The healthcare analytics market is witnessing a phenomenon of sorts, with an increasing number of remote consultations and monitoring practices across the globe. The surging adoption of smartphones and tablets will favorably attribute the product demand across a myriad of medical application arenas such as financial, clinical and operations management. Growing emergence of electronic devices in the medical sector to maintain electronic records of patients will stimulate the healthcare analytics industry. Additionally, the penetration of the internet of things (IoT) and emerging software-based technological developments will contribute significantly toward the industry growth. As per the report by Global Market Insights, Inc., “The healthcare analytics market, having had a revenue of $5.5 billion in 2016, will collect a significant revenue of more than $16 billion with an annual growth rate exceeding 12 percent over the period of 2017 to 2024.”
The United States dominated the North American healthcare analytics market in 2016 by contributing to more than 90 percent of the total regional revenue share. The growth can be attributed to an increasing acceptance of electronic-based health record systems across the healthcare sector. Moreover, adoption of advanced technology and the existence of a high-grade healthcare infrastructure will also stimulate the product demand. The U.S. houses most of the key industry players contributing to global business growth, which is a crucial factor impacting regional healthcare analytics market share.
Hospitals dominated the end user segment of the healthcare analytics market by accounting for about 70 percent total revenue share in 2016, and will generate considerable revenue by 2024, growing at an annual growth rate of more than 12 percent over the period of 2017 to 2024. The implementation of analytics software in hospitals will help to reduce fraud and errors in payments, provide efficient patient-physician coordination and minimize the total administrative cost.
The Japanese healthcare analytics market was valued at more than $240 million in 2016 and will record a steep growth rate of 12 percent over the coming years of 2017 to 2024. Favorable initiatives undertaken to control the increasing medical costs along with the availability of advanced healthcare IT services will contribute toward the regional industry growth. Of late, most of the hospitals across Japan are implementing prescriptive and predictive analytics.
The prescriptive analytics product segment of the healthcare analytics industry will record an annual growth rate of 14 percent over the coming years of 2017 to 2024, primarily driven by the ability of the product to provide the best possible outcomes and suggest effective ways to combat the aftereffects of these outcomes on overall business metrics. Industry giants have been investing heavily to reduce the complexity of prescriptive analytics. Noteworthy participants in the healthcare analytics market are OptumHealth, IBM, Allscripts Healthcare Solutions, Change Healthcare (formerly McKesson Corp.), Inovalon, Cerner Corp., Computer Programs and Systems, Inc., Athenahealth, Tenet Healthcare Corp., Health Catalyst, Evolent Health, GE Healthcare and Influence Health.
The healthcare analytics market share from clinics will surpass a revenue collection of $2 billion by 2024 with a compound annual growth rate (CAGR) of more than 13 percent over the coming seven years. Growing adoption of primary care analytics will help to reduce the total expenditure on healthcare data and enhance healthcare services, which will suitably augment the industry growth.
Financial management covered more than 30 percent of the revenue share in the application segment of the healthcare analytics market and will generate a revenue of more than $5.5 billion by 2024. This product offers benefits in terms of cost effectiveness and helps to retain qualitative healthcare data of patients. The ability of the product to reduce financial fraud will also influence the healthcare analytics industry value notably.
Pertaining to the product landscape of the healthcare analytics market, descriptive analytics led the industry by accounting for more than 55 percent of the overall revenue contribution in 2016 and will exhibit a CAGR of more than 11 percent over the period of 2017 to 2024.
The notable growth tactics adopted by leading industry players include strategic partnerships, acquisitions, collaborations and product differentiation to expand their business across the globe over the years ahead.
https://www.gminsights.com/industry-analysis/healthcare-analytics-market. Accessed Sept. 22, 2017.
Shikha Sinha currently manages the content development at Global Market Insights, Inc. An electrical and electronics engineer by education, she has prior experience in content and technology writing, content marketing, market research and business development domains.