U.S. Healthcare Payer Analytics Market Size, Share & Trends Analysis Report By Analytics Type (Descriptive Analytics), By Component (Software), By Delivery Model, By Application, And Segment Forecasts,
Published Date: May - 2025 | Publisher: MIR | No of Pages: 240 | Industry: healthcare | Format: Report available in PDF / Excel Format
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The market size of the U.S. healthcare payer analytics was USD 5.90 billion as of 2024. The market is anticipated to grow at a CAGR of 21.5% during 2025-2030. The rate of digitization in the health sector is the leading driver of growth for analytics in the payers' market. The electronic records and digital technology embraced by the health system throughout the U.S. generate a massive volume of data that can be utilized to come up with useful results and insights to reduce cost, maximize treatment, and prevent risks.
The U. S. has seen a consistent increase in healthcare spending, which totaled $4.9 trillion in 2023, equivalent to 17.6% of the country's GDP, according to the National Health Expenditure. This growth is indicative of the rising infrastructural expenditures and the necessity of handling greater patient loads. The major driving factors are the growing occurrence of chronic and acute conditions and the increasing requirement for state-of-the-art, patient-focused healthcare solutions. Moreover, the Affordable Care Act (ACA) has been instrumental in revolutionizing the model of care delivery, from volume-based services to value-based care, thus impacting hospital systems to focus on quality outcomes rather than patient throughput.
The implementation of healthcare analytical solutions has also led to enormous growth in the market. Advanced analytical methods assist in enhanced decision-making, aiding administrators in informed decision-making for the business as well as for the patients covered under healthcare plans, enhancing their effectiveness, and enhancing the overall profitability of the organization. Throughout the pandemic, use of healthcare analytics increased throughout the industry; this not only aided in detecting trends between patients who were more at risk but also helped detect risks regarding further virus spread by detecting prior treatment of such individuals and ensuring they were receiving it on time. Healthcare analytics also assists in assessing the potential advantages and issues while adopting a new plan for the organization and calculating its success probability.
By bridging Artificial Intelligence (AI) and Machine Learning (ML) with healthcare payer analytics, the health plans are able to restructure rapidly how they control costs, enhance performance, and increase efficiency of operations. AI and ML allow payers to go beyond conventional analysis by providing predictive insights that detect at-risk members, predict future healthcare consumption, and reveal real-time cost-saving interventions. These technologies facilitate computerized claims adjudication, fraud prevention, member engagement customization, and risk adjustment maximization, enabling payers to make faster, more intelligent decisions.
Market Concentration & Characteristics
The following chart demonstrates the interconnection between market concentration, industry features, and industry players. The x-axis denotes the industry concentration level from low to high. The y-axis denotes some of the industry features, such as industry competition, effect of regulations, partnerships & collaborations activity level, level of innovation, and regional expansion. For example, the U.S. healthcare payer analytics market is moderately fragmented, with numerous product & service providers in the market. The intensity of innovation, the extent of partnerships & collaboration activities, and the effect of regulations upon the industry are high. Moderate growth was witnessed in regional growth.
The level of innovation in the industry is high. The market is facing high-level innovation as many players bring new products with advances in artificial intelligence (AI), machine learning (ML), and big data technology. These innovations change the way payers control costs, prevent fraud, and improve patient care. For example, in June 2024, Milliman MedInsight released a new Payer Platform providing enhanced healthcare analytics to drive employer insights and enable value-based care models.
The intensity of partnerships & collaboration activities among leading players in the industry is strong to enhance capabilities, enlarge product offerings, and enhance competencies. For example, in April 2023, ​Cognizant and Microsoft have deepened their healthcare partnership to bring Cognizant's TriZetto healthcare solutions into Microsoft Cloud for Healthcare, aiming to boost interoperability and streamline claims management. This collaboration helps healthcare payers and providers get access to powerful cloud-based solutions, enhancing operating efficiency and patient experiences.
The regulatory effect on the market is high. The U.S. healthcare payer analytics market is heavily impacted by numerous regulations, which have an important role to play in the adoption of state-of-the-art data management systems, compliance with interoperability and transparency mandates, patient data protection, and encouraging value-based care programs. With increasing data security and privacy, associated regulations are changing, making the need for solutions that are compliant with regional regulations, e.g., the CMS Interoperability and Patient Access Final Rule.
The level of regional expansion in the industry is moderate. Although most firms are operating nationally, there is increasing emphasis on expanding into certain high-opportunity areas like California, Texas, Florida, and New York, where large insured populations and sophisticated Medicaid or value-based care programs are present.
Report Coverage & Deliverables
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Analytics Type Insights
The largest market share in 2024 belonged to the descriptive analytics segment. This type of analytics is extensively applied in process optimization and administrative tasks. This technique compares past and current data to generate meaningful information or patterns that can have a considerable influence on future decisions. In particular, for COVID, it has been utilized to identify how infectious the virus is by examining the percentage of positive COVID tests within a population over a certain period.
The predictive analysis segment will register the highest CAGR during the forecast period. Predictive data analytics enables care providers to design the optimum treatment plan for patients, which leads to improved outcomes. Personalized care has been picking up tremendous pace, and predictive analysis has been useful in determining the unique treatment requirements of each patient.
Delivery Model Insights
The on-premises segment of the market accounted for 47.0% in 2024. The healthcare sector is changing with regards to technology. The sector has widely embraced the utilization of on-premise models, and they have numerous advantages, such as easier access to data, less opportunity for theft of data, lower cost, and ease of maintenance. The largest disadvantage of data storage on-premises is the limitation of storage capacity, which acts as a great hindrance in the development of this segment.
The sub-segment model of delivery based on the cloud is the fastest-growing one and is expected to witness the highest growth rate. The increasing adoption of cloud-based solutions across healthcare organizations has led to fast expansion in the sub-segment. The largest impediment created by the on-premise storage is easily overcome by a cloud-based solution, as there are no capacity constraints, the amount of data that can be stored is enormous, and needs little setup by the organization, which has led to the growth of the market.
Application Insights
On the basis of application, the financial application segment led the market with the highest revenue share in 2024. The higher adoption rate by government and private facilities both has been the primary driver for the growth of the market. A number of financial applications can save millions on fraudulent claims, claims settlement, and risk analysis for insurance firms. The U.S. Sentencing Commission Office of Public Affairs, in 2023, 64,124 healthcare fraud cases were reported in the U.S., which increased by 4.2% from 2019.The application of healthcare analytics not only helps decrease fraud instances but also helps maximize insurance plans and recover losses.
The clinical segment is likely to grow at a high rate over the forecast period. Such growth is being caused by the rise in predictive analytics that helps care providers individualize treatment plans to a greater degree, thus enabling better patient outcomes and cost-effectiveness. Personalized care becomes all the more critical with the shift of the industry towards value-based models. The growth is also facilitated through the inclusion of advanced analytics into clinical applications as it helps identify diseases at early stages and aid proactive management of health, in turn boosting the growth of the segment. As healthcare institutions continue to make investments in evidence-based strategies, the clinical segment is likely to expand considerably over the next few years.
Component Insights
According to the segments, the services segment recorded the highest market share of 42.4% in 2024. Outsourcing of data has also been a new trend in this segment. Not only does this provide establishments with an opportunity to have the data analyzed by industry experts but also eliminates the expenditure on training and educating their employees to do so. In addition, the increased demand for consulting, implementation, data integration, and sustaining analytics support services among healthcare payers gives rise to the biggest share of the segment.
The hardware segment in the market is steadily growing due to growing adoption of edge computing devices, secure data storage systems, and high-performance servers for sustaining real-time claims processing, fraud detection, and population health analytics within payer networks.
Key U.S. Healthcare Payer Analytics Company Insights
The market is highly fragmented, with many small and large players operating. This leads to intense competition between smaller players to sustain their position. Strategies such as new product launches and partnerships are key in propelling market growth.
Key U.S. Healthcare Payer Analytics Companies
- CloudMedx
- DataSmart Solutions
- Amitech Solutions
- Caserta Concepts
- Greenway Health, LLC
- IMAT Solutions
- Health Catalyst
- Indegene
- IBM
- Optum
- Oracle
- Citius Tech
- MedeAnalytics
- Verisk Analytics, Inc.
- McKesson Medical-Surgical Inc.
- Veradigm LLC
- IQVIA
U.S. Healthcare Payer Analytics Market Report Scope
|
Report Attribute |
Details |
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Market Size for 2025 |
USD 7.33 billion |
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Revenue forecast in 2030 |
USD 19.38 billion |
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Growth Rate |
CAGR of 21.5% from 2025 to 2030 |
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Actual data |
2018 - 2024 |
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Forecast period |
2025 - 2030 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2025 to 2030 |
|
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
|
Segments covered |
Analytics type, component, delivery mode, application |
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Key companies profiled |
CloudMedx; DataSmart Solutions; Amitech Solutions; Caserta Concepts; Greenway Health, LLC; IMAT Solutions; Health Catalyst; Indegene; IBM; Optum; Oracle; Citius Tech; MedeAnalytics; Verisk Analytics, Inc.; McKesson Medical-Surgical Inc.; Veradigm LLC; IQVIA |
|
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
|
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
U.S. Healthcare Payer Analytics Market Report Segmentation
Analytics Type Outlook (Revenue, USD Million; 2018 - 2030)
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Descriptive Analytics
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Predictive Analytics
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Prescriptive Analytics
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DiagnosticAnalytics
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DiscoveryAnalytics
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Component Outlook (Revenue, USD Million; 2018 - 2030)
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Software
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Hardware
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Services
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Delivery Model Outlook (Revenue, USD Million; 2018 - 2030)
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On-Premises
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Web-Hosted
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Cloud-Based
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Application Outlook (Revenue, USD Million; 2018 - 2030)
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Clinical
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Financial
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Operational & Administrative
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