Global Healthcare IT Market - 2024-2031

Overview

Global Healthcare IT Market reached US$ 399.36 billion in 2023 and is expected to reach US$ 1,409.58 billion by 2031, growing with a CAGR of 17.08% during the forecast period 2024-2031.

There has been substantial expansion in blockchain technology, artificial intelligence and the internet of things within the healthcare industry. Novel gadgets and infrastructures offer clinicians, healthcare organizations and patients instant access to healthcare information, therefore facilitating enhanced decision-making and treatment alternatives.

The heightened need for sophisticated healthcare solutions, including mHealth, telemedicine and e-prescribing, is propelling the expansion of the healthcare IT industry. Moreover, the integration of healthcare information technology presents numerous potential, including enhancement of clinical results, minimization of human error, optimization of practice efficiencies and facilitation of care coordination.

An agreement of collaboration was established between Augmedix and The Sullivan Group in October 2023. The objective of this partnership is to enhance the benefits provided to healthcare systems by providing top-notch solutions that combine medical documentation with a decrease in doctors' susceptibility to diagnostic-related mistakes via the Clinical Decision Support System (CDSS).

The widespread adoption of smartphones, the rising need for remote patient monitoring to enhance out-of-hospital care, the development of sophisticated healthcare IT infrastructure and the rise in efforts and investments promoting eHealth and digital technologies are all factors contributing to the overall expansion of the market.

Dynamics

Rising Chronic Diseases and Aging Population

The rising incidence of chronic illnesses such as cancer, cardiovascular pathologies, diabetes and others has heightened the need for healthcare information technology to enhance treatment alternatives. Furthermore, the increasing volume of patient visits in hospitals is generating awareness about the conceivable uses of these technologies, therefore intensifying the market expansion. Data released by the CDC in August 2023 indicates that 60% of individuals in the US suffer from chronic illnesses. Moreover, the increasing elderly population in US is projected to give rise to a higher incidence of diseases, so fueling the expansion of the healthcare information technology industry.

Recently the US Centers for Disease Control and Prevention released data indicating that 54.1 million residing in US were aged 65 and above, accounting for 16% of the overall population. Furthermore, it is estimated that the geriatric population will reach 80.8 million by the year 2040. Indeed, the healthcare system places great importance on the management of chronic diseases because of the intricate nature and exorbitant expenses involved in handling such illnesses.

Emerging Technologies

Technology has completely transformed the manner in which healthcare practitioners administer medical treatment, make diagnoses and oversee patient care. The integration of artificial intelligence with telemedicine is extensively enhancing medical diagnosis and therapy. Highly sophisticated imaging technologies are facilitating minimally invasive procedures with increased accuracy, therefore assisting in accurate diagnosis and treatment.

The convergence of technology and pharmaceutical research is driving the advancement of an individualized medical approach and focused therapeutic interventions. In September 2022, RxDefine introduced the telehealth solution for the life sciences portfolio with the goal of aiding individuals in making health-related choices and enhancing the overall customer experience. Therefore, the anticipated rise in new product introductions by major healthcare IT companies is expected to have a favorable effect on market expansion in the forecast term.

Workforce Shortages in Healthcare

Rapid progress in the technology sector is generating a significant need for proficient technology professionals. Nevertheless, the persistent scarcity of healthcare personnel presents a substantial obstacle for healthcare institutions. Negative consequences for patient outcomes arise from factors such as staff exhaustion, overflow of appointments, stagnating growth and inefficient processes.

Based on the statistics released by Oracle in 2023, it was forecasted that the healthcare sector will experience a significant deficit of up to 124,000 physicians by 2033. Moreover, rural regions experience a substantial dearth of professionally trained personnel as a result of inadequate quality of healthcare facilities. The presence of these personnel shortages exacerbates the occurrence of errors and impedes the acceptance of sophisticated technologies.

Segment Analysis

The global healthcare IT market is segmented based on type, component, delivery mode, end-user and region.

The Integration Of Support, Maintenance And Professional Service In the Market

The services section encompasses both support and maintenance services as well as professional services. The integration of information technology (IT) in healthcare has led to a significant increase in the volume of data produced. Consequently, the expenses associated with storing and maintaining this data have significantly increased over the past 10 years, imposing an extra financial strain on healthcare facilities. Moreover, the increasing presence and implementation of cloud-based and other sophisticated technological platforms in the healthcare sector have created a high demand for services related to healthcare IT solutions.

For instance, in August 2022, Happiest Minds Tech introduced information security solutions specifically designed for the healthcare industry. Utilising advanced technologies such as artificial intelligence, big data, behavioral analytics and others, these services will help clients stay updated on evolving government regulations and enhance their healthcare security capabilities.

Geographical Penetration

Established Healthcare Sector And Early Integration Of It Services In North America

As the industrialized region, North America now dominates the healthcare IT market and is projected to maintain a substantial market share for some years. The primary determinants contributing to the region's dominant market share are the well established healthcare sector and the early integration of IT services in healthcare environments. US is a prominent market in North America because of its greater use of digital healthcare, substantial concentration of significant market participants and augmented government investment in healthcare services and infrastructure.

Furthermore, a legally enforceable agreement was executed in April 2021 between Microsoft Corp. and Nuance Communications, Inc. Microsoft has expedited its endeavors to deliver cloud solutions tailored to the healthcare business, to assist clients and partners in addressing transformation and emerging prospects in the sector. Anticipated from the increase in the usage of these products, such collaborations are projected to stimulate market expansion in North America.

Competitive Landscape

The major global players in the market include GE Healthcare, Koninklijke Philips NV, Siemens Healthineers, Allscripts Healthcare Solutions Inc. (Altera Digital Health Inc), Wipro oracle Corporation, IBM, SAS Institute Inc., Dell Technologies Inc., Mckesson Corporation, Optum Inc., Cognizant Corporation, Change Healthcare, Conduent Inc., Conifer Health Solutions LLC and 3M.

Russia-Ukraine War Impact Analysis

The healthcare IT industry has been significantly affected by the Russia-Ukraine conflict, mainly due to extensive disruptions in hospital infrastructure and personnel. The surge in attacks on hospitals and healthcare institutions in Ukraine led to a significant increase in the need for emergency medical services, while normal healthcare services, including IT systems for patient administration, saw a severe fall.

Therefore, the allocation of resources to emergency care has resulted in a decreased implementation of sophisticated healthcare technologies. Moreover, the catastrophic damage to healthcare infrastructure has resulted in setbacks in the implementation or enhancement of crucial IT systems necessary for the modernization of healthcare services.

Healthcare IT systems in conflict-ridden areas encountered operating difficulties caused by a scarcity of trained staff and destroyed infrastructure. The strain experienced by healthcare professionals, together with system malfunctions and damage to infrastructure, has restricted the ability to undertake technical advancements and implementation.

By Type

• 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 Types

By Component

• Software
• Hardware
• Services

By Delivery Mode

• On-premise
• Cloud-based

By End-User

• Payers
• Providers

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In June 2023, the strategic partnership between BoomerangFX, a cloud-based Software-as-a-Service (SaaS) provider that specializes in comprehensive practice management solutions for healthcare sectors including cosmetic dentistry, cosmetic surgery, dermatology, medical spa, vision care and women's health and health technology pioneer DrFirst was announced.
• In May 2022, Microsoft partnered with BeeKeeperAI, a developer of healthcare AI solutions, allowing Microsoft Azure users to investigate the benefits of confidential computing in healthcare AI applications.
• In May 2023, athenahealth unveiled their 'athenaOne' comprehensive cloud-based electronic health record (EHR), medical billing and patient engagement solution. This solution, in conjunction with 'athenaOne Dental,' was selected by LCH Health and Community Services to improve the experiences of providers and patients while promoting its growth goal.
• In April 2023, an alliance between Epic and Microsoft was formed in April 2023 to use generative AI to improve Electronic Health Records (EHRs). This collaboration entails the integration of the Microsoft Azure OpenAI Service into Epic's Electronic Health Record (EHR) platform.
• In June 2022, Cerner entered into a partnership with the Hazelden Betty Ford Foundation The integration of the Oracle Cerner EHR and Xealth's digital therapeutic distribution platform facilitated the customization of patient care for Hazelden Betty Ford doctors.

Why Purchase the Report?

• To visualize the global healthcare IT market segmentation based on type, component, delivery mode, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel spreadsheet containing a comprehensive dataset of the healthcare IT market, covering all levels of segmentation.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global healthcare IT market report would provide approximately 85 tables, 75 figures and 205 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies