How is Growing Use of Internet of Things Devices Driving Big Data Analytics in Healthcare Market?
Owing to the surging penetration of internet all across the globe, the adoption of internet of things (IoT) devices is increasing in various industries, including the healthcare industry. IoT devices in the healthcare industry are being utilized for monitoring various patient health parameters, including heart function and blood pressure. Such devices generate a large volume of structured and unstructured data which needs to be monitored and analyzed properly in order for it to be utilized in a proper manner. Attributed to this, the demand and adoption of big data analytics in the healthcare industry is growing rapidly.
Big data analytics refers to the process of examining varied and large data sets for uncovering information, such as unknown correlations, customer preferences, hidden patterns, and market trends, which can further aid enterprises in making informed decisions. In the healthcare industry, by making use of big data analytics medical professionals are able to analyze data generated from devices, which further helps healthcare institutions in providing effective and high-quality care to patients. Owing to these benefits, the global big data analytics in healthcare market is projected to reach a value of $22.7 billion in 2023, increasing from $7.0 billion in 2017, progressing at a 21.8% CAGR during the forecast period (2018–2023).
The demand for different software was high in the past, which is attributed to the rising requirement for electronic medical records in medical settings. The three types of big data analytics are prescriptive analytics, descriptive analytics, and predictive analytics. Out of these, the demand for descriptive analytics was the highest in the past because of the growing need for data visualization for disease diagnosis. Big data analytics solutions are deployed on-premises and on-demand, between which, the demand for on-premises deployment was higher in the past.
On-premises deployment provide improved data security and more control over software and hardware solutions, which is why a large number of healthcare institutions opt for this deployment type. This being said, the adoption of on-demand deployment is also expected to increase in the near future, owing to its advantages, such as easy scalability, quick deployment, and replicability. Big data has several applications in the healthcare industry, including clinical data analytics, financial analytics, operational analytics, and population health analytics, out of which, the demand for financial data analytics was the highest in the past.
This is due to the high rate of provision of risk-based reimbursements and value-based care and rising need for risk adjustment, claims processing, and fraud detection in the healthcare industry. Geographically, North America emerged as the largest big data analytics in healthcare market in the past, which can majorly be ascribed to the presence of large number of companies operating in the domain, rising penetration of artificial intelligence and IoT in the healthcare sector, and technological advancements in the region. Other than this, the demand for big data analytics in the healthcare industry is also expected to increase in the Asia-Pacific region, owing to the growing need for better healthcare solutions.
In conclusion, the growing utilization IoT devices is leading to the increasing demand for big data analytics in the healthcare industry.