Population Health Management Market to Grow at a CAGR of 12.8% by 2031 on Data Driven Care | DataM Intelligence

The global population health management market will grow from USD 21.3 Bn (2022) to USD 54.3 Bn by 2031 at a 12.8% CAGR, backed by recent US and Japan funding.

INDIANA, IN, UNITED STATES, July 28, 2025 /EINPresswire.com/ -- Population health management (PHM) integrates patient data across disparate health IT systems, applies analytics to create actionable insights, and enables coordinated interventions to improve outcomes. According to DataM Intelligence analysis, the PHM market reached USD 21.3 billion in 2022 and is projected to hit USD 54.3 billion by 2031, growing at a 12.8% compound annual growth rate (CAGR) from 2024 to 2031. Rising healthcare costs, value based care mandates, and digital transformation initiatives are driving providers and payers to adopt PHM platforms for risk stratification, care coordination, and patient engagement.

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Market Segments

By Component: Software commands the largest share, as analytics engines and reporting tools form the PHM backbone. Services consulting, implementation, and managed services are the fastest growing segment, reflecting provider demand for turnkey solutions and expertise.

By Mode of Delivery: Cloud based PHM platforms are expanding fastest, thanks to scalability, lower upfront costs, and rapid deployment. On premise deployments still hold the highest revenue share, favored by large health systems with existing data centers and security policies.

By End User: Healthcare providers, hospitals and health systems represent the dominant end user group, investing heavily to meet population health goals. Healthcare payers are the fastest growing adopters, leveraging PHM to manage member risk and reduce costs under value based contracts.

Key Players
Major vendors leading the PHM market include:
• Allscripts Healthcare Solutions Inc. – Integrated analytics and care coordination tools
• Cerner Corporation – PHM modules within the Millennium EHR platform
• Epic Systems Corporation – Healthy Planet suite for population health analytics
• Conifer Health Solutions – Managed services and consulting for care management
• IBM – Watson Health analytics and AI driven risk engines
• Health Catalyst – Data warehouse and analytics platform for PHM
• Philips Healthcare – Care management software and remote monitoring
• McKesson Corporation – Claims analytics and risk stratification tools
• Optum, Inc. – Optum One integrated PHM and care coordination platform
• Verisk Analytics, Inc. – Predictive modeling and social determinants data

These players continually enhance their offerings through AI powered insights, interoperability connectors, and strategic acquisitions.

Regional Insights

North America
North America dominates, accounting for over 45% of global PHM revenue in 2024. Favorable regulations, such as the Affordable Care Act’s value based payment models and high healthcare IT spending underpin adoption. U.S. providers are integrating PHM with EHRs to meet Medicare’s Accountable Care Organization requirements.

Asia-Pacific & Japan
Asia-Pacific registers the fastest regional growth. In Japan, government initiatives under “Medical DX” are funding digital health, while aging demographics and rising chronic disease prevalence drive PHM adoption. Japanese health systems are piloting risk stratification and patient engagement modules to improve outcomes in rural prefectures.

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Recent Investments
United States
• Digital Health Funding (H1 2025): U.S. digital health companies including those offering PHM capabilities such as predictive analytics and care coordination apps raised USD 6.4 billion in the first half of 2025, up from USD 6.0 billion in H1 2024. AI enabled platforms captured 62% of that funding, highlighting investor confidence in data driven population health solutions.

Japan
• Fukuoka Financial Group Fund (May 2025): FFG launched a ¥9 billion (≈USD 62 million) corporate venturing fund targeting health tech and mHealth startups many of which offer PHM modules for chronic care and elderly population management.
• Public Private Medical DX Grants (April 2025): Japan’s Ministry of Health awarded grants to integrate cloud based PHM platforms into public hospitals, emphasizing interoperability and AI powered risk stratification.

Innovation & Use Cases
• Risk Stratification & Predictive Analytics: AI models identify high risk patients such as those with multiple chronic conditions for targeted interventions, reducing hospital readmissions by up to 15%.

• Care Coordination & Patient Engagement: Mobile apps, automated outreach, and virtual care programs improve medication adherence and preventive screening rates across large patient cohorts.

• Social Determinants of Health (SDoH) Integration: PHM platforms now ingest SDoH data housing, income, transportation to refine risk scores and tailor community based interventions.

Policy & Reimbursement Drivers
• Value Based Care Mandates: U.S. CMS programs like ACOs and bundled payments require robust PHM capabilities for quality reporting and cost management.
• Japan’s Medical DX Framework: Government subsidies and interoperability guidelines are accelerating PHM deployment in regional cancer and cardiovascular centers.

Challenges & Opportunities

Challenges:
• Data Integration Complexity: Aggregating disparate EHR, claims, and SDoH data remains technically and organizationally challenging.
• Privacy & Security: PHM platforms must comply with HIPAA and Japan’s APPI, necessitating robust encryption and governance.

Opportunities:
• Expansion into Payer Market: Insurers can leverage PHM to design personalized care pathways and shared savings programs.
• Patient Centered Analytics: Integrating wearable and home monitoring data offers continuous risk assessment and early intervention.

Conclusion

According to DataM Intelligence analysis, the population health management market is poised for robust growth more than doubling from USD 21.3 billion in 2022 to USD 54.3 billion by 2031 at a 12.8% CAGR. Strategic investments in the U.S. and Japan, coupled with technological advances in AI and cloud delivery, are fueling adoption across providers and payers. As healthcare systems embrace value based care, PHM will become indispensable for improving outcomes, reducing costs, and achieving health equity.

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Sai Kumar
DataM Intelligence 4market Research LLP
+1 877-441-4866
sai.k@datamintelligence.com
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