Global Healthcare Analytics Market Is Projected To Grow At 20% CAGR To Cross $70 Billion By 2025
Real-time and historical data are used in healthcare data analytics to identify trends, deliver actionable insights, and improve operational, financial, and clinical performance. The global Healthcare Analytics market is expected to grow at a CAGR of >20% to cross $70 billion by 2025 driven by rising VC/PE investments, accelerating adoption of digital health after Covid, increasing complexity and volumes of data, and supporting government initiatives.
Healthcare Analytics Market Analysis
Shift Towards Evidence-based Care Model
Data and analytics have been central to healthcare for decades. However, as the healthcare industry moves from a fee-for-service to a value-based care model, a significant change is being observed in how data is generated, aggregated, and used.
Key Growth Drivers: Healthcare Analytics Market
The use of healthcare analytics is expected to spread quickly around the globe due to its potential to lower treatment costs, predict disease outbreaks, avoid preventable illnesses and improve the overall quality of care and life of patients.
Key Challenges: Healthcare Analytics Market
Healthcare data security and patient privacy issues, unstructured/fragmented data, ever-changing data, interoperability and data science skills gap are some of the key challenges that must be addressed to witness exponential development.
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US Leads In Terms Of Adoption Of Healthcare Analytics Market
The US is the major market for healthcare analytics with >60% share, followed by Europe. In 2020, the US healthcare expenditure reached an all-time high accounting for 19.7% of its GDP. With skyrocketing costs, rising demand for value-based care and growing regulatory reporting requirements, healthcare stakeholders are increasingly adopting data-driven solutions like analytics. This trend is evident by significant VC funding/PE investments in this field. Healthcare analytics companies raised $1.5 billion in VC funding in the 1H of 2021, a ~90% increase YOY.
Growing Focus On Advanced Analytics
According to our research and interviews with industry experts, healthcare analytics companies presently derive the majority of their revenues from descriptive analytics; however, healthcare payers and providers are increasingly using predictive and prescriptive analytics.
On-premise Model still Prevailing
“Cloud offers a flexible, scalable environment at a lower cost than on-premise deployments but still the majority of healthcare analytics solutions are currently implemented on-premise due to security, control and privacy reasons. However, the trend is towards hybrid cloud storage model.” – Founder, Executive Chairman, Healthcare Analytics Company, US
Competitive Landscape Analysis
The global healthcare analytics market is fragmented with no clear leader. Some of the key players having a strong foothold in the global healthcare analysis include IBM, Optum, Cerner, SAS Institute, Allscripts, Change Healthcare, MedeAnalytics, Inovalon, Oracle, Health Catalyst, SCIO Health Analytics, Cotiviti, VitreosHealth, Dedalus, LOGEX, Clanwilliam Group, Evolucare and Clinithink.
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