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The life sciences analytics market size is forecast to increase by USD 7.83 billion at a CAGR of 12.02% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing integration of big data with healthcare analytics. This trend is enabling healthcare providers to gain valuable insights from large and complex data sets, leading to improved patient outcomes and reduced costs. Another key growth factor is the rising focus on value-based medicine, which requires accurate and timely data analysis to optimize healthcare delivery and patient care. However, the high implementation cost of life sciences analytics solutions remains a challenge for market growth. Despite this, the potential benefits of advanced data analytics in the life sciences sector are compelling, making it an attractive market for investors and technology providers alike.
The market is experiencing significant growth due to the increasing prevalence of chronic disorders, particularly non-communicable diseases. Pharmaceutical segment is a major contributor to this market, leveraging analytics for clinical trial designing, discovery analytics, and developing personalized medication based on human genome combinations. Medical imaging, laboratories, and healthcare systems are integrating AI and ML for diagnostics, predictive analytics, and patient care experience. Descriptive analytics and business intelligence tools are used for supply chain management and inventory optimization. Big data analytics and data mining techniques are essential for gaining insights from genomic information and developing life-saving medicines. The integration of AI and ML in life sciences analytics is revolutionizing the industry, enabling predictive analytics and prescriptive analytics for proactive healthcare management.
Furthermore, chronic diseases management, clinical trial designing, and patient care experience are the primary applications of life sciences analytics. The market is expected to grow further with the increasing adoption of electronic health records and the integration of analytics in biopharma companies.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The cloud segment is estimated to witness significant growth during the forecast period. The market in the healthcare sector is witnessing significant growth due to the adoption of cloud-based solutions in the Pharmaceutical segment. Big data is playing a pivotal role in managing chronic disorders, enabling medical imaging analysis, and facilitating smart staffing and risk management. Supply chain management is optimized through descriptive analytics, predictive analytics, diagnostic analytics, discovery analytics, and prescriptive analytics. Preclinical trials and pharmacovigilance are streamlined with data mining techniques and big data analytics. Biotechnology and medical device companies, research centers, third-party administrators, and healthcare organizations are leveraging these advanced analytics to gain insights into clinical outcomes, financial outcomes, and operational outcomes.
Moreover, healthcare facilities and systems are utilizing these analytics for non-communicable disease management, global geriatric population care, and personalized medication based on human genome combinations. Social media and electronic health records are also integrated for enhanced patient care experience. Cloud-based analytics enables real-time decision-making, improving patient health and hygiene while reducing costs and increasing efficiency.
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The cloud segment accounted for USD 4.44 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in North America is experiencing significant growth due to the increasing demand for advanced data security, easy access to data, and effective patient information management. The US and Canada are the primary contributors to this market, with a high adoption rate of artificial intelligence (AI) and machine learning (ML) algorithms in healthcare. These countries have been early adopters of paperless technologies and cloud-deployed, web-hosted solutions, enabling the extensive digitalization of life sciences companies, clinical trials, and healthcare providers. The generation of vast amounts of genomic information and data from clinical research and laboratories necessitates the use of business intelligence tools and analytical software components.
Moreover, the market is segmented into the descriptive type segment, which provides quantifiable analysis of historical data, and the services segment, which includes outsourcing services. The services segment is expected to dominate the market due to the increasing outsourcing of data management and analysis to third-party providers. The adoption of AI and ML in life sciences analytics is revolutionizing drug development, clinical research, and healthcare, enabling the creation of life-saving medicines for chronic diseases. The security and privacy of genomic information are crucial, and data security measures are essential to ensure the confidentiality and integrity of data. The use of AI and ML in data analytics is transforming the healthcare IT infrastructure, enabling predictive analysis and therapeutic discovery. Startups and biopharma companies are investing in these technologies to gain a competitive edge and improve patient outcomes.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing integration of big data with healthcare analytics is the key driver of the market. Big Data plays a pivotal role in the life sciences industry, particularly in the pharmaceutical segment, by enabling descriptive, predictive, and prescriptive analytics. Chronic disorders, medical imaging, and preclinical trials generate vast amounts of data, which can be harnessed to improve patient care experience, clinical outcomes, financial outcomes, and operational outcomes. Big Data analytics helps in risk management, smart staffing, and supply chain management. Pharmacovigilance, biotechnology companies, medical device companies, research centers, third-party administrators, and healthcare organizations utilize data mining techniques to gain insights from this data. Healthcare facilities and systems, non-communicable diseases, global geriatric population, and personalized medication are other areas benefiting from Big Data.
Furthermore, social media and electronic health records further expand the data pool. Predictive analytics helps in clinical trial designing, sales and marketing, and healthcare systems management. Big Data analytics is revolutionizing the life science industry by providing valuable insights from complex data.
Increasing focus on value-based medicine is the upcoming trend in the market. In the dynamic and complex landscape of the life sciences industry, Big data plays a pivotal role in driving value and improving health outcomes. The Pharmaceutical segment, including biotechnology companies and medical device manufacturers, is leveraging data analytics to optimize various aspects of their operations. Descriptive analytics is used for reporting and business intelligence, while predictive and diagnostic analytics aid in identifying trends and patterns in chronic disorders, preclinical trials, and pharmacovigilance. Moreover, risk management, supply chain management, and smart staffing are areas where data mining techniques and Big data analytics are being employed to enhance operational efficiency and effectiveness.
Furthermore, medical imaging and healthcare facilities also benefit from data analytics, enabling personalized medication, clinical outcomes analysis, and financial and operational optimization. The global geriatric population's growth and the increasing focus on non-communicable diseases necessitate a data-driven approach to healthcare. Value-based healthcare (VBHC) frameworks prioritize patient health outcomes per unit cost, with value defined as clinical, financial, and operational improvements. Social media and healthcare organizations are also harnessing data analytics for patient engagement, clinical trial designing, sales and marketing, and healthcare systems optimization. In conclusion, the life sciences industry's transformation through data analytics encompasses various sectors, from pharmaceuticals to medical imaging and healthcare systems.
The application of descriptive, predictive, diagnostic, and prescriptive analytics in preclinical trials, pharmacovigilance, risk management, and clinical trial designing contributes significantly to enhancing patient care experience, personalized medication, and overall value in healthcare.
High implementation cost of life sciences analytics is a key challenge affecting the market growth. The market encompasses various applications, including pharmaceuticals, medical imaging, smart staffing, risk management, and supply chain management, among others. Big data plays a pivotal role in this industry, enabling descriptive, predictive, diagnostic, discovery, and prescriptive analytics. Pharmaceutical companies, biotechnology firms, medical device manufacturers, research centers, third-party administrators, and healthcare organizations are significant contributors to the life science industry. Analytics solutions help tackle challenges such as managing chronic disorders, preclinical trials, pharmacovigilance, and personalized medication. Big data analytics and data mining techniques are crucial for deriving insights from electronic health records and social media. Healthcare facilities and systems benefit from analytics in areas like clinical outcomes, financial outcomes, operational outcomes, clinical trial designing, sales and marketing, and patient care experience.
Moreover, despite the numerous advantages, upfront costs associated with implementing life sciences analytics solutions can pose a challenge, particularly for smaller organizations and those in resource-constrained regions. Budget limitations may lead to slower adoption or reluctance to commit to analytics projects. However, prioritizing spending and potentially delaying or reducing the scale of analytics projects may be necessary. Life sciences analytics require specialized software and tools to cater to the industry's unique needs. The global geriatric population's growth and the increasing focus on managing non-communicable diseases further underscore the importance of analytics in this sector. Ultimately, the ability to analyze and interpret complex data can lead to improved patient care, operational efficiency, and financial gains.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture Plc - The company offers life sciences analytics solutions such as Intient.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market in the life science industry is experiencing significant growth due to the increasing adoption of big data in various applications. The pharmaceutical segment is a major contributor to this market, utilizing analytics for chronic disorders research, pharmacovigilance, and preclinical trials. Big data analytics is revolutionizing medical imaging, enabling more accurate diagnoses and personalized treatment plans. Smart staffing, risk management, and supply chain management are other areas benefiting from descriptive, predictive, and diagnostic analytics. Biotechnology and medical device companies, research centers, third-party administrators, and healthcare organizations are key players in this market. Big data analytics is used for data mining techniques to uncover hidden patterns, trends, and insights in electronic health records, social media, and healthcare facilities.
Moreover, the market is also used for clinical outcomes, financial outcomes, and operational outcomes analysis. Predictive analytics helps in clinical trial designing, sales and marketing, and patient care experience. The global geriatric population growth and the increasing prevalence of non-communicable diseases further fuel the market's expansion. Human genome combinations and personalized medication are also driving the market, with healthcare systems adopting advanced analytics for better decision-making and improved patient care.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.02% |
Market growth 2024-2028 |
USD 7.83 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.5 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 36% |
Key countries |
US, Germany, France, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Alteryx Inc., Amazon.com Inc., Cognizant Technology Solutions Corp., Cotiviti Inc., ExlService Holdings Inc., International Business Machines Corp., IQVIA Holdings Inc., MaxisIT Inc., Microsoft Corp., Oracle Corp., Pyramid Analytics BV, SAS Institute Inc., Sisense Ltd., TAKE Solutions Ltd., ThoughtSphere, ThoughtSpot Inc., UnitedHealth Group Inc., Veradigm LLC, and Wipro Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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