Population Health Management Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Population Health Management Market Trends & Drivers

Rising Chronic Disease Burden Drives Market

• The biggest driver for the population health management is the rising incidence of chronic diseases, as they eat significantly into national economies.
• As per a study, these conditions are expected to drain the global economy of USD 47 trillion in healthcare costs by 2030.
• Moreover, according to government sources, almost 40% of the people in the state of New York have a chronic disease, and these conditions cause 6 in 10 deaths here.
• The most prevalent of these health issues include cancer, cardiovascular diseases, chronic respiratory conditions, obesity, diabetes, and mental illness.
• CVDs carry global annual mortality of 17.9 million, while cancer accounts for 9.8 million deaths each year, says the World Health Organization.
• Chronic obstructive pulmonary disease kills more than 3.5 million people each year, while asthma results in more than 455,000 human deaths every year.
• As the population increasingly moves to cities and ages, the incidence of these diseases will continue to rise.
• The National Council for Aging states that almost 95% of the people in the U.S. aged 65 years or more have at least one chronic disease, while almost 79% have more than one.
• Thus, with the WHO forecasting the number of people aged 60 or more to reach 2.1 billion by 2050 from around 1 billion in 2020, the need for population health management will soar.

High Cost of Solutions Hampers Market Growth

• The purchase and installation of PHM and related software in healthcare facilities require huge capital expenditure.
• The maintenance of these systems and software is also costly, as it requires timely service and trained medical IT professionals to operate the system.
• The implementation of PHM requires proper infrastructure including workstations, fiber optic networking, and data servers.
• In addition, to ensure high level of quality and safety in healthcare data, it is necessary for electronic infrastructure to exchange information and interact with other systems.
• Due to high infrastructure and maintenance cost, many hospitals are not able to adopt PHM solutions in their practices.
• In the U.S., the Affordable Care Act provides incentives to providers through accountable care organizations (ACOs).
• This makes PHM affordable for providers. Similarly, payers and employers also benefit from these schemes, so they may afford these services in the U.S.
• However, it is not the similar case in the rest of the World, where implementation of such services means an addition to the healthcare cost for providers, especially in smaller health providers.
• The factor has more impact in the underdeveloped nations where basic healthcare infrastructure is not present everywhere.

Personalized Medicine Approaches Offer Opportunities in Market

• Personalized medicine separates patients into different groups.
• The advent of personalized medicine has led to precise, better, predictable healthcare. Healthcare is now customized for the individual patient, thus leading to better outcomes and reduced cost.
• With the increasing understanding of genes and enhanced healthcare analytics capabilities, providers are capable of understanding the drug responses, impact of pathogens, impact of diseases, and possible health outcomes in individual patient.
• This has led to highly accurate diagnoses, better disease prevention, personalized and safe drug prescriptions and better health outcomes in several medical conditions and diseases.
• As per studies, the global spending on these approaches will rise from USD 203.5 billion in 2019 to beyond USD 738 billion by 2030.
• The increasing demand for personalized medicine leads to the high compliance for personalized-medicine-based analytics.
• PHM plays a vital role in the development of personalized medicine. It is important to understand the care gaps, health record of population groups to develop personalized medicine.
• Therefore, increasing compliance for personalized medicine-based analytics is creating ample growth opportunity for the global PHM market.

Segmentation and Category Analysis

Component Insights

The software category held the larger population health management market share in 2024, of 65%, and it will also grow faster. This is due to the surging adoption of software solutions by providers and payers for the reduction of readmissions, improvement in operational efficiency, and cost-effectiveness. In addition, several benefits offered by this software, such as enhancement of patient engagement and assistance in data integration and analysis, are burgeoning the market growth in this category.

Furthermore, various initiatives taken by prominent players in the introduction of innovative software are also augmenting the industry size. This software enables institutions to provide targeted care to their patients while also allowing organizations to save money. Several market participants are also concentrating their efforts on home healthcare, which greatly aids physicians in making even better clinical decisions, thereby augmenting the domain size. Moreover, manufacturers are investing in research and development to launch innovative products to assist organizations, as treatment costs rise. For example, Health Catalyst Inc. recently announced the release of its Population Health Foundations solution.

These components were analyzed:

• Software (Larger and Faster-Growing Category)
• Services

Delivery Mode Insights

The on-premises category accounted for the larger revenue share in 2024. This is due to the several advantages associated with it like diminishing the risk of data breaching, the customization of medical solutions, and the ability to reuse existing storage hardware and servers. In addition, the higher security credited to the on-premise mode of delivery is expected to augment the industry growth during the forecast period.

The cloud-based category is expected to register the higher CAGR during the forecast period, of 15%. Cloud-based wellness management programs are available via the internet and do not require active participation from institutions. This enables effective health supervision access across diverse specialties and institutions. As a result, the proven effectiveness of the cloud-based delivery mode in home healthcare, combined with seamless data access across multiple platforms, is the major reason for its dominance in the industry.

In addition, medical organizations are rapidly adopting cloud-based computing systems, seeking faster operation, improved productivity, and reduced maintenance charges. A cloud-based computing system provides reduced IT cost, enhanced productivity, and faster and smoother implementation, thereby propelling the market growth.

These delivery modes have been studied:

• On-Premises (Larger Category)
• Cloud (Faster-Growing Category)

End User Insights

Healthcare providers held the largest revenue share, of 70%, in 2024. This is on account of the enactment of the Hospital Readmissions Reduction Program and Affordable Care Act in countries like the U.S., aiming to lower medical costs with the use of novel software in hospitals. This is increasing the adoption of population health management (PHM) solutions among healthcare providers. Also, regulatory norms, surging focus on reducing hospital readmission rates, and high pressure of medical bills are leading to significant adoption of these solutions by the providers.

Moreover, the increasing traction of the cloud-based delivery mode would further drive the adoption of PHM solutions by healthcare providers. They use PHM for the identification of subpopulations of patients who largely benefit from these services. The providers categorize patients into sub-population groups such as patients who require reminders for preventive treatment; patients requiring follow-ups; and patients who need overdue management and risk management services. Grouping patients into different categories helps providers in delivering better treatment services at a lower cost.

Healthcare payers are witnessing the fastest growth in the market on account of the increasing demand for consumer-centric medical insurance plans. Insurance companies are using population health data to formulate plans for specific ethnicities, based on the kind of disease that affects them most. Payers also use PHM for assessing patient health risks, analyzing claims, determining premium, and making payments. Payers now are shifting from fee-for-service to pay-for-value models. Under these models, healthcare providers are paid for the value of healthcare and penalized for unfavorable outcomes. With the increasing compliance for new value-based payment models, payers are relying on PHM. The solutions are used to analyze claims data, which include billable charges, patient demographics, date of service, procedure codes, diagnosis codes, insurance, and providers. Such data are generated for every patient and submitted to payers for reimbursement.

We have covered these end users:

• Healthcare Providers (Largest Category)
• Healthcare Payers (Fastest-Growing Category)
• Others

Population Health Management Regional Market Performance

North America accounted for the largest population health management market revenue share, of 45%, in 2024, owing to the rising federal mandate to reduce the increasing medical costs and high implementation of electronic health records and electronic medical records in the region. In addition, promulgating initiatives taken by government organizations to focus on personalized medicines and their value-based reimbursements are other factors driving the regional market growth. Furthermore, the surging utilization of IT and cloud computing in hospitals and the high prevalence of chronic diseases are expected to drive the domain expansion in North America.

Among Caucasians, cancer accounts for the greatest financial burden in term of healthcare costs, of USD 252 billion a year. Similarly, among African–Americans, diabetes and hypertension are the most prevalent, costing them USD 35 billion annually. Diabetes is also highly prevalent among Hispanics/Latinos, who shell out USD 41 billion on its management annually.

The passage of the Patient Protection and Affordable Care Act (ACA) in the U.S. has addressed this challenge. It also has expanded insurance coverage, aiming to improve population well-being by improving access to healthcare delivery systems.

In addition, the Act has focused on improving the quality of treatment by establishing the Patient-Centered Outcomes Research Institute, CMS Center for Medicare and Medicaid Innovation, and National Strategy for Quality Improvement. It focuses on prevention and health promotion measures, and well-being education, training, and preventive services. Also, it implemented Accountable Care Organizations (ACOs) to provide incentives to providers. These factors increased the responsibilities of providers for population health outcomes.

However, the APAC market is expected to register the highest CAGR, of around 16%, during the forecast period. This can be propelled by the increasing medical tourism in the region. In APAC, Japan, China, and India hold the majority of the market share, driven by the high adoption of new ICT guidelines in Japan, the rising investments to revolutionize China’s medical infrastructure, and the swift growth in India’s medical sector.

As per the WHO, 28% of China’s population will be aged 60 or more by 2040. Similarly, the population in this age group in India is set to rise from 153 million in 2023 to 347 million by 2050. Moreover, Japan and South Korea are the two oldest countries in the world, with 37.5% of the population of the former and 39.4% of the latter expected to be in the age group of 65 and above by 2050. The majority of these people suffer from long-term diseases, such as CVDs, arthritis, diabetes, neurodegenerative conditions, cancer, reduced eyesight, and respiratory disorders.

Here is the regional breakdown of the market:

• North America (Largest Regional Market)
  • U.S. (Larger and faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • France
  • U.K.
  • Italy
  • Spain (Fastest-Growing Country Market)
  • Rest of Europe
• Asia-Pacific (AAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • South Korea
  • Australia
  • APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Population Health Management Market Competitive Landscape

• The market is fragmented as population health management is essentially a software-based approach.
• Hence, due to the diversity of specifications of end users, the software needs to be highly customized.
• This offers opportunities to a large number of IT vendors willing to develop solutions based on what the end users actually want to achieve with population health management.
• For instance, PHM software designed for healthcare providers might not always work for healthcare payers or government agencies, as all these entities have different purposes.
• Additionally, the emergence of personalized medicine, remote patient monitoring, EHRs, and healthcare analytics widens the scope for innovation in this scope.

Population Health Management Market Developments

• In October 2024, athenahealth Inc.’s athenaOne platform was selected by SoNE HEALTH to enhance the experience for patients and care providers, improve the performance of its practice, and better the outcomes of its population health initiatives.
• In October 2024, Henry Ford Health established a new non-profit subsidiary to advance population health. Named Populance, the company will offer care management services, digital outreach tools, and patient monitoring services to doctors managing people with diabetes, congestive heart failure, hypertension, COPD, and other chronic diseases.
• In September 2024, VirtualHealth entered into a partnership with HealthEC to combine its HELIOS population health management software with the latter’s capabilities in population health analytics.
• In April 2024, Innovaccer announced that is healthcare AI platform has been chosen by Pine Park Health to perform better analysis of the healthcare data of senior citizens.