U.K. Healthcare Consulting Market Size, Share & COVID-19 Impact Analysis, By Service Type (Healthcare IT Solutions, Marketing & Sales, Human Resources, Finance, Operations & General Management, Strategic Management, Business Analytics, and Others), By End User (Healthcare Providers, Healthcare Payers, Biopharmaceutical Companies, and Others), and Country Forecast, 2023-2030

The U.K. healthcare consulting market size was valued at USD 0.96 billion in 2022. The market is projected to grow from USD 1.04 billion in 2023 to USD 1.87 billion by 2030, exhibiting a CAGR of 8.8% during the forecast period. Healthcare consulting focuses on providing support and implementation of services for medical ecosystem to boost their financial and operational success. The increasing prevalence of chronic disorders among the U.K. population and rising number of patient visits across healthcare organizations have created a need for quality patient care and effective healthcare operations.

• According to data published by Digital NHS in 2022, there were 122.3 million outpatient appointments at NHS hospital settings, which was an increase of 20% as compared to 2021.

Thus, with the rising demand for value-based care across these systems and a need to strengthen business outcomes in a cost-effective manner, the demand for healthcare consulting is rising across the nation. Several key players are now emphasizing on the introduction of innovative digital health solutions and expansion of their distribution networks to accelerate the delivery of healthcare services across hospitals, specialty clinics, and long-term care businesses, and others.

• In October 2021, CGI Inc. and GE Healthcare, a medical devices and consulting company, entered an agreement to support healthcare providers and accelerate their digital transformation journeys in the U.K. CGI Inc., an IT and business consulting services firm, will support the implementation of digital solutions as GE Healthcare’s chosen systems integrator across several important initiatives.

Thus, factors, such as high emphasis of consulting organizations on partnerships and investments across the nation to boost the presence of healthcare services owing to their high demand are anticipated to propel the market growth.

COVID-19 IMPACT

High Demand of Healthcare Services among Government Agencies amid Pandemic Led to Market Growth

The impact of the COVID-19 pandemic on the market was positive in 2020. During the beginning of the pandemic in 2020, some of the healthcare providers and payers reprioritized and delayed their consulting projects, leading to a decline in the demand for consulting services in healthcare.

However, most private healthcare agencies and biopharmaceutical companies emphasized on the production and development of COVID-19-related drugs and vaccines owing to the high demand for advanced treatments to tackle the deadly virus spread across the nation. Similarly, the pandemic heightened the demand from government agencies, such as the NHS for expanding the new COVID-19-specific healthcare infrastructure. There was also a high demand for solutions for COVID-19 diagnosis and treatment planning across the U.K.’s healthcare systems.

• According to an article published by BMJ Publishing Group Limited in July 2021, Deloitte Touche Tohmatsu Limited, in partnership with NHS England, built a system to test over one million people daily using PCR and rapid tests during the COVID-19 pandemic.


• As per a similar source, the U.K. government and the NHS signed many contracts worth USD 617.2 million with large management consultancy firms at the height of the COVID-19 pandemic in 2020.

Moreover, leading healthcare players experienced major demand for healthcare services from pharmaceutical companies and government agencies for in-house operations management and a need for healthcare IT solutions for enhanced patient care and management.

However, post-pandemic, in 2021, the need for these services came down to the pre-pandemic level owing to low demand for financial and strategic consulting services across the nation and a decline in the number of COVID-19-positive patients visiting healthcare facilities.

• For instance, as per the annual report estimates of Cognizant in 2020, the U.K. healthcare services segment witnessed a growth of 20.8% in 2019. However, the same segment declined to 7% in 2021 compared to 2020.

LATEST TRENDS

High Focus On Adoption of Digital Health Solutions Among Healthcare Organizations Across U.K.

Healthcare consulting services and solutions help medical service providers optimize their routine clinical functions and management operations, and improve the patient outcomes. The areas where technologically advanced solutions are routinely used in the healthcare sector include regulatory compliance, financial management, monitoring quality of patient care, and improving clinical support.

Certain factors, such as rising prevalence of chronic diseases, growing healthcare awareness among the general population, demand for delivery of quality medical services, and advanced technological changes have led to adoption of healthcare consulting services in the U.K. Moreover, several healthcare settings, such as hospitals and specialty clinics have embraced digitalization to switch from analog electronic devices to digital systems in the country.

Also, high emphasis of healthcare systems on the adoption of new services, such as strategic management and workforce management is helping them streamline their health services and effectively manage human resources on various healthcare platforms.

• According to data published by Differentia Consulting in 2021, in the U.K., analytics applications are used by more than 162 NHS Trusts to report and analyses data from multiple critical systems.


• According to a research result published by QlikTech International AB in July 2020, about 84% of NHS Trusts were using data analytics to support patient care and operations in response to the COVID-19 pandemic.

Similarly, several healthcare consulting firms are now emphasizing on collaborations with key players to introduce advanced solutions across the country to improve patient care and enhance the routine delivery of services in several applications.

• In June 2023, healthcare organizations, namely the National Institute for Health and Care Excellence, Care Quality Commission, Health Research Authority, and Medicines and Healthcare Products Regulatory Agency, announced an alliance to launch a new online service designed to help the NHS and its other partners fully leverage the latest digital innovations.


• In March 2021, QlikTech International AB had announced that England’s largest NHS Trust, Barts Health launched a new healthcare analytics application to support its existing workforce to make data-driven decisions and transform results for the organization.

Thus, by leveraging the expertise and insights of healthcare consulting firms, medical service providers can maximize their patient management and deliver quality patient care across healthcare systems. High use of these healthcare solutions across several applications introduced by consulting companies will aid the growth of the U.K. market.

DRIVING FACTORS

Rising Government Initiatives for Facilitating Healthcare Digitalization Will Drive Market Development

The National Health Service (NHS) delivers free-of-cost public healthcare services across hospitals, physicians’ clinics, and mental health care institutes to people across the U.K. Limitations associated with traditional healthcare delivery models across medical systems have affected patient care delivery and incurred high healthcare costs across the nation.

Moreover, rise in the aging population, increasing prevalence of chronic conditions, and pandemic (COVID-19) have compelled the government authorities to enhance their patient care delivery with digital tools to optimize population health evaluation and analysis and improve health provider efficiency. Thus, the NHS launched several healthcare programs in collaboration with the Health and Social Care Committee to boost digitalization across its health systems.

• According to the ‘Digital transformation in the NHS’ report published by the House of Commons in the U.K., in June 2023, as per the plan for the digital project, 90% of NHS Trusts will have electronic health records by December 2023, and this percentage will reach 100% by March 2025.

Also, the U.K. government is now focusing on partnering with leading healthcare consultancies to create data-driven population health solutions and services across its healthcare systems. The integration of digital services will aid in healthcare resource optimization, medical operations management, patient data security, and hospital marketing.

• In June 2023, a consortium of four businesses entered a partnership to launch the Integrated Improvement Partnership (IIP) program with the NHS. The group, including advisory firm Develop Consulting, Data Analyst Vuit, training provider Click2 Learn, and healthcare improvement specialist Innovative Online Products, will provide guidance and strategy for increasing efficiency and building capacity across the NHS.


• In February 2021, the National Health Service (NHS) appointed 12 healthcare consultants, namely Accenture, Aire Logic, BJSS, Capita, Cognizant, Hippo Digital, IBM, Infinity Works, Informed Solutions, Kainos Software, Mastek, and Netcompany, to create a new digital capability for a new health framework. The consultancy service providers with leading expertise across the digital lifecycle will collaborate to further strengthen the health delivery capabilities in the U.K.

Thus, rising strategic initiatives of government authorities to develop digital health solutions and services for efficient healthcare delivery are expected to drive the U.K. healthcare consulting market growth.

RESTRAINING FACTORS

Surge in Data Security Challenges Across Healthcare Systems to Hamper Market Growth

The growing shift toward Electronic Health Records (EHRs) and Electronic Medical Records (EMRs) has enhanced patient data management in healthcare settings. However, with the increased adoption of digital information exchange and IT solutions, the risks associated with data security are also increasing. The lack of robust cybersecurity measures to protect sensitive patient data will limit the market growth.

• According to an article published by Gordon Flesch Company in January 2023, as per CyberMDX estimates, hospitals accounted for 30% of all large-scale data breaches in healthcare.


• According to a research article published by Digital Health in June 2023, about eight in ten healthcare organizations across the U.K. had reported a security breach since 2021. As per similar estimates, around 79% of the U.K. healthcare providers reported at least one data breach to the cyber cell.

Data breaches across healthcare settings are increasing due to the rising use of data-driven devices, such as mobiles, tablets, rugged devices, and printers for patient monitoring and management. Also, there is a major lack of focus on implementing security measures across healthcare organizations. Moreover, a surge in the use of personal devices by healthcare providers to access their company’s systems and networks further compromises patient data through phishing attacks, ransomware, or DDoS attacks.

• In June 2021, SOTI Inc. published a survey report of over 1,450 healthcare IT professionals across the U.S., Canada, Mexico, the U.K., Germany, France, Sweden, the Netherlands, and Australia. The survey results stated that the growing scale and implementation of diverse devices increased the data security challenges.


• As per data revealed by KnowBe4, Inc. in its ‘Rising Threat Of Malware Attacks In Ireland And United Kingdom Healthcare Sectors’ report, healthcare organizations experienced a 74% surge in cyberattacks in 2022.

Similarly, other factors, such as improper data management by healthcare professionals and lack of cybersecurity awareness & training among healthcare providers are increasing data breaches and cyber thefts across healthcare settings.

Thus, the increasing number of patient data breaches and cyberattacks across healthcare organizations will limit the adoption of digital management solutions across the nation, further restraining the market growth.

SEGMENTATION

By Service Type Analysis

High Demand by NHS to Augment Adoption of Healthcare IT Solutions

Based on service type, the market is segmented into healthcare IT solutions, marketing & sales, human resources, finance, operations & general management, strategic management, business analytics, and others.

The healthcare IT solutions segment dominated the market with the highest share in 2022. The segment’s dominance is attributed to rising initiatives by the U.K. government to adopt consulting services to formulate plans & strategies and integrate digitalized systems across healthcare settings. Moreover, the rising emphasis of key players in healthcare IT consulting on introducing technologically advanced services owing to high demand from pharmaceutical companies is further anticipated to augment the segment’s growth.

• For instance, in 2022, the U.K. NHS spent USD 102.3 million on consulting services for various plans and strategies to be implemented in the digital NHS platform.

The finance, operations & general management segment is expected to record a higher CAGR from 2023-2030. The segment's growth is due to the rising adoption of consulting services among healthcare providers and payers across the U.K. to meet financial challenges and optimize the efficiency of healthcare systems and patient care.

By End User Analysis

Increasing Launch of Services By Key Players to Propel Adoption of Healthcare Consulting Among Healthcare Providers

Based on end user, the market is segmented into healthcare providers, healthcare payers, biopharmaceutical companies, and others.

The healthcare providers segment accounted for the dominant U.K. healthcare consulting market share in 2022 and is projected to record the highest CAGR during the forecast period. The segment’s growth is attributed to the increasing demand for consulting services among healthcare providers, such as hospitals, clinics, and medical centers across the nation to create advanced strategies to improve routine patient care and management.

• For instance, in May 2023, North Manchester General Hospital in the U.K. collaborated with Siemens Healthineers AG. The partnership ensured opportunities for collaboration on research & development and a wide range of value-add services, including consulting support to optimize imaging services and patient care delivery.

The healthcare payers segment is expected to grow at a faster pace during the forecast period. The segment’s growth is due to the increasing need for consulting services by healthcare payers, such as health insurance and health plan providers due to the rise in challenges in delivering cost-effective services. Moreover, the rising initiatives by healthcare payers to collaborate with consulting solution providers across the U.K. will further drive the growth of the U.K. market.

• For instance, in August 2022, Bupa U.K. collaborated with Willis Towers Watson (WTW) for a new health insurance pricing platform ‘Radar Live’ in the U.K.

KEY INDUSTRY PLAYERS

Collaborations among Key Consulting Players to Augment Market Growth

The U.K. market is consolidated and highly competitive with the presence of major healthcare players, such as Accenture, Cognizant, Deloitte Touche Tohmatsu Limited, and HCL Technologies Ltd. Accenture dominated the U.K. market owing to an extensive consulting service portfolio across healthcare settings and robust emphasis on the delivery of life-sciences solutions to users, such as biopharmaceutical, medical technology, and biotechnology companies.

Moreover, rising emphasis on inorganic strategies, such as acquisitions of leading consulting players across the nation will further boost Accenture’s U.K. market share.

• In August 2022, Accenture acquired YSC Ltd., a specialized leadership consulting company, to expand its healthcare consulting business and pharmaceutical services.

Other prominent players, such as Ernst & Young, IBM, Bain & Company, Inc., and PwC grabbed a significant market share. This was attributed to a strong emphasis on offering essential medical services to healthcare providers, such as hospitals and clinics across the U.K.

• In December 2020, the U.K.’s National Health Service (NHS) and IBM signed a new three-year strategic partnership to strengthen and improve data security technologies and additional defense tools.

Thus, robust service offerings by industry players and the high demand for consulting services across healthcare settings will propel the company’s growth in the market.

LIST OF KEY COMPANIES PROFILED:

• Accenture (Ireland)


• International Business Machines Corporation (IBM) (U.S.)


• Deloitte Touche Tohmatsu Limited (U.K.)


• Bain & Company, Inc. (U.S.)


• HCL Technologies Limited (India)


• Cognizant (U.S.)


• Microsoft (U.S.)


• Capgemini (France)


• Atos SE (France)


• CGI Inc. (Canada)


• Fujitsu (Japan)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 - Cognizant and Gilead Sciences, Inc. extended their partnership with a five-year service agreement estimated to be worth USD 800 million. Through this collaboration, Cognizant will manage Gilead's global IT infrastructure, platforms, applications, and advanced analytics.


• March 2023 - Genomics England partnered with IBM to transform patient care. The company’s strategy is to work on refining the clinical user interface and hybrid cloud adoption of Genomics England.


• October 2022 - Deloitte Touche Tohmatsu Limited acquired Reformis, a strategic consultancy firm providing business, IT, and change management consultancy services.


• September 2021 – The U.K.’s NHS invested another USD 5.92 million in the NHS Test and Trace program as a contract extension with Accenture to keep its COVID-19 Test and Trace system on loop till 2022. The collaboration would see the outsourcing consultancy and professional services outfit maintain the data platform until August 2022.


• July 2021 – IBM acquired Bluetab Solutions Group, S.L. to expand its data and hybrid cloud consulting services in Europe.

REPORT COVERAGE

The report provides detailed market segmentation analysis and focuses on crucial aspects, such as healthcare consulting service types, leading service providers, and companies. Additionally, it offers insights into the market trends, key industry developments, such as mergers, partnerships, & acquisitions, and the impact of COVID-19 on the market. In addition to the factors mentioned above, the market includes many factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2019-2021
Growth Rate	CAGR of 8.8% from 2023-2030
Unit	Value (USD billion)
Segmentation	By Service Type Healthcare IT Solutions Marketing & Sales Human Resources Finance, Operations & General Management Strategic Management Business Analytics Others
By End User Healthcare Providers Healthcare Payers Biopharmaceutical Companies Others