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Healthcare Big Data Analytics Market to See 22% CAGR Through 2023

The healthcare big data analytics market is forecast by P&S Market Research to experience a strong compound annual growth rate (CAGR) of 22 percent through 2023.

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Source: Getty Images

By Fred Donovan

- The healthcare big data analytics market is forecast by P&S Market Research to experience a strong compound annual growth rate (CAGR) of 22 percent, reaching a market value of $22.7 billion by 2023.

Factors driving market growth include a significant increase in financial analytics use in healthcare, a surge in demand for analysis of structured and unstructured health data, decreasing costs and availability of big data software and services, and increased adoption of new technologies for data analytics in healthcare business transformations.

In addition, the use of personalized healthcare systems and demand for high quality healthcare services is fueling healthcare big data analytics market growth.

Key vendors in the healthcare big data analytics market include McKesson, Cognizant, Epic, Cerner, Dell, GE, Siemens, Philips, and Xerox.

Based on region, North America has the largest healthcare big data analytics market. At the same time, the fastest growth market is expected to be the Asia-Pacific region. This can be attributed to factors such as advancement in big data technologies, growing digitalization, expanding data analytics software industry, and increasing adoption of big data analytics services by healthcare providers in the region.

Healthcare execs increase pace of big data investment

A recent survey of healthcare C-suite execs by NewVantage Partners found that many of them are  increasing their pace of investment in healthcare big data and artificial intelligence.

On the positive side, healthcare big data and AI investments are being fueled by the need for business transformation and, on the negative side, by fear of competition.

More than half of senior healthcare executives felt that they were competing successfully on data and analytics.

Fewer than one-third of senior healthcare executive said they were investing in blockchain technology.

Only 43 percent of senior healthcare executives said their organization has a single point of accountability for data.

The survey found that 92 percent of C-suite executives across industries are upping their pace of big data and AI investment, and 62 percent are seeing results from the investment in these technologies.

More than half of organizations are investing over $50 million in big data and AI initiatives, and 21 percent are investing over $500 million in them.

Across industries, three-quarters of respondents said that business adoption of big data and AI initiative is a challenge for their companies. Executives cited corporate culture as the primary obstacle.

“This issue, and the low percentage of companies that have achieved data-driven organizations and cultures, suggests the need for a new focus. Respondents clearly say that technology isn’t the problem—people and (to a lesser extent) processes are,” wrote NewVantage Partners CEO Randy Bean and Fellow Tom Davenport in their foreword to the survey results.

“Yet we would guess with high confidence that the great majority of spending on big data and AI goes for technology and its development. We hear little about initiatives devoted to changing human attitudes and behaviors around data. Unless the focus shifts to these types of activities, we are likely to see the same problem areas in the future that we’ve observed year after year in this survey,” they added.

Nearly two-thirds of organizations had chief data officers. Close to half of executives said that the chief data officer had primary responsibility for data within their organization, but more than one-quarter said there is no single point of accountability for data.

“Companies are struggling to make the chief data officer role work in the context of a changing time where data is becoming an asset and firms must be agile and data-driven to compete. It should not be surprising that there is uncertainty as to what level in the organization that the CDO position should sit, or even whether the role should exist—a significant 17.5% say that it is transitional or unnecessary and should not exist long term,” the NewVantage Partners’ report on the survey noted.

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