IT Spending on Clinical Analytics: Global Snapshot
Over the past few decades, there has been a significant transition in the healthcare industry. It has witnessed tremendous growth due to the high demand of value-based care for population health in all parts of the globe and has transformed from a manually-operated sector to a digitally managed one. This synchronization of digital and physical worlds has started generating mammoth volumes of patient data, proper analysis of which can lead to bountiful benefits such as reduction in the numbers of patient readmission in hospitals and improved clinical outcomes, to name a few. Vast improvements in financial and clinical decision support management are also made possible by critical analysis of data generated by healthcare systems.
A greater understanding of these factors, coupled with the rising adoption of digital data management tools in healthcare settings is leading to a vast rise in expenditure on clinical analytics systems and solutions. Transparency Market Research (TMR) estimates that the global IT spending on clinical analytics will rise manifolds in the years to come. According to this report by TMR, IT spending on clinical analytics across the globe valued at US$11,650 mn in 2015. Expanding at a remarkable 12.3% CAGR over the period between 2016 and 2024, this is projected to reach US$32,422 mn by 2024.
Integrated Systems to Dominate Thanks to Flexibility and Capability to Sync with Other Systems
In the report, the IT spending on clinical analytics is segmented on the basis of platform into stand-alone and integrated. Of these, the segment of integrated clinical analytics solutions acquired the dominant chunk of revenues of the global market in 2015 and is expected to maintain dominance over the forecast period as well.
The integrated clinical analytics segment is also expected to exhibit a higher CAGR of 13.1% compared to the segment of stand-alone clinical analytics solutions, which is expected to expand at an 11.0% CAGR, over the period between 2016 and 2024. Of the overall global spending on clinical analytics solutions, spending on integrated solutions is expected to account for a 63% of the global market by 2024.
Integrated clinical analytics solutions observe higher demand owing to their highly dynamic nature and ability to extract data from clinical documents synched with the system, such as (electronic health records) EHR, utilizing the data to generate key insights. The relatively lower level of competency of stand-alone systems in terms of ability to integrate well with other data processing or managing systems will lead to their relatively lower adoption on a global front.
Digitization of Healthcare Infrastructure to Keep North America Ahead in Clinical Analytics Spending
In terms of geography, the market is dominated by North America and the region will continue to constitute the bulk of share in the global market by the end of the forecast period as well. The region leads in terms of IT spending on clinical analytics owing chiefly to the technologically advanced healthcare infrastructure, favorable government policies, and increased incentives. The IT spending on clinical analytics in North America is estimated to be valued at US$5,349 mn by the end of 2016 and is expected to expand at a CAGR of 10.8% to reach US$12,110 mn by 2024.
However, North America is expected to lose to Asia Pacific in terms of rate of growth over the forecast period; IT spending on clinical analytics in Asia Pacific is expected to expand at a remarkable 16.9% by 2024. The region will see the adoption of clinical analytics at such a rapid pace owing to vast technological advancements, enhancement and rapid digitization of healthcare infrastructure, and increased adoption big data and analytics in healthcare. Japan is a highly attractive market in the region, followed by China and India. Other APAC countries are also expected to emerge as highly promising markets for clinical analytics in the next few years owing to similar factors.
Some of the key players in clinical analytics are McKesson Corporation, Cerner Corporation, IBM Corporation, Optum, Inc., Allscripts Healthcare Solutions, Inc., Oracle Financial Services Software Limited, CareCloud Corporation, Medical Information Technology, Inc., Hewlett-Packard Enterprise Development LP and ArborMetrix, Inc.
Global IT Spending on Clinical Analytics Market: Scope of the Report
This report provides forecast and analysis of the IT Spending on Clinical Analytics on the global and regional levels. It provides historical data of 2015 along with forecast from 2016 to 2024 in terms of revenue (US$ Bn). The report also includes macroeconomic indicators along with an outlook for clinical analytics revenue annually. It includes drivers and restraints of clinical analytics and their impact on each region during the forecast period. The report also comprises the study of applications and opportunities for clinical analytics solutions and services vendors. It also includes detailed analysis by platform, deployment, solution, end users and the workflow process.
In order to provide users of this report with a comprehensive view of the clinical analytics landscape, we have included a detailed competitiveness analysis and company players with unique propositions. The dashboard provides a detailed comparison of clinical analytics solution & services vendors on parameters such as revenue sales, ranking of global players, strategic consolidations, i.e. mergers & acquisitions, licensing activities, and R&D activities. The study encompasses market attractiveness analysis, by platform, solution, deployment, end-user and region.
The report includes the revenue generated from sales of clinical analytics solutions in all regions and important countries in these regions.
IT Spending on Clinical Analytics Market: Segmentation
By platform, the IT spending on clinical analytics has been segmented into stand-alone and integrated platforms. By solution, the IT spending on clinical analytics is segmented into in-house and outsource, we have three sub-segments for in-house solutions which are hardware, software, and services. On the basis of deployment, the IT spending on clinical analytics is segmented into cloud-based and on-premise. While the end-user segment is segmented into payers and providers, the report lays its emphasis into insurance companies, government, and others for payers while it covers the hospitals and clinics sub-segments for providers. Furthermore, the regional segment is sub-segmented into North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa.
IT Spending on Clinical Analytics Market: Research Methodology
Market numbers have been estimated based on the annual global and regional sales of key companies and local players, and the revenue is derived from regional pricing trends. IT spending and forecasts for each segment have been provided in the context of global and regional markets. The IT spending on clinical analytics has been analyzed based on expected demand. Prices considered for the calculation of revenue are regional average prices obtained through primary quotes from numerous regional clinical analytics solutions vendors, suppliers, and system integrators. All key end users have been considered, and potential applications have been estimated on the basis of secondary sources and feedback from primary respondents. Regional demand patterns have been considered while estimating the spending on various solutions marketed in different regions. Top-down approach has been used to estimate the IT spending on clinical analytics by regions. Market numbers for platforms, deployment, solution, end-user and regional segments have been derived using the bottom-up approach, which is cumulative of each region’s demand. The company-level market share has been derived on the basis of revenues reported by key vendors. The market has been forecast based on constant currency rates.
A number of primary and secondary sources were consulted during the course of the study. Secondary sources include Factiva, World Bank, NCBI, Springer Journals, Google Books, society publications, HIMSS, and company annual reports and publications.
IT Spending on Clinical Analytics Market: Competitive Dynamics
The report provides detailed competitive and company profiles of some of the key participants operating in the global market. Key players in clinical analytics include McKesson Corporation, Cerner Corporation, IBM Corporation, Optum, Inc., Allscripts Healthcare Solutions, Inc., Oracle Financial Services Software Limited, CareCloud Corporation, Medical Information Technology, Inc., Hewlett-Packard Enterprise Development LP and ArborMetrix, Inc.
The market has been segmented as below:
IT Spending on Clinical Analytics – By Platform
IT Spending on Clinical Analytics – By End User
- Insurance Companies
IT Spending on Clinical Analytics – By Solution
IT Spending on Clinical Analytics – By Deployment
IT Spending on Clinical Analytics – By Region
- North America
- Latin America
- Rest of Latin America
- Rest of Europe
- Asia Pacific (APAC)
- New Zealand
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- Saudi Arabia
- Rest of MEA