Healthcare/Medical Analytics Market - Forecast(2024 - 2030)

The Healthcare/Medical Analytics Market size is estimated to reach $113.301 billion by 2030, growing at a CAGR of 16.1% during the forecast period 2024 - 2030. Medical Analytics involves analyzing both current and historical medical data to glean insights at both micro and macro levels, revealing trends within the industry. This process is instrumental in improving outreach, reducing treatment durations, containing disease spread, managing costs, and enhancing efficiency by minimizing the necessity for additional diagnostic procedures. Precision health analytics furnish users with a diverse range of tools for data storage, integration, and visualization, facilitating comprehensive analysis. 

Furthermore, clinical analysis plays a crucial role in claims processing, offering an efficient and detailed method to monitor claims, premiums, and clients in real-time. The increasing adoption of big data technologies in healthcare is propelling the Healthcare Analytics market forward. AI and ML are playing a crucial role in healthcare analytics by enabling more sophisticated data analysis, pattern recognition, and decision support systems. Machine learning algorithms are being applied to medical imaging data for early disease detection, to predict patient readmissions, and to optimize hospital operations.

Healthcare organizations are increasingly leveraging advanced predictive analytics techniques to forecast patient outcomes, optimize treatment plans, and identify at-risk populations. By analyzing vast amounts of patient data, including electronic health records (EHRs), genomics data, and wearables, predictive analytics can help healthcare providers intervene earlier, personalize treatments, and improve overall patient outcomes. However, the scarcity of skilled professionals required for system operation in developing regions poses a significant challenge for the Healthcare/Medical Analytics industry.

The COVID-19 pandemic significantly impacted the Healthcare/Medical Analytics Market, prompting a surge in demand for data-driven solutions. With the need to monitor, predict, and respond to the virus, healthcare providers and institutions turned to analytics for insights into patient care, resource allocation, and pandemic spread. Telehealth utilization soared, necessitating robust analytics for remote patient monitoring and diagnosis. Moreover, pharmaceutical companies leveraged analytics to expedite vaccine development and distribution. 

Despite initial disruptions due to resource reallocation and logistical challenges, the pandemic accelerated the adoption of analytics technologies across the healthcare sector. It underscored the importance of data-driven decision-making in crisis management and highlighted the potential for analytics to enhance healthcare delivery and outcomes, fostering long-term growth and innovation in the Medical Analytics Market.

The report: “Healthcare/Medical Analytics Market Forecast (2024-2030)”, by Industry ARC, covers an in-depth analysis of the following segments of the Healthcare/Medical Analytics Market.

By Type: Descriptive Analytics, Predictive Analytics, Cognitive Analytics, and Prescriptive Analytics.

By Component: Hardware, Services, and Software.

By Delivery Model: On-Premise, Cloud-Based, and Web Hosted.

By Application: Clinical Analytics, Financial Analytics, Operational, and Administrative Analytics, and Population Health Analytics.

By End User: Hospitals, Healthcare providers, Healthcare payers, Government Agencies, and Others.

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East, and Africa)

• Geographically, the North American Healthcare/Medical Analytics market accounted for the largest share in 2023 owing to the presence of a highly developed healthcare infrastructure in the US and Canada.

• The rise in the implementation of Electronic Health Records (EHRs) in medical facilities is driving the market for Healthcare Analytics. However, the growing concern regarding data security is challenging demand generation.

                                                      

Based on Type, The Healthcare/Medical Analytics Market can be segmented into Descriptive Analytics, Predictive Analytics, Cognitive Analytics, and Prescriptive Analytics. The Descriptive Analysis segment is anticipated to have the largest share of the market in 2023 and is poised to dominate the market during the forecast period 2024 - 2030. Descriptive analytics is used to provide insights into the progression of an event that has already occurred. They are used for increasing the efficiency of various processes and administrative activities. The lower cost of acquiring descriptive datasets when compared to predictive and prospective datasets is further contributing to the growth of the segment. However, the Predictive Analytics segment is projected to grow the fastest at a CAGR of 17.1% in 2024 - 2030 owing to the rising use of advanced analytical methods to enhance decision making by accurately predicting future market dynamics and outcomes.

The Healthcare/Medical Analytics Market based on Delivery Mode can be further segmented into On-Premise, Cloud-Based, and Web Hosted. The On-Premise segment accounted for the largest share of the market in 2023. On-Premise software requires the medical facilities to have a license of the software. As this licensed copy stays within the facility, it can provide much higher data protection than Cloud-based and Web-hosted delivery modes. This is essential as the patient data being stored is highly sensitive and protected by law. However, the Cloud-based delivery mode segment is also anticipated to witness significant growth at a CAGR of 17.2% during the forecast period 2024 – 2030, owing to their significantly lower costs. On-Premise solution requires in-house server hardware and dedicated server rooms, software licenses, integration capabilities, and IT employees in order to function properly. However, in Cloud-based, a third-party host will provide the services.

The Healthcare/Medical Analytics Market based on Geography can be segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. The North American segment is projected to dominate the Healthcare/Medical Analytics market during the forecast period 2024 - 2030 with a market share of 34% owing to the presence of a highly developed healthcare infrastructure, the rising rate of chronic diseases, high awareness levels, and the high integration of IT in the healthcare sector in the region. Moreover, the presence of key industry players such as IBM Corporation, Optum, Oracle, SAS Institute, McKesson Corporation, Oracle Corporation, and SCIO Health Analytics in the region ensures lower costs, higher innovation, and more choices for the end-user industries. The Asia Pacific region is predicted to register the fastest growth owing to the growth in public healthcare funding in major emerging economies like China and India.

The rise in the adoption of Electronic Health Record (EHR) and other digital systems in the healthcare sector is boosting the demand for Healthcare/Medical Analytics. EHRs contain valuable information regarding a patient’s medical history, demographics, medication, vital signs, and diagnostic test results. These data are essential for obtaining accurate results for predictive, descriptive, cognitive, and prescriptive analysis. The US EHR market is poised at US$7.15 billion in 2023 with a projected CAGR of 4.81% between 2024 – 2030. As of 2024, 96% of Unites States Hospitals are using certified HER technology.

An increase in the healthcare expenditure of developed and major developing countries is driving the demand for Healthcare Analytics to enhance treatment effectiveness and improve decision making. In 2022, health care spending in the U.S. reached $4.5 trillion, or $13,493 per person, and accounted for 17.3% of Gross Domestic Product (GDP). The Indian Central and State governments' budgeted expenditure on healthcare touched 2.1% of GDP in 2023 and 2.2% in 2022, against 1.6% in 2021, as per the Economic Survey 2022-23. Healthcare spending in the United Kingdom (UK) has gradually increased since 2000 when it amounted to 78.5 billion British pounds. By 2022, healthcare expenditure in the UK stood at to 282.62 billion British pounds.

The growing concern regarding the leak of confidential patient information from healthcare facilities owing to cyber-attacks is a major challenge that can hamper the market growth. In August 2023, Nashville, Tennessee-based HCA Healthcare notified 11.27 million patients affected in a data breach. The information was stolen from an external storage location. The leaked information includes patient names, addresses, diagnosis information, contact details, and insurance information. The data can be sold for up to $1,000 per record in order to be used for illegal activities such as forging passports and insurance fraud. This is reducing the confidence of healthcare providers in implementing more IT technologies such as healthcare analytics in their facilities.

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Healthcare/Medical Analytics Market. The top 10 companies of the industry are:

• In August 2022, Syntellis Performance Solutions completed its acquisition of Stratasan, a leading healthcare market intelligence and analytics firm. This strategic move enables Syntellis to broaden its offerings for healthcare entities by incorporating advanced data and intelligence solutions. These enhancements aim to bolster financial, strategic, and operational growth planning within healthcare organizations.

• In June 2022, Oracle finalized its acquisition of Cerner Corporation. This union integrates Cerner's robust clinical capabilities with Oracle's expertise in analytics, automation, and enterprise platforms. The synergy between the two entities promises to deliver comprehensive solutions that leverage clinical insights with advanced technology, empowering healthcare providers to optimize their operations and patient care.