Healthcare Predictive Analytics Market Size, Share & Industry Analysis, By Component (Software and Hardware), By Application (Clinical Analytics, Financial Analytics, and Operational Analytics), By End User (Payers, Providers, and Others), and Regional Forecast, 2024-2032

The global healthcare predictive analytics market size was valued at USD 12.96 billion in 2023. The market is projected to grow from USD 16.75 billion in 2024 to USD 184.58 billion by 2032, exhibiting a CAGR of 35.0% during the forecast period.

The significant shift of healthcare providers toward personalized medicine from traditional medications is due to reduced risk and efficient patient care associated with personalized medicine.

• For instance, according to the report published by the Personalized Medicine Coalition (PMC), the U.S. Food and Drug Administration approved 17 personalized drugs in 2021, which accounted for 35.0% of the new drugs the FDA approved during the year.

The increasing focus of healthcare providers on value-based healthcare is also anticipated to influence the demand for predictive healthcare analytics, strengthening their position in the market.

• For instance, in December 2020, the Centers for Medicare & Medicaid Services introduced a new model of value-based care for Medicare beneficiaries. The new model improves the payment method, enhances health outcomes, and reduces the cost of care for Medicare beneficiaries. Adopting value-based healthcare will augment the demand for digital health platforms and solutions, including healthcare analytics.

Therefore, the rising preference for personalized medicine and the increasing focus on value-based healthcare will further fuel the market growth during the forecast period.

The emerging applications of healthcare predictive analytics in clinical research and drug development, along with the rising investments in digital health, positively impacted the healthcare predictive analytics market growth during the pandemic. For instance, according to a study by McKinsey, investments in digital health and revenues of major telehealth players doubled in 2020 compared to 2019.

The healthcare predictive analytics players witnessed significant growth in revenue generated during 2020. For instance, Health Catalyst registered an increase of around 31.5% in its revenue generated in 2020 compared to 2019. Moreover, after the pandemic, market growth normalized to 32.9% in 2021 compared to revenues in 2020, owing to decrease in the surged demand during 2020.

Healthcare Predictive Analytics Market Trends

Incorporation of Advanced Technologies such as Machine Learning and Global Positioning Systems (GPS) in Predictive Analytics Solutions

New technologies such as machine learning and GPS in healthcare predictive analytics solutions aid in gathering & analyzing data in a more efficient & precise manner. Many companies in the global predictive analytics market are adopting these advanced technologies to gather and analyze data.

• For instance, the U.S.-based health operation company, Mount Sinai Health System created machine learning-powered predictive models for identifying COVID-19 patients with high risk and mortality probability; these identifications help make patient management more efficient. This model is developed by collecting past patients’ data, and after analyzing this data, predictions are obtained.


• Asthmapolis, the U.S.-based smart inhaler company, has started using inhalers with GPS-enabled trackers to identify asthma trends in the population. This data is combined with data from the CDC for developing treatment plans for asthma patients.

Also, adopting the algorithm can bring new opportunities for detailed data analysis. Applying a predictive algorithm, the prediction of healthcare issues among the population can be derived.

Furthermore, predictive analytics analyzes vast datasets encompassing a patient’s medical background, lifestyle choices, genetic information, and treatment responses. It utilizes advanced machine learning algorithms to uncover patterns and trends, providing insights into a patient’s preferences and potential health risks. Healthcare professionals can invent individualized treatment plans and support services using these predictive insights.   

Thus, incorporating advanced technologies in predictive analytics tools contributes to the overall surge in demand for predictive analytics tools.

Healthcare Predictive Analytics Market Growth Factors

Preferential Shift of Providers Toward Personalized Medicine is Fueling the Demand for these Solutions

The well-established healthcare sector in developed countries, coupled with the rising adoption of EHR systems in healthcare facilities, generates a large amount of patient data. The healthcare payers and providers use this data to analyze the trend using predictive analytical solutions for strategic decision-making. Moreover, the stringent federal regulations and laws such as the Health Insurance Portability and Accountability Act (HIPAA) and the Patient Protection and Affordable Care Act (PPACA) for the adoption of digital platforms are encouraging the use of EHR, which is anticipated to surge the demand for healthcare predictive analytics in the near future.

• For instance, according to the Centers for Disease Control and Prevention (CDC), in 2019, around 89.9% of the total physicians practicing in the U.S. were using basic electronic health record systems, and more than 72.3% of medical practitioners were using certified EHR systems in their clinics.

Moreover, the rising penetration of the Internet of Medical Things (IoMT) is one of the major factors propelling the market growth during the forecast period. The relationship between IoMT and medical technology benefits healthcare organizations in achieving better outcomes, improving efficiency, and delivering advanced patient care. Government organizations are focused on increasing investments in IoT healthcare to evolve the healthcare ecosystem of the countries. The application of advanced analytics to a medical device can help understand patient health more clearly, improve management quality, and empower accurate decision-making.

• For instance, according to the executive director of the International Virtual Reality and Healthcare Association (IVRHA), by the first half of 2020, USD 9.1 billion were invested in healthcare technology, an increase of 19% compared to the year 2019.

Furthermore, healthcare providers prefer personalized medicines to a large extent.

• For instance, as per the data provided by Ksolves.com in February 2024, the potential of predictive analytics in personalized medicine lies in its ability to anticipate patient outcomes and develop customized treatment strategies.


• Similarly, according to the Personalized Medicine Coalition (PMC) report, personalized medications on the market more than doubled between 2016 and 2020 in the U.S.

These factors above drive market growth and contribute to the rise in demand for healthcare predictive analytics systems.

RESTRAINING FACTORS

Data Privacy Concerns, Theft Issues, and High Cost Solutions to Hamper Market Growth

Patient data privacy and recent data breaches are mainly responsible for the lower adoption of digital health solutions. Healthcare organizations maintain detailed patient records, including patient name, date of birth, address, social security number, and payment account information, making it a preferred target for cyber-attacks. The patients are unwilling to share their medical records with digital platforms and applications. The growing incidences of healthcare data breaches are anticipated to hamper the adoption of digital health solutions, including healthcare predictive analytics, in the near future.

• For instance, according to the article published by TechTarget, in 2021, 66% of healthcare organizations were hit by ransomware last year, up from 34% in 2020 in the U.S.

Similarly, digital health solutions are associated with high installation and maintenance costs and require skilled persons. Lack of user-friendliness is also one of the factors restricting market growth.

• For instance, as per the report provided by the Consumer Technology Association in February 2023, limited user-friendliness and the high cost of digital health solutions are the major barriers stopping consumers from adopting these technologies.

Thus, these factors have played a pivotal role in limiting the demand for new systems and restraining the market growth.

Healthcare Predictive Analytics Market Segmentation Analysis

By Component Analysis

Increasing Adoption of Predictive Analytics Tools in Emerging Countries Aided the Growth of the Software Segment

Based on component, the market is classified into software and hardware.

The software segment dominated the market in 2023. The increase in new product launches in this segment and the increasing adoption of predictive analytics tools to predict seasonal disease in emerging countries are driving the segment's growth.

• For instance, in July 2022, Trilliant Health launched an analytics tool to benchmark healthcare companies against most similar markets, providers, facilities, and patient populations.


• Similarly, in December 2020, Amazon Web Services launched Amazon HealthLake, a HIPAA-eligible service to support interoperability standards and drive the use of Big Data analytics in healthcare.

On the other hand, the hardware segment is expected to grow at an optimal CAGR during the forecast period.

By Application Analysis

Rising Need for Financial Analytics Across the Healthcare Facilities Aided in Boosting the Segment Growth

Based on application, the market is segmented into clinical analytics, financial analytics, and operational analytics.

The financial analytics segment captured the largest market share in 2023. The growing number of financial frauds in the healthcare industry and the increasing need for financial analytics solutions in healthcare facilities are anticipated to drive the demand for the financial analytics segment during the forecast period.

• For instance, according to Etactics, Inc., the median loss for healthcare fraud offenses in 2021 was more than USD 1.0 million in the U.S. The need for financial analytical solutions is increasing with the growing number of healthcare frauds globally.

On the other hand, the clinical analytics segment is expected to grow at the highest CAGR during the forecast period. The increasing number of clinical trials coupled with the rising demand for an efficient technology platform to manage huge amounts of patient data related to clinical trials.

• For instance, according to the data published by the World Health Organization (WHO), in 2021, 59,964 clinical studies were registered worldwide.

The operational analytics segment is expected to grow optimally during the forecast period. The growth is due to the adoption of operations and administrative analytics tools by hospitals and healthcare organizations in the countries of this region. These tools enhance the efficiency and operating speed of hospitals and healthcare organizations.

By End User Analysis

Payers to Dominate due to Increasing Strategic Collaborations for the Development of Innovative Solutions and Growing Number of Healthcare Insurance Holders

The market is classified into payers, providers, and others based on end user.

Payers captured the largest market share in 2023, owing to increasing strategic collaborations by healthcare payers for the development of innovative solutions along with the growing number of healthcare insurance holders globally.

• For instance, in February 2021, Swiss Re announced a partnership with Diameter Health to develop health data interoperability solutions to use electronic clinical health data for life insurance underwriting. This partnership accelerated Swiss Re’s efforts to help life insurers improve the speed and quality of their underwriting and provide a better experience to the end consumers.

On the other hand, the providers segment is expected to grow at the highest CAGR during 2024-2032. The segment’s growth is attributed to the increasing number of hospitals and the growing adoption of healthcare analytic software in healthcare facilities.

• For instance, according to the European Hospital Register, there were more than 19,000 hospitals in Europe in 2020. The number of hospitals in the area is continuously increasing, which is anticipated to increase the demand for advanced healthcare solutions, including healthcare analytics.

Therefore, introducing new hospitals and growing adoption of healthcare analytic software are further fueling the segment growth during the forecast period.

REGIONAL INSIGHTS

Based on region, the global market is classified into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The North America market was valued at USD 5.29 billion in 2023. The region’s dominance is due to the increasing patient population with chronic diseases, the presence of key market players, and the constant focus of market players on strategic collaborations to provide innovative solutions in the region.

• For instance, in September 2021, Health Choice Network (HCN) announced a partnership worth USD 400.0 million with Epic. The HCN will receive integrated solutions from Epic in more than 44 organizations in 16 states across the U.S.

Europe held the second position in the global market. The higher awareness about healthcare solutions, along with strategic collaborations and government-initiated projects, is the major factor behind its high healthcare predictive analytics market share. For instance, in September 2021, the World Health Organization (WHO) and the Federal Republic of Germany launched the WHO Hub for Pandemic and Epidemic Intelligence in Germany. The new hub is the global platform for pandemic and epidemic intelligence. It predicts, prevents, detects, prepares for, and responds to worldwide health threats.

Asia Pacific is expected to witness the highest CAGR during the forecast period. The growth of this region is attributed to the growing e-health initiatives in countries including China and India and the increasing need for healthcare analytics in healthcare facilities to manage a large amount of patient data. This combined with increasing product launches in the EHR segment is anticipated to drive the adoption of healthcare predictive analytics solutions in the near future. For instance, in June 2021, Epillo Health Systems launched integrated clinical solutions for patients and clinicians. The new solution consists of EHR systems for clinics and pharmacies and a mobile app for patients.

On the other side, the Latin America and Middle East regions are likely to grow slower. Government agencies' active involvement in implementing analytics and AI-based healthcare solutions is accelerating the market growth in these regions.

• For instance, in November 2020, the Ministry of Health of Brazil, the National Council for Scientific and Technological Development, the State funding agency, and the Bill & Melinda Gates Foundation funded and initiated a project in Brazil under the Grand Challenge Explorations for the evaluation of public healthcare policies for the assessment of the impact of hospital-based breastfeeding interventions on infant health.

List of Key Companies in Healthcare Predictive Analytics Market

Focus of Key Players on Introduction of New Products to the Market to Strengthen their Position

In terms of the competitive landscape, the market is highly fragmented, with various national and international healthcare predictive analytics players. Also, due to the huge potential market opportunity in the digital transformation era, many start-up companies are entering the market. Leading companies such as IBM, Cerner Corporation, Epic Systems Corporation, Allscripts Healthcare LLC., SAS institute dominated the market. Innovative healthcare analytics solutions coupled with the strong brand presence of companies across the globe are the major factors for the dominating position of these companies.

• In September 2021, according to a performance report by KLAS Research, Cerner, Epic, and Health Catalyst saw the deepest adoption among established analytics solutions. Key customers of Cerner validated the adoption of 100 per cent of the basic platform solutions and 86% of advanced solutions.

Other companies, such as Health Catalyst, Inovalon, Flatiron, Linguamatics, and Oracle, have a prominent presence in the global market. Increased demand for telemedicine, remote patient monitoring, home care, and rising adoption rates is likely to favor the expansion of the companies. Emerging companies such as Wipro, Vitreos Health, CitiusTech, and SCIO Health Analytics, being new entrants, are focused on gaining a competitive advantage by innovating technologies via strategic collaborations.

• For instance, in September 2020, Wipro GE Healthcare and the Indian Institute of Science (IISc) inaugurated an advanced center for innovation and research at the IISc campus. The facility will work on healthcare analytics with deep learning technology.

LIST OF KEY COMPANIES PROFILED:

• IBM (U.S.)


• Oracle (U.S.)


• OSP (U.S.)


• Inovalon (U.S.)


• Allscripts Healthcare, LLC (U.S.)


• MCKESSON CORPORATION (U.S.)


• CitiusTech Inc. (U.S.)


• SAS Institute Inc. (U.S.)


• Linguamatics (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• October 2022 – Oracle announced that WellSpan Health has opted for Oracle Fusion Cloud-Based Predictive Analytics Application Suite to unify operations and improve its business visibility.


• May 2022 – IBM collaborated with Amazon Web Services, Inc. to provide software as a service (SaaS) on AWS.


• November 2021 – Allscripts Healthcare, LLC announced that Next Level Urgent Care selected the Allscripts Touchworks platform and Microsoft Azure to improve EHR processes across all locations.


• January 2021 – Cerner announced the acquisition of Kantar Group for USD 375.0 million. Kantar Group provides data, analytics, and research to the life sciences industry. The acquisition aims to create a leading data insights and clinical research platform, which could harness data to improve clinical research's safety, efficiency, and efficacy across life sciences, pharmaceuticals, and healthcare.


• June 2021– Inovalon announced the expansion and extension of its long term agreement with Walmart by providing its cloud-based capabilities through the proprietary Inovalon ONE Platform in its extensive network of pharmacies nationwide. The agreement is part of its data-driven strategy to improve outcomes and economics for its customers while improving its market share among major market players.


• January 2020 – Inovalon announced the launch of Inovalon’s Healthcare Data Lake on the Inovalon ONE Platform. This Inovalon Healthcare Data Lake provides clients’ superset of data with advanced reporting and analytics initiatives while eliminating the costs of traditional enterprise warehouse solutions.

REPORT COVERAGE

The healthcare predictive analytics market research report provides a detailed analysis of the market. It focuses on key aspects of its component, application, and end user. Besides this, it offers insights into market trends. It highlights key industry developments, mergers and acquisitions, and technological advancements of the major players with the impact of COVID-19 on the market. In addition to the above mentioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 35.0% from 2024-2032
Unit	Value (USD billion)
Segmentation	By Component Software Hardware
By Application Clinical Analytics Financial Analytics Operational Analytics
By End User Payers Providers Others
By Geography North America (By Component, By Application, By End User, and By Country) U.S. Canada Europe (By Component, By Application, By End User, and By Country) U.K. Germany France Italy Spain Scandinavia Rest of Europe Asia Pacific (By Component, By Application, By End User, and By Country) China Japan India Australia Southeast Asia Rest of Asia Pacific Latin America (By Component, By Application, By End User, and By Country) Brazil Mexico Rest of Latin America Middle East & Africa (By Component, By Application, By End User, and By Country) GCC South Africa Rest of Middle East & Africa