Healthcare analytics market to grow 24% by 2020

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 - Medical Money

Healthcare is in the midst of an "information revolution," with healthcare organizations rapidly adopting information analytics systems to improve both business operations and clinical care. The market for healthcare analytics is estimated to reach $5.7 billion and $16.9 billion in 2020, according to BCC Research.

Those increases represent a five-year compound annual growth rate (CAGR) of 24 percent. The clinical analytics segment should demonstrate the highest CAGR at 24.8 percent. With the growing use of predictive analytics, clinical analytics should be a key market driver. Business analytics, the largest segment with 70 percent of the overall market, is forecast to almost triple in value from $4 billion in 2015 to $11.7 billion in 2020.

The growing use of IT in healthcare is supported by government regulations, decreasing costs of acquisition and storage of structured and unstructured health data and the adoption of interoperability and standards across healthcare organizations.

The growth of aging populations, increasing chronic conditions and rising awareness about healthcare also is driving the demand for consumer-driven healthcare services, according to the firm. These trends are generating demand for healthcare analytic tools.

"Payer-provider convergence and rising healthcare costs along with the other market drivers are creating many opportunities that are boosting the healthcare analytics market," said BCC Research analyst Neha Maliwal. "These factors include EHRs increasing data volumes, the rising importance of value-based medicine due to peer pressure, health information exchange, easy to handle big data, emergency care and preventive care, time and cost savings, data clarity and transparency and  fraud detection."