Clinical Informatics Market

OPPORTUNITY: Growing focus on real world evidence

Real-world evidence is more crucial with its strong effect on clinical informatics and health choices. RWE is an essential knowledge of how well medical products and procedures work as well as their safety beyond regular clinical trials. RWE has been used by the FDA to monitor the safety after products are launched, making regulatory decisions, and in the development of clinical guidelines. The FDA's Center for Devices and Radiological Health said that the use of RWE for regulatory decisions increased by 193% from 2015 to 2017. This indicates that RWE is becoming increasingly crucial in speeding up approvals and improving patient care without the need for many new clinical trials. Leading technology companies are increasingly entering the healthcare sector, offering special solutions to handle and analyze large amounts of healthcare data. For example, companies like Amazon Web Services (US) are speeding up the adoption of real-world data (RWD) and creating useful real-world evidence (RWE). The huge investments in research and technology by big companies for using the advantages of RWE have thrown the importance of RWE into the spotlight. Global RWE solutions market will reach USD 78.8 billion by 2030 due to favorable government rules and a shift toward value-based care. Furthermore, close to 90% of drug companies have special teams for real-world evidence nowadays, which indicates that the industry is interested in using real-world insights for drug development and compliance. In 2023, the budget of the United States President contained a fund of USD 62.5 billion for the National Institutes of Health (NIH). In 2022, the European Medicines Agency (EMA) allocated over EUR 52 million to support the generation of real-world data (RWD) across Europe. As real-world evidence (RWE) continues to bridge the gap between research and clinical practice, it is reshaping healthcare delivery by offering actionable insights that enhance patient outcomes and guide public health strategies.

CHALLENGES: Shortage of skilled IT professionals

Currently, there are only a limited number of healthcare organizations that have in-house experts who can translate large volumes of data into valuable insights. A significant barrier to the clinical informatics market's growth is the lack of skilled data analysts and robust data management capabilities. The lack of IT professionals in healthcare has caused problems and slowed down progress like interoperability. According to an American Hospital Association report, the US is expected to hit as high as 3.2 million healthcare professional deficit by 2026. High turnover cannot give hope for improvement owing to the fact that quitting within the health care industry has increased by three folds in 600,000 by May 2023 from 400,000 in 2020.

The WHO observes that the actual number of health workers in India is fewer than the number found on the registers of the various councils and professional groups that register medical personnel in the country. While India has health sectors that employ 5 million workers, the country does not have sufficient numbers of health practitioners. It is lower than other countries like Sri Lanka, China, Thailand, UK, and Brazil. This statistic has put the country under the category of a critical shortage of healthcare providers. Other major markets, such as Germany, the Netherlands, England, and Australia, are also witnessing a significant shortage of clinical informatics professionals. The lack of in-house IT experts, as well as a trained workforce with cross-functional skills, may hinder the growth of the clinical informatics market during the forecast period.