Healthcare Analytics Market to Triple By 2020
The global market for healthcare analytics is projected to nearly triple in value over the next five years, growing from $5.7 billion in 2015 to $16.9 billion in 2020.
That’s a compound annual growth rate of 24 percent, according to BCC Research. The Wellesley, Mass.-based publisher of technology market research sees healthcare organizations rapidly adopting analytics systems during the forecast period to improve both business operations and clinical care. Business analytics—the largest segment with 70 percent of the overall market—is estimated to almost triple in value from $4 billion in 2015 to $11.7 billion in 2020.
At the same time, with the growing use of predictive analytics, BCC Research analyst Neha Maliwal believes the clinical analytics segment—projected to demonstrate the highest compound annual growth rate at 24.8 percent—should be a key market driver.
“Predictive analytics is an area which has not been explored to its full capacity in healthcare and going ahead it is expected to reduce healthcare costs multi-folds,” says Maliwal, who adds that “there are many factors driving the market ahead including technological advances, federal law mandates, improved healthcare outcomes and rising healthcare costs.”
According to Maliwal, the use of health IT by providers has increased exponentially over the past several years fueling the dramatic growth in analytics, which uses historical data to model future trends, evaluate decisions and measure performance to improve business processes and outcomes. “Healthcare analytics is a sub market of healthcare IT, and to derive any actionable outputs there has to be healthcare analytics systems supplementing healthcare IT,” says Maliwal.
Aging populations with increasing chronic conditions are helping to drive healthcare organizations to adopt analytics as are government regulations, especially in the United States, as well as the adoption of interoperability and standards.