The global healthcare analytics market was valued at US$ 35.3 billion in 2022 and is projected to reach US$ 167.0 billion by 2030, growing at a CAGR of 21.4% from 2023-2030.  The market growth is driven by the increasing demand for better healthcare outcomes, rising healthcare costs, and the growing availability of healthcare data.

The global healthcare analytics market is a rapidly growing sector within the healthcare industry. Healthcare analytics refers to the use of data analysis tools and techniques to improve healthcare outcomes, reduce costs, and optimize clinical and operational performance. This includes the use of big data, machine learning, and artificial intelligence to analyze vast amounts of patient data, including clinical data, financial data, and operational data.

The healthcare analytics market is divided into several segments based on application, component, delivery model, end user, and region. Applications of healthcare analytics include clinical analytics, financial analytics, operational analytics, and population health analytics. Components of healthcare analytics include hardware, software, and services. Delivery models include on-premise, cloud-based, and web-based. End users of healthcare analytics include hospitals, clinics, payers, and others.

North America is currently the largest market for healthcare analytics, followed by Europe and Asia-Pacific. The key players in the global healthcare analytics market include IBM Corporation, Optum, Inc., Cerner Corporation, SAS Institute Inc., Allscripts Healthcare Solutions, Inc., McKesson Corporation, Oracle Corporation, and Health Catalyst, Inc., among others.

Market Dynamics

Driving Factors

The global healthcare analytics market is being driven by several factors, including:

Increasing government initiatives: Governments around the world are implementing initiatives to promote the adoption of healthcare analytics. For example, in the United States, the Centers for Medicare and Medicaid Services (CMS) has introduced several payment programs that incentivize the use of healthcare analytics.

Technological advancements: Advances in technologies such as big data, machine learning, and artificial intelligence are making healthcare analytics more powerful and effective. This is driving the adoption of healthcare analytics by healthcare providers and payers.

Restraining Factors

There are many driving factors behind the growth of the global healthcare analytics market, there are also some potential restraining factors that could slow down its growth. These include:

Resistance to change: The healthcare industry has traditionally been slow to adopt new technologies and practices. There may be resistance to change among some healthcare providers, particularly those who are not familiar with healthcare analytics.

Interoperability challenges: Healthcare data is often siloed within different systems and organizations, which can make it difficult to integrate and analyze. This can be a significant challenge for healthcare analytics initiatives, particularly in multi-provider healthcare systems.

Challenges Factors

The global healthcare analytics market also faces several challenges that could limit its growth and adoption. These challenges include:

Skilled workforce shortage: Healthcare analytics requires a range of skills, including data science, analytics, and clinical expertise. There is currently a shortage of professionals with these skills, which can limit the growth of the healthcare analytics market.

Data security and privacy: Healthcare data is sensitive and contains personal information about patients. As the volume of healthcare data continues to increase, concerns about data security and privacy are also rising. Healthcare analytics initiatives must prioritize data security and privacy to gain patient trust.

Opportunity Factors

The global genomics market presents several opportunities for growth and expansion, including:

Growing Demand for Direct-to-Consumer (DTC) Genomics: The growing popularity of DTC genomics, which allows individuals to access and analyze their own genetic data, presents significant growth opportunities for companies offering DTC genomics products and services.

Collaborations and Partnerships: Collaborations and partnerships between companies, academic institutions, and research organizations present opportunities for the development of new products and services, as well as expansion into new markets and regions.

Segmentation Analysis

Deployment Type Outlook

On-premise delivery refers to healthcare analytics solutions that are installed and run on servers located on the customer's premises. This delivery mode is typically used by larger healthcare organizations that have dedicated IT departments and want to maintain control over their data.

Cloud-based delivery refers to healthcare analytics solutions that are delivered over the internet and run on servers maintained by the solution provider. This delivery mode is becoming increasingly popular as it offers greater flexibility, scalability, and lower upfront costs compared to on-premise delivery.

Web-based delivery refers to healthcare analytics solutions that are accessed through a web browser. This delivery mode is similar to cloud-based delivery, but the analytics solution is accessed through a web interface rather than a dedicated application. 

Application Outlook

Operational analytics refers to the use of healthcare analytics solutions to improve operational efficiency by analyzing data such as patient flow, staffing levels, and supply chain management. Operational analytics can help healthcare providers optimize workflows, reduce wait times, and improve resource allocation.

The choice of application segment for healthcare analytics solutions depends on the specific needs and goals of healthcare organizations. Clinical analytics and financial analytics are the most widely adopted applications, but operational analytics, population health management, and research and development are also becoming increasingly important as healthcare organizations look to improve outcomes and reduce costs.

Regional Analysis

North America is the largest market for healthcare analytics, with the United States being the largest contributor to this market. The region has a highly developed healthcare system, which has a significant impact on the adoption of healthcare analytics. The region also has a large pool of healthcare data, which can be leveraged for analytics. However, the market in North America is mature and highly competitive, and there is a shortage of skilled professionals in the field of healthcare analytics.

The healthcare analytics market in Latin America is relatively small, but it is expected to grow significantly in the coming years. The region has a growing middle class and a large population, which is increasing demand for healthcare services. However, the region also faces challenges related to data privacy and the lack of a well-developed healthcare infrastructure.

The healthcare analytics market in the Middle East and Africa is small but growing. The region has a large population and a growing demand for healthcare services. However, the region also faces challenges related to political instability, lack of investment in healthcare infrastructure, and a shortage of skilled professionals.

Scope Of Report:

The Global Healthcare Analytics Market has been segmented into:

By Type

• Descriptive Analysis
• Predictive Analysis
• Prescriptive Analysis

By Component

• Software
• Hardware
• Services

By Delivery Mode

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

By Application

• Clinical
• Financial
• Operational and Administrative

By End-use

• Healthcare Payers
• Healthcare Providers
• Life Science Companies

By Region

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Market Players 

The global healthcare analytics market is highly competitive and fragmented, with numerous players vying for market share. Some of the key companies in the 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 

IBM is a leading player in the healthcare analytics market, offering a range of solutions for healthcare providers and payers. IBM's Watson Health platform uses artificial intelligence and analytics to help healthcare organizations make better decisions. Optum is a subsidiary of UnitedHealth Group and offers a range of healthcare analytics solutions. Optum's products and services include population health management, risk assessment, and clinical decision support.

Cerner offers a range of healthcare IT solutions, including analytics, EHRs, and revenue cycle management. Cerner's analytics solutions help healthcare providers identify trends and insights to improve patient outcomes and reduce costs. McKesson offers a range of healthcare analytics solutions, including revenue cycle management, clinical analytics, and supply chain management. McKesson also offers EHRs and pharmacy management systems.

Epic offers EHRs and analytics solutions for healthcare providers. Epic's analytics solutions help providers identify trends and insights to improve patient care and reduce costs. SAS Institute offers a range of analytics solutions for healthcare providers and payers. SAS' healthcare analytics solutions help providers and payers identify trends, predict outcomes, and reduce costs.

These are just a few examples of the key players in the healthcare analytics market. Other notable competitors include Philips Healthcare, GE Healthcare, and Health Catalyst. As the healthcare industry continues to evolve, the competition in the healthcare analytics market is expected to intensify, with new players entering the market and existing players expanding their offerings.

Strategic Developments

In February 2021, Verily (an Alphabet company) announced a strategic partnership with Luminar Technologies to develop a new LiDAR-powered platform to improve patient care and clinical workflows using advanced 3D imaging and data analysis.

In August 2021, healthcare technology company Cognizant announced its acquisition of TQS Integration, an Ireland-based provider of data analytics and engineering solutions for life sciences companies.

In September 2021, healthcare analytics company Health Catalyst announced its acquisition of Twistle, a provider of patient engagement and care coordination solutions.

In October 2021, Cerner Corporation announced its acquisition of Vitalware, a provider of revenue cycle management solutions for healthcare providers.

In December 2021, healthcare analytics company Komodo Health announced its acquisition of Mavens, a provider of cloud-based technology solutions for life sciences companies.

In January 2022, healthcare technology company Cotiviti Holdings announced its acquisition of Apixio, a provider of artificial intelligence-powered analytics solutions for healthcare payers and providers.

In January 2022, healthcare analytics company Health Catalyst announced its acquisition of Vitalware, a provider of revenue cycle management solutions for healthcare providers.