Population Health Management Solutions Market Analysis

Population Health Management Solutions Market Analysis

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Based on component, the population health management solutions market is segmented into software and services. The services segment dominated the market in 2022 with a revenue share of 51.6%. High market share can be attributed to the rising demand for PHM services among hospitals and other healthcare organizations to effectively manage patient data. Further, PHM services offer improved health outcomes, cost savings, enhanced patient care & coordination, preventive care, data driven decision making, and population health surveillance.
 

Based on mode of delivery, the population health management solutions market is divided into on-premises and cloud-based. The cloud-based segment held the largest revenue share of 71.9% in 2022 and is anticipated to register the highest CAGR during the forecast period. High demand for cloud-based solutions is because, these solutions can be accessed from anywhere with an internet connection, allowing healthcare providers and administrators to access and analyse population health data remotely.
 

Additionally, cloud-based solutions eliminate the need for upfront investments in hardware, and infrastructure and are cost effective. Further, cloud service providers invest heavily in security measures to protect sensitive health data. They employ robust encryption techniques and disaster recovery plans to ensure data privacy and security.
 

By end-use, the population health management solutions market is segmented into healthcare providers, healthcare payers, and other end -users. The healthcare providers segment held high revenue of USD 17 billion in 2022 owing to surge in demand for population health management solutions. PHM solutions help healthcare providers reduce costs by managing chronic conditions, preventing unnecessary hospital admissions and readmissions, and avoiding expensive complications. By focusing on preventive care and early intervention, providers can reduce the overall cost of healthcare while improving patient outcomes. Thus, high adoption of these solutions by healthcare providers will foster the market expansion.
 

North America dominated the population health management solutions market with a revenue share of 38.3% in 2022. High regional growth can be attributed to increasing health awareness amongst people and high adoption of digital health solutions in the region coupled with advanced digital health infrastructure. Also, rapid technological advancements in population health management solutions, high healthcare spending, and rising burden for chronic diseases further facilitates the market growth. Moreover, presence of several key market players offering PHM solutions in the U.S. and favorable environment for entry of new players further enhances the regional market trends.