Data-Driven Healthcare Market Size, Share, and Industry Analysis, By Deployment (On-Premise, Cloud Based, and Hybrid), By Application (Population Health Management, Drug Discovery & Development, Clinical Research, Clinical Diagnostics, and Others), By End-user (Hospitals & Clinics, Pharmacies, Pharmaceutical & Biotechnology Companies, Contract Research Organizations (CROs), and Others), and Regional Forecast, 2025-2032

The global data-driven healthcare market is witnessing significant growth due to the rising prevalence of chronic and infectious diseases. The increased demand for disease management helps achieve better treatment compliance, prevents chronic diseases, and reduces the treatment costs.

Data-driven healthcare is also known as predictive analytics in healthcare. It involves using data analysis, statistical algorithms, and machine learning techniques to predict future health incidents and provide early intervention and personalized therapy strategies. This is used to evaluate historical and real-time data for future predictions. The healthcare data is gathered from various sources such as medical records, electronic health records, wearable devices, patient registries, and others. The healthcare industry generates large amounts of data but is unable to convert it into valuable insights. Thus, data-driven healthcare offers benefits to healthcare organizations, hospitals, doctors, pharmacists, pharmaceutical companies, and others.

Data-driven healthcare identifies high-risk patients with data collected from various sources and this helps practitioners and patients make informed decisions in a timely manner with much more evidence in hand. Such factors contribute to the growth of the market.              

• For instance, in January 2024, according to the British Heart Foundation’s Global Heart & Circulatory Diseases Factsheet, around 620.0 million people are living with heart and circulatory diseases across the world. Such a large number of people suffering from heart disease need early interventions, increasing the need for data-driven healthcare.

Data-Driven Healthcare Market Driver

Rising Demand for Personalized Medicine to Drive Market Growth

Traditional medicines rely on the concept of one-size-fits-all. The drugs prescribed for various diseases are based on limited information on the statistics of a broad population rather than specific patients. Data-driven healthcare helps in making informed decisions with the patient's health data collected across several platforms, such as genomics, clinical labs, microbiome metagenomics, metabolomic profiling, electronic health records, wearable devices, and lifestyle.

The increased demand for precision medicine to improve the quality of patient health leads to a rise in the adoption of data-driven healthcare for formulating precise medication for individuals. Furthermore, precision medicine has benefits such as less wastage of drugs, reduction in the length of hospital stays, and more sustainable care for everyone. Such benefits associated with data-driven healthcare in precision medicine boosts the growth of the market. Moreover, increasing research and development initiatives and product launches in precision medicine boost the growth of the market.

• For instance, in November 2022, ImmunoGen announced the U.S. Food and Drug Administration approval of the drug mirvetuximab soravtansine-gynx under the brand name ELAHERE for the treatment of platinum-resistant ovarian cancer in adult females. Such product launches boost market growth.

According to the World Health Organization (WHO), there is a growing burden of cancer across the globe. The number of cases of cancer is estimated to reach 35.0 million by 2050, which represents a 77.0% increase from over 20.0 million cases in 2022.

Data-Driven Healthcare Market Restraint

Increasing Cyber Attacks and Data Breaches May Hamper Market Growth

Despite the increasing demand for artificial intelligence, machine learning, and analytics in the healthcare industry, the rising cyber-attacks and data breaches lead to the depletion of the trust of patients and caregivers. The data-driven healthcare relies heavily on the collection and analysis of large amounts of personal health data. Data breaches pose a significant concern within the domain of the new approaches to predictive analytics for patient care. The breaching occurs through various means, including cyber-attacks, insider threats, and accidental exposure of data, which leads to a decrease in patient trust in the processes.

• For instance, in October 2023, 23andMe confirmed the unsettling news of a data breach of genetic information, which resulted in the exposure of personal details for approximately 14,000 individuals, accounting for 0.1% of their clients.


• Additionally, in March 2024, the U.S. Department of Health and Human Services (HHS) stated that the cyberattack incident in late February affected healthcare operations across the U.S. Such incidents pose a significant barrier to data sharing, hindering industry expansion.

Data-Driven Healthcare Market Opportunity

Soaring Emphasis on Prevention of Fraudulent Activities to Promote Product Adoption

Nowadays, healthcare fraud is increasing, which imposes a large burden on insurance systems. Insurers and healthcare providers are increasingly utilizing data analytics to identify and prevent fraudulent activities as the rise in healthcare fraud continues. Data-driven healthcare platforms provide sufficient information to identify patterns and irregularities in data and facilitate the early detection of suspicious claims.

Such scenarios are expected to promote the adoption of data-driven healthcare software to decrease insurance fraud and propel the growth of the market during the forecast period.

Furthermore, increasing launches of new innovative platforms for insurance organizations by key players is slated to boost the market growth during the forecast period.

• For instance, in October 2023, MongoDB, Inc. launched the MongoDB Atlas for Healthcare and MongoDB Atlas for Insurance. The MongoDB Atlas is a multi-cloud developer data platform that helps insurers modernize their data strategy and scale artificial intelligence and machine learning across their organizations. Such launches are expected to elevate the insurance company’s growth with advanced technologies.

Segmentation

By Deployment	By Application	By End-user	By Geography
On-Premise Cloud-Based Hybrid	Population Health Management Drug Discovery & Development Clinical Research Clinical Diagnostics Others	Hospitals & Clinics Pharmacies Pharmaceutical & Biotechnology Companies Contract Research Organizations (CROs) Others	North America (U.S. and Canada) Europe (U.K., Germany, France, Spain, Italy, Scandinavia, and the Rest of Europe) Asia Pacific (Japan, China, India, Australia, Southeast Asia, and the Rest of Asia Pacific) Latin America (Brazil, Mexico, and the Rest of Latin America) Middle East & Africa (South Africa, GCC, and Rest of the Middle East & Africa)

Key Insights

The report covers the following key insights:

• Prevalence of Key Diseases, By Key Countries/Region, 2023


• Technological Advancements in Data-Driven Healthcare Solutions


• Overview: Applications of Data-Driven Healthcare


• Key Industry Developments - Mergers, Acquisitions, Partnerships, Launches


• Impact of COVID-19 on the Market

Analysis by Deployment

Based on deployment, the market is categorized into on-premise, cloud based, and hybrid.

The cloud-based segment held a substantial share of the market. The growth of the segment is attributed to the versatility of cloud-based systems. The cloud platforms provide vast storage for patient data, including imaging data, electronic health records (EHRs), genomics information, telemedicine, wearable device data, and others. In addition, consumers can easily access resources on the cloud platform as needed by paying according to their needs. Such benefits associated with cloud-based platforms and the increasing launch of new platforms by key players is set to boost the market growth.

• For instance, in March 2023, Fujitsu introduced a new cloud-based platform designed to securely gather and utilize health-related data, aiming to advance digital transformation within the medical sector and promote personalized healthcare and drug development in Japan. Such launches promote the segment growth.

Analysis by Application

Based on application, the market is segmented into population health management, drug discovery & development, clinical research, clinical diagnostics, and others.

The drug discovery & development segment held a significant share of the global market. The segment growth is driven by increasing research and development activities for the launch of new drugs for various untapped diseases. The data-driven healthcare caters to large volumes of diverse data that accelerate the process of discovering new drugs and treatments. This vast set of data eases the process of new drug discovery, leading to the segment growth in the market. In addition, the increasing demand for personalized medicines and cell and gene-based medicine for chronic diseases is expected to boost the growth of the segment in the market.

Furthermore, an increase in strategic activities among market players to launch platforms to accelerate drug development and clinical trials is expected to propel the segment growth.

• For instance, in July 2024, OMNY Health introduced a platform designed to support AI-driven health tech firms such as QuantHealth and ArisGlobal. This new data network is tailored to meet the requirements of Generative AI by offering a wide array of de-identified structured and unstructured electronic health record (EHR) datasets from a diverse mix of provider and patient populations. Through its partnership with QuantHealth, the company aims to accelerate drug development by conducting simulated clinical trials that leverage real-world evidence to forecast clinical trial results, drug effectiveness, and patient reactions. Such launches promote the growth of the drug discovery &  development segment.

Analysis by End-user

Based on end-user, the market is subdivided into hospitals & clinics, pharmacies, pharmaceutical & biotechnology companies, contract research organizations (CROs), and others.

The hospital & clinics segment held a significant share of the market. Data-driven healthcare helps healthcare professionals use real-time data to make decisions for patients who are administered treatment. The solutions reduce the need for unnecessary diagnostics and clinical procedures due to the access to patient history. Furthermore, these platforms avoid hospitalization and prevent the costly readmissions. Such benefits associated with the use of data-driven healthcare platforms by hospitals & pharmacies promote the growth of the segment in the market.

Additionally, an increase in the launch of cloud-based software by key players for healthcare professionals is expected to propel the growth of the segment.

• For instance, in October 2022, Inovalon launched RCM Intelligence software for healthcare providers. Such software benefits hospitals by maintaining hospital management and promotes the segment growth.

Regional Analysis

By region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America accounted for a significant share of the global market in 2023. The regional growth is attributed to the advancement in artificial intelligence, machine learning, and software development for healthcare. The presence of a highly skilled workforce in the healthcare sector with a large availability of data sets increases the adoption of data-driven healthcare platforms for increased efficient patient management and improved patient outcomes.

Furthermore, increasing launches supporting the healthcare systems of the region are expected to boost the regional market growth.

• In August 2024, Innovaccer Inc. introduced the Government Health AI Data and Analytics Platform (GHAAP) to tackle the challenges posed by data silos and fragmentation within government health organizations. These issues hinder essential initiatives, restrict the ability to make data-driven decisions, and affect the quality of healthcare services available to communities. Such launches promote the product adoption in the region.

Europe has a substantial share of the data-driven healthcare market owing to an increase in technological advancements in the healthcare industry and the presence of active government support for the adoption of predictive analytics for decision-making processes. In addition, an increase in research and development activities in genomics and precision medicine is expected to propel the regional growth.

• For instance, in August 2022, the National Institute for Health and Care Excellence (“NICE”) announced the update of the Evidence Standards Framework (“ESF”) for digital health technologies (“DHTs”). In addition, it included evidential standards for artificial intelligence (“AI”) and data-driven technologies.

Moreover, the Asia Pacific market is expected to grow due to the rising shift of hospitals and healthcare providers toward the incorporation of artificial intelligence and machine learning for medical interventions.

Key Players Covered

The global data-driven healthcare market is fragmented, with a large number of emerging providers with a number of innovative product offerings. The report includes the profiles of the following key players:

• ACL Digital (U.S.)


• Snowflake Inc. (U.S.)


• Persistent Systems (U.S.)


• Solix Technologies, Inc. (U.S.)


• Inovalon (U.S.)


• Skyflow, Inc. (U.S.)


• Arcadia Solutions, LLC. (U.S.)


• Cloudera, Inc. (U.S.)

Key Industry Developments

• In April 2024, Inovalon launched a new cloud-based Software as a Service (SaaS) solution, Converged Submissions, designed to streamline and improve the process of submitting encounter data for risk adjustment programs to ensure accurate submissions to regulatory agencies such as the Centers for Medicare & Medicaid Services (CMS).


• In February 2024, Persistent Systems collaborated with Microsoft to launch a Generative AI-powered Population Health Management (PHM) Solution. This solution was used to identify Social Determinants of Health (SDoH) from Electronic Health Records (EHR) data with the aim of enabling personalized care recommendations and cost-effective interventions.