Population Health Management Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

The Global Population Health Management Market Size accounted for USD 25.9 Billion in 2022 and is projected to achieve a market size of USD 105.4 Billion by 2032 growing at a CAGR of 15.3% from 2023 to 2032.

Population Health Management Market Key Highlights

• Global population health management market revenue is expected to increase by USD 105.4 Billion by 2032, with a 15.3% CAGR from 2023 to 2032
• North America region led with more than 45% of population health management market share in 2022
• According to a study by the Healthcare Financial Management Association, population health management programs can reduce healthcare costs by 5% to 15%.
• According to a survey by the Healthcare Information and Management Systems Society (HIMSS), 92% of healthcare organizations in the US have adopted some form of population health management solution
• According to the Centers for Disease Control and Prevention (CDC), in 2019, chronic diseases accounted for 90% of healthcare spending in the United States
• The cloud-based mode of delivery is the fastest-growing segment of the PHM market
• Rising adoption of healthcare IT solutions, drives the population health management market value

Population health management (PHM) is an approach to healthcare that aims to improve the health outcomes of a defined population, such as a geographic area or a group of patients with a particular health condition. This is achieved by integrating data from multiple sources, including electronic health records, claims data, and social determinants of health, to identify and address health issues proactively. PHM involves the use of technology and analytics to identify at-risk populations, provide targeted interventions, and track progress toward improved health outcomes. It also emphasizes the importance of patient engagement and care coordination across healthcare settings.

The global population health management market is expected to experience significant growth in the coming years. The factors driving the growth of the PHM market include the increasing burden of chronic diseases, the growing demand for value-based care, and the need to reduce healthcare costs. The adoption of healthcare IT solutions, such as electronic health records and population health analytics, is also contributing to the population health management market growth. The COVID-19 pandemic has also had a significant impact on the PHM market, accelerating the adoption of telehealth and remote monitoring solutions, and highlighting the importance of population health management in controlling the spread of infectious diseases.

Global Population Health Management Market Trends

Market Drivers

• Growing prevalence of chronic diseases
• Increasing demand for value-based care
• Need to reduce healthcare costs
• Rising adoption of healthcare IT solutions
• Increasing government initiatives and funding

Market Restraints

• Lack of standardization of data formats and regulatory issues
• Data privacy and security concerns

Market Opportunities

• Emergence of telehealth and remote patient monitoring
• Growing demand for cloud-based solutions

Population Health Management Market Report Coverage

Population health management helps in improving and monitoring the health and identification of individual patients within a group. It aggregates data and provides a comprehensive picture of each patient, thereby improving clinical and financial outcomes. The market for population health management is expected to witness growth during the forecast period. Major factors driving the growth are the growing need to minimize healthcare costs, and improve patient services, hence optimizing efficiency as well as revenue.

The market for population health management is growing at a moderate pace. The rising healthcare cost is the biggest issue that most countries are facing. Developing as well as developed regions are struggling to address cost-effective and quality care. Moreover, political instability, economic stress, and lack of proactive initiatives are questioning healthcare funding. Despite health funding and insurance programs, there has been a constant increase in healthcare costs in the U.S., influencing healthcare providers. Healthcare expenditure in the U.S. is around 2.4 times higher than the global average and is anticipated to increase by 68.0% in the coming ten years. With the help of population health management software and services, providers are now able to offer the right treatment and coordinated care across the population at an effective price, thus reducing the overall treatment cost. However, data privacy issues and a lack of skilled professionals are a few factors, which might hinder the growth of the market in the long run.

Population Health Management Market Segmentation

The global population health management market segmentation is based on component, delivery mode, end user, and geography.

Population Health Management Market By Component

• Software
• Services

According to the population health management industry analysis, the services segment accounted for the largest market share in 2022. The services segment includes consulting, implementation, and training services for healthcare organizations looking to adopt and implement PHM solutions. The services segment is an important part of the PHM market, as it helps healthcare organizations to effectively integrate and utilize PHM solutions to improve patient outcomes, reduce costs, and enhance population health. Consulting services, in particular, are expected to see significant growth in the PHM market. As healthcare organizations look to implement PHM solutions, they often require consulting services to help them identify their population health management needs, select appropriate solutions, and develop implementation and adoption strategies.

Population Health Management Market By Delivery Mode

• On-Premise
• Cloud-based

In terms of delivery modes, the cloud-based segment is expected to witness significant growth in the coming years. The cloud-based solutions enable healthcare organizations to collect, manage, and analyze patient health data from multiple sources. Cloud-based solutions offer several advantages over traditional on-premise solutions, including lower costs, greater flexibility, and improved scalability. One of the key drivers of growth in the cloud-based segment of the PHM market is the shift toward value-based care models. Value-based care emphasizes the delivery of high-quality, cost-effective care that is focused on improving patient outcomes. Cloud-based PHM solutions enable healthcare organizations to collect and analyze data from multiple sources, including EHRs, claims data, and patient-generated data, to identify patients who are at risk of poor health outcomes and develop targeted interventions to improve their health.

Population Health Management Market By End User

• Healthcare Providers
• Healthcare Payers
• Others

According to the population health management market forecast, the healthcare payers segment is expected to witness significant growth in the coming years. The healthcare payers include insurance companies, government payers, and other organizations that provide payment for healthcare services. These payers are increasingly adopting PHM solutions to improve the health outcomes of their covered populations and reduce healthcare costs. Healthcare payers are also adopting PHM solutions to support healthcare consumerism. As patients become more engaged in their care and take a more active role in managing their health, payers are investing in PHM solutions that can help patients make more informed decisions about their care and manage their health more effectively.

Population Health Management Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)