An intensely segmented and competitive healthcare analytics market will welcome forecasts of burgeoning growth in coming years. Currently, IBM, SAS, Optum, Truven, Cerner, McKesson, and Oracle stand as some of the established players in this marketplace. However, as the breadth of this market expands, many emerging actors are expected to make an impact, as can be seen by the robustness of healthcare analytics in the start-up realm.
According to a new market research report published by MarketsandMarkets, the healthcare analytics market is predicted to reach around 18.7 Billion USD by 2020 at a rate of growth of around 26.5% from 2015 to 2020. Although this is a huge rate of growth, we can account for it in a few ways. Importantly, such rapid, expansive growth will indubitably imply high-potential market opportunities for innovators, developers, distributors, end-users, and many others.
So how do we understand this prospective explosion in analytics, particularly in the healthcare industry?
Recent federal requirements including the implementation of electronic health records (EHR) in a number of healthcare capacities and ICD-10 code regulations (which have brought about a change in the way that clinical classification of morbidity is conducted) are a few of the forces that are encouraging an expectation of sweeping and sustained growth in this industry.
Other factors, including increased pressure to reduce healthcare costs, incentives for Meaningful Use (implementation of EHR tech), developments and increased pervasiveness of big data analytics in the healthcare sector, and increased attention from venture capital investments are critical reasons for the anticipated market growth as well.
Overall, in its current state it seems that healthcare may be just a step or two behind the pace of technological and particularly data-driven analytical innovation. Understandably so, as broadly applicable health solutions tend to be bureaucratically bridled and dependent on federal or state regulation at a number of levels.
To note the factors that could slow up this growth, we have discussed an increasing demand in data scientists and analytically proficient professionals which has not yet been met by a corresponding supply. Adding to the cost of already dearly priced advanced analytics solutions, these current yet surpassable market limitations have the potential to restrict this boom.
All signals point towards a booming healthcare analytics market in the years to come, especially due to the currently low rates of analytics adoption and buy-in. Apparently on the precipice of stunning growth, expect to see a domino effect in the employment of healthcare analytics once public and private sectors fully buy into the time-, cost-, and life-saving insights that healthcare analytics purport to offer.