Published: Nov, 2016
Globally, the clinical analytics market is fragmented and features the presence of local and established players. In emerging economies such as Asia-Pacific, Latin America, and the Middle East & Africa, the market is comparatively new and is expected to be driven by various technology initiatives and outsourcing of solutions. The huge scope of exploiting the vast untapped opportunities in these regions could lead to the entry of many new as well as globally established firms.
An ongoing trend in the market is strategic mergers and acquisitions, with most players looking to expand globally along with portfolio expansion by co-development activities and increased marketing deals. Recent instances include the February 2015 acquisition of Siemens Health Services’ assets, client relationships, and associates by Cerner Corporation. In August 2016, HPE signed an agreement to acquire SGI, a leader in data analytics and data management for US$ 275 mn. The acquisition added an employee strength of 1,100 to the company and helped increase product offerings.
Transparency Market Research estimates that the global IT spending on clinical analytics will expand at a 12.3% CAGR over the period between 2016 and 2024. Expanding at this rate, the IT spending on clinical analytics across the globe is projected to reach US$32,422 mn by 2024 from US$11,650 mn in 2015.
Integrated Systems to Continue to Embark upon Impressive Growth Path
In terms of geography, North America presently leads in terms of annual IT spending on clinical analytics and is expected to account for a significant share of the global IT spending on clinical analytics over the forecast period as well. In terms of platform, the segment of integrated clinical analytical solutions leads, owing to its flexibility and capability syncing with other data processing systems, accounting for over 60% of the overall market in 2015.
Generation of Highly Refined Data in Short Spans Encourages Adoption of Clinical Analytics Tools
Of the key factors driving the rate of IT spending on clinical analytics, the capability of clinical analytics tools and systems of generating highly refined data in short spans of time and the promise of improved clinical outcomes and a significant reduction in hospital readmission rates with effective clinical analytics tools in place need special mention. The massive amount of data generated by digital healthcare operations management systems during patient visits, health systems, federal and private payers can be used by clinical analytics platforms to derive meaningful insights.
Over the years, healthcare practitioners have observed the real-term benefits of these insights on the rate of reduction of patient readmissions and improved outcomes by being able to choose a proper course of treatment based on the way patients have responded to a standard therapy previously. These factors will continue to drive the demand and global adoption of clinical analytics solutions and tools, thereby leading to a vast rise in IT spending on them.
Issues Related to Lack of Standardized Data to Hinder Market Growth
Owing to the vast variety of sources that contribute to the data generally contained by a typical digitized healthcare system, the data lacks reliability in terms of standardization, structure, and is also incomplete at times. The complexity tend to arise during the analysis of such data is one of the key challenges faced by clinical analytics systems. Along with the lack of content harmonization, difficulties in proper analysis of healthcare data owing to its vast volume, which continues to exponentially rise on an annual basis, is also a key challenge faced by the global clinical analytics market.
This review of the market is based on a recent market research report titled “IT Spending on Clinical Analytics Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
For the study, the market has been segmented as follows:
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