The healthcare analytics market is estimated projected to grow at a CAGR of 28.0 % to reach USD billion by 2023. High adoption rates of electronic health record systems coupled with the application of big data in healthcare and increasing investment expenditures in healthcare industry is also boosting the growth of healthcare analytics market. However, the lack of skilled IT professionals coupled with the penetrating data integrity issues are the major restraints of healthcare analytics market. In addition, the implementation and applications of electronic health records, focus on value-based medicines and growing adoption of cloud-based analytics serve to be the prime opportunities for this market.
The healthcare analytics market can be segmented on the basis of type, component, delivery mode, application, and end-user. On the basis of type, the healthcare analytics market can be segmented into descriptive analytics, diagnostic analytics, predictive analytics, and prescriptive analytics. The descriptive analytics segment, on the basis of types of healthcare analytics market, is reported to have the largest market share, owing to the increasing supportive and favorable healthcare policies that are launched by the government, progressive outcomes of clinical processes and the positive impact of social media on the healthcare industry.
On the basis of components, the healthcare analytics market can further be segmented into services, software, and hardware. The services segment is further categorized as support services and business analytics services; whereas the software segment is further divided into standalone and integrated. Based on components of Healthcare analytics market, the services segment holds the largest market share accounting to the elevating need for business analytics services coupled with the advancements in technical healthcare analytics software. In addition, the emerging requirement of personalized and evidence-based medicine is also responsible for increasing the demand for service-based healthcare analytics software in the market.
On the basis of delivery mode, this market is further categorized as on-premise healthcare analytics and on-demand /cloud healthcare analytics. On the basis of the delivery model of healthcare analytics market, the on-demand healthcare analytics segment is expected to grow at a steady pace; accounting to the higher flexibility, upsurge need for self-driven analytics, and pay-as-you-go cost factor. Moreover, the lack of increasing capital investments in the healthcare sector is also responsible for fuelling the growth of this market.
On the basis of application, the market is fragmented into financial analytics, clinical analytics, operational and administrative analytics, and population health management/analytics. On the basis of applications of Healthcare Analytics market, operational and Administrative Services dominated this market in 2015, accounting to the elevated count of application including strategic Analytics, supply chain management and workforce. However, the financial applications are also expected to have an anticipated growth during the forecast, owing to the increasing adoption of Healthcare analytics in both governments as well as private healthcare departments.
Lastly, on the basis of end-users, the healthcare analytics market is segmented into payers, providers, ACOS, HIES, MCOS, and TPAS, and third-party business analytics service providers. On the basis of end users, the payers segments are expected to dominate this market during the forecast years, accounting to the involvement and application of these services quality improvement, population health management, and personalized care. However, the increasing efficiency in Healthcare sector coupled with the reduction in the unnecessary and unwanted expenditure is also responsible for dominating this segment.
Geographically, the market is divided into North America, Europe, Asia, and ROW. Geographically, North America dominates the Healthcare analytics market followed by Europe and Asia; accounting to the technological advancements in Healthcare services, implementation of regulatory clauses, and increasing government incentives that are focusing on the manufacturing and applications of personalized and customized medicines. However, the expensive nature of analytics software and services, increasing data integrity issues, the complexity of software and intensified competition may hamper the growth of Healthcare analytics market.
The key players operating in this industry are Cognizant, Health Catalyst, IBM, Mede Analytics, Inc., MedAssets, Inc., McKesson Corporation, Optum, Oracle, Inc., SAS Inc., Truven Health Analytics, and Verisk Health.