Healthcare Predictive Analytics Market Worth $67.25 Billion by 2030

Healthcare Predictive Analytics Industry Overview

The global healthcare predictive analytics market size was valued at USD 9.3 billion in 2021 and is expected to grow at a compounded annual growth rate (CAGR) of 24.5% from 2022 to 2030. The rise in demand for advanced analytics systems in the industry to improve patient outcomes as well as for reducing costs has been a major driver of the market. The need for containment of rising healthcare costs without compromising on the quality of care provided has also been a key factor in the growth of predictive analytics. Another factor contributing to the growth is the rise in personalized medicine, which has not only proven to be better for the patient but also reduces the costs of unnecessary treatments, thereby giving the best outcomes.

There has been a noticeable increase in healthcare spending across all countries. In the U.S., the National Health Expenditure for 2020 was USD 4.1 trillion, amounting to 19.7% of the nation’s GDP. Japan’s healthcare expenditure has also increased from 7% in 2000 to 10.7% of GDP in 2019. The increasing expenditures are currently aimed at making the health systems of the countries more robust, thereby increasing the efficiency of the industry. The adoption of predictive analytics solutions can be instrumental in significantly reducing the cost of healthcare procedures. The predictive analysis combined with personalized medicine can not only result in a reduction of unnecessary medical costs but also give better patient outcomes and results.

Gather more insights about the market drivers, restraints, and growth of the Global Healthcare Predictive Analytics market

Another key factor driving the growth of the market is the adoption of evidence-based medicine to deliver the right kind of care to the right patient. The use of Electronic Health Records (EHRs) for patient data has risen in recent years, in the U.S., the adoption of EHRs in the case of office-based physicians rose from 42% in 2008 to nearly 86% in 2017. Healthcare predictive analytics uses EHRs to provide the best possible course of action in case of any medical procedure or medication. This not only reduces the costs for patients significantly but also results in better outcomes. The use of electronic health systems along with analytics tools and AI are poised to propel the growth of the market. Healthcare costs have risen over the years owing to the increasing burden of chronic diseases on a global level.

The COVID-19 pandemic resulted in massive costs for the industry. Predictive analytics has played a major role in combating issues related to COVID-19, reducing the number of poor outcomes for patients, and addressing the management of resources during the crisis. The enormous amount of patient data generated during the pandemic not only provided analytics companies and the healthcare industry with data to correctly analyze the spread of disease but also helped in the correct allocation of resources. Various institutions, as well as hospitals, used predictive analytics to access the likelihood of the patient developing serious symptoms, their infection/disease trajectory along with several other parameters. In 2020, in Cleveland Clinic, USA, researchers worked on a predictive analytics model that determined an individual’s likelihood of testing positive for COVID-19 along with the outcomes from it.

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Healthcare Predictive Analytics Market Segmentation

Grand View Research has segmented the global healthcare predictive analytics market on the basis of application, end-use, and region:

Healthcare Predictive Analytics Application Outlook (Revenue, USD Million, 2016 - 2030)

• Operations Management
• Financial
• Population Health
• Clinical

Healthcare Predictive Analytics End-use Outlook (Revenue, USD Million, 2016 - 2030)

• Payers
• Providers
• Other End-user

Healthcare Predictive Analytics Regional Outlook (Revenue, USD Million, 2016 - 2030)

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)

Market Share Insights

June 2018: MedeAnalytics announced its partnership with HealthEdge with an aim to enable payers to lower costs, reduce gaps in care, enhance broker & employer plan engagement, improve quality outcomes, and increase member satisfaction by leveraging each company’s complementary capabilities.

Key Companies profiled:

Some of the prominent players in the global Healthcare Predictive Analytics market include:

• IBM
• Cerner Corp.
• Verisk Analytics, Inc.
• McKesson Corp.
• SAS
• Oracle
• Allscripts
• Optum, Inc.
• MedeAnalytics, Inc.

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