Population Health Management Market Size, Share & Industry Analysis, By Component (Software and Services), By Platform (Cloud-based and On-premises), By End User (Healthcare Providers, Healthcare Payers, and Others), and Regional Forecast, 2024-2032

The population health management market size was valued at USD 32.94 billion in 2023. The market is projected to grow from USD 36.98 billion in 2024 to USD 126.16 billion by 2032, exhibiting a CAGR of 16.6% during the forecast period.

Population health management provides a comprehensive, systematic approach to improving the health of an entire population through a healthcare database. It plays a crucial role in the healthcare system through accurate data collection, analysis, and decision-making to improve care delivery and overall outcomes. The growing efforts of companies operating in the market to cater to the rising demand among healthcare facilities with innovative solutions, product launches, strategic collaborations, and acquisitions are other major factors favoring the global market growth.

•  In 2023, the U.S. Centers for Medicare & Medicaid Services (CMS) introduced new initiatives to improve population health management and promote health equity across the medicare and medicaid provider and patient communities.

The COVID-19 pandemic negatively impacted the global population health management market. Patients postponed planned treatments, surgeries, and appointments during this period owing to lockdown restrictions. The prominent companies operating in the market witnessed a significant decline in their revenues due to decreased demand for these solutions among healthcare facilities, such as hospitals and clinics, among others.

Population Health Management Market Trends

Rising Initiatives by Governments and Healthcare Organizations

The increasing strategic initiatives by government bodies and healthcare organizations to improve the population health database and support the development of the national population health ecosystem is a trend witnessed by the market.

• In April 2022, the New Population Health Centre was launched at the 2022 Singapore Population Health Symposium. The initiative aims to bridge research activities and care delivery in the community.

The growing demand among healthcare providers and payers for various digital health solutions, including population health management, among others, along with increasing awareness regarding their benefits, are expected to support the growing trend of increasing focus of government bodies and organizations to promote the adoption of software and services in the market.

Population Health Management Market Growth Factors

Increasing Demand for Value-based Care Among Patient Population to Boost Product Adoption

The rising prevalence of chronic conditions among the global population, along with growing awareness regarding digital health solutions, is increasing the demand for value-based care approaches among the patient population.

The benefits of Population Health Management (PHM) solutions, including streamlined tracking & care management, lower healthcare costs for organizations, and others, among healthcare facilities, are leading to mergers and acquisitions among market players to introduce innovative solutions to cater to the rising product demand.

• In July 2022, Valenz Health acquired Medical Cost Management Corporation, one of the leading providers of managed care and population health management programs, to strengthen its portfolio with innovative solutions.

The adoption of PHM solutions will enable healthcare providers to provide tailored interventions based on the specific needs and preferences of patients, which will improve the overall health outcomes and care provided to patients.

RESTRAINING FACTORS

Limitations Pertaining to Data Security and Privacy to Hinder Adoption of Population Health Management Tools

The advantages associated with big data and digital tools can transform the healthcare industry. However, several countries, especially emerging countries, such as India, Brazil, and Nigeria, among others, are facing challenges in the adoption of these solutions owing to a lack of technical knowledge among the skilled force, breaches of data security, and privacy issues.

The increasing access to patient data and rising use of technology are resulting in growing exposure of healthcare facilities to more cyberattacks and data breaches.

• According to a 2021 article published by the NCBI, a survey conducted among 250 healthcare researchers demonstrated that only 41% of the survey respondents were using a PHM solution.

These factors, coupled with uncertainty around the regulatory pathways for digital health tools and solutions, such as PHM, EHR, and others, are expected to hamper the adoption of these tools and solutions among healthcare providers, consequently hampering population health management market growth.

Population Health Management Market Segmentation Analysis

By Component Analysis

Rising Adoption of PHM Solutions Contributed to Dominance of Services Segment

Based on component, the market is segmented into software and services.

The services segment dominated the market owing to the increasing deployment of population health management services in various healthcare facilities, including hospitals, clinics, and others. The growing focus of companies on developing and introducing novel services in the market is another vital factor contributing to the growth of the segment.

• In February 2024, Persistent Systems, one of the leading digital health solutions providers in India, launched an innovative, generative AI-powered PHM solution in partnership with Microsoft.

The software segment is expected to grow during the forecast period. The increasing adoption of population health management software among healthcare facilities, researchers, and others, along with improving healthcare infrastructure in emerging countries, are some of the prominent factors leading to rising collaborations among healthcare providers with various PHS solution providers in the market. These factors are expected to spur the growth of the segment during the forecast period.

• In April 2024, Kaiser Permanente announced that it would implement the Innovacer Healthcare AI  platform to support its value-based care initiatives.

By Platform Analysis

Rising Benefits Associated With Cloud-based Platforms Helped Cloud Dominate Market

Based on platform, the market is divided into cloud-based and on-premises.

The cloud-based segment held the largest population health management market share in 2023. The benefits of cloud-based solutions, such as enhanced data security, improved healthcare services, and cost savings, among others, are increasing the popularity of cloud-based tools among healthcare providers, thus driving the growth of the segment.

• In November 2019, Collaborative Health Systems (CHS) announced its investment in a new PHM software platform through a collaboration with the Garage to simplify healthcare quality and processes and enhance value-based care.

The on-premises segment is expected to register considerable growth during the forecast period. The rising number of healthcare facilities in emerging countries, along with increasing healthcare infrastructure funding, among others, are fueling the integration of on-premises PHM solutions in healthcare facilities. The growing integration, along with an increasing number of product launches in the market, is anticipated to fuel the growth of the segment during the forecast period.

By End User Analysis

Increasing Number of Healthcare Facilities Resulted in Dominance of Healthcare Providers Segment

On the basis of end user, the market is segmented into healthcare providers, healthcare payers, and others.

The healthcare providers segment accounted for the largest market share in 2023. The rising number of healthcare facilities, including hospitals & ASCs, and clinics, among others, along with growing awareness regarding the benefits of value-based approaches and solutions among healthcare providers are increasing the adoption of these solutions among healthcare providers. This factor is bolstering the growth of the segment.

• According to a 2024 report published by the Medicare Payment Policy, the number of medicare-certified Ambulatory Surgery Centers (ASCs) increased from 5,811 in 2019 to 6,382 in 2023 in the U.S., witnessing a significant growth of nearly 9.8% during the years.

The healthcare payers and other segments are projected to grow during the forecast period. The growth of the segments is attributable to the increasing implementation of PHM software and solutions among healthcare payers and research facilities owing to the benefits of integrated data, efficiency, and others.

REGIONAL INSIGHTS

Based on geography, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America dominated the market in 2023 and was valued at USD 21.35 billion. The well developed healthcare infrastructure, along with the growing adoption of PHM solutions among healthcare facilities in the U.S. and Canada, are some of the main factors supporting the dominance of the region in the market. The increasing focus of companies in the region on collaborations to develop innovative solutions is another crucial factor fostering the growth of the region.

• In June 2024, Innovacer Inc., one of the leading healthcare AI companies, partnered with P3 Health Partners, a patient-centered, physician-led population health management company. The partnership is aimed toward the advancement of value-based care initiatives to improve patient care and outcomes.

Europe is projected to grow during the forecast period. The growth of the region can be attributed to the growing focus of healthcare organizations, national authorities, and others on increasing the awareness and adoption of digital health tools, including PHM solutions, among the population.

• In July 2024, the World Health Organization (WHO) launched the Strategic Partners’ Initiative for Data and Digital Health (SPI-DDH), which is a collaboration network that brings together the 53 member states of the WHO European Region and leading providers of data and digital health solutions.

Asia Pacific is projected to grow during the forecast period owing to the rising patient admissions in healthcare facilities, growing number of diagnoses and treatment rates in countries such as India, China, Australia, and others, and improving healthcare infrastructure among these countries. These factors are leading to the increasing adoption of PHM solutions among healthcare facilities in the region.

Similarly, Latin America and the Middle East & Africa are anticipated to grow during the forecast period. The growth can be attributed to factors, such as the growing number of healthcare facilities in countries, such as the UAE, Saudi Arabia, and others and increasing initiatives by market players and healthcare organizations to boost the adoption of PHM solutions for better value-based care.

• According to the 2021 UAE Annual Statistical Report, the number of hospitals in the UAE increased from 103,700 in 2016 to 119,700 in 2020, indicating a 15.4% growth during the period.

KEY INDUSTRY PLAYERS

Rising Focus of Companies On Collaborations and Introduction of Innovative Solutions Will Contribute to Market Growth

The global market consists of a large number of players with a wide range of products and solutions.

Veradigm LLC, MCKESSON CORPORATION, and IBM are some of the prominent players in the global market. The aim of these companies is to strengthen their product portfolio by launching innovative solutions and engaging in strategic mergers and acquisitions with companies and healthcare providers. These are some of the vital factors supporting the growth of these companies in the market.

• In September 2023, Veradim LLC collaborated with On Belay Health to expand its value-based care solutions to more primary care practices.

Several other players, including Oracle, Health Catalyst Inc., and Epic Systems Corporation, among others, and emerging players are expected to boost the market growth during the forecast period. The robust efforts of these companies to increase their R&D funding for introducing innovative solutions to cater to the rising demand among the population are some of the important factors contributing to the growing brand presence of these companies in the global market.

LIST OF TOP POPULATION HEALTH MANAGEMENT COMPANIES:

• Epic Systems Corporation (U.S.)


• Veradigm LLC (U.S.)


• Oracle (U.S.)


• eClinicalWorks (U.S.)


• Athenahealth (U.S.)


• NextGen Healthcare (U.S.)


• Medical Information Technology, Inc. (U.S.)


• Kareo, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024 – Everside Health and Marathon Health partnered to deliver advanced primary care and strengthen its healthcare software and solutions.


• December 2023 – Golden Valley Health Centers (GVHC) announced its participation in the Population Health Management Initiative and launched an innovative immunization program. The initiative is aimed at expanding access to vaccines and streamlining the vaccination processes.


• August 2023 – Epic Systems Corporation partnered with Microsoft to accelerate the impact of generative AI on healthcare solutions, including population healthcare management tools, among others.


• August 2023 – eClinicalWorks announced that Connecticut Institute for Communities, Inc. deployed its population health solutions to improve the quality of care delivered and access to healthcare services.


• August 2023 – NextGen Healthcare Inc. partnered with Luma Health, a leading patient success platform provider, to equip ambulatory facilities with AI-enhanced digital health tools, including EHR, population health, and others.

REPORT COVERAGE

The report provides a detailed market analysis. It focuses on key aspects, such as market size & market forecast, market segmentation based on component, platform, end user, and competitive landscape. It also gives an overview of the regulatory scenario, insights on service penetration, and analysis for significant companies.

Besides, the report offers insights into the latest market trends, market statistics, and key industry developments. In addition to the factors mentioned above, 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 16.6% from 2024-2032
Unit	Value (USD billion)
Segmentation	By Component Software Services
By Platform Cloud-based On-premise
By End User Healthcare Providers Healthcare Payers Others
By Region North America (By Component, By Platform, By End User, By Country) U.S. Canada Europe (By Component, By Platform, By End User, By Country/Sub-region) U.K. Germany France Italy Spain Scandinavia Rest of Europe Asia Pacific (By Component, By Platform, By End User, By Country/Sub-region) China India Japan Australia Southeast Asia Rest of Asia Pacific Latin America (By Component, By Platform, By End User, By Country/Sub-region) Brazil Mexico Rest of Latin America Middle East & Africa (By Component, By Platform, By End User, By Country/Sub-region) GCC South Africa Rest of the Middle East & Africa