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IT Spending on Clinical Analytics Market - Forecast(2024 - 2030)
IT Spending on Clinical Analytics Market Overview
IT Spending on
Clinical Analytics Market size is estimated to reach $36.6 billion by 2027,
growing at a CAGR of 11.2% during the forecast period 2022-2027. Clinical
analytics, also known as clinical decision support (CDS), is a fast-growing
subject that uses real-time medical data to run inference systems in order to
make fact-based diagnostic and treatment decisions, increase revenue and
cut costs. Healthcare produces a vast amount of data with better healthcare
infrastructure, integrated connected devices, software solutions, and
analytical tools. According to the World Economic Forum hospitals produce 15
petabytes of data worldwide every year. This data consists mostly of the patient
electronic health record (EHR), and other data of the hospital such as
admission period of patient, types of diseases treated, device usage, drug usage,
imaging data, financial data, and others. An increasing number of diseases,
frequent hospitalization, advanced infrastructure, privacy, and security,
increasing attacks of cyber theft, and use of IT services in predictive
Analytics, financial analytics, and prescriptive analytics need an increase in
IT spending on healthcare services. To better the healthcare system,
the Indian government has implemented major structural and long-term reforms. In
developed countries, the rapid digitization of health IT infrastructures has
accelerated IT investment in clinical analytics. Most healthcare industries adopt
dynamic data analytic platforms to improve specialty practice and to enhance
the healthcare experience. For example, in May 2021, Google Cloud and HCA
Healthcare announced a partnership to improve data analytics and clinical
decision support technologies at HCA Healthcare. The companies will work
together to build a secure and dynamic data analytics platform for HCA
Healthcare, which will enable innovative operational models based on actionable
insights and more productive workflows by analysing HCA Healthcare's 32 million
annual encounters to find ways to improve clinical care and support its 93,000
nurses and 47,000 active and affiliated physicians.
The emerging
acceptance of digital data management tools in healthcare owing to heightening
expenditure on clinical analytics systems and solutions is set to drive the IT
Spending on Clinical Analytics Market. The accelerated digital transformation
in the healthcare industry is set to propel the growth of the IT Spending on
Clinical Analytics Market during the forecast period 2022-2027. This represents
the IT Spending on Clinical Analytics Industry Outlook.
IT Spending on Clinical Analytics Market Report Coverage
The report: “IT
Spending on Clinical Analytics Market Forecast (2022-2027)", by
Industry ARC covers an in-depth analysis of the following segments of the IT
Spending on Clinical Analytics Market.
Key Takeaways
- Geographically, North America IT Spending on Clinical Analytics Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027 owing to the advanced healthcare infrastructure and the increasing amount of patient data in the North American region.
- IT Spending on Clinical Analytics Market growth is being driven by an increasing count of hospitalisations across the world. However, the high capital required for cloud storage and maintenance is one of the major factors hampering the growth of the IT Spending on Clinical Analytics Market.
- IT Spending on Clinical Analytics Market Detailed Analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the IT Spending on Clinical Analytics Market report.
IT Spending on Clinical Analytics Market: Market Share (%) By Region, 2021
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IT Spending on Clinical Analytics Market Segment Analysis - By Platform:
The IT Spending
on Clinical Analytics Market based on platform can be further segmented into
Stand Alone, and Integrated. The Stand-Alone Segment held the largest market share
in 2021. This growth is owing to the increasing demand for clinical data analytic
companies and various key market companies providing analytics and data service
for contract research organizations and pharmaceutical companies. Standalone
offers to control and monitor the performance of medical devices remotely, and
patient management activities, and also helps in planning treatment. These
attributes are further propelling the growth of the Stand Alone segment.
Furthermore,
the Integrated segment is estimated to grow with the fastest CAGR of 12.5%
during the forecast period 2022-2027 owing to its attribute to operate a network of one or more healthcare facilities
and its design to provide a variety of care services, with many different types
of inpatient and outpatient care facilities in hospitals, physician group, health
clinics, ambulatory surgery centers, and imaging centers.
IT Spending on Clinical Analytics Market Segment Analysis - By Application:
The IT Spending on Clinical Analytics Market
based on the application can be further segmented into Payer and Provider. The Payer held
the largest market share in 2021. This growth is owing to the increasing number
of insurance companies and supportive government policies toward national
health. According to the National Association of Insurance Commissioners, in 2020
there are around 5,929 insurance companies in the U.S. As per the Insurance Information
Institute, the total count of employment in insurance increased from 1,171 in
2018 to 1,234 in 2021. The proliferating count of insurance companies and their surging
efficiency to provide service is further propelling the growth of this segment.
Furthermore, the Provider segment is estimated
to grow with the fastest CAGR of 13.1% during the forecast period 2022-2027
owing to the increasing count of healthcare services like hospitals and health clinics
in past years offering effective healthcare services to cure acute and complex
conditions together with the growing count of hospitalisations and readmissions.
IT Spending on Clinical Analytics Market Segment Analysis - By Geography:
The IT Spending
on Clinical Analytics Market based on geography can be further segmented into
North America, Europe, Asia-Pacific, South America, and Rest of the World. North
America (IT Spending on Clinical Analytics Market) held the largest share with 35%
of the overall market in 2021. The growth of this region is owing to the advanced
healthcare infrastructure and facilities available in the North American region.
The importance of IT spending on clinical analytics s is owing to the rising
cost of healthcare in the U.S. According to the Centres for Disease Control And
Prevention (CDC), six out of ten persons in the U.S. suffer from a chronic
illness. Heart disease, cancer, and diabetes are the top causes of mortality
and disability in the country, and the healthcare system costs $3.8 trillion
annually. Improved health services can make strategic decisions to mitigate and
reduce chronic disease-related expenditures while also improving healthcare
services. With the use of IT systems like Integrated Delivery Networks (IDNs),
their extensive network can be utilized by healthcare providers to coordinate
patient care and provide high-quality services to a variety of regions. This is
further propelling the growth of the IT Spending on Clinical Analytics Market
in the North American region.
Furthermore, the Asia-Pacific region is estimated to be the region with the fastest CAGR over the forecast period 2022-2027. This growth is owing to factors like the growing prevalence of various chronic diseases, rapidly increasing population, and rising investment in R&D activities by governments and private organizations. According to the Union Budget 2021, Rs 2.23 lakh crore has been set out for healthcare and wellness initiatives in the Union Budget 2021-22, an increase of 137 % over the previous year. These factors are further propelling the growth of the IT Spending on Clinical Analytics Market in the Asia-Pacific region.
IT Spending on Clinical Analytics Market Drivers
Increasing Number of Chronic Diseases Around the World is Driving the Market Growth
Chronic diseases like cancer, diabetes, and heart disease are the leading cause of mortality and disability around the world. As per World Health Organization (WHO), cancer is a leading cause of loss of life globally, being responsible for almost 10 million deaths in 2020, or almost one in six deaths. Further updates by WHO indicate that about one-third of demises from cancer are owing to tobacco use, high body mass index, alcohol intake, low fruit, and vegetable intake, and lack of physical activity. The increasing smoking habits, exposure to second-hand smoke, and poor nutrition in diets are major issues. Every second someone dies from cardiovascular disease (CVD) in the U.S as per American Heart Association. The increasing predominance of chronic diseases leading to rising hospitalisation and readmission of patients is therefore driving the growth of the IT Spending on Clinical Analytics Market during the forecast period 2022-2027.
The Emergence of Clinical Analytics In Healthcare Is Propelling The Growth Of The IT Spending on Clinical Analytics Market
As per “Must-Know
Healthcare Statistics in 2021” maintained on policyadvice.net, the internet of
things (IoT) can decrease the costs of operational and clinical inefficiencies
by $100 billion per year. Clinical analytics has risen as a vital area of focus
for IT leaders among healthcare providers, who are moving towards accepting responsible
care. Numerous leaders have pronounced that they are prioritizing clinical
analytics over other systems in their organizations. Clinical analytics is a
field that utilizes real-time medical data to produce insights, take decisions,
boost revenues, and save on costs. The application of clinical analytics in
organizations has resulted in decreased medication errors, enhanced population
health, and cost savings for numerous organizations. The accelerated progress
in key technologies and acceptance of electronic health records (EHRs) has resulted
in the growth of clinical analytics in current years. Owing to the rise of
smart mobile devices and the app economy, patients anticipate high-quality care
in hospitals. The outcome will be a revolution in healthcare with principal
advantages, like personalized care, for patients. Presently, it is the right
time for hospitals to adopt clinical analytics, which is crucial for
organizations to survive and thrive in the midst of altering governmental
regulations. Attending to the challenges posed by the reforms will mean reduced
costs and enhanced quality of care delivered. The benefits of applying clinical
analytics practices are numerous. It can assist in decreasing administrative
costs, improving care coordination, enhancing patient wellness, offering clinical
decision support, and decreasing abuse and fraud. It could also assist in
reducing costs by eliminating differences in supplies, overheads, and labor. The
emergence of clinical analytics in healthcare is therefore propelling the
growth of the IT Spending on Clinical Analytics Market during the forecast
period 2022-2027.
IT Spending on Clinical Analytics Market Challenges
Challenges Pertaining To Data Technologies And Staff Are Hampering The Growth Of The IT Spending on Clinical Analytics Market
As per “Must-Know
Healthcare Statistics in 2021” the global healthcare spending could amount to over $10
trillion by 2022. Medical organizations are required to buy analytics products
and solutions. On the other hand, in order to examine healthcare data, specially-designed
tech teams inclusive of data scientists and analysts are required to be hired
which can be quite expensive relying on the size of the medical facility.
Furthermore, it is crucial to select the right analytics technology in
healthcare owing to the rarity of healthcare data and its measurement hardship.
These issues are restraining the growth of the IT Spending on Clinical
Analytics Market.
IT Spending on Clinical Analytics Industry Outlook
Product
launches, mergers and acquisitions, joint ventures, and geographical expansions
are key strategies adopted by players in the IT Spending on Clinical Analytics Market. The top 10-IT Spending on Clinical Analytics Market companies are:
- Allscripts Healthcare Solutions, Inc.
- Cerner Corporation
- Health Catalyst
- IBM Corporation
- Inovalon Holdings, Inc.
- Mckesson Corporation
- Medeanalytics, Inc.
- Optum, Inc. (Unitedhealth Group)
- Oracle Corporation
- SAS Institute Inc.
Recent Developments
- In May 2022, Health Catalyst – a leading provider of data and analytics technology and service to health care organisation declared to acquire ARMUS Corporation - a Silicon Valley-based clinical registry development and data management technology company. ARMUS offers data abstraction, data validation, data management, data submission, and data reporting services to back participation in clinical quality registries for healthcare institutions across the world, inclusive of health systems, payers, medical device firms, and premier medical societies.
- In March 2022, Allscripts, a health IT vendor sealed a deal with Constellation Software subsidiary, N. Harris Computer Corporation (Harris), selling its hospitals and large physician practices business segment for a price consideration of up to $700 million. Harris will gain most of the Allscripts hospital EHR business, inclusive of Sunrise, Paragon, Touchworks, Opal, Star, HealthQuart, and Db Motion. The sale does not involve assets of the Allscripts Veradigm business segment, which is a health information technology integration that transfers data to providers to increase clinical efficiency and care quality.
- In December 2021, Oracle Corporation and Cerner Corporation presently jointly declared an agreement for Oracle to gain Cerner by way of an all-cash tender offer for $95.00 per share, or nearly $28.3 billion in equity value. Cerner is a leading provider of digital information systems utilized within hospitals and health systems to allow medical professionals to deliver superior healthcare to individual patients and communities. Oracle brings important experience assisting in powering the biggest industries.