The Healthcare IT Market was valued at $340.06 billion in 2023. This market is expected to reach $907.18 billion by 2031, from an estimated $380.87 billion in 2024, at a CAGR of 13.2% during the forecast period 2024-2031.
Healthcare IT Market Size & Forecast
Healthcare IT solutions modernize and streamline healthcare and connect stakeholders in the eHealth market. Healthcare IT comprises hardware and software, including electronic information systems that are used to generate, store, transmit, receive, and analyze health information. These solutions are helping improve the efficiency, cost-effectiveness, quality, and safety of medical care delivery across global healthcare systems.
The growth of the healthcare IT market is driven by rising awareness regarding digital health, government mandates and incentives for healthcare IT and infrastructure development, the shift toward value-based care, the growing utilization of big data in the healthcare sector, the high returns on IT investments in the healthcare industry, and the increasing number of patient visits.
However, the high costs of implementing and maintaining healthcare IT infrastructure, financial constraints in developing countries, and restricted budgets of small and medium-sized healthcare facilities restrain the growth of this market.
Additionally, the growing focus on cloud-based solutions, the rising adoption of AI & IoT technologies in healthcare, and emerging economies such as India and China with increasing per capita healthcare expenditures are expected to offer significant growth opportunities for the stakeholders in this market.
However, interoperability issues, data security & privacy concerns, and the shortage of trained IT professionals are major challenges impacting the market's growth.
Moreover, the increasing use of Virtual Reality (VR) and Augmented Reality (AR) for physical and surgical procedures, the increasing demand for healthcare IT solutions in the field of genomics and personalized medicine, increasing access to virtual hospitals, and the rising demand for remote patient monitoring and telemedicine solutions are prominent trends in the healthcare IT market.
Shift Toward Value-based Care Driving Market Growth
The healthcare systems in developed countries are experiencing a shift from fee-for-service to value-based payments. Value-based programs reward healthcare providers with incentive payments for quality care delivered to patients. Value-based care largely focuses on healthcare outcomes and not procedures. It pushes healthcare systems to deliver higher-quality care at lower costs. The shift to value-based care is not just economic but also technological. This shift is characterized by a move to reimbursements based on ‘episodes of care,’ which necessitate changes in billing, data collection, reimbursement rules, and supporting technologies.
Accountable Care Organizations (ACOs) and value-based payment models are driving payer-provider mergers, partnerships, and joint ventures to address fragmented healthcare delivery, emphasize patient-centered care, and promote care coordination, thereby aligning goals and incentives among payers, providers, and patients. This evolution toward value-based reimbursements benefits all stakeholders in the healthcare industry, i.e., patients, healthcare providers, and payers. Value-based reimbursements encourage healthcare providers to deliver the best care at the lowest cost, resulting in patients receiving a higher quality of care at better value.
Today, various healthcare IT solutions, such as EHRs, population health management solutions, revenue cycle management solutions, quality reporting solutions, healthcare analytics solutions, and accountable care solutions, are helping healthcare institutions provide quality care and maintain their financial health. These benefits are increasing the adoption of healthcare IT solutions across the entire healthcare ecosystem, driving the growth of the healthcare IT market.
Rising Adoption of AI & IoT in Healthcare Generating Market Growth Opportunities
Technological advances are making healthcare management and delivery more accessible globally. Advanced technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) are increasingly transforming the healthcare industry, improving healthcare data management, and speeding up workflows. Amid the shortage of healthcare professionals, AI solutions are increasingly being used in hospital workflow management, patient management, and patient data and risk analysis. The shortage of healthcare professionals is also driving innovation and AI deployments in the field of medical imaging.
The application of Artificial Intelligence (AI) and Machine Learning (ML) in medical imaging offers several benefits, including augmentation and improvements in diagnosis. Moreover, AI can be an asset for radiologists in improving workflow and diagnostic efficiency. The technology has caused a paradigm shift in predictive healthcare. Advancements in AI, IoT, and robotics are also expected to contribute to the evolution of other areas of healthcare in the coming years.
Many technology providers and HCIT vendors are integrating AI and IoT into their existing systems to improve efficiencies and smoothen workflows, especially in the field of imaging. The interpretation of medical scans consumes a lot of time, and these technologies can enable healthcare professionals to significantly speed up the process. Thus, the rising adoption of AI & IoT in healthcare is boosting the demand for advanced healthcare IT solutions.
Click here to: Get Free Sample Pages of this Report
Key Findings in the Healthcare IT Market Study:
Healthcare IT Provider Solutions Expected to Account for the Largest Market Share in 2024
Based on product, in 2024, the healthcare IT provider solutions segment is expected to account for the largest share of the healthcare IT market. The segment’s large share is attributed to the increasing demand for integrated healthcare solutions, the growing focus on patient safety & care, rising investments in the development of healthcare infrastructure in emerging countries, the rising demand for quality healthcare, government initiatives and regulatory mandates on implementing eHealth solutions, and rising awareness about Electronic Health Records (EHRs). The growing global geriatric population and the consequently increasing chronic disease prevalence and burden on healthcare systems are also driving the adoption of digitization solutions among healthcare providers. In addition, the Affordable Care Act in the U.S., and the growing need to manage large patient data sets support the segment’s large share.
The Web & Cloud-based Segment Expected to Dominate the Healthcare IT Market in 2024
Based on deployment mode, in 2024, the web & cloud-based segment is expected to account for the major share of the healthcare IT market. The segment’s large share is attributed to the benefits of web/cloud-based solutions such as on-demand self-serving deployment, lower upfront cost of deployment, no maintenance costs, lower storage costs, storage flexibility, and enhanced scalability. In addition, the superior security in private clouds and automated updating features of web & cloud solutions support the growth of this segment.
The Services Segment Expected to Account for the Largest Market Share in 2024
Based on component, in 2024, the services segment is expected to account for the largest share of the healthcare IT market. The segment’s large share is attributed to the shift toward cloud-based services, the increasing need to reduce healthcare costs, and the rising adoption of digital solutions across healthcare organizations. In addition, the growing need to reduce administrative overheads in the healthcare industry and enhance the productivity of healthcare operations and the rising demand for easy access to affordable care support the segment’s large market share.
Healthcare Providers Expected to Dominate the Market in 2024
Based on end user, in 2024, the healthcare providers segment is expected to account for the major share of the healthcare IT market. The segment’s large share is primarily attributed to rising patient volumes, growing healthcare spending across the globe, rising awareness about Electronic Health Records (EHRs), the growing global geriatric population, and the rising adoption of healthcare IT solutions among healthcare providers.
Asia-Pacific to be the Fastest-growing Regional Market During the Forecast Period
Growth in the aging population and the resultant rise in chronic disease prevalence are increasing the burden on healthcare systems in the APAC region. This burden is driving the need for effective utilization of healthcare resources through the incorporation of various technological tools. Also, government initiatives toward modernizing healthcare infrastructure in line with global standards, the digitalization of healthcare systems, and rising awareness about the benefits of IT solutions are driving market growth in Asia-Pacific.
Healthcare IT Market: Competitive Analysis
The report offers a competitive landscape based on an extensive assessment of the product offerings and geographic presence of leading market players and the key growth strategies adopted by them in the last three to four years. The key players profiled in the healthcare IT market report are International Business Machines Corporation (IBM) (U.S.), GE Healthcare (U.S.), Allscripts Healthcare Solutions, Inc. (U.S.), Koninklijke Philips N.V. (Netherlands), Infor, Inc. (a subsidiary of Koch Industries, Inc.) (U.S.), Cognizant Technology Solutions Corporation (U.S.), Oracle Corporation (U.S.), athenahealth, Inc. (a subsidiary of Veritas Capital) (U.S.), Dell Technologies, Inc. (U.S.), Unitedhealth Group (Optum, Inc.) (U.S.), Nuance Communications, Inc. (U.S.), 3M Company (U.S.), Conifer Health Solutions, LLC. (a subsidiary of Tenet Healthcare Corporation) (U.S.), NextGen Healthcare, Inc. (a subsidiary of Thoma Cressey Bravo, Inc.) (U.S.), PointClickCare Technologies Inc. (U.S.), and eClinicalWorks (U.S.).
Healthcare IT Market Report Summary:
|
Particulars
|
Details
|
|
Number of Pages
|
~460
|
|
Format
|
PDF
|
|
Forecast Period
|
2024–2031
|
|
Base Year
|
2023
|
|
CAGR
|
13.2%
|
|
Estimated Market Size (Value)
|
$907.18 Million by 2031
|
|
Segments Covered
|
By Product
- Healthcare IT Provider Solutions
- Clinical Healthcare IT Solutions
- Electronic Health Records (EHR)
- PACS & VNA
- Computerized Physician Order Entry (CPOE) Solutions
- Clinical Decision Support Systems (CDSS)
- E-prescribing Systems
- Patient Engagement Solutions
- RIS (Radiology Information Systems)
- RDM (Radiation Dose Management) Solutions
- Specialty Information Systems
- Medical Image Analysis
- Population Health Management Solutions
- Care Management Solutions
- Patient Registry Software
- Laboratory Information Systems (LIS)
- mHealth Solutions
- Telehealth
- Healthcare Integration Solutions
- Infection Surveillance Solutions
- Practice Management Software
- Non-clinical Provider Healthcare IT Solutions
- Pharmacy Information Systems
- Healthcare Asset Management Solutions
- Healthcare Workforce Management Solutions
- Revenue Cycle Management Solutions
- Front-end RCM
- Mid-end RCM
- Back-end RCM
- Medical Document Management Solutions
- Healthcare Information Exchanges
- Supply Chain Management Solutions
- Healthcare Analytics
- Clinical Analytics
- Financial Analytics
- Operational & Administrative Analytics
- Customer Relationship Management Solutions
- Medication Management Systems
- Electronic Medication Administration Systems
- Barcode Medication Administration Systems
- Medication Inventory Management Systems
- Medication Assurance Systems
- Healthcare Quality Management Solutions
- Healthcare Interoperability Solutions
- Financial Management Solutions (Accounting & Billing)
- Healthcare Payer Solutions
- Claims Management Solutions
- Customer Relationship Management Solutions
- Fraud Analytics Solutions
- Provider Network Management
- Pharmacy Audit & Analysis Solutions
- Member Eligibility Management Solutions
- Population Health Management Solutions
- Payment Management Solutions
- Healthcare IT Outsourcing Services
- Provider HCIT Outsourcing Services
- Revenue Cycle Management Services
- EMR/Medical Document Management Services
- Laboratory Information Management Services
- Other Provider HCIT Outsourcing Services
- Payer HCIT Outsourcing Services
- Claims Management Services
- Provider Network Management Services
- Billing & Accounts Management Services
- Fraud Analytics Services
- Other Payer HCIT Outsourcing Services
- Operational HCIT Outsourcing Services
- Business Process Management Services
- Supply Chain Management Services
- Other Operational IT Outsourcing Services
- IT Infrastructure Management Services
(Note: Other provider HCIT outsourcing services include PACS data management, CPOE data management, care management solutions and analytics, and pharmacy information management practices.)
(Note: Other payer HCIT outsourcing services include HR activities and workforce analytics, among others.)
(Note: Other operational IT outsourcing services include the development and implementation of custom applications, financial data management outsourcing, and maintenance of applications or systems.)
By Deployment Mode
- Web & Cloud-based
- On-premise
By Component
- Services
- Software
- Hardware
By End User
- Healthcare Providers
- Hospitals
- Ambulatory Centers
- Home Healthcare & Assisted Living Centers
- Diagnostic Centers
- Pharmacies
- Healthcare Payers
- Private Payers
- Public Payers
|
|
Countries Covered
|
North America (U.S., Canada), Europe (Germany, France, U.K., Italy, Spain, Switzerland, Netherlands, Rest of Europe), Asia-Pacific (Japan, China, India, South Korea, Australia, Rest of Asia-Pacific), Latin America (Brazil, Mexico, Rest of Latin America), and the Middle East & Africa
|
|
Key Companies Profiled
|
International Business Machines Corporation (IBM) (U.S.), GE Healthcare (U.S.), Allscripts Healthcare Solutions, Inc. (U.S.), Koninklijke Philips N.V. (Netherlands), Infor, Inc. (a subsidiary of Koch Industries, Inc.) (U.S.), Cognizant Technology Solutions Corporation (U.S.), Oracle Corporation (U.S.), athenahealth, Inc. (a subsidiary of Veritas Capital) (U.S.), Dell Technologies, Inc. (U.S.), Unitedhealth Group (Optum, Inc.) (U.S.), Nuance Communications, Inc. (U.S.), 3M Company (U.S.), Conifer Health Solutions, LLC. (a subsidiary of Tenet Healthcare Corporation) (U.S.), NextGen Healthcare, Inc. (a subsidiary of Thoma Cressey Bravo, Inc.) (U.S.), PointClickCare Technologies Inc. (U.S.), and eClinicalWorks (U.S.)
|
Key questions answered in the report:
