Healthcare Consulting Market

Global Healthcare Consulting Market Size (2024 to 2029)

The global healthcare consulting market is forecasted to grow at a CAGR of 11.4% from 2024 to 2029. As a result, the global market is estimated to be worth USD 33.71 billion by 2029 and USD 19.65 billion by 2024.

Healthcare consulting is the concept of communicating expertise, providing advice, and advising healthcare organizations to make strategic decisions that foster growth and support their clients and patients. The market would benefit from the increasing adoption of cloud and Internet of things technology (IoT). Healthcare advisory services advise life science businesses, federal bodies, hospitals, insurance companies, and research institutes on corporate policy. In addition, pharmaceutical, biotechnology, and medical device manufacturers and hospitals commonly seek digital consultancy, accounting, operations consulting, and policy consulting.

Healthcare advisory companies evaluate the organization's performance, benefit loss ratio, and structure until offering market insight and change guidance. Both healthcare advisors work with customers to develop and deliver solutions that help them overcome uncertainty, solve problems, and meet their market objectives, resulting in improved patient care in this sector. Pharmaceutical firms, pharmaceutical start-ups, health insurance companies, and municipalities employ healthcare experts to help them figure out the most profitable and reliable ways to provide healthcare. By 2022, the global healthcare industry will be worth more than USD 10 trillion. In addition, the health technology sector is growing at a five-year compound annual growth rate of approximately 16% to USD 280 billion by 2021. According to a recent study by Source Global Reinsurance, it's no surprise that the healthcare outsourcing market is exploding with global revenue.

MARKET DRIVERS

The rapid adoption of digitalization in healthcare worldwide is majorly driving the healthcare consulting market growth.

There has been a global demand for healthcare advisory services due to the high demand for effective practical solutions. Furthermore, Healthcare outsourcing is in high demand worldwide due to its use in various healthcare sectors. Furthermore, there is a growth in opportunities for healthcare IT consultancy due to supportive government policies in both developed and emerging countries. During the forecast period, the potential of healthcare consultants to improve healthcare firms' overall corporate activities helps develop the global healthcare consulting market. In addition, the growing number of mergers and acquisitions is another significant factor predicted to boost the global healthcare consulting market growth during the forecast period.

Other trends, such as expanded government funding for healthcare IT solutions, will likely change the technology environment during the forecast period. In terms of improving quality, managing costs, increasing performance, and simplifying inventory management, strong IT help combined with agile approaches offers healthcare providers a strategic advantage. Due to the aforementioned factor, the growth of the global healthcare consultancy market is expected to be aided in the coming years as the number of healthcare-based businesses. For instance, McKesson announced a partnership with Navigating Cancer in 2019 to promote and improve its consulting services. 

MARKET RESTRAINTS

The lack of awareness about healthcare consultants among people in underdeveloped countries is considered a significant growth decline factor for the global healthcare consulting market.

In addition, favorable reimbursement policies and regulatory rules will likely restrain the market growth. The main problem for healthcare consulting is allocating investment budgets across several hospital consulting sectors. Even though governments have raised healthcare expenditures, many nations underfund healthcare consulting services.

Impact Of COVID-19 On the Global Healthcare Consulting Market

Due to the massive longevity of the COVID-19 pandemic, the healthcare profession is experiencing unprecedented obstacles, including substantial weariness. Reduce the burden on people, patients, and the community as your healthcare executives, physicians, and employees remain focused on their health and well-being. The global healthcare consulting market witnesses increasing demand across the globe, led by the rising usage of healthcare products. The COVID-19 pandemic has drastically altered the future of health care. Remote working, virtual doctor visits, and a supply chain hampered by significant shortages confront the healthcare ecosystem and customers. Patients with mild disabilities were also required to consult online under the social distancing measures. COVID-19 is likely to significantly influence the global healthcare IT consulting market because of these aspects. COVID-19 re-emphasized the importance of remote diagnosis, care, and consultation.

Furthermore, as governments introduce healthcare services and infrastructure upgrades, the COVID-19 epidemic accelerates market expansion. Free medical teleconsulting and medical escort services for the elderly living alone are included in these plans. Healthcare reforms will soon include technological advancements, cost containment, and increased access. In the ongoing outbreak, digital health and telehealth have taken center stage. However, since many healthcare providers are currently working on video conferencing and telephone calls, this segment's growth is anticipated to increase severalfold over the next two years.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Healthcare Consulting Market Analysis By Type of Service

The digital consulting market is expected to grow at a promising CAGR and account for the most significant global healthcare consulting market share during the forecast period. Digital Consultancy is a recent digital platform consulting service with a considerable market share. The transition to digital consultancy has saved time for service providers and consumers, and it is predicted to continue to expand at an encouraging pace over the forecast period. Moreover, increasing healthcare spending for building intelligent hospitals across the globe is expected to raise market growth.

The IT consulting segment had the second-largest share in the market among all other segments based on the type of service in 2023 and is expected to grow at a healthy CAGR during the forecast period. Health institutions now have advanced computers with sophisticated applications to treat and diagnose illnesses. Since healthcare professionals may be unfamiliar with the program, IT consulting may assist them in running and maintaining it. It has saved healthcare practitioners significant time, allowing them to handle more patients quickly.

On the other hand, the financial management segment had a substantial share in the global healthcare consulting market in 2023, covering advisory support offered to handle the hospital's funds and expenses. These programs assist organizations with emphasizing their budgets based on the number of incentives they can deliver. However, increasing technology adoption, such as the cloud and the internet, is expected to promote the segment's growth.

During the forecast period, the strategy segment is expected to expand faster. This segment benefits hospitals by allowing them to provide packages to patients to entice them to use their services. Marketing campaigns are used in the campaign to sell the packages to a broader audience.

Global Healthcare Consulting Market Analysis By End-User

The life science companies segment had the largest share in the global healthcare consulting market and is expected to grow faster than all other segments during the forecast period. These companies use outsourcing firms to reduce the time it takes to manage complex activities, so they delegate the jobs to other companies, thus increasing their productivity. In addition, government agencies use healthcare advisory programs when implementing healthcare policy or establishing a new healthcare department. Therefore, the more money spent on hospitals, the higher this sub-segment will rise in the future. Payers and manufacturers are two other business sectors with a significant market share expected to grow reasonably over the forecast period.

REGIONAL ANALYSIS

North America dominated the global healthcare consulting market and accounted for the largest market share in 2023. The market growth is attributed to the increasing pricing pressure on pharmaceutical companies and growing M&A activity. A few factors favoring the North American market are mergers and acquisitions, a changing regulatory climate, and an uncertain economy. The U.S. healthcare consulting market accounted for the largest share of the North American healthcare consulting market during the previous years. The country witnessed technological advancements in the healthcare sector. CitiusTech, through its specialized experience, offers medical technologies with facilities for expanding existing business applications (EMR) through end-to-end assistance in the United States. Through promoting service quality and lowering costs, healthcare IT consultancy companies assist patients and caregivers in engaging with them. They have outstanding analytics capabilities, allowing care providers to maximize clinical revenue.

The European market is anticipated to register a healthy CAGR in the global healthcare consulting market during the forecast period. The expanding number of healthcare-related businesses, the increasing number of clinical trials for newer pharmaceuticals, and the rapid advancement of medical medications and equipment have produced a massive need for healthcare consulting services in Europe. In addition, key market players and emerging economies such as the UK, Germany, France, and Spain contribute to regional market growth. 

APAC is predicted to grow at a significant rate in the global healthcare consulting market during the forecast period. The APAC healthcare IT consulting market is highly competitive and growing and has higher penetration from emerging markets like China and India. Emerging markets, such as APAC, are projected to see increased healthcare IT consulting market penetration, providing new entrants. The Indian market is anticipated to record significant growth in the healthcare consulting market and contribute to the APAC regional market growth. 

KEY PLAYERS IN THE HEALTHCARE CONSULTING MARKET

Companies like Deloitte Touche Tohmatsu LLC (DTT), McKinsey & Company, Accenture Consulting, Huron Consulting, PWC, Ernst & Young, The Boston Consulting Group, Bain & Company, KPMG, and Cognizant are playing a dominating role in the global healthcare consulting market.

RECENT HAPPENINGS IN THIS MARKET

• Deloitte acquired ClearViewIP, an intellectual property consulting firm, in June 2019. This acquisition will help Deloitte expand its intellectual property advisory services segment in health consulting.
• In March 2019, McKesson Company created oncologists' patient care and management software.
• Genesis HealthCare, one of the leading post-acute care providers in the United States, reached a $ 79 million deal with consulting firm New Generation Health in February 2020.
• HSG, a national health consultancy company, was launched as a new virtual health consultancy service in May 2020 to help hospitals, health systems, and physician offices determine whether virtual visits with patients are possible.
• In October 2020, Providence, a company based in Washington, United States., combined its healthcare technology investments to create a comprehensive digital health portfolio called Tegra.
• VMG Health, the global leader in full-service healthcare transaction advisory and consultancy, is pleased to announce the acquisition of Health Care Futures, a business planning and consulting firm based in Minneapolis, in February 2021.
• In April 2021, Damo Consulting announced the launch of DigiMTM, an online assessment tool for healthcare systems looking to benchmark their digital transformation efforts.

DETAILED SEGMENTATION OF THE GLOBAL HEALTHCARE CONSULTING MARKET INCLUDED IN THIS REPORT

This research report on the global healthcare consulting market has been segmented and sub-segmented based on component, delivery, end-users, and region.

By Type of Service

• IT Consulting
• Strategy Consulting
• Financial Consulting
• Digital Consulting
• Operations Consulting
• HR & Talent Consulting

By End-User

• Life Science Companies
• Payers
• Providers
• Government Bodies

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa