Healthcare Predictive Analytics Market Overview
The global Healthcare Predictive Analytics Market size was valued at USD 22.27 billion in 2023 and is predicted to reach USD 101.09 billion by 2030 with a CAGR of 24.4% from 2024-2030. Healthcare predictive analytics market refers to the industry primarily focused on providing advanced analytical tools and solutions to the healthcare organizations. These tools and solutions control leverage historical and real time data for predict future outcomes, optimize operational efficiency and improved patient care.
Through the integration of enhanced technologies artificial intelligence, machine learning, and big- data analytics, businesses support healthcare providers to predict disease outbreak, personalize treatment plans, reduce cost, manage resources efficiently. This various application of predictive analytics in healthcare includes patient management, risk assessment, financial analytics, and clinical decision support, aimed to enhance the overall quality of the healthcare services.
Market Dynamics and Trends
The increasing cost of healthcare services across the globe is significantly increasing the need for advanced tools such as predictive analytics to boosts efficiency, minimize waste, and optimize the allocation of resources. With the analysis of vast amount of data, predicative analysis helps to identify areas where cost can be reduced without compromising the quality of healthcare.
Thus, the adoption of predictive analytic tools by healthcare providers to manage the cost while maintain quality patient care is driving the healthcare predictive analytics market growth. Also, the rising volume of healthcare data generated from electronic health records (EHR), wearable devices, and various health tracking digital technologies is fueling the growth of the market healthcare predicative analytics market.
According to a report published by the National Institute of Health, around 30% of the global data volume is generated by the healthcare industry. Also, the data generated by the healthcare IoT sector is expected to grow at a CAGR of 36% by 2025. This surge in data creates demand for high-tech analytical tools to convert important patient information into actionable insights.
Moreover, the surge in prevalence of chronic diseases such as diabetes, cardiovascular diseases, and cancer is creating demand for healthcare predictive analytics. According to the World Health Organization, noncommunicable diseases (NCD) such as cardiovascular disease accounts for 17.9 billion deaths annually, followed by cancer with 9.3 billion, chronic respiratory diseases with 4.1 billion, and diabetes with 2.0 billion deaths.
With the implementation of these tools’ healthcare providers gets an early edge to predict and intervene patient with high risk and disease progression. These tools provide early detection, prevention and effective management of chronic diseases, thus driving the healthcare predictive analytics market demand.
However, the data security and privacy concern associated with healthcare predictive analytical tools is restraining the growth of the market. Healthcare data is highly sensitive, containing personal information that must be protected from unauthorized access or breaches. These concerns lead to hesitation among healthcare providers and patients to fully adopt predictive analytics solutions.
On the contrary, the integration of artificial intelligence (AI) and machine learning (ML) algorithms in predictive analytical tools is expected to create ample growth opportunities for the market in the future. These technologies enable more accurate predictions and insights from vast amount of healthcare information, enhancing decision making, reducing cost, and improving patient satisfaction.
Market Segmentation and Scope of the Study
The healthcare predictive analytics market report is segmented on the basis of component, deployment, application, end user, and region. On the basis of component, the market is classified into hardware, software, and services. Based on deployment, the market is classified into on-premise and cloud. On the basis of application, the market is categorized into financial management, operational & administrative management, and clinical management. On the basis of end user, the market is segmented into healthcare payers, healthcare providers, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.
Geographical Analysis
North America dominates the healthcare predictive analytics market share and is expected to continue its dominance during the forecast period. This is attributed to the rising cost of healthcare services in countries such as the U.S. and Canada.
According to the Organisation for Economic Co-operation and Development report, the healthcare expenditure in the U.S. were USD 12,555 per person in 2022, which was higher than the other high-income countries. Thus, the healthcare providers in these countries are adopting predictive analytic tools to manage cost while maintaining quality patient care, driving the market growth in the region.
Also, the rising number of chronic diseases such as diabetes, cancer, and cardiovascular diseases in the region is further increasing the demand for healthcare predictive analytic tools. According to the National Association of Chronic Disease, around 60% of adults in America are at least diagnosed with one chronic disease.
Conditions including diabetes, cancer, and cardiovascular disease are the primary cause of death in the U.S. This surge is significantly boosting the market in the region for early detection, prevention, and management of diseases along with enhanced patient care.
On the other hand, Asia-Pacific is expected to show a steady rise in the healthcare predictive analytics industry due to the rapid expansion of the healthcare infrastructure and increasing investment in digital health technologies in countries including China, Japan, and India.
As per report published by the International Trade Administration, China is the world’s second largest healthcare market. The medical devices market in China is estimated to expand by a 2021-2026 CAGR of 8.3% billion by 2026.
This growth in the healthcare sector increases the need for healthcare predictive analytics tools, essential for optimizing resource allocation, improving patient outcome, and enhancing patient care, thus significantly contributing to the market's growth.
Moreover, the governments across the Asia-Pacific region are implementing initiatives and policies to promote healthcare IT adoption and data-driven healthcare solutions. These efforts include funding for digital health infrastructure, setting up regulatory frameworks to ensure data security, and providing incentives for healthcare providers to adopt advanced technologies.
For instance, initiatives such as Ayushman Bharat Digital Mission, CoWIN App, Aarogya Setu, e-Sanjeevani, e-Hospital have made health care facilities and services reach every corner of India. These initiatives bridge the existing gap among different stakeholders of the healthcare ecosystem through digital highways. Therefore, the increasing government initiatives to improve healthcare delivery, enhance patient outcomes, and reduce overall healthcare costs drives the healthcare predictive analytics market in the region.
Competitive Landscape
The healthcare predictive analytics industry comprises of various key market players including Optum, Inc., Oracle, IBM, Cerner Corporation, Information Builders Inc., Inovalon, Allscripts Healthcare Solutions, McKesson Corporation, MedeAnalytics, Inc., Health Catalyst, and others. These market players are adopting various collaborations and innovations across various regions to maintain their dominance in the global market.
For instance, in March 2024, MedeAnalytics launched new Value-Based Care Administration (VBCA) suite designed to enhance healthcare predictive analytics. This innovative suite aimed to provide comprehensive tools for healthcare organizations to manage value-based care programs effectively.
Key Benefits
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The report provides quantitative analysis and estimations of the healthcare predictive analytics market from 2024 to 2030, which assists in identifying the prevailing industry opportunities.
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The study comprises a deep-dive analysis of the current and future healthcare predictive analytics market trends, to depict prevalent investment pockets in the industry.
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Information related to key drivers, restraints, and opportunities and their impact on the healthcare predictive analytics market is provided in the report.
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Competitive analysis of the key players, along with their market share is provided in the report.
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Value chain analysis in the market study provides a clear picture of roles of stakeholders.
Healthcare Predictive Analytics Market Key Segments
By Component
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Hardware
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Software
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Services
By Deployment Model
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On-Premise
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Cloud
By End User
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Healthcare Payers
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Healthcare Providers
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Others
By Region
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North America
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The U.S.
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Canada
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Mexico
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Europe
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The UK
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Germany
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France
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Italy
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Spain
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Denmark
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Netherlands
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Finland
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Sweden
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Norway
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Russia
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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South Korea
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Australia
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Indonesia
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Singapore
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Taiwan
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Thailand
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Rest of Asia-Pacific
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RoW
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Latin America
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Middle East
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Africa
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REPORT SCOPE AND SEGMENTATION:
Parameters |
Details |
Market Size in 2023 |
22.27 billion |
Revenue Forecast in 2030 |
101.09 billion |
Growth Rate |
24.4% from 2023 to 2030 |
Analysis Period |
2023–2030 |
Base Year Considered |
2023 |
Forecast Period |
2024–2030 |
Market Size Estimation |
Billion (USD) |
Growth Factors |
|
Countries Covered |
28 |
Companies Profiled |
10 |
Market Share |
Available for 10 companies |
Customization Scope |
Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |