Healthcare Data Monetization Market by Type (Direct, Indirect), Deployment (On-premise, Cloud), End User (Pharmaceutical & Biotechnology Companies, Healthcare Payers, Healthcare Providers, Medical Technology Companies), Region - Global Forecast to 2028
The global healthcare data monetization market in terms of revenue was estimated to be worth $0.4 billion in 2023 and is poised to reach $0.9 billion by 2028, growing at a CAGR of 18.5% from 2023 to 2028. The new research study consists of an industry trend analysis of the market. The new research study consists of industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market. The growth of EHR adoption primarily drives the market growth, the increase in use of external data sources, the need to curtail escalating healthcare costs, increasing partnerships and collaborations among players, and growing investments in advanced analytics. Additionally, factors such rising adoption of AI in precision medicine, and the explosion in bioinformatics data and large healthcare datasets are also contributing to the market growth.
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Healthcare Data Monetization Market Dynamics
Driver: Increase in use of external data sources
External data sources refer to data collected from sources outside of a healthcare organization, such as social media, wearables, consumer data brokers, and other sources. By incorporating external data sources into their analytics and insights, healthcare organizations can gain a more comprehensive view of patient health and behavior, which can lead to improved outcomes and new revenue streams.
One example of the increasing use of external data sources is the integration of data from wearables and other digital devices into healthcare analytics platforms. Wearables such as fitness trackers and smartwatches can collect a wide range of patient health and behavior data, including activity levels, heart rate, and sleep patterns. By integrating this data into healthcare analytics platforms, healthcare organizations can gain a more comprehensive view of patient health and behavior, which can lead to improved outcomes and new revenue streams. The global IoT medical devices market is expected to grow at a CAGR of 28.9% from 2021 to 2026. While according to a research study, the number of active IoT devices is expected to grow to ~31 billion by 2025. As healthcare organizations look to gain a more comprehensive view of patient health and behavior and create new revenue streams through data-driven insights, the rapidly increasing demand for wearables and medical IoT devices is expected to offer several opportunities to market players.
Restraint: Regulatory constraints to impact the growth of the market during the forecast period
Regulatory constraints are a significant challenge impacting healthcare data monetization growth. Healthcare data is subject to various laws and regulations governing data privacy, security, and use, making it challenging for organizations to collect, store, and use data for commercial purposes.
One of the primary regulations impacting healthcare data monetization is the Health Insurance Portability and Accountability Act (HIPAA). HIPAA is a federal law that sets national standards for protecting the privacy and security of protected health information (PHI). PHI includes any information that can be used to identify an individual's health status or healthcare services. Covered entities, such as healthcare providers and health plans, are required to comply with HIPAA regulations to protect the privacy and security of PHI. This can include obtaining patient consent before using or disclosing their data, implementing technical and administrative safeguards to protect data, and reporting data breaches.
HIPAA regulations can be a barrier to healthcare data monetization as organizations must comply with strict requirements to use and disclose PHI. For example, a healthcare provider looking to sell patient data to a pharmaceutical company for research must ensure that they have obtained patient consent and implemented appropriate safeguards to protect the data. Failure to comply with HIPAA regulations can result in significant fines and penalties.
Opportunity: Rising Demand for Real-World Evidence
The rising demand for real-world evidence (RWE) presents a significant market opportunity for healthcare data monetization. Real-world evidence refers to data collected from real-world patient populations in everyday clinical practice, outside the controlled environment of clinical trials. This type of data provides valuable insights into treatment outcomes, safety profiles, comparative effectiveness, and patient experiences, which are essential for evidence-based decision-making in healthcare. Healthcare organizations that possess extensive and high-quality RWE datasets can monetize this data by collaborating with various stakeholders in the healthcare ecosystem.
Challenge: Security concerns
Increased use of automated technologies such as EHRs, medical claims processing, and the move towards healthcare integration and health information exchanges (HIEs) have helped expand healthcare privacy and security landscape. Electronic exchange of patient data offers greater reach and efficiency in healthcare delivery but has high-security risks due to the broader access offered.
Approximately one-third of data breaches result in medical identity theft in the healthcare industry, mainly due to the lack of internal control over patient information, outdated policies, and procedures or non-adherence to existing ones, and inadequate personnel training. The HIPAA Journal recorded 712 healthcare data breaches in its 2021 breach list in the US, an increase of 10.9% over the total number of breaches tracked in 2020. Between 2009 and 2021, 4,419 healthcare data breaches of 500 or more records have been reported to the HHS Office for Civil Rights. Those breaches have resulted in the loss, theft, exposure, or impermissible disclosure of 314,063,186 healthcare records. That equates to more than 94.63% of the 2021 population of the US. In 2018, healthcare data breaches of 500 or more records were reported at around 1 per day. The rate has only doubled in the four years since. In 2021, an average of 1.95 healthcare data breaches of 500 or more records were reported daily. Thus, creating a secure communication platform is a significant challenge faced by IT vendors catering to the healthcare industry. Potential security concerns related to HCIT systems may lead to a rise in the sense of insecurity among users and, hence, restrain their adoption until secure healthcare data monetization solutions are available in the market.
Healthcare Data Monetization Market Ecosystem
Well-known, financially secure producers of data monetization systems and platforms are prominent players in this market. These companies have been in operation for a while and have a broad range of products, cutting-edge technologies, and robust international sales and marketing networks. Key companies in this market include Oracle Corporation (US), Microsoft Corporation (US), Google (US), Salesforce, Inc. (US), SAS Institute Inc. (US), SAP SE (Germany), and others.
Direct data monetization is expected to acquire the largest size of healthcare data monetization market, by type
Based on type, the market is segmented into direct data monetization and indirect data monetization. The direct data monetization segment is expected to dominate the market in 2023. Direct data monetization is becoming popular in healthcare due to the need for efficient data management, interoperability, cost reduction, and improved patient outcomes. It allows healthcare providers to access data from multiple sources in real-time, standardize data formats, reduce infrastructure costs, and make informed decisions about patient care by identifying trends and patterns in patient data.
Based on deployment, on-premise segment is anticipated to dominate the healthcare data monetization market in 2023
Based on deployment, the market is segmented into on-premise and cloud. On-premise segment is expected to dominate the market in 2023. On-premise models offer multivendor architecture, which lowers the risk of data breaches and external attacks. Buyers mainly opt for these delivery models due to the security benefits associated with them. These factors are driving the growth of the on-premise deployment model segment.
Based on the end user, pharmaceutical & biotechnology companies segment of the healthcare data monetization market is expected to register the highest CAGR during the forecast period
Based on the end user, the market is broadly segmented into pharmaceutical & biotechnology companies, healthcare payers, healthcare providers, medical technology companies, and other end users. The pharmaceutical & biotechnology companies segment is expected to register the highest CAGR during the forecast period. The pharma and biotech companies segment includes pharma and biotech companies, and contract research and manufacturing organizations. Pharmaceutical companies are one of the key stakeholders in the healthcare ecosystem and are likely to benefit the most from comprehensive health data. The data serves to inform decision making, influence the direction of research efforts, as well as provide information on the potential expansion of certain medications. For instance. Data that is linked in any way to health behavior, such as medication usage patterns, is also a hot commodity for many pharmaceuticals. Hence, this segment represents a key source to fund the collection/procurement of health data that they will then utilize for their operations. Pharma companies often able to use that data or resell it for large profits to other interested entities.
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North America is expected to account for the largest share in healthcare data monetization market in 2023
The global market has been segmented based on region: North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. In 2023, North America is expected to account for the largest market share followed by Europe. The large share of North America in the global healthcare analytics market can be attributed to the implementation of federal health mandates that encourage the adoption of HCIT solutions, an increasing focus on population health management, a significant amount of VC investments, growing pressure to reduce healthcare costs, technological advancements, and high product & service availability in this region. Moreover, most of the leading players in the healthcare analytics market have their headquarters in North America.
The healthcare data monetization market is dominated by a few globally established players such as Oracle Corporation (US), Microsoft Corporation (US), Google (US), Salesforce, Inc. (US), SAS Institute Inc. (US), SAP SE (Germany), TIBCO Software Inc. (US), Sisense Inc. (US), among others.
Healthcare Data Monetization Market Report Scope
|
Report Metric |
Details |
|
Market Revenue in 2023 |
$0.4 billion |
|
Projected Revenue by 2028 |
$0.9 billion |
|
Revenue Rate |
Poised to grow at a CAGR of 18.5% |
|
Market Driver |
Increase in use of external data sources |
|
Market Opportunity |
Rising Demand for Real-World Evidence |
This report categorizes the global healthcare data monetization market to forecast revenue and analyze trends in each of the following submarkets:
By Type
-
Direct Data Monetization
- Software
- Services
-
Indirect Data Monetization
- Software
- Services
By Deployment
- On-premise
- Cloud
By End User
- Pharmaceutical & Biotechnology Companies
- Healthcare Providers
- Healthcare Payers
- Medical Technology Companies
- Other End Users
By Region
-
North America
- US
- Canada
-
Europe
- Germany
- France
- UK
- Rest of Europe (RoE)
-
Asia Pacific
- Japan
- China
- RoAPAC
- Latin America
- Middle East & Africa
Recent Developments
- In October 2022, Oracle Corporation introduced a planning solution for the healthcare industry as part of its Fusion Cloud Enterprise Performance Management (EPM) offering. The solution aims to help healthcare organizations improve financial performance and patient care by enabling them to model scenarios, optimize resources, and make better finance, workforce, and patient care decisions.
- In April 2023, Microsoft Corporation and Epic Systems expanded their collaboration to integrate generative AI into healthcare by combining Azure OpenAI Service with Epic's electronic health record (EHR) software. The collaboration aimed to enhance patient care, increase productivity, and improve financial integrity in health systems globally.
- In February 2023, Redox and Google Cloud partnered to simplify the exchange of healthcare data, enabling better and faster decision-making for healthcare organizations. Redox's platform would be replicated on Google Cloud, offering customers access to Redox's products and services.
- In April 2023, Salesforce announced new Customer 360 for Health capabilities aimed at enhancing personalized patient experiences and reducing operational costs for healthcare providers. These innovations leverage real-time data, AI, and automation to address the challenges faced by healthcare organizations in meeting customer expectations.
- In May 2023, HTEC Group joined the SAS IoT Partner Ecosystem to partner on delivering innovative solutions in industries such as healthcare, life sciences, logistics, and more. The partnership aimed to develop joint offerings that enable global enterprise companies to apply cutting-edge data-driven, IoT, edge, and cloud-enabled solutions to their business challenges.
Frequently Asked Questions (FAQ):
What is the projected market revenue value of the healthcare data monetization market?
The healthcare data monetization market boasts a total revenue value of $0.9 billion by 2028.
What is the estimated growth rate (CAGR) of the healthcare data monetization market?
The global healthcare data monetization market has an estimated compound annual growth rate (CAGR) of 18.5% and a revenue size in the region of $0.4 billion in 2023.
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The study involved major activities in estimating the current size of the global healthcare data monetization market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. The research process involved the study of various factors affecting the industry to identify the segmentation types, industry trends, key players, competitive landscape, key market dynamics, and key player strategies. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study involved the use of widespread secondary sources; directories; databases, such as D&B, Bloomberg Business, and Factiva; white papers; government sources; corporate filings (such as annual reports, investor presentations, and financial statements); and trade, business, and professional associations; and company house documents. Secondary research was used to identify and collect information for this extensive, technical, market-oriented, and commercial study of the healthcare data monetization market. It was also used to obtain important information about the top players, market classification and segmentation according to industry trends to the bottom-most level, geographic markets, technology perspectives, and key developments related to the market. A database of the key industry leaders was also prepared using secondary research.
Primary Research
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include industry experts such as CEOs, vice presidents, marketing and sales directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the healthcare data monetization market. The primary sources from the demand side include key executives from pharmaceutical & biotechnology companies, research centers, academic institutes, & government organizations, hospitals, healthcare providers, healthcare payers, medical technology companies, contract research organizations, non-profit organizations (NPOs), agri-genomics organizations, and direct-to-consumer companies. After the complete market engineering process (which includes calculations for the market statistics, market breakdown, market size estimation, market forecasts, and data triangulation), extensive primary research has been conducted to gather information and verify and validate the critical numbers obtained.
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to type, deployment, end user, and region.
A breakdown of the primary respondents is provided below:
*Others include sales managers, marketing managers, and product managers.
Note: Tiers are defined based on a company’s total revenue, as of 2021: Tier 1 = >USD 1 billion, Tier 2 = USD 500 million to USD 1 billion, and Tier 3 = <USD 500 million.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down (segmental analysis of major segments) and bottom-up approaches (assessment of utilization/adoption/penetration trends, by type, deployment, end user, and region) were used to estimate and validate the total size of the healthcare data monetization market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share in the respective regions have been determined through both primary and secondary research.
- The industry’s supply chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Global Healthcare data monetization Market Size: Top-Down Approach
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Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments, the data triangulation and market breakdown processes have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market definition
Data Monetization refers to the process of using data to obtain quantifiable economic benefit. Data monetization tools enable end users to manage and control secure access to data assets and analyze it for generating new revenue streams. In the monetization process, data assets such as customer data, product data, and financial data generated through business transactions are used for generating value in organizations. Data monetization is a way to generate revenue from available data sources by discovering, capturing, storing, and analyzing data.
Internal or indirect methods include using data to make measurable business performance improvements and inform decisions. External or direct methods include data sharing to gain beneficial terms or conditions from business partners, information bartering, selling data outright (via a data broker or independently), or offering information products and services (for example, including information as a value-added component of an existing offering).
Direct monetization in healthcare involves selling healthcare data directly to customers, such as other healthcare organizations, research institutions, or individuals, for a fee. This data can be raw or processed, and may include electronic health records, medical claims data, clinical trial data, and patient-generated data. Indirect monetization in healthcare involves using healthcare data to improve existing products or services, or to create new ones that generate revenue. In this approach, healthcare data is used as a resource to support business objectives rather than being sold directly to customers.
Key Stakeholders
- Healthcare Data Monetization Solution Providers
- Platform Providers
- Technology Providers
- AI System Providers
- Raw Data Providers
- Data Buyers
- Data Sellers
- Healthcare Providers
- Healthcare Payers
- Pharmaceutical & Biotechnology Companies
- Medical Technology Companies
- Physician Groups and Organizations
- Universities and Research Organizations
- Forums, Alliances, and Associations
- Academic Research Institutes
- Healthcare Institutions
- Distributors
- Venture Capitalists
- Government Organizations
- Institutional Investors and Investment Banks
- Investors/Shareholders
- Consulting Companies in the Data Monetization Sector
- Raw Materials and Component Manufacturers
Objectives of the Study
- To define, describe, and forecast the healthcare data monetization market size, by type, deployment, end user, and region, in terms of value
- To provide detailed information regarding the major drivers, restraints, opportunities, and challenges influencing the market growth
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall healthcare data monetization market
- To analyze market opportunities for stakeholders and provide details of the competitive landscape for key players
- To forecast the size of the healthcare data monetization market in four main regions (along with their respective key countries), namely, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America, in terms of value
- To provide key industry insights such as supply chain analysis, regulatory analysis, patent analysis, and recession impact analysis
- To profile the key players in the healthcare data monetization market and comprehensively analyze their core competencies2
- To track and analyze competitive developments such as product launches and enhancemnets, and partnerships, acquisitions, investments, sales contracts, agreements, collaborations, alliances, expansions, and R&D activities of the leading players in the healthcare data monetization market
- To benchmark players within the healthcare data monetization market using the Competitive Leadership Mapping framework, which analyzes market players on various parameters within the broad categories of business strategy, market share, and product offering
Available Customizations:
With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:
Product Analysis
- Product Matrix, Which Gives A Detailed Comparison Of The Product Portfolio Of Each Company
Geographic Analysis
- Further Breakdown Of Latin American The Healthcare Data Monetization Market Into Brazil, Mexico, And The Rest Of Latin America.
- Further Breakdown Of The Middle East & Africa The Healthcare Data Monetization Market Into The Uae, Saudi Arabia, South Africa, And The Rest Of Mea Countries
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Healthcare Data Monetization Market