According to the Market Statsville Group (MSG), the global healthcare analytics market size is expected to grow from USD 22.49 billion in 2022 to USD 196.89 billion by 2033, at a CAGR of 21.8% from 2023 to 2033.

The market for healthcare analytics is expanding due to the increased use of big data in healthcare organizations and the increase in government programs to enhance the adoption of electronic health records (EHRS) by healthcare organizations. Additionally, the demand for healthcare organizations to reduce wasteful spending favors the market's expansion. However, issues, including high implementation costs and a shortage of experienced workforce, are anticipated to restrain the growth of the healthcare analytics market. On the other hand, throughout the forecast period, it is expected that increasing the use of augmented analytics among healthcare providers and cloud-based analytics would give lucrative prospects for the market's growth.

Definition of the Global Healthcare Analytics Market

Health system administration, patient involvement, financial management, and diagnosis can all be improved by the process of organized data analysis, known as "healthcare analytics." Healthcare analytics integrates historical and real-time data analysis to identify patterns, provide insights that can be implemented, and promote long-term growth. The market will rise due to the technological advancements that enable data exchange and better adherence to the Health Insurance Portability and Accountability Act (HIPAA) patient data confidentiality rules. Additionally, modern and advanced methods are employed to create efficient treatments. Companies concentrate on the discovery, safety, and clinical trials while increasing overall R&D productivity. The market for healthcare analytics is primarily driven by the emergence of big data in the healthcare sector and venture capital investments.   

COVID-19 Impact on the Global Healthcare Analytics Market

The COVID-19 pandemic significantly impacted the world's economies, hospitals, and social institutions. The COVID-19 pandemic has, nevertheless, had a favorable effect on expanding the healthcare analytics business. Big data is crucial for data analysis and validation in COVID-19 as it assisted in stopping the disease's progress by giving key decision-makers access to mathematical modeling and data visualization. The development of prediction models for predicting the appearance of following waves of COVID-19 infection uses predictive and prescriptive analytics. Operational analytics is very helpful in managing the patient data and COVID-19 bed allocation in intensive care unit (ICU). Due to the increased demand for analytics solutions among healthcare organizations to manage various complications and support healthcare organizations during crucial situations in the pandemic, the healthcare analytics sector experienced substantial growth during the COVID-19 pandemic. Additionally, the massive amount of data produced by the pandemic has allowed researchers and healthcare professionals to analyze trends, track patient populations, and start to address enduring problems in the healthcare sector, which is fueling the market's expansion.

Global Healthcare Analytics Market Dynamics

Drivers: Government Initiatives and The Use of Big Data in Healthcare Organizations

Healthcare analytics empowers professionals to find opportunities to enhance patient engagement, clinical outcomes, care delivery, and business operations. Real-time and historical data are combined in healthcare data analytics to predict trends, improve patient care, reveal valuable insights, and stimulate long-term growth. Furthermore, healthcare analytics systems use enormous volumes of data to provide businesses with essential insights.

Increasing government initiatives and the use of big data in healthcare organizations, which promote the use of electronic health records by healthcare organizations, are driving the growth of the market. Additionally, the requirement for healthcare companies to reduce wasteful spending is expected to affect the global healthcare analytics market's growth positively. The market for healthcare analytics will expand as healthcare expenses rise due to improved operational efficiencies, a greater range of services, a desire to reduce costs, and treatment efficacy. The demand for healthcare analytics will also be fuelled by the growing volume of complex data produced by the switch from paper to electronic health records and its capacity to enhance medical practice. Technical advancements and a rise in investor interest in these solutions will also fuel the expansion of the healthcare analytics market. The healthcare analytics market is anticipated to expand as a result of a rise in the use of big data in healthcare organizations to manage risks associated with several chronic diseases. Additionally, several businesses' expanding usage of telemedicine solutions to reduce operating costs and enhance service quality is fueling the growth of the healthcare analytics market.

Restraints: High Cost, Data Loss, and Security Breach to Impede Market Expansion

Despite the established benefits of analytics in healthcare companies, sophisticated analytics solutions' high implementation and subscription/licensing costs prevent many price-conscious end users from implementing them. Only top-tier hospitals have the resources and expertise to properly employ big data to provide relevant insights. The healthcare analytics sector is going through a significant shift. The healthcare sector's current challenges are to organize and analyze the data gathered from various sources. According to a survey, insiders who abuse and misuse patient records pose the highest threat to healthcare organizations. Data breaches involving protected health information account for 58% of all incidents in the healthcare sector, according to Verizon's 2018 Protected Health Information Data Breach report. Additionally, compared to 2018, more than 25 million patient records were compromised in 2019, as per the Protenus Breach Barometer. As more and more data breaches occur in the healthcare sector without setting off any security alerts, this poses a concern. As a result, market growth is likely to be constrained throughout the forecast period. 

Opportunities: Analytics in The Production of Individualized and Precise Medicines

Utilizing a patient's genomic information allows for personalized or precision medicine creation. Healthcare businesses will be able to treat each patient individually in order to achieve the greatest results owing to the use of advanced analytics and predictive modeling software. Analytics has been utilized more and more over time to create individualized treatment, notably for cancer and diabetes. For instance, doctors may use advanced analytics to forecast which cancer treatment will be the most beneficial and least harmful for their patients. Grants are being given to numerous organizations to create big data-based personalized health solutions. Sonrai Analytics (Belfast) secured USD 2.75 million in funding in June 2022 to hasten the healthcare sector's deployment of precision medicine platforms throughout the world. Such initiatives in the direction of precision and individualized medicine are opening up several potentials for healthcare analytics providers.

Scope of the Global Healthcare Analytics Market

The study categorizes the healthcare analytics market based on type, component, deployment mode, application, and end-use at the regional and global levels.

By Type Outlook (Sales, USD Billion, 2019-2033)

• Descriptive Analysis
• Predictive Analysis
• Prescriptive Analysis

By Component Outlook (Sales, USD Billion, 2019-2033)

• Software
• Hardware
• Services

By Deployment Mode Outlook (Sales, USD Billion, 2019-2033)

• On-premises
• Web-hosted
• Cloud-based

By Application Outlook (Sales, USD Billion, 2019-2033)

• Clinical
• Financial
• Operational and Administrative

By End Use Outlook (Sales, USD Billion, 2019-2033)

• Healthcare Payers
• Healthcare Providers
• Life Science Companies

By Region Outlook (Sales, USD Billion, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Life science companies Based segment accounts for the largest market share by end-use

By end-use, segments are divided into healthcare payers, healthcare providers, and life science companies. Life science companies held the largest market share in 2022. The life-science sector is currently using analytical tools and platforms extensively to lower product costs, boost profit margins, and produce better products, accelerating segment adoption and growth. Businesses continually invest money in enhancing their product lineups and offerings. Due to this, analytical tools are required to understand better and forecast the market and encourage value-based decision-making. This is because hospitals and healthcare professionals were under great pressure to provide cost-effective care and better patient management during and after the pandemic, which contributed to the expansion of this end-user category. Maintaining patient information, keeping track of diseases, and providing patients with cost-effective care have all played a significant role in the widespread adoption of healthcare analytics and are expected to continue to do so.

North America is projected to account for the highest market share by Region

Based on the regions, the global healthcare analytics market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. North America accounted for the highest market share in 2022. There are modern healthcare facilities in the region. The adoption of these platforms and improved technological accessibility have all contributed to North America having a sizable market share. Hospitals and other organizations have adopted analytics technologies due to the increased burden of chronic illnesses and the growing senior population. The existence of important companies in the market has also influenced the huge percentage of income. In order to give better patient care insights, Microsoft announced Microsoft Cloud for Healthcare, which would involve patient and provider engagement.

Asia-Pacific region is projected to witness the highest CAGR during the forecast period. This region's rapid development, increased purchasing power, and expanding population have all contributed to the region's rapid growth. The industry in this area has experienced substantial growth and innovations, assisting in its expansion. As consumers and healthcare providers have become more dependent on IT, the adoption of the analytics market has also increased. Prospection, an Australian startup that specializes in healthcare analytics, has launched a branch in Japan and will work with local and foreign pharma clients to create innovative medications for the Japanese populace.

Key Market Players in the Global Healthcare Analytics Market

The healthcare analytics market has a significant competitor and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major market players in the global healthcare analytics market are:

• McKesson Corporation
• Optum, Inc.
• IBM
• Oracle
• SAS Institute, Inc.
• IQVIA
• Verisk Analytics, Inc.
• Elsevier
• Medeanalytics, Inc.
• Truven Health Analytics, Inc.
• Allscripts Healthcare Solutions, Inc.
• Cerner Corporation

Key Issues Addressed

• What is the market size by various segmentation of the healthcare analytics by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the healthcare analytics market?
• What are the key opportunities and trends for manufacturers involved in the healthcare analytics supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of healthcare analytics in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.