HCOs, which are facing a challenging landscape, are gaining valuable insights from analytics and artificial intelligence.
In October 2021, marketing research firm Technavio released a promising market report showing a formidable growth trajectory for health care analytics. The market is expected to grow by a whopping $37.39 billion over the next five years, with 39% of that growth occurring in North American markets. According to this report, the compound annual growth rate will be progressing at an annual rate of 21.11%, with an 18.21% growth rate for 2022.
Another report, published by MarketsandMarkets, gives similar numbers. It predicts the market will grow from $21.2 billion in 2021 to $75.1 billion by 2026. With an increase of more than three times over five years, it’s important to understand what’s fueling the fire, both domestically and abroad. For example, the descriptive analytics segment accounts for the largest share of the market, and the second-largest market beyond North America is China, which is rapidly adopting analytics solutions and leveraging the potential of artificial intelligence.
Trends Influencing Growth
Technavio notes that the analytics market is fragmented, and that vendors are deploying varied strategies for growth. The report analyzed several large United States-based companies that maintain significant market share.
Some of the key factors that explain the prediction of rapid growth are:
- Increasing pressure to lower health care spending and improve patient outcomes. Value-based care has been around for quite some time, but as population health moves to the forefront in the pandemic era and HCOs experience lower margins, pressure continues to find data-driven efficiencies.
- Big data is becoming a bigger part of health care analytics. There’s a growing ability to harness insights gained from very large data sets to learn about the current patient population, for example, in genomics, and epidemiology. It can help reveal historical patterns, predict future outcomes, and inform decision-making based on medical evidence.
- Increased adoption of electronic health records (EHRs) worldwide is fueling and enhancing data-sharing capabilities. Developing countries are adopting EHR systems more quickly, partially fueled by the need for disease management in the face of COVID-19. The advent of digital health care in other countries supports data integration and chronic disease management across borders.
According to both reports referenced above, new opportunities over the next five years will cause even more growth momentum.
- As the Medicare population continues to grow, government initiatives will likely add pressure to reduce health care costs even more.
- Big data availability will increase, giving health care analytics firms opportunities for strategic partnerships and innovative solutions to new and existing problems.
- Lucrative partnerships between expanding analytics companies will offer growth opportunities as customers understand the benefits of analytics and increase budgets.
d2i is looking forward to continuing growth in the years ahead, while we continue to support the emergency and hospital medicine fields with unmatched advanced analytics solutions like our Hospital Medicine Performance Analytics. Our clients are staying ahead of the curve with insights that improve patient outcomes and rein in health care costs, and we can show you how. Contact our domain experts or request a demo to get an under-the-hood look at our powerful tools.