HEALTHCARE BUSINESS INTELLIGENCE (BI) MARKET

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1 HEALTHCARE BUSINESS INTELLIGENCE (BI) MARKET By Function (Reporting, OLAP, Monitoring), Application (Clinical & Financial), Technology (Traditional, Cloud, Mobile), End User (Hospitals, Clinics, ACO, HIE, Payers) MarketsandMarkets

2 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. MarketsandMarkets Sample Page 2

3 1 PREMIUM INSIGHTS 1.1 MARKET DYNAMICS FIGURE 1 MARKET DYNAMICS Drivers Rising Demand for Reduction in Healthcare Costs Federal Healthcare Mandates Rise in Data Availability Need to Improve Medical Outcomes & Enhance Patient Satisfaction Increasing Need for Regulatory Compliance & Reporting Evidence-based Medicine (EBM) Growing need for Mobile BI Cloud-based Solutions Global Healthcare Business Intelligence (BI) Market Restraints Lack of Resources with Cross-functional Skills Complexity of IT Systems Lack of Flexibility Data Privacy & Security Data Complexity Opportunities Challenges MarketsandMarkets Sample Page 3

4 1.2 MARKET SNAPSHOT FIGURE 2 MARKET SNAPSHOT Market Size ($Million) Function Application Technology End User Geography OLAP & Visualization Tools Performance Management/ Monitoring Alerts Query and Reporting Operational Performance & Cost Management Clinical Financial Analysis Traditional BI Cloud BI Mobile BI Providers Payers North America Europe Asia RoW MarketsandMarkets Sample Page 4

5 2 MARKET OVERVIEW 2.1 MARKET DYNAMICS The healthcare BI market is expected to grow at a healthy CAGR throughout the forecasted period. The growth is mainly driven by increasing uptake by the healthcare providers for better clinical outcomes, better efficiency and management, federal healthcare mandates, easy decision support, and regulatory compliance. However, pivotal factors restraining the growth of this market are the cultural barriers towards HCIT adoption by the medical community, lack of resources with cross-functional skills, and complexity of IT systems DRIVERS Rising demand for reduction in healthcare costs to drive the market growth Today, healthcare organizations across the globe are facing a major challenge to combat with the rising healthcare costs. With expenditure of over $ per person in 2012, the U.S. leads in the world of healthcare expenditures. According to Centers for Medicare and Medicaid Services, National Health Expenditures Projections , U.S. Healthcare spending is estimated to reach up to $ trillion by 2021 (accounting for nearly % of the nation s gross domestic product (GDP)), from $ trillion in Rising healthcare costs are attributed to inflation, broader network and provider consolidation, more expensive technologies, new treatments, aging, cost shifting from public providers and uninsured to private payers, intensive diagnostic services, and lifestyle choice. Thus, to minimize the healthcare cost, BI is in great demand by the healthcare organizations. BI tools provide healthcare executives with insights to identify operational gaps, disease patterns, and cost-effective treatment alternatives. This helps them to take corrective action at the right time thereby preventing wasteful spending. Thus, in order to create greater transparency, ensure accountability into the complete scope of financial operations, and achieve cost efficiencies in this competitive environment, healthcare organizations are turning towards BI solutions thereby driving the market growth. MarketsandMarkets Sample Page 5

6 3 GLOBAL HEALTHCARE BUSINESS INTELLIGENCE (BI) MARKET, BY FUNCTION 3.1 INTRODUCTION TABLE 1 GLOBAL HEALTHCARE BI MARKET, BY FUNCTION, ($MILLION) Function CAGR % ( ) Query & Reporting tools Performance Management/ Monitoring & alerts OLAP & Visualization tools Total Query and reporting tools commanded the largest share of the global healthcare BI market, by function in It was valued at an estimated $ million in 2013 and is expected to reach $ million by 2018 attributed to capabilities that enable users to easily produce reports without iterative back-and-forth requests with IT. However, the OLAP and visualization tools segment is poised to grow at the highest CAGR of % to reach $ million by This growth is attributed to the technology that enables business users to quickly analyze information that has been summarized into multidimensional views and hierarchies. MarketsandMarkets Sample Page 6

7 4 GLOBAL HEALTHCARE BUSINESS INTELLIGENCE (BI) MARKET, BY APPLICATION 4.1 INTRODUCTION TABLE 2 GLOBAL HEALTHCARE BI MARKET, BY APPLICATION, ($MILLION) Application CAGR % ( ) Financial Analysis Clinical Operational Performance and Cost Management Total Financial analysis accounted for the highest share of % of the healthcare BI market at an estimated $ million in 2013, and is expected to reach $ million by 2018, growing at a CAGR of % from 2013 to However, the clinical segment is poised to grow at the highest CAGR of % to reach $ million by The factors mainly contributing to its growth include federal government reforms such as Meaningful Use program (leading to rise in electronic health record (EHR) adoption and progress in health information exchange (HIE)); need by the healthcare systems to participate in new payment models such as Accountable Care Organizations (ACOs); ICD-10; and pay-for-performance models. MarketsandMarkets Sample Page 7

8 Adoption of BI tools for clinical applications has been relatively low as compared to that for financial analysis. This is mainly attributed to the fact that data generated by the healthcare industry especially for clinical applications is often more voluminous and complex than that generated within other industries, and unwillingness of the physician s to accept the recommendations generated by a database. However, with the healthcare industry shifting to Evidence-Based Medicine (EBM), Pay for Performance (P4P), Diagnosis-Related Groups (DRG), and Consumer-Directed Health Plans (CDHP), technology tools such as BI tools are required to quickly integrate and analyze data across healthcare systems. BI tools enable the healthcare providers in performance benchmarking, building retrospective reports, and multidimensional analysis of healthcare data for effective decision making. MarketsandMarkets Sample Page 8

9 5 GEOGRAPHIC ANALYSIS FIGURE 3 HEALTHCARE BI MARKET, BY GEOGRAPHY ($MILLION) 5, , ,000.0 Market size ($Million) 3, , , , , , % % % % % North America Europe Asia RoW Global CAGR % ( ) CAGR% ( ) BI is a well-established market in North America. However, there is a huge potential for its uptake in the healthcare industry. North America is thus poised to grow at the highest CAGR of % during the forecast period owing to growing adoption of BI systems by the healthcare providers. North America accounted for the largest share % of the global healthcare BI market in 2013, at an estimated $ million. This region is expected to reach $ million by 2018 growing at a CAGR of % from 2013 to Asia ranks second in terms of growth rate, that is, it is poised to show a CAGR of % from 2013 to This growth is mainly attributed to growth in healthcare BI adoption by China, MarketsandMarkets Sample Page 9

10 India, Singapore, Malaysia, among others. The European market is the second-largest market expected to grow at a lowest CAGR mainly due to economic crisis, cultural barriers to IT adoption, and lack of initiatives for implementing BI systems. Countries such as Australia, New Zealand, Middle East, and Africa are expected to drive the RoW market. TABLE 3 NORTH AMERICA: HEALTHCARE BI MARKET, BY TECHNOLOGY, ($MILLION) Technology CAGR % ( ) Traditional BI Cloud BI Mobile BI Total Traditional BI commanded the largest share of the North American Healthcare BI market, by technology in It is estimated to grow from $ million in 2013 to $ million by 2018, at a lowest CAGR of %. This growth is attributed to its ability to make use of the multivendor architecture, and its ability to minimize the risk of data breach and external attacks. However, mobile BI segment is poised to grow at the highest CAGR of % to reach $ million by 2018 due to the increase in number of vendors that provide healthcare compatible mobile device with advanced visualization. MarketsandMarkets Sample Page 10

11 Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets does not endorse any vendor, product or service depicted in its research publications. MarketsandMarkets strategic analysis publications consist of the opinions of MarketsandMarkets' research and should not be construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner. No part of this strategic analysis service may be given, lent, resold or disclosed to noncustomers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. For information regarding permission, contact: Tel: MarketsandMarkets Sample Page 11

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