Healthcare Analytics Market Definition
The healthcare analytics market consists of sales of healthcare analytics and related goods by entities (organizations, sole traders and partnerships) that provide healthcare analytics. Analytics is the systematic use of data and related business insights developed through various analytical models such as statistical, cognitive, contextual, predictive, quantitative and other emerging models to initiate fact based decision making for planning, measurement, management and learning. These analytics may be predictive, descriptive, and prescriptive.
With the increasing demand from consumers for improved healthcare quality and enhanced value, the healthcare providers and payers are challenged by requirements to reduce costs, improve outcomes, provide more with less and be more patient-centric.
Healthcare Analytics Market Size
The global market for healthcare analytics was valued at USD 11.3 billion in 2017 and is expected to reach USD 34.1 billion by 2022, growing at a CAGR of 24.8%.
The immense complexity challenges the global healthcare industry to implement smarter and more informed decisions, to deliver better value and improved outcomes, thereby driving the healthcare analytics market. In addition, the increasing regulatory presence of government creates an additional focus on accountability, governance and oversight on the industry. Market dynamics and competitive pressures require enhanced understanding of underlying trends and a path to differentiation. Building analytics competency enables healthcare organizations to deliver better outcomes, set their future vision and create actionable insights.
Some of the restraining factors that could hinder the growth of the healthcare analytics market include data breach or security issues, technological and cultural barriers at the data source point, confidentiality issues and lack of skilled personnel across the globe. In addition, creating global healthcare analytics networks may not be possible due to fragmented international political and economic relations.
Healthcare Analytics Market Drivers
The key drivers of the healthcare analytics market include:
Pressure To Reduce Costs And Minimize Readmissions – Healthcare organizations need to prepare and understand their readmission metrics, calculate their readmission rates by condition and physical performance and compare outcomes with benchmark rates. This is a highly data-intensive analytical process that will benefit healthcare providers by reducing penalties or, better yet, avoiding them. Providers can also use patients’ demographic data to conduct a risk assessment, identify at-risk patients and prioritize their treatment. Thus, the increasing use of analytics by healthcare organizations to understand the readmission rates and compulsory policies by CMS further enhances the growth of this market.
Healthcare Analytics Market Restraints
The key restraints on the healthcare analytics market include:
Lack Of Data Integration And Poor Standardization – Historically, healthcare organization have lamented the insufficient funds available for the IT investment. Currently, the challenge is a lack of standardization and non-existence of data integration. Rapid expansion of healthcare data volume and velocity has encouraged the hospitals, healthcare organizations and healthcare professionals to use analytics. Though, there are lot of benefits in using data analytics, there are still some barriers to adopt healthcare IT systems. Data issues, interoperability issues, liability to exchange of information, lack of proper skilled labor, ICD 10 and HIPPA compliance and high costs are some of the hindering factors that are affecting the organizations to use analytics.
In addition to these issues, the standardization problem is clearly visible in healthcare professional’s notes, as their descriptive narratives are difficult to analyze. To avoid these issues, techniques like Natural Language Processing (NLP) would help understand the critical details from the unstructured data.
Healthcare Analytics Market Segmentation
The Healthcare Analytics market is segmented by type of technology, by application, by component, and by geography.
By Type Of Technology-
The healthcare analytics market is segmented by type of technology into
- a) Descriptive analytics
- b) Predictive analytics
- c) Prescriptive analytics
The prescriptive analytics market is the emerging segment among all three, which is valued at USD 911 million in 2016 and forecast to reach USD 4,029 million in 2022f, growing at a CAGR of 28.2%.
By Application -
The healthcare analytics market is segmented by application into
- a) Clinical data analytics
- b) Administrative & Operational
- c) Financial analytics
- d) Others
The financial analytics segment had the largest market share of nearly 69.0% of total market in 2016, followed by the administrative and operational analytics segment, which accounted for 12.5% share of overall healthcare data analytics market. The administrative and operational analytics segment is followed by clinical data analytics and others segments accounted which for 11.0% and 7.5% respectively in 2016.
By Component -
The healthcare analytics market is segmented by component into
- a) Hardware
- b) Software
- c) Services
By Geography - The healthcare analytics market is segmented into
- o North America
- o Europe
- o Asia Pacific
- o Rest of the World (RoW)
North American market accounted for largest market share of nearly 61.2% of total market in 2016 and is followed by Europe and RoW regions, which accounted for 17.1% and 12.8% share of overall healthcare data analytics market in 2016.
Healthcare Analytics Competitive Landscape
Major Competitors are:
- • IBM (International Business Machines Corporation)
- • Oracle Corporation
- • McKesson Corporation
- • Truven Health Analytics (Private Subsidiary)
- • Cerner Corporation