Asia Pacific Healthcare Analytics Market Size, Share & Trends Analysis Report By Type (Descriptive Analytics, Predictive Analytics), By Component, By Delivery Mode, By Application, By End-use, By Country, And Segment Forecasts, 2024 - 2030

APAC Healthcare Analytics Market Trends

The Asia Pacific healthcare analytics market was valued at USD 9.21 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 22.9% from 2024 to 2030. This is owing to increasing geographic expansion, economic development in countries such as China & India, and improving health infrastructure in this region. Healthcare has been constantly advancing and growing in developing & underdeveloped regions. Asia Pacific is expected to overtake the EU as the world’s second-largest healthcare market over the coming years. The Asia Pacific region is anticipated to witness steady growth and an increase in skilled IT personnel.

The increasing healthcare expenditure, good healthcare IT infrastructure, and strong technical support are contributing to the growth of the healthcare analytics market over the forecast period. The rising adoption of prescriptive & predictive analytic tools and advancements in healthcare IT are anticipated to boost the local market. Supportive government policies and the increasing prevalence of chronic diseases are boosting the market in this region. Furthermore, the South Korean government has been focusing on developing and modernizing healthcare with technological advancements and increased funding support over the past few years. Government initiatives and support for developing and adopting advanced technologies in the healthcare space are expected to positively impact the market.

The presence of major untapped opportunities in emerging markets such as India & China, constant advancements, and developing healthcare infrastructure are some of the key factors responsible for the growth of the region. Moreover, the growing geriatric population in this region, increasing prevalence of cancer, and rising healthcare expenditure by both public & private players are expected to boost the market growth. Rising healthcare spending and demand for effective and cutting-edge treatment options and increasing consumer awareness of innovative and advanced solutions are expected to boost market growth over the coming years.

In addition, growing government efforts to promote digitalization in the healthcare sector are likely to further boost the market. To accelerate penetration and adoption, agencies are undertaking initiatives to spread awareness and increase future investments. For example, Asia Pacific Signal and Information Processing Association organizes annual seminars and workshops on topics such as emerging technologies and healthcare information technologies. Furthermore, Asia Pacific is a medical tourism hub, which is another key factor driving the market.

Furthermore, post COVID-19 pandemic, healthcare IT solution providers are working rapidly to deliver solutions to keep up with the increasing need for high-quality services. Medical practitioners can examine and diagnose patients remotely, electronically administer medications and treatments, and monitor changes in their conditions by using telehealth systems. Thus, the demand for healthcare analytics solutions to evaluate data is rising as telemedicine solutions are being adopted more widely.

Market Concentration & Characteristics

The Asia Pacific healthcare analytics market is in a high growth phase and will continue to accelerate over the next 5-6 years. Presence of large number of technology advanced solution providers makes this market relatively competitive.

The market is witnessing higher degree of innovation. For instance, in June 2020, National Institutes of Health launched an analytics platform to help scientists analyze data to understand disease and develop treatments under the National COVID Cohort Collaborative (N3C) initiative. New advanced analytics tools and services are being introduced, which, in turn, is driving their adoption by healthcare organizations. In June 2021, QPharma opened Neolytica, a firm that provides AI-based predictive analytics solutions. The development of new advanced analytics technologies and methods with increasing awareness about the benefits of analytics is another major factor expected to drive the market. Moreover, the CMS is developing next-generation predictive analytics, which is expected to boost the usage of predictive analytics.

Collaborations, mergers and acquisitions, and partnerships among key players and emerging enterprises are expected to contribute to market development and growth. Post the acquisition, both companies would focus on co-developing advanced healthcare analytics solutions and expanding their product portfolio and business footprint. Steps as such are predicted to boost the market growth in the region.

Security and confidentiality of collected data are of utmost importance. Growing incidence of data privacy and security issues is one of the key factors impacting the market growth. Rapidly changing government regulations are affecting private companies by increasing the cost of compliance. However, the stringent regulations implemented by the government as well as the private players to avoid any product recall/ adverse reactions can also have a positive impact on the market owing to the safety policies.

Healthcare organizations in pharmaceutical, genomics, medical devices, and biotechnology spaces are adopting analytical solutions to enhance their R&D productivity and increase their product expansion. For instance, in March 2022, BC Platforms, a leading healthcare data management solutions and analytical systems provider, expanded its R&D hub in Singapore, which focuses on precision medicine in Asia Pacific. Furthermore, the company partnered with Singapore Health Services (SingHealth), a public health group. Under this partnership, the two organizations would focus on developing genetic clinical research processes.

The expansion of services provided by data analytics companies has been a driving force behind the growth of the Asia Pacific region. Key market players are also increasing their investments for geographic expansion. For instance, in March 2022, BC Platforms, a leading healthcare data management solutions and analytical systems provider, expanded its R&D hub in Singapore, which focuses on precision medicine in Asia Pacific.

Type Insights

The descriptive analytics segment accounted for 46% of the market share in 2023. Descriptive analytics helps in describing the progression of a past event which is responsible for its widespread adoption in the region. This process usually involves data mining and aggregation and has become a fundamental offering of all analytics companies. The healthcare industry is using descriptive analysis to derive data-enriched insights by assessing historical data. Market participants are using descriptive analysis to expand and fully capture the market potential.

The predictive analytics segment is expected to witness the fastest CAGR over the forecast period. This can be attributed to the growing demand for advanced analytical solutions and predictive outcomes, which can be utilized by industry stakeholders to devise suitable strategies for their businesses. Predictive analysis depends on historical datasets, future trends, and probabilities. In the healthcare industry, predictive analytics plays a vital role in determining product adoption, epidemiology of diseases, patent flow, and changes in physician perceptions. This is used by companies to identify investment opportunities, plan M&As, streamline R&D, plan geographic expansions, and review operations models.

Delivery Mode Insights

The on-premises segment market accounted for 48% of the market share in 2023 as these software can be installed on organizations’ premises and accessed from remote locations, thereby reducing maintenance & other costs. Healthcare organizations are installing analytical software and tools to store & manage data on their premises as it is easier to access & safeguard the data. Although these software need to be installed within organizations’ premises, they can be accessed from remote locations, providing the benefits of reduced costs, low power consumption, and low maintenance.

The cloud based segment is expected to witness the fastest CAGR over the forecast period. Cloud-based technologies store data remotely, allowing free space on users’ devices and facilitating data retrieval as per their needs. These cloud-based services offer increased access, storage capacity, and security. In addition, these services can increase workforce efficiency, optimize process efficiency, and reduce redundant tasks making it more convenient for the users. These factors are leading the growth of this segment.

End-use Insights

The life sciences companies segment accounted for 45% of the market share in 2023, owing to the growing demand & rising adoption of data-driven analytics in pharmaceuticals, medical devices, biotechnology, genomics, nutraceuticals, & other healthcare facilities. The need to serve the growing demand for optimum healthcare products is boosting the role of life sciences companies in the healthcare analytics market. Reduction of costs, increasing clinical trial efficiency, providing personalized experience to patients, and increasing drug utilization are some of the major factors boosting the adoption of life sciences analytics in the pharmaceutical industry.

The healthcare providers segment is expected to witness the fastest CAGR over the forecast period, owing to the growing demand for delivering better patient care at cost-effective prices and increasing burden on healthcare facilities & resources. Providers comprise healthcare professionals, such as physicians & clinicians, hospitals, and clinics. This segment is expected to witness lucrative growth owing to the increasing usage of analytics, especially in hospitals. In addition, increasing prevalence of chronic disorders and rising cost of healthcare are factors leading to an increase in the adoption of analytics in hospitals.

Application Insights

The financial segment accounted for 35.9% of the market share in 2023. Growing healthcare expenses and increasing need for optimal quality of care are prompting healthcare organizations to adopt analytical solutions for their financial systems. In addition, claims settlements & prevention of frauds are driving adoption and contributing to the growth of the financial systems segment. Financial applications are witnessing rapid & significant adoption in government and private healthcare settings. Implementation of analytics can help organizations save costs, especially in case of fraud or improper payments.

The clinical segment is expected to witness the fastest CAGR over the forecast period. Healthcare analytics can be used in laboratories, diagnostic centers, research laboratories, and clinical trials. Healthcare organizations in pharmaceutical, genomics, medical devices, and biotechnology spaces are adopting analytical solutions to enhance their R&D productivity and address the growing demand for licensing products & technologies. Clinical applications are anticipated to witness lucrative growth over the forecast period, which can be attributed to initiatives promoting healthcare analytics.

Component Insights

The services segment accounted for 42% of the market share in 2023. Majority of healthcare organizations lack the expertise and resources to incorporate in-house analytical solutions. Therefore, these organizations typically outsource data analytics solutions & services. The growing trend of outsourcing analytical services is supporting the emergence of multiple healthcare analytics solutions and services companies across the globe. The cost of outsourcing analytical services is lower than the in-house setup cost of analytics, thus the demand for these services is anticipated to increase over the forecast period.

The hardware segment is expected to witness a high CAGR over the forecast period. An increase in demand for hardware platforms with high computing power to operate analytical software is contributing to the segment’s growth. Healthcare analytics requires an extensive network system to store, analyze, and reproduce large volumes of data. Most companies dealing with big data need to invest in a server system and a robust filing system, which can provide access to multiple users working on single data source.

Country Insights

Asia Pacific accounted for 21.4% of the global healthcare analytics market in 2023. Over the years, the impact of big data across the Asia Pacific healthcare industry is increasing rapidly. Due to the expanding healthcare IT sector in the region, it is one of the largest healthcare big data analytics markets as it helps in predicting upcoming trends and evaluating performances and decisions. In 2019, countries such as China, India, and Australia housed over 400,000 self-health monitors that track data like heart rate, blood pressure, sleep patterns, and more. The industry is growing vastly due to the consequent surge in chronic conditions requiring home-based care.

Japan Healthcare Analytics Market Trends

Healthcare analytics market in Japan was the largest in Asia Pacific. The Japanese healthcare system is among the best in the world which makes it a market with healthy growth. In addition, more than 25.0% of the Japanese population is older than 65 years which draws much attention from the healthcare market. The Japanese pharmaceutical industry is developing standard quality pharmaceutical products, along with quality assurance and quality control. This significant growth of the pharmaceutical industry is expected to contribute to the increasing demand for analytics and create business opportunities, which is projected to invite more collaboration opportunities among key players in the country. For instance, in January 2022, Flatiron Health signed a partnership agreement with the National Cancer Center Hospital East (NCCHE) of Japan to create a real-world database of patients suffering from gastrointestinal cancers. In addition, the Ministry of Health, Labour and Welfare (MHLW) has also launched initiatives for improving the healthcare IT infrastructure in the country. Such initiatives focus on the utilization of data networks to develop policy evaluation processes for prevention, diagnosis, treatment, disease management, and long-term care services. These initiatives are anticipated to foster the usage of healthcare analytics in Japan.

China Healthcare Analytics Market Trends

Healthcare analytics market in China is expected to witness a CAGR of over 24% from 2024 to 2030. The country has a large population with high unmet healthcare needs, making it open to a lucrative growth rate.  With a rapidly aging population and higher incidence of various chronic diseases in the country, healthcare spending is expected to grow. China generates a huge amount of medical data; therefore, analytics is required for improving medication management. Thus, the Chinese government laid some action plans for the deployment of telehealth-related services. For instance, the Health Information Standards Professional Committee (HISPC) of the Ministry of Health established some guidelines regarding standards for the adoption of IT in healthcare. The Chinese government is working to improve healthcare access in rural areas of the country through Regional Healthcare Information Networks (RHINs). These initiatives are expected to enhance the penetration of healthcare analytics services in China, thereby boosting the market. Furthermore, rapidly aging population, hospitals overburdened with patients, and shortage of skilled healthcare personnel are among the other factors that have led Alibaba to provide analytics and ML solutions to help doctors & hospitals.

India Healthcare Analytics Market Trends

Healthcare analytics market in India has been significantly impacted by the COVID-19 pandemic. Government programs to encourage digitization and the use of tech-driven solutions are fueling the market. India is the fastest-growing country in the Asia Pacific market owing to the technological innovations in the sector and higher health spending than several other countries in this region. Tech giants have started focusing on implementing analytics and ML/ AI in healthcare in the country. These solutions can help overcome access barriers by solving the problem through efficient and successful clinical trials, early detection, and treatment; supporting the scarce personnel & lab facilities; and catering to the country’s large population. According to a report published by CIS India in 2018, AI could help in adding USD 957 billion to the Indian economy by 2035. The growing use of cloud-based technology among medical professionals to regulate the sales process and improve patient care is expected to boost the market over the coming years.

Key Asia Pacific Healthcare Analytics Company Insights

Healthcare analytics companies in Asia Pacific like IBM, Oracle, and SAS Institute, Inc., are adopting several strategies such as technological advancements for data derived from patient information, mergers and acquisitions, and massive investments. Other strategies include product launches and, the need to deliver better care solutions are also being adopted. The usage of big data analytics and AI has given rise to new platforms to analyze data better.

Recent Developments

• In February 2022, Optum launched the Optum Speciality Fusion which is a first-of-a-kind medical management solution that offers simplified care to patients suffering from complex conditions, with a lower cost for expensive drugs

• In March 2022, Microsoft announced the launch of the Azure Health Data Services platform that is designed to support Protected Health Information (PHI) in the cloud. It is a fresh way of working with unified data that supports both transactional and analytical workloads and enables cloud computing to deliver AI across the healthcare system

Asia Pacific Healthcare Analytics Market Report Scope

Asia Pacific Healthcare Analytics Market Report Segmentation

This report forecasts revenue growth in the Asia Pacific market and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Asia Pacific Healthcare Analytics market based on type, component, delivery mode, application, end-use, and country:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Descriptive Analytics

  • Diagnostic Analytics

  • Predictive Analytics

  • Prescriptive Analytics

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

  • Services

• Delivery Mode Outlook (Revenue, USD Million, 2018 - 2030)

  • On-premises

  • Web-based

  • Cloud-based

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Clinical

  • Financial

  • Operational and Administrative

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Healthcare Payers

  • Healthcare Providers

  • Others

• Country Outlook (Revenue, USD Million, 2018 - 2030)

  • Japan

  • China

  • India

  • South Korea

  • Singapore

  • Australia