The healthcare analytics market is expected to reach USD 50.5 billion by 2024 from USD 14.0 billion in 2019, at a CAGR of 28.3% during the forecast period, according to the new market research report, published by MarketsandMarkets™.
The growth of this market is mainly driven by the implementation of government initiatives to increase EHR adoption, growing adoption of data-driven decision-making, growing pressure to curb healthcare spending and improve patient outcomes, the emergence of big data in healthcare, and the increasing number of patient registries.
Based on application, the Healthcare Analytics Market is segmented into clinical analytics, financial analytics, operational analytics, and population health analytics. In 2019, the clinical analytics segment is expected to grow at the highest CAGR during the forecast period market, primarily due to the growing pressure to curtail healthcare spending, increasing government incentives (especially in the US) for improving quality and reducing the cost of care, growing adoption of EHRs, and rising focus on building patient registries.
On the basis of delivery model, the Healthcare Analytics Market is segmented into on-premise and on-demand delivery models. In 2019, on-demand delivery models are expected to register the highest CAGR during the forecast period. Their highly adaptable nature, ease of use, affordability, reliability, lack of upfront capital investment for hardware, extreme capacity flexibility, and pay-as-you-go pricing model are expected to boost the demand for on-demand models.
On the basis of end user, the market is segmented into payers, providers, and ACOs, HIEs, MCOs, and TPAs. In 2019, the payers segment is expected to account for the largest share of the global market. Factors such as rising healthcare costs; the growing need to increase memberships; curb fraudulent claims, optimize provider networks, and operational costs; and increasing competition are compelling healthcare payers to adopt analytics solutions.
On the basis of region, the healthcare business analytics market is segmented into North America, Europe, Asia, Pacific Countries, Latin America, and the Middle East and Africa. In 2019, North America is expected to account for the largest share of the market, followed by Europe, The largest share of the North American market is attributed to the factors such as the increasing adoption of healthcare analytics solutions and services by healthcare providers (especially in the US) to provide better quality care and lower healthcare costs. In 2019, Europe is expected to hold the second-largest share of the global Healthcare Analytics Market.
Prominent players in this market include IBM Corporation (US), Optum, Inc. (US), Cerner Corporation (US), SAS Institute, Inc. (US), Allscripts Health Solutions (US), McKesson Corporation (US), MedeAnalytics, Inc. (US), Inovalon (US), Oracle Corporation (US), Health Catalyst (US), SCIO Health Analytics (US), Verscend Technologies, Inc. (US), CitiusTech, Inc. (US), Wipro Limited (India), and VitreosHealth (US).
IBM is the leading player in the healthcare analytics market and provides a comprehensive range of solutions for this market. The company has a strong presence in the commercial and government healthcare payer markets. It also has a robust sales and distribution network across more than 175 countries. IBM invests a significant amount of its revenue in research activities to continuously improve its product portfolio. Since 2005, the company has invested USD 24 billion in the development of its big data and analytics software and services capabilities, and has 6,809 patents to its name. One of the major steps taken by IBM to improve its position in the market is the acquisition of Truven Health Analytics in April 2016. This acquisition helped the company to acquire a major share of the global market.