Healthcare Predictive Analytics Market Size By Component (Software and Services), By Deployment (Cloud-based and On-Premises), Application (Clinical Data Analytics, Financial Data Analytics, Administrative Data Analytics, Research Data Analytics, & Others), End-User (Payer, Provider and Payvider), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2032

Market Perspective

Healthcare Predictive Analytics Market size was worth around USD 8.57 billion in 2022 and is predicted to grow to around USD 54.87 billion by 2032, with a compound annual growth rate of roughly 20.4% between 2023 and 2032.

Predictive analytics refers to the combination of analysis of current and historical healthcare data sources to convert data into knowledge and accelerate the discovery and optimization of drug leads to find patterns and trends that may predict future events including emergency care, surgery, and intensive care.

Predictive analytics can be used to forecast certain specific health conditions, clinical choice options, trends, and even disease spread. Predictive modeling in healthcare and prospective payment systems can assist organizations in identifying patients with a higher risk of developing chronic conditions and enabling patients to avoid costly and difficult-to-treat medical conditions. Healthcare delivery is evolving into a model in which predictive analytics are used to analyze a combination of disease data and patient data to provide additional information to doctors and patients.

The benefits of predictive analytics in healthcare are primarily witnessed in clinical care, office work, and operational administration. The technology is already providing benefits in a range of healthcare contexts, including the largest hospitals, insurance firms, and small private physician practices. Additionally, it is anticipated that the use of predictive analytics in the healthcare sector will increase.

Key Insights

• Based on the component, the software segment held the largest market share in 2022
• Based on deployment, the cloud-based segment dominated the market in 2022
• Based on application, the financial data analytics segment is expected to register the largest share during the forecast period
• Based on end-user, the payer segment dominated the market share in 2022
• based on region, Asia Pacific accounted largest market share in 2022

Implementation of AI & ML in Analytics Solutions is a Vital Trend

Advanced technologies like machine learning and AI help with data collection and analysis effectively and accurately. These cutting-edge technologies are being adopted by numerous businesses in the healthcare predictive analytics market to collect and analyze data.  Therefore, incorporating technologies into predictive analytics tools helps to fuel the demand for the tools. Moreover, the use of evidence-based medicine is a potent instrument for reducing treatment variation and unforeseen expenses. The use of the most current, best evidence in making choices about the treatment of specific patients is known as evidence-based medicine (EBM). This combines the best accessible study data with clinical experience, patient values, and other factors.

Increasing Adoption of Electronic Health Records (EHR) in Developing Countries is augmenting the Market Growth

The increasing use of electronic health records is a key factor driving the healthcare analytics industry. Electronic health records (EHRs) are being adopted by healthcare groups and providers at an increasing rate using the data to currently hold for improved patient care and reduce costs. To manage and store a lot of data and offer access to many stakeholders, EHRs are crucial tools for healthcare providers.

Increased customers use EHRs, and the quantity of data that can be analyzed grows exponentially, necessitating the use of analytics tools to interpret the data. Predictive analytics in healthcare can keep patients engaged with other aspects of care as well as helping with chronic disease management techniques and targeting therapies to create better results.

Recent Development

December 2022- Health Catalyst made a strategic contract with Carle Health to further advance Carle’s innovative analytics capabilities system-wide by supporting improved patient outcomes and organizational decisions.

January 2022- IBM Corporation signed an agreement with Francisco Partners which will acquire analytics assets and healthcare data from IBM including MarketScan, Health Insights, Social Program Management, Clinical Development, imaging software, and Micromedex.

Segmentation Analysis

By component, the market is categorized into software and services. The software held the largest market share owing to the increase in new product launches as well as a rise in the use of predictive analytics tools to forecast seasonal disease in developing nations. The market for healthcare analytics is growing as a result of the rise in government efforts to promote the adoption of electronic health records (EHRs) by healthcare organizations as well as the increased use of big data in healthcare organizations. In addition, the pressure on healthcare organizations to cut back on unnecessary spending helps the industry grow.

Based on deployment, the market is divided into cloud-based and on-premises. The cloud-based segment is expected to dominate the market owing to the widespread usage of augmented analytics in the healthcare sector and the use of cloud-based analytics across a range of healthcare providers is anticipated to propel the market growth. Healthcare providers and patients can now access information from anywhere through cloud-based solutions, which also help implement valuable IT infrastructure quickly and efficiently.

By application, the market is categorized into clinical data analytics, financial data analytics, administrative data analytics, research data analytics, & others. Financial data analytics held the largest market share owing to the rise in financial frauds in the healthcare sector and the rising demand for financial analytics solutions in healthcare facilities will fuel market growth. Financial applications in the healthcare industry include claim fraud reduction, revenue cycle management, and risk evaluation. Every year, fraudulent claims cost the company billions of dollars.

Both public and government-funded organizations, as well as private companies, can benefit from this kind of tool. Because of the finance industry's use of predictive analysis, the market has grown. Population health management is another application that has gained traction. Through community health management, which is made possible by the production of vast amounts of patient data through telehealth, other online platforms, and connected devices, it is possible to identify populations that need appropriate medical care.

Based on the end-user, the market is divided into payer, provider, and provider. The payer segment is expected to dominate the market owing to the wide adoption across the hospitals and focus to become more consumer-centric. For instance, in 2020, according to the survey of the Society of Actuaries, payers believe that more than 25% of savings can be achieved by using predictive analytics tools on costs during the forecasted period.

Regional Landscape

North America is the Dominating Region Owing to the Increased Adoption of Customized Medicine

North America region is the dominating region owing to the rising adoption of customized medicine and the presence of major players. The established framework for the healthcare and the qualified staff for conducting predictive analysis, as well as the paying capacity in terms of teaching staff to use these analytics tools, have all contributed to the market's development.

Asia Pacific is Expected to Growth at the Fastest Rate Owing to the Improved Healthcare Infrastructure

Asia Pacific market is expected to grow at the fastest rate owing to increased chronic disease cases and improved healthcare infrastructure have resulted in the rapid adoption of healthcare predictive analytics to reduce rising healthcare costs and improve the outcomes of treatments provided to patients. This factor also contributes to market expansion in the Asia Pacific region.

Competitive Landscape

• Apixio
• Cigna
• ExlService Holdings, Inc.
• Health Catalyst
• IBM Corporation
• Intel Corporation
• McKesson Corporation
• MedeAnalytics, Inc.
• Optum, Inc
• Oracle
• SAS Institute Inc.
• Veradigm LLC

The global healthcare predictive analytics market is segmented as:

By Component

• Software
• Services

By Deployment

• Cloud-based
• On-Premises

By Application

• Clinical Data Analytics
• Financial Data Analytics
• Administrative Data Analytics
• Research Data Analytics
• Others

By End-User

• Payer
• Provider
• Payvider

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America