Market Trends of Healthcare IT Industry
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.
