models. Value-based care prioritizes population health management, preventive interventions, and outcomes-based payment in addition to the provision of high-quality, cost-effective healthcare. PHM systems enable proactive management of chronic illnesses, lower readmission rates to hospitals, and maximize resource use, all of which are vital components of value-based care programs. PHM technologies are being used more often by government organizations, payers, and healthcare providers in an effort to reduce total costs and improve patient outcomes.

In order to encourage healthcare providers to use PHM solutions, the Centers for Medicare & Medicaid Services (CMS) in the US stated in 2024 that it would be expanding its value-based care programs. This included the introduction of new payment models and performance measures. This expansion is a result of greater adoption and investment in PHM technology throughout the healthcare ecosystem, which is a reflection of the rising understanding of the role PHM plays in accomplishing the objectives of value-based care.

Ensuring the security and privacy of sensitive health data is one of the main issues facing the PHM business. Large amounts of personal health data, such as medical records, test results, and patient demographics, must be gathered and analyzed in order to provide PHM solutions. The trust in PHM systems could be damaged by the misuse, unauthorized access, or compromise of this data, which could result in major privacy violations. A significant breach of patient health data happened in the United States in December 2023, impacting millions of individuals. The event demonstrated the susceptibility of healthcare systems to intrusions and emphasized the need of strong data security protocols in PHM systems.

Achieving interoperability and seamless integration of data from diverse sources is a big problem in the PHM sector. Effective data aggregation and analysis is challenging in the healthcare industry since data is frequently fragmented among multiple systems, such as wearables, medical equipment, and electronic health records (EHRs). The information sharing between many healthcare stakeholders is hampered by the absence of established protocols and interoperability standards. The European Union launched the European Health Data Space (EHDS) program in August 2023 with the goal of encouraging interoperability and data sharing among its member states. The EHDS seeks to create a common framework and set of standards for health data exchange across academics, policymakers, and healthcare professionals. The program aims to enhance healthcare delivery throughout Europe and accelerate PHM innovation by promoting data interoperability.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Prognostics and Health Management market. Major players in the Prognostics and Health Management market are Philips Healthcare, GE Healthcare, Siemens Healthineers, Cerner Corporation, McKesson Corporation, IBM Watson Health, Allscripts Healthcare Solutions, Epic Systems Corporation, Medtronic, and UnitedHealth Group among others.

 In March 2024, Philips Healthcare launched a new AI-powered predictive analytics platform designed to improve patient outcomes and operational efficiency in hospitals. The platform, called Philips IntelliSpace Prognosis, leverages machine learning algorithms to analyze patient data and predict adverse events before they occur, enabling healthcare providers to intervene proactively and optimize care delivery.

 In January 2024, Siemens Healthineers announced the acquisition of Varian Medical Systems, a leading provider of radiation oncology treatments and software solutions, for $16.4 billion. The acquisition expands Siemens Healthineers' portfolio of oncology solutions and strengthens its position in the global healthcare market, particularly in the field of cancer care and precision medicine.

 In November 2023, Medtronic unveiled its new Guardian Connect 4 continuous glucose monitoring system for people with diabetes. The latest version of the Guardian Connect system features advanced sensor technology and improved connectivity, allowing users to monitor their glucose levels in real-time and receive personalized insights to better manage their condition.