The healthcare analytics market is expected to reach USD 24.55 Billion by 2021 from USD 7.39 Billion in 2016, at a CAGR of 27.1% from 2016 to 2021.
The market is mainly driven by factors such as increasing government initiatives to enhance EHR adoption, rising pressure to curb healthcare spending and need for improved patient outcomes, availability of big data in healthcare, rise in venture capital investments, and technological advancements.
Based on type, the market is segmented into descriptive, predictive and prescriptive analytics. The descriptive analytics segment is expected to account for the largest market share in 2016. This can be attributed to the significant usage of descriptive analytics by healthcare providers to gain a better understanding of the past trends and event occurring in real-time.
The clinical analytics segment is expected to grow at the highest CAGR during the forecast period. The high growth of this segment is attributed to the growing adoption of analytics by the healthcare providers due to the rising pressure to curb healthcare costs, and rising focus on personalized medicine-based analytics.
The services segment is expected to grow at the highest CAGR during the forecast period due to increasing need for business analytics services and the introduction of technologically advanced healthcare analytics software, which requires extensive training to use as well as regular upgradation.
The on-demand segment is expected to grow at highest CAGR due to rise in demand for self-driven analytics, lack of upfront capital investments for hardware, extreme capacity flexibility, and the pay-as-you-go pricing of this model.
Increasing Government Initiatives to Increase Ehr Adoption
Rise in Venture Capital Investments
Growing Pressure to Curb Healthcare Spending, and the Need for Improved Patient Outcomes
Availability of Big Data in Healthcare
Dearth of Skilled Personnel
High Cost of Analytics Solutions
Operational Gaps Between Payers and Providers
Increasing Focus on Value-Based Medicine
Use of Analytics in Precision and Personalized Medicine
Increasing Number of Patient Registries
Emergence of Social Media and Its Impact on the Healthcare Industry
Patient Data Confidentiality
Concerns Regarding Inaccurate and Inconsistent Data
Reluctance to Adopt Healthcare Analytics in Emerging Countries