Healthcare Information Technology Market Size
| Study Period | 2021 - 2029 |
| Market Size (2024) | USD 358.5 Billion |
| Market Size (2029) | USD 728.63 Billion |
| CAGR (2024 - 2029) | 15.24 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Healthcare Information Technology Market Analysis
The Healthcare IT Market size is estimated at USD 358.5 billion in 2024, and is expected to reach USD 728.63 billion by 2029, growing at a CAGR of 15.24% during the forecast period (2024-2029).
The healthcare IT market witnessed incremental growth during the COVID-19 pandemic. With the global lockdown and restrictions on travel and hospital visits for nonelective and non-urgent procedures, along with the reluctance of people to visit hospitals and clinics in fear of being contacted with the SARS-CoV-2 virus, digital healthcare witnessed a spike within the healthcare system. The increasing adoption of teleconsultation instead of face-to-face physician consultations during the pandemic boosted the studied market. Additionally, with the growth in the number of COVID-19 patients worldwide, a massive demand existed for the maintenance and storage of big data related to patient information, medical reports, financial analytics, and many others. Healthcare IT solutions eased the storage and access of COVID-19 patients' medical reports. For instance, according to the study published in the Journal of the American Pharmacists Association in April 2021, during the pandemic, the usage of health information technology (HIT) increased rapidly. HIT has been utilized to deliver telemedicine services, information on the SARS-CoV-2 virus, updates on epidemiology and therapies, and most recently, access to scheduling systems for the COVID-19 vaccines during the pandemic. Furthermore, post-pandemic, the huge adoption of healthcare IT services and solutions is making them indispensable to healthcare, which will ultimately drive the market's growth. Thus, as per the analysis, COVID-19 had a significant direct impact on the growth of the studied market throughout the pandemic phase and is expected to continue its trend over the post-pandemic era.
The usage of the internet and the digitalization of healthcare processes have become essential for developing a better understanding of healthcare information technologies and their impact on health communication. Additionally, the high adoption of healthcare IT by hospitals is driven by the advantages, such as ease of use and saving time, labor, and space. The continuous upgradation of the solutions provided by the market players to better benefit the users is also propelling the growth of the market. For instance, in August 2021, Change Healthcare introduced Change Healthcare Stratus Imaging PACS, a new, comprehensive cloud SaaS solution for radiology practices in beta testing with plans to extend to hospitals in the future. Stratus Imaging PACS is one of the latest solutions to be introduced by Change Healthcare's rapidly growing cloud imaging business, which includes image archiving, analytics, universal viewers, and sharing solutions.
Furthermore, initiatives taken by the governments of various nations to promote digital health are also contributing to the growth of the market. For instance, in September 2021, the Indian Prime Minister rolled out the Pradhan Mantri Digital Health Mission. It is aimed at digitalizing healthcare practices across the nation, creating a country-wide digital health ecosystem that will enable patients to store, access, and consent to share health records.
Also, the growing burden of chronic diseases globally plays a vital role in the growth of the studied market. Healthcare IT solutions minimize the risk of misplacing medical records and help in the remote access of patients' health reports globally. Thus, the above-mentioned factors are expected to aid the growth of the healthcare IT market over the forecast period. However, a lack of skilled professionals and high maintenance costs may hinder the growth of the market.
Healthcare Information Technology Market Trends
The Services Segment is Expected to Hold a Significant Market Share in the Component Segment Over the Forecast Period
In the component segment of the healthcare IT market, services are believed to have a significant market share over the forecast period. The pandemic has heightened the need for telemedicine and mHealth technologies to become a reality in the healthcare profession, as correct patient data, linked patient records, and interoperability of the patient's health records were a few of the major concerns amid the outbreak.
The services segment includes both support and maintenance and professional services. With the onset of the implementation of IT in healthcare, the amount of data generated has witnessed an exponentioal growth and the storage and maintenance costs of this data have bolstered over the decade, resulting in additional cost burden to the healthcare settings. Additionally, healthcare institutions lack the expertise of skilled IT professionals to handle this huge amount of data. Hence, the increasing cost and lack of skilled professionals have compelled several institutions to opt for the maintenance and support services provided by healthcare IT companies, which is in turn expected to drive the segmental growth for services.
Furthermore, with the emergence and introduction of cloud-based and other advanced technology platforms in healthcare, the need for services across healthcare IT solutions is in great demand. For instance, in August 2022, Happiest Minds Tech launched cyber security services for healthcare. With the aid of cutting-edge technologies such as AI, big data, behavioral analytics, and others, these services will assist clients in keeping up with changing government policies and strengthening their healthcare security posture. Thus, the launch of such healthcare IT services is expected to drive this segment's growth.
In March 2022, Epic launched Garden Plot. It is a SaaS designed for independent medical groups looking to use Epic EHR tools. This launch aims to streamline physician access to application-based EHR tools. Therefore, such launches of services for maintaining electronic records are expected to drive segment growth due to the rise in the adoption of these services. Therefore, owing to the above-mentioned factors, this segment is expected to show significant growth over the forecast period.
North America Expected to Hold a Major Share in the Market and is Expected to do the Same in the Forecast Period
North America, being the developed region, is currently dominating the healthcare IT market and is expected to hold a significant market share for a few more years. The major factors responsible for the region's largest market share are the well-established healthcare industry and the early adoption of IT services across healthcare settings.
The United States is a major market in the North American region due to the higher adoption of digital healthcare in the country, along with the high concentration of key market players and increased government funding for healthcare services and infrastructure.
Moreover, in April 2021, a binding contract was signed between Microsoft Corp. and Nuance Communications, Inc. With this, Microsoft has accelerated its efforts to provide industry-specific cloud offerings to support customers and partners as they respond to disruption and new opportunities in healthcare. Such partnerships are expected to drive market growth in North America due to the rise in the adoption of these offerings.
Additionally, in November 2021, InsiteOne LLC released the platform (V11) for general availability after a successful pilot at Doylestown Health, Doylestown, United States. The new platform represents a major technological step forward and supports the integration of various tools into clinical workflow and provides healthcare institutions with automation tools designed to put their enterprise VNA imaging data to work. The launch of such platforms is expected to drive market growth in this region due to the rise in the adoption of advanced platforms.
Thus, owing to the abovementioned factors, the North American region is expected to project growth over the forecast period.
Healthcare Information Technology Industry Overview
The healthcare IT market is highly competitive and consists of several major players. In terms of market share, a few major players currently dominate the market. However, with technological advancements and product innovations, midsize to smaller companies are increasing their market presence by introducing new services at affordable prices. Some of the companies in this market include GE Healthcare, Koninklijke Philips NV, Siemens Healthineers, Oracle (Cerner Corporation), and Allscripts Healthcare Solutions Inc. (Altera Digital Health Inc.), among others.
Healthcare Information Technology Market Leaders
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GE Healthcare
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Siemens Healthcare
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Allscripts Healthcare Solutions Inc.
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Koninklijke Philips NV
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Oracle (Cerner Corporation)
*Disclaimer: Major Players sorted in no particular order
Healthcare Information Technology Market News
- In September 2022, Sharecare launched Smart Omix, it's proprietary digital clinical research solution that enables real-world data collection and digital biomarker creation through mobile research studies. Smart Omix's capabilities play an important role in advancing relevance, equity, and data integrity in clinical research across the healthcare continuum.
- In May 2022, Modmed launched an OBGYN-specific software suite. ModMed OBGYN is an all-in-one EHR, practice management, patient engagement, payments, image and inventory management, and analytics solution that will bring practice and workflow innovation to obstetrics and gynecology.
Healthcare Information Technology Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Rise in the Demand for Paper-less Technology
- 4.2.2 Increased Government Funding on Healthcare Services and Infrastructure
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4.3 Market Restraints
- 4.3.1 Lack of Skilled Personnel
- 4.3.2 High Maintenance Costs
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4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD million)
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5.1 By Business Segment
- 5.1.1 Laboratory Information Systems (LIS)
- 5.1.2 Picture Archiving and Communication System (PACS) and Vendor Neutral Archive (VNA)
- 5.1.3 Radiology Information Systems (RIS)
- 5.1.4 Cardiovascular Information System (CVIS)
- 5.1.5 Electronic Health Records (EHR)
- 5.1.6 Telemedicine
- 5.1.7 Clinical Decision Support System (CDSS)
- 5.1.8 Claims Management Solutions
- 5.1.9 Population Health Management Solutions
- 5.1.10 Fraud Analytics
- 5.1.11 Provider Management Services
- 5.1.12 Billing and Accounts Management Services
- 5.1.13 Other Business Segments
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5.2 By Component
- 5.2.1 Software
- 5.2.2 Hardware
- 5.2.3 Services
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5.3 By Delivery Mode
- 5.3.1 On-premise
- 5.3.2 Cloud-based
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5.4 By End User
- 5.4.1 Payers
- 5.4.2 Providers
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5.5 Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 Europe
- 5.5.2.1 Germany
- 5.5.2.2 United Kingdom
- 5.5.2.3 France
- 5.5.2.4 Italy
- 5.5.2.5 Spain
- 5.5.2.6 Rest of Europe
- 5.5.3 Asia-Pacific
- 5.5.3.1 China
- 5.5.3.2 Japan
- 5.5.3.3 India
- 5.5.3.4 Australia
- 5.5.3.5 South Korea
- 5.5.3.6 Rest of Asia-Pacific
- 5.5.4 Middle-East and Africa
- 5.5.4.1 GCC
- 5.5.4.2 South Africa
- 5.5.4.3 Rest of Middle-East and Africa
- 5.5.5 South America
- 5.5.5.1 Brazil
- 5.5.5.2 Argentina
- 5.5.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 GE Healthcare
- 6.1.2 Koninklijke Philips NV
- 6.1.3 Siemens Healthineers
- 6.1.4 Oracle (Cerner Corporation)
- 6.1.5 Allscripts Healthcare Solutions Inc. (Altera Digital Health Inc)
- 6.1.6 Wipro
- 6.1.7 Oracle Corporation
- 6.1.8 IBM
- 6.1.9 SAS Institute Inc.
- 6.1.10 Dell Technologies Inc.
- 6.1.11 Mckesson Corporation
- 6.1.12 Optum Inc.
- 6.1.13 Cognizant Corporation
- 6.1.14 Change Healthcare
- 6.1.15 Conduent Inc.
- 6.1.16 Conifer Health Solutions LLC
- 6.1.17 3M
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityHealthcare Information Technology Industry Segmentation
As per the scope of the report, healthcare IT is the application of information processing involving computer hardware and software that deals with the storage, retrieval, sharing, and use of healthcare information, data, and knowledge for communication and decision-making. The Healthcare IT Market is segmented by Business Segment (Laboratory Information Systems (LIS), Picture Archiving and Communication System (PACS) and 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 and Accounts Management Services, and Other Business Segments), Component (Software, Hardware, and Services), Delivery Mode (On-premise and Cloud-based), End User (Payers and Providers), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The report also covers the estimated market sizes and trends for 17 countries across significant regions globally. The report offers the value (in USD million) for the above segments.
| By Business Segment | Laboratory Information Systems (LIS) | |
| Picture Archiving and Communication System (PACS) and 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 and Accounts Management Services | ||
| Other Business Segments | ||
| By Component | Software | |
| Hardware | ||
| Services | ||
| By Delivery Mode | On-premise | |
| Cloud-based | ||
| By End User | Payers | |
| Providers | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | Middle-East and Africa | GCC |
| South Africa | ||
| Rest of Middle-East and Africa | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America |
Healthcare Information Technology Market Research FAQs
How big is the Healthcare IT Market?
The Healthcare IT Market size is expected to reach USD 358.5 billion in 2024 and grow at a CAGR of 15.24% to reach USD 728.63 billion by 2029.
What is the current Healthcare IT Market size?
In 2024, the Healthcare IT Market size is expected to reach USD 358.5 billion.
Who are the key players in Healthcare IT Market?
GE Healthcare, Siemens Healthcare, Allscripts Healthcare Solutions Inc., Koninklijke Philips NV and Oracle (Cerner Corporation) are the major companies operating in the Healthcare IT Market.
Which is the fastest growing region in Healthcare IT Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Healthcare IT Market?
In 2024, the North America accounts for the largest market share in Healthcare IT Market.
What years does this Healthcare IT Market cover, and what was the market size in 2023?
In 2023, the Healthcare IT Market size was estimated at USD 303.86 billion. The report covers the Healthcare IT Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Healthcare IT Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the biggest cybersecurity challenges in the Healthcare IT Market?
The biggest cybersecurity challenges in the Healthcare IT Market are a) Data breaches b) Ransomware attacks & patient privacy concerns
Healthcare IT Industry Report
The global healthcare IT market is experiencing significant growth, driven by the adoption of various healthcare IT solutions such as e-prescribing, telehealth, and mHealth. These advancements aim to create a well-coordinated healthcare environment and manage the increasing burden on healthcare systems. The market's expansion is further supported by the use of IT solutions in outpatient care facilities, which help lower care costs and enhance patient outcomes.
Despite challenges like IT infrastructure constraints in developing countries and interoperability issues, there are ample opportunities for growth. The shift towards outpatient settings and the demand for centralized medical records are key factors driving this growth. The market is segmented by product and service, with healthcare provider solutions emerging as the fastest-growing segment. This growth is fueled by government initiatives and the need for integrated systems.
Technological advancements continue to make the market more competitive, introducing new and affordable services. Mordor Intelligence™ forecasts ongoing market growth and expansion, highlighting the dynamic nature and potential of the healthcare IT sector. This industry report provides a comprehensive industry overview and market analysis, offering valuable insights into industry trends, market size, and market share.
The report also includes detailed market research and industry growth projections, with a focus on global market trends and industry statistics. It covers various aspects such as market segmentation, market value, and market forecast. The report is available as a free report PDF download, providing an in-depth industry analysis and market outlook.
Overall, the global healthcare IT market is poised for continued growth, driven by technological advancements and increasing demand for efficient healthcare solutions. The report provides a thorough review of the market, offering valuable insights into market leaders, market growth, and market predictions. It serves as an essential resource for understanding the current state and future potential of the healthcare IT industry.
