Healthcare Predictive Analytics Market Size, Share & Trends Analysis Report By End-use (Payers, Providers), By Application (Clinical, Financial Management), By Region (Europe, North America, Asia Pacific)- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2034

Healthcare Predictive Analytics Market Size and Trends

The healthcare predictive analytics market size was exhibited at USD 18.65 billion in 2024 and is projected to hit around USD 153.94 billion by 2034, growing at a CAGR of 23.5% during the forecast period 2024 to 2034.

Healthcare Predictive Analytics Market Key Takeaways:

• Financial application segment dominated the market in 2024 and accounted for the largest revenue share of 35.5%.
• Population health management segment is expected to grow at the fastest CAGR of 24.4% from 2024 to 2030.
• The healthcare providers segment held the largest market share 40.0% in 2024.
• Payers segment is expected to grow significantly over the forecast period.
• North America healthcare predictive analytics market dominated with the largest revenue share of 48.4% in 2024.

Report Scope of Healthcare Predictive Analytics Market

The growing demand for advanced analytics systems to improve patient outcomes and reduce cost, coupled with advancements in artificial intelligence (AI) and machine learning technologies to improve the analysis of complex, large-scale datasets, enhancing drug discovery, personalized medicine, and patient care, are some of the factors driving market growth. Moreover, the rising prevalence of chronic diseases and the need for cost-effective treatment solutions increase the demand for AI-powered predictive analytics in healthcare.

Moreover, the increasing adoption of evidence-based medicine to deliver effective care to the right patient is another critical factor driving market growth. For instance, in April 2024, Children's Mercy inaugurated the Patient Progression Command Center in collaboration with GE Healthcare. This 6,000 sq. ft. hospital operations center at Children's Mercy Kansas City employs AI, predictive analytics, and real-time information to enhance care coordination from the moment of a patient's admission until discharge.

Furthermore, the increasing volume of healthcare data generated from various sources, such as wearable devices, mobile health applications, and electronic health records (EHRs), creates opportunities for advanced analytics solutions. For instance, according to the World Economic Forum, hospitals generate 50 petabytes of data annually. In addition, according to the statistics published on HealthIT.gov, as of 2021, 96% of acute care hospitals and 4 in 5 (78%) office-based physicians had adopted certified EHRs. The rising demand for value-based care also emphasizes the need for tools to measure outcomes effectively and reduce costs. In addition, advancements in artificial intelligence (AI) and machine learning (ML) are enhancing the capabilities of predictive analytics tools, making them more accessible and effective for healthcare organizations.

The COVID-19 pandemic positively impacted the health and life science industries. The outbreak forced the industry to manage supply chain disruption and clinical development during the pandemic, encouraging the industry to accelerate innovation to respond to the crisis. This resulted in a significant increase in the adoption of AI for life science analytics. Increasing clinical trials, drug discoveries, and technological advancements in deep learning fuel the market growth.

Healthcare Predictive Analytics Market By Application Insights

Financial application segment dominated the market in 2024 and accounted for the largest revenue share of 35.5%. Financial applications include revenue cycle management, assessing the risk of fraud, and reducing fraudulent claims. For instance, the U.S. Department of Justice states that healthcare frauds worth USD 100 billion occur yearly. Predictive models for fraud detection can be constructed using artificial intelligence based on access to big data from patient records and provider payments. This application type benefits private and public organizations, fueling market growth.

Population health management segment is expected to grow at the fastest CAGR of 24.4% from 2024 to 2030. Predictive analytics is likely to aid in identifying possible disease outbreaks. In addition, by accessing large amounts of patient data generated through telehealth and other online platforms and connected devices, healthcare professionals can identify at-risk patients and start looking at treatments immediately, thus improving patient survival chances.

Healthcare Predictive Analytics Market By End-use Insights

The healthcare providers segment held the largest market share 40.0% in 2024. Predictive analytics can automate hospital administrative processes, predict staffing needs, and control hospital drug and supply costs, leveraging the performance of hospitals and other healthcare providers. The integration of predictive analytics also facilitates better resource allocation and care management, further enhancing patient engagement. Care providers use predictive tools to identify high-need patients and coordinate care more effectively. For instance, in July 2024, in collaboration with Masimo, Cleveland Clinic launched a remote patient monitoring program and tele-ICU initiative to develop new artificial intelligence (AI)-enabled predictive analytics, focusing on cardiology.

Payers segment is expected to grow significantly over the forecast period. Rising medical costs have heightened the pressure on health plans to manage financial risk while maintaining quality care. Conventionally, health plans have relied on historical claims data to forecast medical utilization, but this approach often delays responses to emerging trends. Advances in predictive analytics are addressing these challenges within the payer segment. For instance, in May 2024, Cohere Health introduced early trend signal intelligence to predict medical utilization. This solution enables health plans to anticipate shifts in medical loss ratios and prepare for potential increases in utilization and costs. The technology identifies the providers driving these trend shifts by analyzing proprietary prior authorization data, which is available months before related claims are processed. This allows health plans to implement faster, more targeted utilization management and network adjustments.

Healthcare Predictive Analytics Market By Regional Insights

North America healthcare predictive analytics market dominated with the largest revenue share of 48.4% in 2024. Increasing demand for personalized medicine, rising focus on improving patient care, and robust healthcare infrastructure are some of the factors driving market growth. In addition, substantial investments in drug discovery and therapy development further aid the adoption of predictive analytics tools in the pharmaceutical and biotechnology industry.

U.S. Healthcare Predictive Analytics Market Trends

U.S. Healthcare predictive analytics market held the largest revenue share in 2024 due to the rising prevalence of chronic diseases and the increasing demand for efficient and personalized healthcare solutions and established healthcare infrastructure. Moreover, the presence of institutes and organizations such as the CDC’s Center for Forecasting and Outbreak Analytics, which predicts disease forecasting using analytics and disease models, helps drive market growth.

Europe Healthcare Predictive Analytics Market Trends

Europe Healthcare predictive analytics market observed a lucrative growth in 2024. Increasing adoption of precision and personalized medicine and robust infrastructure on disease research, coupled with established healthcare settings, are some of the factors driving market growth. Moreover, adopting artificial intelligence and machine learning in healthcare is projected to propel the Europe healthcare predictive analytics market from 2024 to 2030.

Healthcare predictive analytics market in UK is expected to grow over the forecast period. High healthcare expenditures, availability of advanced technological solutions, and the rising prevalence of chronic disorders have led to an increase in the adoption of predictive analytics services in the UK.

Germany healthcare predictive analytics market held the largest market share in 2024 in the European market. The growing geriatric population, the rising prevalence of chronic diseases such as cancer, CVDs, etc, and the significant presence of healthcare facilities across the country are factors fueling market growth. In addition, Germany’s healthcare market is rapidly adopting digitalization and creating significant new opportunities for established companies & emerging startups, thereby creating lucrative opportunities for predictive analytics solutions.

Asia Pacific Healthcare Predictive Analytics Market Trends

Healthcare predictive analytics market in Asia Pacific is anticipated to grow at the fastest CAGR of 26.9% from 2024 to 2030 due to increasing disposable income, rising healthcare expenditure, and technological advancements such as the integration of artificial intelligence in healthcare. Moreover, the rising prevalence of chronic diseases and improving healthcare infrastructure have led to the rapid adoption of healthcare predictive analytics to reduce the rising health-related costs and achieve better treatments for patients.

Healthcare predictive analytics market in Japan is expected to grow significantly over the forecast period, owing to the advancing digital infrastructure and the growing geriatric population. Additionally, the growing government support and initiatives for promoting digital health technologies encourage innovation in the sector.

China healthcare predictive analytics market held the largest revenue share in 2024 due to the increasing preference for precision medicine and technological advancements. Furthermore, the growing geriatric population coupled with the rising incidences of chronic disease is creating an opportunity for predictive disease analytics to grow as it assists in clinical decision-making, treatment, and resource allocation as per future needs.

Latin America Healthcare Predictive Analytics Market Trends

Latin America healthcare predictive analytics market is anticipated to grow at a significant CAGR over the forecast period. This can be attributed to the increasing adoption of technology in maintaining patient health records, growing awareness about AI technologies, increasing government spending, and collaboration activities.

Middle East And Africa Healthcare Predictive Analytics Market Trends

Middle East and Africa healthcare predictive analytics market is expected to grow at a significant CAGR over the forecast period. This can be attributed to technological advancements, rising healthcare expenditures, and favorable government policies. For instance, in October 2024, the UAE Ministry of Health and Prevention (MoHAP) launched the Centre of Excellence for AI in healthcare, aiming at health data digitalization, integrating smart technologies to develop health capacities, and using big data for predictive analysis.

Some of the prominent players in the healthcare predictive analytics market include:

• IBM
• Verisk Analytics, Inc.
• McKesson Corp.
• SAS
• Oracle
• Allscripts (now Veradigm)
• Optum, Inc.
• MedeAnalytics, Inc.
• INFRAGISTICS
• Cloudera
• Health Catalyst
• IQVIA Inc
• Inovalon
• OSP
• ClosedLoop

Healthcare Predictive Analytics Market Recent Developments

• In August 2024, Innovacer launched a Government Health AI Data and Analytics Platform (GHAAP) focusing on Public Health and Medicaid Modernization. This platform improves the unifying clinical and non-clinical data while leveraging built-in AI to drive progressive health IT outcomes and transformation.
  
  
• In May 2024, Cohere Health introduced early trend signal intelligence for predicting medical utilization. This enables health plans to anticipate shifts in their medical loss ratio and prepare for potential increases in utilization and associated costs.
  
  
• In December 2024, Guidehealth acquired Arcadia’s managed service organization and value-based care service division to expand its tools and services for providers, focusing on developing predictive analytics tools.
  
  
• In October 2024, ClinIntell launched CDI 2.0, focusing on improving hospital documentation with predictive analytics.
  
  
• In March 2020, the Health Data Analytics Institute (HDAI) raised USD 16 million to launch an AI API, expanding its clinical prediction service access.

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2034. For this study, Nova one advisor, Inc. has segmented the healthcare predictive analytics market

Application

• Operations Management

• • Demand Forecasting
  • Workforce Planning and Scheduling
  • Inpatient Scheduling
  • Outpatient Scheduling

• Financial

• • Revenue Cycle Management
  • Fraud Detection
  • Other Financial Applications

• Population Health

• • Population Risk Management
  • Patient Engagement
  • Population Therapy Management
  • Other Applications

• Clinical

• • Quality Benchmarking
  • Patient Care Enhancement
  • Clinical Outcome Analysis and Management

End-use

• Payers
• Providers
• Life Science Industry

Regional

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)