Health Insurance Exchange Market Size, Share, Growth, and Industry Growth by Type (Services, Software, and Hardware), By Application (Government Agencies, Third Party Administrators (TPAs), and Health Plans or Payers), Regional Forecast To 2031

Updated On: 08 April 2024

Health Insurance Exchange Market REPORT OVERVIEW

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The global health insurance exchange market size was USD 2435 million in 2021 and market is projected to touch USD 5543.05 million by 2031, at a CAGR of 8.5% during the forecast period.

A health insurance exchange is also known as health insurance marketplace. It is a common shopping market place for health insurance. Health insurance refers to financing of a person’s healthcare expenses. The concept of the service was originated from the Obama Care in the United States. It is an array of online shopping centers which is filled with medical benefits programs.  The industry is mainly driven by (TPA) Third-Party Administrators, consultancies, and brokerages firms.

Growing healthcare sector are adopting IT application which is expected to accelerate market growth. Increasing funding sources from federal governments are projected to boost the service adoption. Increasing demand for cloud-based technology is expected to provide lucrative growth in the market. Growing trend towards defined contribution model to reduced healthcare cost is predicted to boost market growth. Rising adoption of private exchanges in the market is anticipated to increase service adoption.

COVID 19 Impact: Growing Health Concerns during the Pandemic to Encourage Market Growth

During the pandemic the market witnessed positive growth due to growing concerns regarding health and fitness. Increasing number of coronavirus cases globally, boosted adoption of the service. Rising awareness regarding health coverages boosted market growth for the service. People started investing in healthcare insurance to prevent further loss to boosted market growth.

On the contrary, most of the health insurance exchanges were tied to their employment. Outbreak of pandemic led to job loss which reduced market growth. Several industries or companies were impacted due to lockdown and curfew restrictions. This pandemic witnessed unemployment which to reduced service adoption.

LATEST TRENDS 

" Growing Adoption of IT in Healthcare to Foster Market Expansion "

Healthcare sector is adapting IT for better services which is estimated to increase market growth. Increasing need for ensured cloud-based technology in healthcare data is expected to drive market growth. Rising trend towards integrated environment concerns is projected to fuel market growth. Increasing number of automation in medical science is predicted to accelerate market growth. Growing awareness regarding health insurances amongst people is expected to increase market growth during the forecast period. Increasing adoption of HCIT and HIE is expected to fuel market growth. Rising outsourcing trend to generate revenue from private exchanges insurance.

Health Insurance Exchange Market SEGMENTATION

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• By Type

Based on type, the market is divided into services, software, and hardware.

Services are the leading part of segmentation type.

• By Application

Based on the application, the market is divided into government agencies, Third Party Administrators (TPAs), and health plans or payers.

Government agencies are the leading part of application segmentation.

DRIVING FACTORS

"Exceptional Benefits of Service to Favor Market Growth"

Health insurance exchange market has multiple benefits such as affordable, reducing health care costs, and family coverage. These qualities are expected to expand market growth. Growing shift from traditional defined benefits plans to defined contribution plans are predicted to expand market growth.  Also, by qualifying premium subsidies or cost-sharing subsides help to obtain grants from different health insurance schemes globally. These unique features are projected to drive market growth during the forecast period.  In addition, tax benefits and cashless claims are projected to fuel market growth.

"Increasing Awareness about Healthcare to Expand Market Growth "

Increasing awareness regarding healthcare is expected to fuel market growth. Today’s population is concerned about health and fitness. The growing concerns about healthcare among population is estimated to boost service adoption. Rising number of diseases is expected to fuel market growth. Also, growing healthcare sector and advanced treatments globally is projected to fuel market growth during the forecast period. Further, increasing number of accidents and natural disasters are predicted to accelerate health insurance exchange market growth during the forecast period.

RESTRAINING FACTORS

"Data Privacy and High Costs of Investments to Hamper Market Growth"

Increasing number of data privacy and security issues are projected to restrict market growth. High capital investment associated with the services is estimated to hinder market growth. Lack of awareness regarding private exchanges and complex set of technology are predicted to hamper service adoption. In addition, lack of skilled manpower is anticipated to restrict market growth during the forecast period.

Health Insurance Exchange Market REGIONAL INSIGHTS

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"Increasing Adoption of Private Health Exchange to Drive Market Share in North America"

North America is expected to have highest part in the health insurance exchange market share due to increase in the adoption of private health exchange. Increasing awareness among consumers about health insurance is projected to drive market growth. Growing federal health insurance mandates and policies are estimated to increase market growth. Also, numerous funding sources from federal government is projected to drive market growth during the forecast period.

Europe is expected to show considerable market growth due to rising adoption of HCIT (Healthcare Information Technology) and HIE (Health Insurance Exchange). Increasing outsourcing to generate higher revenue which is estimated to fuel health insurance exchange market growth during the forecast period.

Asia Pacific is estimated to show considerable market growth due to increasing number of population. Growing awareness regarding health and benefits are projected to drive market growth. High adoption of the service in healthcare and medical sectors are projected to drive market growth. Further, increasing number of automation in the medical science is predicted to accelerate market growth. Growing awareness regarding health insurance among people in the region is estimated to accelerate service adoption.

KEY INDUSTRY PLAYERS

"Leading Players Adopt Partnership Strategies to Stay Competitive"

The report covers information about the list of market players and their latest development in the industry. The information includes mergers, partnerships, acquisitions, technological developments, and production lines. Other aspects examined for this market include complete research on companies producing and introducing the latest products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

List of Market Players Profiled

• Accenture (Ireland)
• CGI (Canada)
• Deloitte (U.S.)
• IBM (U.S.)
• Infosys (India)
• MAXIMUS (U.S.)
• Oracle (U.S.)
• Xerox (U.S.)
• Connecture (U.S.)
• Cognosante (U.S.)
• HCentive (U.S.)
• Hexaware Technologies (India)
• HP (U.S.)
• Inovalon, Inc. (U.S.)
• KPMG (Netherlands)
• Microsoft (U.S.)
• Noridian Healthcare Solutions
• Tata Consultancy Services (TCS) (India)
• Wipro (India)

REPORT COVERAGE

This research profiles a report with general studies that explain the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, and others. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.