Europe Healthcare Analytics Industry
The Europe healthcare analytics market size was valued at USD 9.8 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 22.01% from 2024 to 2030. Key factors determining the growth are increasing geriatric population, disposable income, prevalence of chronic diseases, demand for treatments, and a stagnant or declining trained healthcare workforce. Rapidly growing adoption of Electronic Health Records (EHR) and other healthcare information and management systems is expected to further enhance the growth of the market.
According a PWC report named, Sherlock in Health discovered that the usage of analytics and AI in healthcare in the early detection of diseases can help save around USD 84.9 billion in healthcare costs in Europe over the coming decade. The country’s senior population has significantly increased, and hence it is highly susceptible to various diseases. Hence, change in lifestyle and demographics demands new standards for healthcare facilities and services. Some of the other factors anticipated to boost European healthcare costs are growing number of claims pertaining to non-communicable diseases, prioritizing wellness in workplace, and growing focus on wellness among adults and geriatric population. Growing healthcare costs are boosting the demand for healthcare analytics to streamline third-party processes and optimize the overall cost.
The healthcare sector in Europe is under pressure due to several major challenges that are affecting the industry's sustainability. In addition, structural inefficiencies in certain European countries are a problem for this industry. The shift to value-based healthcare will continue to increase demand for improved patient outcomes at more affordable prices. Incorporating analytics into novel medical innovations might address pressing problems in healthcare. According to data obtained from the Centre for the Promotion of Imports (CPI), rising healthcare costs are currently placing a significant financial burden on several European countries.
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Numerous government programs are being implemented to support technical development and offer top-notch healthcare services, which will likely propel the market. For instance, the European Commission's Digital Single Market Strategy facilitates access to Internet services and goods in Europe for businesses and consumers. As a result, more people are utilizing digital networks and services. According to the European Federation of Pharmaceutical Industries and Associations, Spain exported pharmaceutical goods valued at USD 13.7 billion. Hence, the demand for analytics and advanced computing in the pharmaceuticals space is increasing, which, is contributing to market growth.
Component Insights
The healthcare analytics software market held the largest revenue share of 42% in 2023 as it can perform critical functions such as data capture, storage, interpretation, and analysis. Periodic software upgrades are necessary to be in sync with latest analytics methods. For instance, NVIDIA CLARA is a combination of software and hardware that brings advanced data analytics to medical imaging systems for advanced diagnosis, detection, & treatment of diseases. IBM, Oracle, and SAS are the key software vendors in the industry. Increasing adoption of software solutions such as data mining, clinical decision support systems, and clinical trial management systems is further expected to propel market demand.
The healthcare analytics services market is expected to witness the fastest CAGR over the forecast period. The services market is anticipated to grow at a lucrative rate as there is a prevailing trend of outsourcing healthcare services. Companies may lack the resources and skillsets required for the deployment of analytics. Therefore, these services are outsourced. Outsourcing can be short-term project-based or long-term contracts. These services are offered in packages that include compliance on promotional spending, social media analytics, manufacturing process, preventive maintenance, predictive analytics for medical device failure, and benchmarking services.
Key Europe Healthcare Analytics Company Insights
European healthcare analytics companies are undertaking rapid technological advancements to understand better data derived from patient information, and massive investments are two significant strategies being adopted by key market players like IBM, Wipro, and others. Several more strategies like acquisitions, mergers, product launches, and understanding the level of spread and containment of disease to deliver better care solutions to healthcare providers and institutions are also being adopted. Using big data analytics and AI has also given rise to new platforms to better understand and analyze data.
Key Europe Healthcare Analytics Companies:
- IBM Pvt Ltd.
- Wipro Ltd.
- Allscripts Healthcare, LLC
- Cerner Corporation
- McKesson Corporation
- Oracle
- SAS Institute, Inc.
- Lumiata
- Flatiron
- Health Catalyst
Recent Developments
- In December 2023, BC Platforms announced the acquisition of Medexprim. This acquisition is part of BC Platforms' strategic vision to become a global leader in RWD, at the nexus of sensitive healthcare data and life science advancements that are driving next-generation drug development
- In October 2023, Oracle Health announced the launch of a new Health Support Hub in Barcelona to better serve the needs of its European customers by modernizing their healthcare systems to improve patient outcomes and care. It will feature a team of more than 60 service representatives and professionals
- In February 2022, symplr announced the acquisition of Midas Health Analytics Solutions from Conduent Incorporated to strengthen its best-in-class SaaS-based GRC portfolio for the customers to experience efficient and better-serving healthcare system
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