Population Health Management (PHM) Solutions Market by Component (Software, Services), Mode of Delivery (On Premise, Cloud and Web), End User (Healthcare Providers, Payer [Private, Public], Hospitals, Physician Groups) - Global Forecast to 2030

The Population Health Management (PHM) Solutions Market is projected to reach $75.97 billion by 2030, at a CAGR of 10.9% from 2023 to 2030. PHM is a healthcare strategy that focuses on improving clinical health outcomes by preventing and managing disease, minimizing inconsistency in health, improving care coordination, patient engagement, and promoting well-being. PHM focuses on specific groups of people, including patients with chronic diseases or Medicare beneficiaries, to identify people at risk of developing diseases. The population health management (PHM) solutions integrate and store data related to patient health across all the health systems for analysis.

The growth of this market is driven by the increasing burden of chronic diseases coupled with the geriatric population, rising adoption of healthcare IT solutions, government focus on preventive healthcare, growing focus on building disease registries, and increasing healthcare expenses worldwide. In addition, untapped opportunities in emerging economies and the rising focus on value-based care are offering opportunities for market growth. However, patient data privacy and confidentiality issues and lack of interoperability are hindering the growth of this market to some extent.

Rising Adoption of Healthcare IT Solutions to Drive the Demand for Population Health Management (PHM) Solutions

Process digitization through the implementation of healthcare IT solutions and successful integration of different IT systems has proven to improve healthcare organizations' overall return on investment (ROI) and optimize their profit margins. The healthcare industry across the globe relies on health information technology (health IT/HIT) and the electronic exchange and use of health information to maintain compliance, better satisfy patients, improve care quality, store massive amounts of patient data in a secure manner, and efficiently manage the practices.

The adoption of health IT solutions such as telehealth, EHRs/EMRs, patient/consumer experience, big data/analytics, PHM, wellness, cloud, and clinical decision support is growing. As of 2021, nearly 9 out of 10 (88%) U.S. office-based physicians adopted any electronic health record (EHR), and nearly 4 in 5 (78%) had adopted a certified EHR. (Source: HealthIT.gov). Further, in June 2022, The Department of Health and Social Care (U.K.) announced a funding of USD 2.37 billion to support the implementation of EHR in all NHS trusts and increase the availability of remote monitoring to help more than 500,000 people manage long-term health conditions from home.

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Increasing Burden of Chronic Diseases, Coupled with Geriatric Population, to Drive the Demand for PHM

According to the Global Health and Aging report presented by the World Health Organization (WHO), the number of people aged 65 or older is projected to reach 1.5 billion (~16% of the world’s population) in 2050, with most of the increase in developing countries such as North America, Europe, Asia-Pacific, Latin America, and Africa.

Chronic diseases and conditions are among the most common, costly, and preventable of all health problems. Chronic diseases are the leading cause of death & disability in the world. According to the Centers for Disease Control and Prevention (CDC), chronic diseases are responsible for 7 of 10 deaths each year. Moreover, in 2021, 90% of the USD 4.1 trillion annual healthcare expenditures in the U.S. accounted for people with chronic and mental health conditions. The risk of developing chronic diseases increases with age. This trend of a rapid rise in the elderly population, coupled with increasing incidence of chronic diseases across the globe, is expected to accelerate healthcare costs.

However, these costs can be reduced by using effective healthcare IT solutions, such as PHM, that provide real-time insights to clinicians and administrators and allow them to identify and address care gaps within the patient population. PHM proactively manages the health of populations to prevent the onset of avoidable chronic conditions and better manage those already suffering from chronic disease. Thus, the growing need to reduce healthcare costs and improve the quality of care due to the aging population and growing burden of chronic disease are consequently driving the demand for population health management solutions across the globe.

Key Findings in the Population Health Management (PHM) Solutions Market Study:

In 2023, the Software Segment to Account for the Largest Share of the Population Health Management (PHM) Solutions Market

Based on product, the population health management (PHM) solutions market is segmented into software and services. In 2023, the software segment is expected to account for the largest share of the population health management (PHM) solutions market. The large market share of this segment is attributed to reduced hospital readmissions and the high adoption of PHM software for improving patient engagement. Furthermore, the revenue generated from the software is a steady stream of revenue, contributing to the large share of this segment.

Cloud-based and Web-based Segment to Grow with the Lucrative Growth Over the Forecast Period

Based on the mode of delivery, the population health management market is segmented into on-premise and cloud-based and web-based models. The cloud-based and web-based segment is projected to register the highest CAGR during the forecast period. The key factors contributing to the growth of this segment are the increasing availability of cloud-based and web-based models owing to reduced operational expenses while providing structured workflows, improved interoperability, reliable disaster recovery, and easy accessibility to patient data.

In 2023, the Healthcare Providers Segment to Account for the Largest Share of the Population Health Management (PHM) Solutions Market

Based on end-user, in 2023, the healthcare providers segment is expected to account for the largest share of the population health management (PHM) solutions market. Healthcare providers comprise hospitals, clinics/physician practices, Accountable Care Organizations (ACOs), and other healthcare providers. Healthcare providers are the major end users of PHM solutions due to the growing need to improve the profitability of healthcare operations and government initiatives to improve the quality of care delivered to patients & curtail the soaring cost of healthcare.          

North America to Dominate the Market in 2023

In 2023, North America is expected to account for the largest share of the population health management (PHM) solutions market. The key factors contributing to this market’s large share are the high adoption of digital health solutions, the implementation of the Affordable Care Act (ACA) by health systems and providers, the presence of key market players, and improved digital health infrastructure.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market participants between 2020 and 2023. The key players profiled in the population health management (PHM) solutions market report are Allscripts Healthcare, LLC (U.S.), Oracle Corporation (U.S.), Deloitte Tohmatsu LLC (U.K.), Epic Systems Corporation (U.S.), Conifer Health Solutions, LLC. (U.S.), GE Healthcare (U.S.), The International Business Machines Corporation (U.S.), Koninklijke Philips N.V. (Netherlands), i2i Population Health (U.S.), McKesson Corporation (U.S.), Medecision (U.S.), Health Catalyst (U.S.), and UnitedHealth Group (U.S.).

Scope of the Report:

Population Health Management (PHM) Solutions Market, by Component

• Software
• Services

Population Health Management (PHM) Solutions Market, by Mode of Delivery

• On-premise
• Cloud-based and Web-based

Population Health Management (PHM) Solutions Market, by End User

• Healthcare Providers
• Healthcare Payers
  • Private Payers
  • Public Payers
• Other End Users
  (Note: Other end users include employer groups and government bodies)

Population Health Management (PHM) Solutions Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa

Key questions answered in the report: