Global Healthcare Analytics Market Outlook to 2030

Global Healthcare Analytics Market Overview

• Global Healthcare Analytics Market was valued at USD 45 billion in 2023, driven by the increasing adoption of electronic health records (EHRs) and the growing need for data-driven decision-making in healthcare. The demand for predictive and prescriptive analytics to improve patient outcomes and operational efficiency has significantly contributed to market growth.

• Key players in the market include McKessen Corporation, Health Catalyst, Koninklijke Philips N.V. to name a few. These companies have established strong footholds in the market by continuously innovating and providing comprehensive analytics solutions.
• In 2022, Health Catalyst, a prominent provider of data and analytics technology in healthcare acquired ARMUS Corporation. This strategic move aims to enhance Health Catalyst's Clinical Quality product offerings and its outsourced services, particularly in data abstraction and clinical registry management.

Global Healthcare Analytics Current Market Analysis

• North America as dominant region: North America excels in digital innovation due to its advanced IT infrastructure and early adoption of cloud computing, AI, and IoT. Epic Systems highlights this with its EHR solutions managing over 250 million patient records, improving U.S. hospital management. Amazon Web Services (AWS) has invested more than $108 Bn in U.S. cloud infrastructure from 2011 to 2022, enhancing regional tech capabilities. Silicon Valley boosts this ecosystem with AI leaders like Nvidia and Google, and startups such as Tempus driving precision medicine. Supporting policies like the Federal Data Strategy and National AI Initiative Act foster continued growth in finance and healthcare, contributing to the U.S.'s GDP of over USD 20 Tn.
• Europe as emerging region: Europe is rapidly emerging in the global healthcare analytics market, driven by advanced infrastructure, strong regulatory frameworks, and digital health technology adoption. Initiatives like the European Health Data Space (EHDS) and EU4Health promote data sharing and value-based care. Key countries like the UK, Germany, and France lead with innovative data initiatives. The healthcare sector significantly contributes to the economy, With Germanys healthcare sector alone contributing USD 883 billion. An aging population of 448.8 million in 2023 and high chronic disease prevalence further propel market growth.
• USA as dominant country: The United States leads the global healthcare analytics market, driven by advanced technology, substantial research investment, and a robust data science ecosystem. In 2022, U.S. healthcare spending reached $4.5 trillion, or $13,493 per person, representing 17.3% of GDP. Innovations in IoT and AI, such as Google's acquisition of DeepMind, enhance personalized care and diagnostics. Supported by a comprehensive regulatory framework like HIPAA, the U.S. excels in integrating data for precise and effective healthcare delivery.

Global Healthcare Analytics Market Segmentation

The Global Healthcare Analytics Market can be segmented based on several factors:

By Product Type: Global Healthcare Analytics Market is segmented by product type into descriptive, predictive & prescriptive. In 2023, descriptive sub-segment leads the market due to its foundational role in summarizing historical data and providing insights into past trends, which are critical for understanding current healthcare scenarios and making informed decisions.

By Application: Global Healthcare Analytics Market is segmented by application into financial, clinical, operational & administrative. In 2023, financial dominates the market, driven by its significant role in optimizing revenue cycles, reducing costs, and enhancing overall financial performance within healthcare organizations.

By Deployment: Global Healthcare Analytics Market is segmented by deployment into On-Premise & On-Demand services. In 2023, on-demand dominate the market, driven by its cost advantages, scalability, ease of maintenance, accessibility, robust security, quick deployment, and the ability to integrate with other modern healthcare technologies.

Global Healthcare Analytics Market Competitive Landscape

• McKesson Acquires RxBenefits: In 2023, McKesson Corporation acquired RxBenefits. The acquisition was to enhance $1.1 billion to enhance its data analytics capabilities within the pharmacy benefits management (PBM) sector. This strategic move is aimed at bolstering McKesson's position in the healthcare market, particularly in providing innovative solutions for managing pharmacy benefits more effectively.
• Koninklijke Philips N.V. and NYU Langone Health: In 2023, Philips and NYU Langone Health have announced an 8-year strategic partnership valued at up to $115 million. This collaboration aims to enhance patient care through the integration of advanced technologies, including digital pathology, clinical informatics, and AI-enabled diagnostics.
• Mercy Iowa City Adopts Allscripts Sunrise Platform: In 2021, Mercy Iowa City adopted the Allscripts Sunrise platform as its core electronic health record (EHR) system. This decision was made to enhance the hospital's ability to deliver integrated healthcare services to the community. The Sunrise platform is designed to provide a comprehensive, single patient record that integrates various aspects of patient care, including clinical data & revenue cycle management, to name a few.

Global Healthcare Analytics Industry Analysis

Global Healthcare Analytics Market Growth Drivers:

• Adoption of Electronic Health Records (EHRs) The increasing adoption of EHRs plays a crucial role in driving market growth by providing a wealth of data for analysis and decision-making in healthcare organizations. In developed nations, EHR adoption has reached substantial levels. For instance, as of 2021, nearly 96% of non-federal acute care hospitals and 78% of office-based physicians in the United States had adopted certified EHR systems. This widespread adoption facilitates advanced analytics, improving patient care and operational efficiencies.
• Utilization of Machine Learning & AI: The growing use of machine learning and artificial intelligence technologies in healthcare analytics is expected to drive market growth by enabling advanced data analysis and insights generation. Machine learning is applied in medical imaging to enhance the interpretation of scans, aiding radiologists in identifying conditions such as tumors or fractures more quickly and accurately.
• Growing Number of Startups: The growing number of startups is indicative of the increasing interest and investment in this sector. Healthcare analytics startups like Harbinger Health has raised significant funding round in 2023 securing over USD 190 million. This influx of investment supports innovation and the development of new healthcare analytics solutions, driving market growth.

Global Healthcare Analytics Market Challenges:

• IT Systems & Information: Security breaches and unauthorized use of IT systems and information pose significant risks, potentially exposing clients, data suppliers, or others to loss. For instance, healthcare data breaches have increased from 2020 to 2021, impacting many individuals. Ensuring robust cybersecurity measures is essential to protect sensitive healthcare data from malicious attacks and unauthorized access.
• Market Forces: Disruptions in credit and capital markets, along with unfavorable economic conditions, can adversely affect business operations and financial health. During economic downturns, healthcare organizations may face funding challenges, reducing their ability to invest in advanced analytics. The 2008 financial crisis led to a reduction in healthcare investments, illustrating the impact of market forces on operational stability.

Global Healthcare Analytics Market Government Initiatives:

• Global Initiative on AI for Health: Launched by the WHO in 2018, in collaboration with the International Telecommunication Union (ITU) and the World Intellectual Property Organization (WIPO), this initiative aims to integrate artificial intelligence into healthcare. It focuses on providing guidance and frameworks for the ethical use of AI in health, promoting evidence generation for AI-based medical devices, and developing a digital health strategy for 2020-2025.
• Global Initiative on Digital Health (GIDH): This WHO-managed network supports countries in digital health transformation. It aims to align resources for sustainable digital health initiatives and improve health systems through enhanced collaboration and knowledge sharing. The GIDH was formally launched in February 2024, focusing on the needs of countries for digital health advancements.

Global Healthcare Analytics Future Market Outlook

The Global Healthcare Analytics Market is expected to reach USD 111 billion till 2029, driven by advancements in data analytics technologies and increasing demand for data-driven decision-making in healthcare.

Future Market Trends

• Expansion of Predictive Analytics: Predictive analytics will become more prevalent in the healthcare sector, enabling providers to foresee potential health issues and intervene proactively. This trend will be driven by the growing availability of big data and advancements in AI and ML algorithms. Predictive analytics will help in reducing hospital readmissions, optimizing treatment plans, and improving patient outcomes by identifying risk factors and predicting disease progression.
• Increased Adoption of Cloud-Based Solutions: The shift towards cloud-based healthcare analytics solutions will accelerate, driven by the need for scalable, secure, and cost-effective data management. Cloud platforms will enable healthcare providers to access and analyze vast amounts of data in real-time, facilitating better decision-making. This trend will also support remote patient monitoring and telehealth services, further integrating analytics into everyday healthcare practices.