The global healthcare analytics market, which is currently estimated at USD 4,430.9 Mn in 2013, is expected to reach USD 21,346.4 million by 2020, according to a recent market report published by Market and Markets. This marks a compound annual growth rate of approximately 25.2% from 2013 to 2020.
The report analyzes and studies the major market drivers, restraints, and opportunities in the U.S., Europe, Asia, and the Rest of the World.
Based on geography, USA currently dominates the sector, followed by the European and Asian market. Major players in this industry include market leaders such as IBM, Oracle, Truven Health Analytics Inc., iHealth Analytics Inc., Predilytics, and Cerner Corporation, among others.
Factors supporting the growth
As per the analysis, a large part of the double-digit growth rate of the global healthcare analytics market can be attributed to growing trends like digitization of world commerce, the emergence of Big Data, and the increase in the number of advanced technologies. This growth is further fueled by factors such as growing healthcare IT adoption across the globe, growing fields of predictive and prescriptive analytics, and venture capital investments.
What this growth means?
The growth of analytics solutions in healthcare segment will mean increased efficiency of standard administrative procedures like billing and patient registration and reduced operational costs which in turn will make healthcare more affordable for the masses. Further, gathering and processing huge volumes of health related data can help doctors and health officials make better diagnoses, predict and even prevent disease outbreaks before the symptoms become clinically apparent.
Factors such as data security issues, patient data confidentiality, cultural barriers to IT adoption, and lack of manpower with cross-functional analytical skills may hinder the growth of this market.
Key players and industry size: India
The healthcare industry in India is largely predicted to grow to USD 120 Bn by 2015. Going by the global trend, data analytics and channelizing big data in healthcare will also gain traction in India.
Already there are a few initiatives in the country to this end, including a healthcare analytics app called the KGB, developed by the Public Health Foundation of India. The app uses pictures posted by people on social networks of unsanitary conditions like overflowing garbage or gutters, and channelizes this data to predict possible outbreaks of infections in particular neighborhoods and what can be done to prevent them.
The Aarogyasri Health Care Trust is another such initiative by the Government of India to offer health insurance schemes to Below Poverty Line families. They have partnered with SAS to leverage the claims, financial and clinical data they collect and to improve lead times, prevent fraud, recognize disease trends and forecast budgets and funds needed.
As governments across the globe are also adopting strict regulations and undertaking initiatives to reduce healthcare costs, analytics is a tool that allows healthcare systems achieve this aim along with remaining competitive in today’s market. As of 2013, descriptive analytics holds a major market share. However, predictive analytics and prescriptive analytics are the highest growing areas during the forecast period.
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