The healthcare analytics market is projected to reach USD 75.1 billion by 2026 from an estimated USD 21.1 billion in 2021, at a CAGR of 28.9% during the forecasted period.
Healthcare analytics is the efficient use of data and related business insights developed through statistical, quantitative, predictive, comparative, cognitive, and other emerging applied analytical models. Healthcare analytics tools help reveal and understand historical data patterns, predict future outcomes, and provide actionable insights to drive fact-based decision-making for improved clinical, financial, and operational performance of healthcare organizations.
The use of analytics helps healthcare systems reduce healthcare costs and improve the quality of care. However, high costs related to healthcare analytics software and services and a dearth of skilled professionals are likely to challenge market growth in the coming years.
Cognitive analytics to be the fastest-growing segment in the type market.
Based on type, the market is segmented into cognitive analytics, descriptive analytics, predictive analytics, and prescriptive analytics. Cognitive analytics uses artificial intelligence (AI) technologies such as machine learning, deep learning, natural language processing (NLP), and reasoning or logic systems to provide analysis. It automates the decision-making process and provides insights and suggestions to enhance human decisions. The descriptive analytics segment is expected to account for the largest share of 52.3% of the healthcare analytics market in 2021. Descriptive analytics help healthcare payers and providers to better monitor and manage their business practices. It categorizes, characterizes, consolidates, and classifies the past data to convert it into useful information. Most organizations prefer descriptive/retrospective analytics since it can be implemented with the standard aggregate functions built into most databases.
Services segment to hold the largest share of the component market.
Based on components, the healthcare analytics market is segmented into services, hardware, and software. The services segment accounted for the largest market share of 51.9% in 2020. The large share of this segment can be attributed to their indispensable nature and repetitive requirement. This is because end users of healthcare analytics rely heavily on service providers for consulting, data storage, implementing services, training, maintenance, and regular solution upgrades.
The US to dominate the healthcare analytics market in North America.
North America dominated the healthcare analytics market, with a share of 61.0% in 2020, followed by Europe and the Asia Pacific. The large share of North America in the global healthcare analytics market can be attributed to the implementation of federal health mandates that encourage the adoption of HCIT solutions, increasing focus on PHM, a significant amount of VC investments, growing pressure to reduce healthcare costs, technological advancements, and high product and service availability in this region. Moreover, most of the leading players in the healthcare analytics market have their headquarters in North America.
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights 4.1 Healthcare Analytics Market Overview 4.2 Financial Analytics Market Share, by Type & Region (2020) 4.3 Healthcare Analytics Market: Geographic Mix 4.4 Regional Mix: Healthcare Analytics Market
5 Market Overview 5.1 Introduction 5.2 Market Dynamics 5.2.1 Drivers 22.214.171.124 Government Initiatives to Increase Ehr Adoption 126.96.36.199 Growing Venture Capital Investments 188.8.131.52 Growing Pressure to Curb Healthcare Spending and Improve Patient Outcomes 184.108.40.206 Big Data in Healthcare 220.127.116.11 Growing Focus on Real-World Evidence 5.2.2 Restraints 18.104.22.168 High Cost of Analytics Solutions 5.2.3 Opportunities 22.214.171.124 Increasing Focus on Value-Based Medicine 126.96.36.199 Use of Analytics in Precision and Personalized Medicine 188.8.131.52 Cloud-Based Analytics 184.108.40.206 Increasing Number of Patient Registries 220.127.116.11 Emergence of Social Media and Its Impact on the Healthcare Industry 18.104.22.168 Augmented Analytics 22.214.171.124 Analytics of Healthcare Things 5.2.4 Challenges 126.96.36.199 Patient Data Confidentiality 188.8.131.52 Concerns Regarding Inaccurate and Inconsistent Data 184.108.40.206 Reluctance to Adopt Healthcare Analytics Solutions in Emerging Countries 220.127.116.11 Data Integration 18.104.22.168 Operational Gaps Between Payers and Providers 22.214.171.124 Dearth of Skilled Personnel
6 Healthcare Analytics Market, by Type 6.1 Introduction 6.2 Descriptive Analytics 6.2.1 Descriptive Analytics is Used to Convert Past Data into Useful Information 6.3 Predictive Analytics 6.3.1 The Increasing Incidence of Healthcare Fraud is Driving the Market Growth for Predictive Analytics 6.4 Prescriptive Analytics 6.4.1 Prescriptive Analytics to Register the Highest Growth Rate During the Forecast Period 6.5 Cognitive Analytics 6.5.1 Vendors are Now Focusing on Introducing Ai-Driven Analytics Solutions
7 Healthcare Analytics Market, by Component 7.1 Introduction 7.2 Services 7.2.1 Support Services 126.96.36.199 Support Services Include Implementation, Ongoing It Support, System Integration, Training, and Maintenance Services 7.2.2 Business Analytics Services 188.8.131.52 Business Analytics Services Help Healthcare Organizations to Optimize the Use of Analytics and Drive Performance Improvement 7.3 Software 7.3.1 Healthcare Analytics Software Works as an Interface Between the Database and End-users 7.4 Hardware 7.4.1 Increasing Adoption of Cloud Servers is Expected to Hinder the Growth of the Hardware Market for Analytics
8 Healthcare Analytics Market, by Deployment Model 8.1 Introduction 8.2 On-Premise Deployment 8.2.1 On-Premise Deployment Models Offer Multivendor Architecture, Which Lowers the Risk of Data Breaches & External Attacks 8.3 On-Demand Deployment 8.3.1 Increasing Volume of Data Generated Across the Healthcare Provider Industry to Drive the Adoption of On-Demand Deployment
9 Healthcare Analytics Market, by Application 9.1 Introduction 9.2 Financial Analytics 9.2.1 Claims Processing 184.108.40.206 Need to Improve Claims Response Time and Avoid Fraudulent Claims Will Support the Use of Analytics Tools 9.2.2 Revenue Cycle Management 220.127.116.11 Healthcare Organizations are Rapidly Adopting Predictive Analytics Solutions for Proactive Decision-Making 9.2.3 Payment Integrity & Fraud, Waste, and Abuse 18.104.22.168 Implementation of Icd-10 Code Sets and Adoption of Fee-For-Value Systems Will Drive Market Growth 9.2.4 Risk Adjustment & Assessment 22.214.171.124 Risk Adjustment & Assessment Allow for Optimization of Cash Flows and Improved Financial Performance 9.3 Clinical Analytics 9.3.1 Quality Improvement & Clinical Benchmarking 126.96.36.199 Benchmarking Allows for the Identification of Issues That are Negatively Impacting Healthcare Systems 9.3.2 Clinical Decision Support 188.8.131.52 Predictive Clinical Analytics Reduce Medical Errors and Ensure That Appropriate Tests are Performed, a Key Factor for Market Growth 9.3.3 Reporting & Compliance 184.108.40.206 Stringent Regulatory Requirements Have Led to the Need for Reporting & Compliance Solutions 9.3.4 Comparative Analytics/Effectiveness 220.127.116.11 Growing Adoption of Ehrs to Provide Significant Growth Opportunities 9.3.5 Precision Health 18.104.22.168 Strong Government Support for Personalized Medicine is Likely to Drive Market Growth 9.3.6 Medical Imaging Analytics 22.214.171.124 Imaging Analytics Aided by Artificial Intelligence and Machine Learning is Rapidly Expanding Within the Healthcare It Industry 9.4 Operational & Administrative Analytics 9.4.1 Supply Chain Analytics 126.96.36.199 The Growing Requirement to Reduce Healthcare Costs Will Increase the Adoption of Supply Chain Analytics Solutions 9.4.2 Workforce Analytics 188.8.131.52 Need for Real-Time Resource Demand and Supply Data to Drive the Adoption of Workforce Analytics Solutions 9.4.3 Strategic Analytics 184.108.40.206 Strategic Analytics Uses Advanced Analytics Tools to Leverage Operational and Usage Data, a Key Advantage 9.5 Population Health Analytics 9.5.1 Population Health Analytics Improves Population Health Outcomes and Lowers Costs, a Key Factor for Market Growth
10 Healthcare Analytics Market, by End-user 10.1 Introduction 10.2 Payers 10.2.1 Private Insurance Companies 10.2.1.1 Private Insurance Companies Accounted for the Largest Share of the Payers Market in 2020 10.2.2 Government Agencies 10.2.2.1 Increasing Use of Analytics Solutions by Government Agencies to Boost the Market Growth of this End-User Segment 10.2.3 Employers and Private Exchanges 10.2.3.1 Private Exchanges and Employers Use Data Analytics for Rapid Data Integration, Health Plan Analysis, and Risk Modeling 10.3 Providers 10.3.1 Hospitals, Physician Practices, and Idns 10.3.1.1 The Adoption of Healthcare Analytics Solutions is the Highest in Large Hospitals 10.3.2 Post-Acute Care Organizations (Pacos) 10.3.2.1 Pacos Focus on Reviewing and Studying Patient Data with the Help of Healthcare Analytics 10.3.3 Ambulatory Settings 10.3.3.1 The Need to Control Healthcare Costs to Support the Market Growth of Ambulatory Settings 10.4 Acos, Hies, Mcos, and Tpas
11 Healthcare Analytics Market, by Region
12 Competitive Landscape 12.1 Introduction 12.2 Key Player Strategies/Right to Win 12.2.1 Overview of Strategies Adopted by Players in the Healthcare Analytics Market 12.3 Market Ranking Analysis 12.4 Company Evaluation Matrix 12.4.1 Company Evaluation Matrix: Healthcare Analytics Market 220.127.116.11 Stars 18.104.22.168 Pervasive Players 22.214.171.124 Emerging Leaders 126.96.36.199 Participants 188.8.131.52 Competitive Benchmarking 184.108.40.206.1 Overall Footprint of Companies (20 Companies) 12.5 Competitive Situations and Trends 12.5.1 Product/Service Launches & Approvals 12.5.2 Deals
13 Company Profiles 13.1 Key Players 13.1.1 Allscripts Healthcare Solutions 13.1.2 Cerner Corporation 13.1.3 Cotiviti, Inc. (Verscend Technologies) 13.1.4 Citiustech Inc. 13.1.5 Health Catalyst 13.1.6 Cvs Health Corporation 13.1.7 IBM 13.1.8 Inovalon 13.1.9 Mckesson Corporation 13.1.10 Medeanalytics, Inc. 13.1.11 Optum, Inc. 13.1.12 Oracle Corporation 13.1.13 Sas Institute Inc. 13.1.14 Scio Health Analytics (An Exl Company) 13.1.15 Vitreoshealth, Inc. 13.1.16 Wipro 13.2 Other Players 13.2.1 Flatiron 13.2.2 Apixio 13.2.3 Enlitic, Inc. 13.2.4 Komodo Health, Inc. 13.2.5 Healthec, LLC 13.2.6 Sema4 13.2.7 Evidation Health, Inc. 13.2.8 Insilico Medicine 13.2.9 Exscientia 13.2.10 Aetion, Inc.