According to Grand View Research, the global data monetization in healthcare market was valued at USD 410.4 million in 2022 and is predicted to increase at a compound annual growth rate (CAGR) of 18.8% between 2023 and 2030. So it’s evident that healthcare data is really valuable.
This is because data has emerged as one of the most important assets in many businesses, including healthcare. Healthcare data, including electronic health records (EHR) and medical imaging, has enormous potential for improving patient care, increasing operational efficiency, and fostering innovation in the healthcare sector. However, realizing the value of healthcare data necessitates effective monetization techniques that traverse the intricacies of privacy laws, ethical issues, and technical improvements.
Rising Potential of Healthcare Data Monetization
| Report Attribute | Details |
| Market size value in 2023 | USD 483.9 million |
| Revenue forecast in 2030 | USD 1,619.4 million |
| Growth rate | CAGR of 18.8% from 2023 to 2030 |
| Base year for estimation | 2022 |
| Historical data | 2018 – 2021 |
| Forecast period | 2023 – 2030 |
| Quantitative units | Revenue in USD million/billion and CAGR from 2023 to 2030 |
| Report coverage | Revenue forecast, company market share, competitive landscape, growth factors, and trends |
| Segments covered | Method, organization size, end user, and region |
| Regional scope | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country scope | U.S.; Canada; Italy; France; UK; Spain; Germany; China; India; Japan; South Korea; Australia; Brazil; Mexico; Argentina; U.A.E; Saudi Arabia; South Africa |
| Key companies profiled | Accenture Plc; H1; Infor; Informatica Inc.; Infosys Limited; Innovaccer, Inc.; Microsoft Corporation; OpenText Corporation; Oracle Corporation; Salesforce, Inc.; SAP SE; SAS Institute Inc.; Siemens; TIBCO Software Inc., and Virtusa Corp. |
| Customization scope | Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
| Pricing and purchase options | Customized purchase options are available to meet your exact research needs. Explore purchase options |
The global data monetization in the healthcare market was valued at USD 410.4 million in 2022, and it is predicted to increase at a compound annual growth rate (CAGR) of 18.8% between 2023 and 2030. The market’s significant growth can be attributable to the increased use of Electronic Health Records (EHRs) and rising governmental and private investments in sophisticated analytics solutions.
Furthermore, the growing desire to cut healthcare expenditures, as well as fast digitalization in the healthcare sector, are boosting the healthcare data monetization industry. Furthermore, rising data volumes are driving demand for data management systems that help healthcare firms analyze data quantities and derive tangible advantages.
The market for data monetization in healthcare is expanding rapidly as more people become aware of the benefits of data monetization and healthcare organizations place a premium on effective data management. Furthermore, improvements in emerging technologies such as Blockchain, Machine Learning (ML), Artificial Intelligence (AI), cloud computing, and big data analytics are significant drivers of data monetization in the healthcare industry.
Data monetization tools and services enable pharmaceutical, healthcare, and medical technology companies to harvest valuable information, hence boosting corporate growth. These software and services also contribute significantly to the operational efficiency of business models by identifying various risks and anomalies, hence promoting the growth of the healthcare data monetization market.
To improve market income, several organizations are focusing on expanding their data monetization services. These organizations are offering healthcare-specific data monetization solutions to strengthen their brand positioning and expand their client base, ultimately promoting data monetization in healthcare.
Read Also: Data Monetization for Businesses: Benefits and Challenges
For example, in October 2022, John Snow Labs Inc., a healthcare technology business, announced new enhancements to its de-identification system to assist healthcare organizations in automating data monetization. The update also improved the User Interface (UI), allowing users to process millions of records with Databricks or Spark Clusters.
Further, several key players, such as Mayo Clinic and Sisense Ltd., are developing analytics platforms to assist healthcare companies in monetizing the data. For instance, in January 2020, Mayo Clinic, an augmented intelligence company, launched the Clinical Data Analytics platform to enhance healthcare through knowledge and insights derived from datasets. The platform applied advanced data analytics on de-identified datasets from the Mayo Clinic and other companies.
It enabled multiple participants to build robust AI and ML models without sharing databases while addressing critical issues such as security, data privacy, and access rights to the heterogeneous data source. These initiatives and developments in the healthcare sector are expected to drive the demand for data monetization tools and services over the forecast period, creating favorable environment for healthcare data monetization market.
The growing preference for cloud-based solutions and services owing to various benefits, such as location independence, single-point failure absence, scalability, and lower hardware investments, associated with cloud-based hosting is prompting market players to strengthen their cloud-based data monetization solution portfolio by introducing new innovative cloud-based data monetization solutions that can potentially help end users in effectively handling large volumes of data.
The increasing adoption of Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS) also creates robust opportunities for market players to enhance their data monetization software & service portfolio. For instance, in November 2022, Wipro Limited launched the end-to-end cloud solution Wipro Data Intelligence Suite to assist its clients in data monetization and business modernization through its cloud platform, supporting the growth of the market.
5 Strategies for Monetizing Healthcare Data
With the appropriate techniques, healthcare firms may efficiently monetize their data assets while adhering to standards like HIPAA and protecting patient privacy. Here are five effective techniques for monetizing healthcare data:
1. Establish Robust Data Capture and Governance
The healthcare data you’re monetizing is only as valuable as it is complete. Datasets in pharmaceutical datasets can be challenging in their complexity, but if any fields or attributes are missing or outdated, the entire dataset can become redundant. That’s why robust data governance and capture procedures are essential to ensure your pharmaceutical data products are complete.
There are numerous ways to ensure this so that you’re selling high-quality data products. For instance, through strategic partnerships with data governance and analytics platforms. This symbiosis ensures they keep your data complete and flag any breaches or missing fields, and in turn you supply healthcare data that enable them to improve efficiency and clinical outcomes. We saw such a partnership when biotech company Roche acquired Flatiron, data platform offering technology and operations that seamlessly integrate research into everyday clinical care.
Roche captures data from hospitals and health centers, which is then stored securely in Flatiron. Both companies benefit from this robust data capture and governance process and technology. Roche ensures that the valuable insights it captures aren’t compromised, so that they have maximum monetization value. And Flatiron monetizes its data governance software by providing access to leading healthcare data providers, including Roche and many more.
2. Listing Your Products on Data Marketplaces and Exchange Platforms
The fastest way to achieve visibility for your data business and monetize data faster is by publishing your offering on healthcare data marketplaces or exchange platforms where healthcare organizations can securely buy, sell, or share anonymized data. These platforms facilitate transactions between data providers, such as hospitals, clinics, and research institutions, and data consumers, including pharmaceutical companies, insurers, and researchers. Implementing blockchain or other secure technologies can enhance trust and transparency in data exchange processes.
For example, Patientory is a blockchain-based platform that provides secure and decentralized storage for healthcare data. Its innovative approach ensures data integrity, transparency, and privacy, making it an ideal choice for companies seeking to monetize healthcare data while maintaining compliance with regulations like HIPAA. With Patientory, companies can leverage a trusted infrastructure to securely exchange, analyze, and monetize healthcare data, unlocking new revenue streams and driving innovation in the healthcare industry.
3. Offer Data-as-a-Service (DaaS) Solutions
Healthcare organizations can monetize their internal assets by developing Data-as-a-Service (DaaS) solutions that provide on-demand access to healthcare data insights and analytics. These solutions can range from predictive analytics tools for population health management to personalized treatment recommendations based on patient EHR data. By packaging data into actionable insights, healthcare organizations can create additional revenue streams while delivering value to clients and stakeholders.
There’s also DaaS solutions available to consumers. For instance, Open Health has launched a platform called PatientSphere that allows patients to monetize their personal health data. It works by connecting pharmaceutical companies or research institutions with people who fit the criteria for different studies or analytics.
With this consumer data, pharmaceutical companies can provide more predictive healthcare offerings, detect disease outbreaks, and personalize offerings. We could see this as another instance of DaaS being monetized. We see this with digital health startup Huma, whose app collects data from wearables, mobile devices, and medical bodies and analyzes those data to prohibit chronic disease.
4. Leverage Advanced Data Analytics and AI
One of the most powerful indirect means of monetizing healthcare data is by optimizing your operations to improve your bottom line. Machine learning algorithms can identify patterns, trends, and correlations within large datasets, enabling organizations to optimize clinical workflows, improve patient outcomes, and identify cost-saving opportunities.
By leveraging advanced data analytics and AI, healthcare companies can gain insights into patient behavior, disease trends, and treatment efficacy, allowing them to tailor services and interventions more effectively. Additionally, predictive analytics can help forecast patient needs, streamline resource allocation, and reduce operational costs, ultimately enhancing the organization’s profitability. This proactive approach to data-driven decision-making not only improves financial performance but also enhances overall patient care delivery, positioning the company as a leader in the healthcare space.
5. Keep Data Privacy and Security Paramount
Above all, prioritizing data privacy and security throughout the data monetization process is essential. Otherwise, the monetization venture may eventually prove more costly than lucrative, if you face fines for breaching patient confidentiality. Implement robust encryption techniques, access controls, and anonymization methods to protect sensitive patient information.
Conduct regular audits and assessments to ensure compliance with regulatory requirements and industry best practices. By demonstrating a commitment to data privacy and security, healthcare organizations can build trust with both data providers and consumers, fostering long-term partnerships and sustainable data monetization strategies.
To monetize healthcare data ethically and legally, it’s crucial to establish robust data governance and compliance frameworks. This involves ensuring adherence to regulations like HIPAA, which safeguard patient privacy and data security. Organizations must implement stringent policies and procedures for data collection, storage, access, and sharing to mitigate risks and maintain trust among stakeholders.
The Future of Healthcare Data Monetization
As technology advances and healthcare becomes more data-driven, the future of healthcare data monetization holds enormous promise for changing the way we deliver and receive care. From personalized medication and AI-driven operational savings to preventative care programs and collaborative collaborations, the opportunities for using healthcare data to improve patient care and drive innovation are nearly unlimited.
To summarize, healthcare businesses must adopt data-driven strategies in order to realize the full potential of healthcare data monetization. Healthcare organizations can position themselves at the forefront of innovation by prioritizing patient privacy, ethical considerations, and regulatory compliance, as well as leveraging advanced technologies and collaborative partnerships.
