The global health-care predictive analytics market is expected to reach $19.5 billion by 2025 as organizations strive to reduce expenditures.

That’s according to a new report by Grand View Research. This market was valued at nearly $1.5 billion in 2015 and is expected to grow at a compound annual growth rate (CAGR) of 29.3 percent through 2025.

Government authorities, health organizations and private players are among those striving to bring down health-care costs. Health care predictive analytics helps in “bending the cost curve through optimization of the existing clinical workflow, operations and payment strategies,” according to the report.

Pressure to contain soaring health-care costs, introduction of advanced analytics and increasing demand for personalized medication are expected to propel the “lucrative growth” of the market, the report said.{ad}

Financial applications of health care predictive analytics held a significant share of about 30 percent in 2015. Revenue cycle management and fraud detection are key financial applications, the report said.

Increasing focus on population health management makes it one of the most lucrative growing application segments of the health-care predictive analytics market.

Payers make up the key end-user segment of this market. Various insurance companies, health plan sponsors and third-party payers are other users of predictive analytics, according to the report.

Also, the use of predictive analytics among payers such as hospitals, clinics and physicians is anticipated to increase over the forecast period.

Some of the key players in this market include IBM, Cerner, Verisk Analytics, McKesson, SAS, Oracle, Allscripts, Optum and MedeAnalytics. New product launches and collaborations are the key strategic undertakings among the sector participants.

North America has dominated the market, while Asia Pacific is expected to witness lucrative growth over the forecast period. Economic reforms, a bolstering IT industry and low operating costs are the key factors luring market players to invest in this region, according to the report.