Healthcare IT Market

Market Definition

The Healthcare IT Market size was valued at USD 311.62 billion in 2022 and is predicted to reach USD 1109.54 billion by 2030 with a CAGR of 19.9% from 2023-2030. The term healthcare information technology or healthcare IT refers to the electronic systems that are used by healthcare professionals as well as by patients to store, share and analyze patient health data. Healthcare IT is a branch of IT that are developed, designed, created and maintained by healthcare sectors in hospitals, clinics and other healthcare industries.

Information technology has played a significant role in establishing a central database to manage patient data in the form of electronic health records (EHR) and modern software. It helps to simplify medical billing & coding as well as streamline the financial revenue cycle. Healthcare IT also enables to enhance healthcare by providing better clinical results, lowering human error, improving practice efficiency, facilitating care coordination and tracking healthcare data.

Market Dynamics and Trends

The growing use of the internet and digitalization in healthcare is driving the adoption of healthcare IT solutions. As it offers benefits such as reducing the risk of losing medical records and saving time, which is fueling the growth of the healthcare IT market. Also, rising adoption of electronic medical record (EMR) systems and electronic health record (EHR) that enables to manage patient health records is expected to further propel the growth of healthcare IT market.

Moreover, increasing demand for mHealth and telehealth solutions from the number of smartphone users that provides easy access & real time remote patient monitoring is further expected to drive the growth of healthcare IT market during the forecast period.

However, high implementation and maintenance cost of healthcare IT solutions are factors restraining the growth of market during the forecast period. On the contrary, the integration of artificial intelligence (AI) and blockchain for the purpose of improving the infrastructure of healthcare IT is expected to create ample growth opportunities for the market in the future.

Market Segmentations and Scope of the Study

The healthcare IT market share is segmented on the basis of component, products & services type, delivery mode, application, end user and region. On the basis of component, the market is classified into software, hardware, and services. On the basis of products & services, the market is divided into healthcare provider solutions, healthcare payer solutions, and healthcare information technology (HCIT) outsourcing services. On the basis of delivery mode, the market is categorized into on-premise and cloud-based. On the basis of application, the market is bifurcated into laboratory information systems (LIS), picture archiving and communication system (PACS), vendor neutral archive (VNA), radiology information systems (RIS), cardiovascular information system (CVIS), electronic health records (EHR), telemedicine, clinical decision support system (CDSS), claims management solutions, population health management solutions, fraud analytics, provider management services, billing & accounts management services, and others. On the basis of end-user, the market is segmented into hospital, pharmacy, ambulatory, homecare, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the dominant share of healthcare IT market at present and is expected to continue its dominance during the forecast period. This is attributed to the higher adoption of digital healthcare and implementation of IT services by various players in this region. For instance, in November 2021, InsiteOne LLC launched a new platform, V11 to provide technological advancement that integrates extended intelligence (EI), artificial intelligence (AI) and machine learning (ML) tools into clinical workflow and offers healthcare institutions with automation solutions.

Also, presence of major key players such as Epic Systems Corporation, Cognizant Technology Solutions Corporation, Cerner Corporation and Allscripts Healthcare Solutions Inc., adopting various market strategies to expand their businesses boosts the market growth in this region. For instance, in March 2022, Cognizant announced strategic collaboration with Microsoft to offer a new virtual healthcare solution. Microsoft cloud for healthcare that enhances remote patient monitoring for improved medical care.

On the other hand, Asia-Pacific is expected to show a steady rise in the healthcare IT market due to several initiatives taken by the governments of various nations such as India and Japan to promote digital healthcare facilities in this region. For instance, in September 2021, the Government of India launched the Pradhan Mantri Digital Health Mission that helps to digitalize healthcare practices across the country, by developing national digital health ecosystem that will enable patients to store, access, and consent to share health records.

Moreover, growing developments and investment in 5G infrastructure in countries such as China, South Korea, India and others are expected to drive the healthcare IT market growth in this region. For instance, in August 2022, the government of China announced investment of more than UDS 59.4 billion for development of 5G infrastructure in this region to increase the implementation of 5G, the wireless technology that boost the information consumption and upgradation of industrial sectors such as healthcare. 

Competitive Landscape

Various market players operating in the healthcare IT market includes GE Healthcare, Philips Healthcare, Siemens Healthcare, Cerner Corporation, Allscripts Healthcare Solutions Inc., Epic Systems Corporation, McKesson Corporation, Oracle Corporation, Cognizant Technology Solutions Corporation and Change Healthcare among others.

These market players are adopting various strategies such as product launches and collaborations of business across various regions to maintain their dominance in the healthcare IT market. For instance, in March 2022, Epic launched SaaS solution for independent medical groups, advancing healthcare technology. This offering equips practices with digital tools to improve patient care and streamline operations, reflecting the industry's shift towards accessible and scalable healthcare IT solutions.

Also, in July 2021, Philips collaborated with Cognizant to develop end-to-end digital health solutions to healthcare organizations and life sciences companies to improve patient care and accelerate clinical trials. The collaboration bought Philips HealthSuite, a cloud-based platform and Cognizant's digital engineering expertise that enabled to maintain digital health solutions at scale as well as offers advanced connectivity to create actionable insights of large data.

KEY BENEFITS

• The report provides quantitative analysis and estimations of the healthcare IT market from 2023 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the healthcare IT market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the healthcare IT market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

KEY MARKET SEGMENTS

By Component

• Software

• Hardware

• Services

By Products & Services Type

• Healthcare Provider Solutions

• Healthcare Payer Solutions

• Healthcare Information Technology (HCIT) Outsourcing Services

By Delivery Mode

• On-premise 

• Cloud-based

By Application

• Laboratory Information Systems (LIS)

• Picture Archiving and Communication System (PACS)

• Vendor Neutral Archive (VNA)

• Radiology Information Systems (RIS)

• Cardiovascular Information System (CVIS)

• Electronic Health Records (EHR)

• Telemedicine

• Clinical Decision Support System (CDSS)

• Claims Management Solutions

• Population Health Management Solutions

• Fraud Analytics

• Provider Management Services

• Billing & Accounts Management Services

• Others

By End User

• Hospital

• Pharmacy

• Ambulatory

• Homecare

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of the World (RoW)

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2022	USD 311.62 Billion
Revenue Forecast in 2030	USD 1109.54 Billion
Revenue Growth Rate	CAGR of 19.9% from 2023 to 2030
Analysis Period	2022–2030
Base Year Considered	2022
Forecast Period	2023–2030
Market Size Estimation	Billion (USD)
Growth Factors	Rising penetration of internet and digitalization in healthcare sector.   Rising adoption of electronic medical record (EMR) systems and electronic health record (EHR). Increasing demand for mHealth and telehealth solutions.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• GE Healthcare Technologies, Inc.

• Philips Healthcare

• Siemens Healthcare

• Cerner Corporation

• Allscripts Healthcare Solutions Inc.

• Epic Systems Corporation

• McKesson Corporation 

• Oracle Corporation

• Cognizant Technology Solutions Corporation 

• Change Healthcare