Data Monetization Solutions For Healthcare Payers Market Size, Share & Trends Analysis Report By Type (Software, Services), By Region (North America, Europe, Asia Pacific), And Segment Forecasts, 2023 - 2030

Market Size & Trends

The global data monetization solutions for healthcare payers market size was estimated at USD 304.9 million in 2022 and is estimated to grow at a compound annual growth rate (CAGR) of 15.5% from 2023 to 2030. Healthcare payers, also known as health insurers, are crucial in the healthcare ecosystem. With the healthcare industry rapidly evolving through advancements in data analytics and medical technologies, payers are adapting to be more innovative and responsive. They aim to ensure higher-value healthcare and increased accessibility for their members and the wider communities they serve. Healthcare payers are increasingly dedicated to making optimal care plans by utilizing their core strengths in consumer engagement and insights. This ensures members receive suitable and affordable healthcare services precisely when needed.

Moreover, various types of payers exist in the healthcare landscape, including commercial, private, and government entities, each offering various health plans like Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), and high-deductible plans. The healthcare sector is experiencing an inflow of health-related data from various sources like wearables, electronic health records, and patient portals, providing a substantial volume for data monetization initiatives. In addition, advancements in data analytics technologies, including Artificial Intelligence and machine learning, empower healthcare payers to derive meaningful insights and predict trends from this data, which, in turn, enhances decision-making processes and strategy development.

Moreover, the increasing demand for personalized healthcare solutions pushes healthcare payers to utilize advanced data monetization solutions to offer tailored services and products to individual consumers, supporting their unique needs. These solutions can also contribute to operational efficiency within the market by streamlining operations, optimizing resource allocation, and reducing costs. Evolving regulatory frameworks supporting secure data sharing and usage also significantly encourage responsible and consistent data monetization practices, increasing the demand for better data monetization solutions. Collaborations and partnerships between healthcare payers, technology companies, and data analytics firms encourage innovation and the development of advanced data monetization strategies.

In addition, the shift towards value-based care models, which emphasize using data to improve patient outcomes, is driving the adoption of data monetization solutions to align incentives with patient health improvement. All these factors highlight the growing importance and adoption of data monetization solutions in the healthcare payers market, aiming to enhance operational efficiency, improve patient care, and drive financial growth. Health insurance giants such as United Health Group, Humana, Cigna, and Highmark have introduced workplace programs advocating the use of wearable devices.

For instance, UnitedHealthcare's program, UnitedHealthcare Motion, allows employees to integrate data from devices like Samsung and Garmin wearables. Participants who meet specific fitness goals, like achieving 10,000 steps a day with a portion within 30 minutes, can earn up to USD 1,000 annually. Humana also offers a wellness program, Go365, allowing connections to various smart devices aiding insurers in assessing premiums and risks for a particular workforce. In addition, these programs promote preventative care, helping identify & address health issues early and reducing potential costs.

The data collected from wearables provides additional health-related information about policyholders, enabling insurers to analyze their health behaviors, patterns, and risks more comprehensively. This data-driven insight allows healthcare payers to tailor policies, design targeted health programs, and assess risk profiles more accurately. Moreover, aggregating wearable data on a larger scale can create valuable datasets that can be monetized through collaborations, research, and partnerships, potentially shaping new revenue streams and innovative data-driven solutions in the healthcare payer sector.

Type Insights

The software segment held the largest revenue share of 57.15% of the data monetization solutions for the healthcare payers market. It is expected to continue its dominance with the fastest growth rate of 15.9% over the forecast period. Healthcare payers are increasingly inclined towards software solutions because they offer scalability, customization, and automation capabilities that greatly enhance operational efficiency. The software provides a strong data storage, analysis, and interpretation platform, enabling healthcare payers to derive valuable insights from vast and complex healthcare data.

Moreover, software solutions often come with user-friendly interfaces and integration capabilities, allowing seamless integration into existing healthcare systems. Healthcare payers prefer software as it is a more sustainable and long-term approach. In addition, software solutions providers offer continuous support and upgrades, adapting to evolving regulatory requirements and technological advancements. They empower healthcare payers with the autonomy to tailor the software according to their specific needs and changing business landscapes. In addition, software is often more cost-effective than long-term service contracts.

Regional Insights

North America dominated the global market and held the largest revenue share of 40.84% in 2022. This is due to the region's highly developed healthcare technology infrastructure and high government spending on healthcare. For instance, the U.S. had one of the highest healthcare costs globally. In 2021, healthcare spending in the country reached USD 4.3 trillion, averaging about USD 12,900 per person, almost twice the average cost per person in other wealthy countries. In addition, the demographic of individuals aged 65 and above in the U.S. has steadily increased over the past years, surging from 13% in 2010 to 16% in 2021.

Projections indicated a continued rise, reaching an estimated 20% by 2030. As this age group tends to spend more on healthcare, this demographic shift was anticipated to increase overall healthcare expenditures. Moreover, people above 65 are eligible for Medicare, a key factor contributing to healthcare expenses. Enrollments in the program surged, hitting 65 million in 2022, and were expected to increase significantly, subsequently elevating the cost of Medicare. The Congressional Budget Office foresaw a near doubling of Medicare spending over the following three decades concerning the economy's size—projections ranged from 3.1 percent of GDP in 2023 to a substantial 5.5 percent by 2053.

The escalating healthcare costs and demographic shifts in North America are major drivers propelling the growth of data monetization solutions in the healthcare payer market. As healthcare expenses surge, payers must seek innovative ways to manage costs and optimize care delivery. Utilizing data monetization solutions enables payers to gain valuable insights from healthcare data, enhancing operational efficiency, risk assessment, and resource allocation. This attempt facilitates designing tailored healthcare plans, optimizing reimbursements, and improving member engagement. The Asia Pacific region is expected to witness the fastest growth rate of 16.5% over the forecast period.

Countries within the Asia Pacific region, such as China, India, and Japan, are experiencing a rapid increase in healthcare data due to the adoption of digital health technologies, telemedicine, and mobile health applications. The substantial population base in the region further amplifies this trend. Healthcare payers and organizations in Asia Pacific increasingly recognize the value of healthcare data and are keen to monetize it to improve healthcare services and outcomes. For instance, over the last ten years, China has made substantial investments in healthcare, directing significant funds towards big data, artificial intelligence (AI), and other IT initiatives.

This strategic focus has positioned China at the forefront when comparing regional responses to healthcare challenges, including the recent pandemic. Notably, key players like Tencent and Elsevier joined forces to facilitate the sharing of medical insights among Chinese healthcare professionals. In addition, Alibaba Cloud has played a crucial role by providing strong AI computing capabilities, empowering extensive data analysis, large-scale literature screening, and advanced scientific computations. These strategic developments underscore how integrating technology and data-driven approaches in the healthcare sector can revolutionize healthcare delivery and response, potentially fueling the growth of data monetization solutions for the healthcare market.

Key Companies & Market Share Insights

Strategic initiatives by key companies significantly contribute to market growth. By providing a comprehensive and easily accessible repository of data and services, these platforms enable healthcare payers to optimize their data usage and enhance their decision-making processes, ultimately fostering growth and efficiency in the healthcare sector. For instance, As of July 2023, Snowflake Marketplace effectively linked a substantial network of over 480 providers. This expansive network provided diverse offerings, totaling more than 2,100 live, readily accessible data, services, and Snowflake Native Apps.

Moreover, Snowflake, a well-known cloud-based data warehousing platform, routinely updates its offerings to enhance various functionalities, providing users with an improved experience. These updates include innovations in data analytics, storage, processing, or other platform aspects, ensuring that Snowflake remains at the forefront of modern data solutions. Moreover, its users benefit from staying informed about these updates to maximize the company's data management and analysis capabilities. Some of the major players in the global data monetization solutions for healthcare payers market are:

Data Monetization Solutions For Healthcare Payers Market Report Scope

Global Data Monetization Solutions For Healthcare Payers Market Report Segmentation

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest trends in each sub-segment from 2018 to 2030. For this study, Grand View Research has segmented the global data monetization solutions for healthcare payers market report based on type and region:

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

  • Software

  • Services

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

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait