Market Research Report
Healthcare Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Healthcare Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
Published: July 1, 2021
Mordor Intelligence Pvt Ltd
Content info: 130 Pages
Delivery time: 2-3 business days
The healthcare analytics market is expected to register a CAGR of nearly 18.5% over the forecast period, with an estimated market size of USD 13,525 million in 2020, and it is expected to reach USD 45,450 million by 2026.
In the rush to contain COVID-19, market players are rapidly developing artificial intelligence and data analytics in healthcare, paving the way for the future of the technologies. Researchers have leveraged these tools to do everything from tracking hospital capacity to identifying high-risk patients, and many believe that these technologies are critical to preparing for similar situations in the future.
The COVID-19 Insights Partnership will leverage big data analytics tools to conduct research and find possible treatments for the virus. For instance, in July 2020, the Department of Energy (DOE), the Department of Health and Human Services (HHS), and the Department of Veterans Affairs had announced a new big data analytics initiative to coordinate and share COVID-19 information. Research and analysis conducted by the COVID-19 Insights Partnership will focus on the vaccine and therapeutic development and outcomes, virology, and other critical scientific topics to better understand COVID-19.
Also, increasing funding to healthcare technology companies that developed mHealth apps, big data analytics, and the Internet of Things (IoT) offerings will boost global market size. For instance, in 2020, IBM and Oracle launched blockchain to integrate COVID-19 data from the World Health Organization and CDC. Technological advances facilitating information sharing and improved compliance to Health Insurance Portability and Accountability Act (HIPAA) are expected to accelerate the business growth.
The factors, such as the emergence of big data in the healthcare industry, increased focus on collection and analysis of data from different sources for better customer service, technological advancements and the advent of social media and its impact on the healthcare industry are driving the healthcare analytics market.
Healthcare analytics continue to bring several changes in the healthcare industry across many countries. Many federal policies, programs, and actions were initiated by the governments of developed and developing countries across the world, to experience progress in healthcare services. The European Union has developed a project called "Bigmedilytics" which is regarding the reduction of cost, better improvement of patients, and better access to the health networks.
Apart from this, the use of connected devices that generate huge amounts of data is expected to increase significantly; this raw data can be analyzed to make better enterprise decisions. According to ETNO, the number of IoT active connections in healthcare in Europe during 2019 stood at 2.79 million, and it is expected to reach 10.34 million by 2025. Such growth further strengthens the demand for data analytics and tools to gain data-driven insights into the industry.
However, data storage and analyzing the raw data require properly skilled personnel. There is a growing skill gap that is acting as a barrier to the healthcare sector. Lack of broad skills, knowledge, expertise, and experience required to work in the data analytics field are significant concerns.
Predictive analytics tools are helping healthcare organizations stay ahead of poor outcomes, resource shortages, and other impacts of COVID-19. The predictive analytics segment is anticipated to witness lucrative CAGR over the forecast period. In June 2020, Cleveland Clinic researchers created a predictive model that can forecast patient volume, bed capacity, ventilator availability, and other metrics. The model provides timely, reliable information to optimize care for COVID-19 and other patients.
Using analytics tools, researchers can find patterns and trends in different places that can inform social distancing guidelines and other measures. In 2020, a team from the Binghamton University and the State University of New York developed several predictive analytics models to examine COVID-19 trends and patterns around the world. Thus, this is having a positive impact on the segment studied.
It is comparatively complex, with a few players optimizing it to achieve the best outcomes by identifying data uncertainties. The adoption of predictive analytics in better diagnosing the patient results may reduce the customer cost and increase customer satisfaction. According to a study by the Society of Actuaries, in 2019, predictive analytics among healthcare enterprises resulted in a 39% reduced cost and a 42% increase in patient satisfaction. Hence, owing to the aforementioned factors, the segment is likely to boost in coming years.
In the COVID-19 pandemic, analytics transcends benchmarking and regulatory reporting and becomes a critical business strategy. In 2020, the National Institutes of Health launched a centralized, secure enclave to store and study vast amounts of medical record data from people diagnosed with coronavirus disease across the United State. It is part of the National COVID Cohort Collaborative (N3C), to help scientists analyze these data to understand the disease and develop treatments. This initiative aimed at transforming clinical information into knowledge urgently needed to study COVID-19, including health risk factors that indicate better or worse outcomes of the disease, and identify potentially effective treatments.
In 2020, Definitive Healthcare partnered with ESRI and developed a platform that enables analysis and monitoring of bed capacity in hospitals and potential risk of COVID-19 by geographical areas in the United States. Thus, this is likely to flourish the market in the region.
The United States healthcare analytics market holds the largest market share in the North American region, as the healthcare infrastructure in the United States is experiencing a positive trend in the healthcare analytics domain. The substantial growth avenues in the region can be attributed to the presence of several prominent players in the region. For example, the federal government is encouraging the use of its healthcare data through various policies and initiatives. Affordable Care Act (ACA), the most important healthcare legislation in the United States, authorized the Department of Health and Human Services to release data that promote transparency in the markets for healthcare and medical insurance. The government is offering incentive payments for healthcare providers to use EMRs and has taken necessary actions to liberate data from agencies, like Centers for Medicare and Medicaid Services, the Food and Drug Administration, and Centers for Disease Control.
Similarly, strategic initiatives by key market players and the government initiatives undertaken in various other countries, such as Mexico and Canada, that have the potential to help patients by improving the quality of healthcare are driving the healthcare analytics market. For instance, in 2020, Hoffmann-La Roche Limited (Roche Canada) launched the Roche Data Science Coalition to develop solutions to overcome the challenges of the COVID-19 pandemic in Canada. The coalition developed a centralized location with more than 200 curated publicly available population datasets gathered from sources across the world to enhance COVID-19 research. Healthcare organizations also realize that social determinants of health contribute to the wellbeing of a patient more than medical issues. Thus, the regional market is likely to grow at faster pace.
A number of providers of healthcare analytics are increasingly focused on offering scalable solutions that can adapt to advancements in technology, as well as human expertise and skills in healthcare organizations. Key players are adopting various market strategies to enhance their market presence, which has led to many recent developments.