Healthcare IT Market Size By Solution (Radiology Information Systems, Electronic Health Record, Picture Archiving and Communication Systems, Computerized Physician Order Entry, Vendor Neutral Archives, mHealth, Healthcare Analytics, Telehealth, Supply Chain Management, Customer Relationship Management, Fraud Management, Revenue Cycle Management), By End-use (Healthcare Providers {Hospitals, Pharmacies, Diagnostic and Imaging Centers, Ambulatory Clinical Units}, Healthcare Payer {Private, Public}), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Aug 2020  |  Report ID: GMI232  |  Authors: Sumant Ugalmugle, Rupali Swain

Report Format: PDF   |   Pages: 227   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry trends

Healthcare IT Market size was valued at over USD 187 billion in 2019 and is anticipated to grow at over 15.6% CAGR between 2020 and 2026. The healthcare information technology comprises various services and technologies that span from advanced decision support to simple charting and integration with medical technology.
 

Healthcare IT Market Overview

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Healthcare information technology are becoming more prevalent in various healthcare settings to enhance efficiency and quality of care delivered and assist in cost reduction. Healthcare IT companies may face certain challenges such as cybersecurity, shortage of staffs and limited technological infrastructure in the developing economies. However, relaxations in regulatory policies and supportive government initiatives will enable the companies to overcome these challenges, thus fostering the market growth.
 

The healthcare IT sector is at the epicentre of unprecedent pandemic challenge across the globe. The virtual care & data technologies and IT systems including digitalization and analytical technologies are few structural factors that have influenced the market during the COVID-19 outbreak. Furthermore, market players focusing on R&D investments will lead to innovations in healthcare information technology, thereby supplementing the industry growth.
 

Favorable initiatives by the federal government are set to encourage the healthcare IT market expansion in the coming years. For instance, in U.S., the Health Information Technology for Economic and Clinical Health (HITECH) Act authorized nearly USD 27 billion over 10 years to support EHR installation and usage. This has led to increased adoption of Healthcare IT solutions across the U.S. Similarly, European commission had launched a public consultation project to promote digital health care and innovation for European citizens. This will lead to an increase in acceptance of health information technology and is expected to augment the market progression.

 

High cost associated with maintenance and implementation of healthcare IT systems may slow down the market revenue

The cost of installation and maintenance of digital health solutions such as electronic health record (HER) and EMR (electronic medical record) is one of the major barriers for its acceptance. Implementation of an EMR system could cost up to USD 163,765 to single physician. In addition, elevated security threats and privacy concerns are adding to increasing cost structure. The average cost of data breaches in healthcare industry has been volatile and increased sharply over the years. The average cost of data breach in 2019 was USD 429 million per record. This might severely hamper the reputation and results of operation as well as customer faith. Thus, high cost of implementation coupled with data security costs will hamper the industry expansion to certain extent over the coming years.
 

Government initiatives to integrate electronic health record system will drive the market demand

Healthcare IT Market Size

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The electronic health record (EHR) segment accounted for 20% of the healthcare IT market share in 2019. Initiation of several favorable policies and programs by the government to integrate electronic health record system will foster the segment growth during the forecast timeframe. For instance, The New Health Information System (NSIS) implemented in Italy, aimed at establishing EHR system across the country to connect each level of care.
 

Hospitals are the early adopters of healthcare IT solutions amongst all the providers

Hospital segment captured 44% of the market share in 2019. Hospitals are the early adopters amongst all the healthcare providers. Large-scale operations, multifunctionality, need to manage huge amount of information and cost-cutting are the major factors leading to high usage of healthcare IT solutions. Additionally, presence of sophisticated infrastructure and skilled resources in hospital settings will further stimulate the segment expansion during the forecast period.
 

Higher adoption of EHR coupled with favorable government initiatives will boost the growth for North America region

Global Healthcare IT Market

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North America healthcare IT market held over 39.1% of revenue share in 2019. High acceptance of EHR coupled with government initiatives such as the introduction of EHR incentive programs by the Medicare and Medicaid will support the industry progression in North America. Additionally, increasing funding activities to implement various healthcare IT platforms will further aid the regional growth. Furthermore, presence of major industry players has significantly triggered the North American market value.
 

Adoption of business strategies will pave growth opportunities for companies operating in the market

Prominent participants operating in the market include Siemens Healthineers, McKesson Corporation, Cerner Corporation, GE Healthcare, Oracle Corporation Agfa Healthcare, Allscripts Healthcare Solutions and elicnicalWorks among others. Geographical expansion, product launch & approval and partnerships are the most commonly adopted business strategies to sustain market competition.
 

Some of the recent industry developments:

  • In March 2020, Siemens Healthineers announced launch of teamplay digital health platform. The platform facilitates easy access to solutions for clinical and operational support. The platform comprises more than 5,000 institutes and 23,000 connected systems in over 60 countries. This helped the company to expand its business to untapped economies as well as customer base.
     
  • In February 2019, Oracle announced availability of its data center in UAE and Middle East. This data center offered cloud applications services to its customers across the region, thereby strengthening its market position in the Middle East.
     

The healthcare IT market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026, for the following segments:

Market, By Solution

  • Radiology information systems
  • Electronic health record
  • Picture archiving and communication systems
  • Computerized physician order entry
  • Vendor neutral archives
  • mHealth
  • Healthcare analytics
  • Telehealth
  • Supply chain management
  • Customer relationship management
  • Fraud management
  • Revenue cycle management
  • Others

Market, By End-use

  • Healthcare providers
    • Hospitals
    • Pharmacies
    • Diagnostic and imaging centers
    • Ambulatory clinical units
    • Others
  • Healthcare payers
    • Private
    • Public

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE
       

Frequently Asked Questions (FAQ) :

The market size of healthcare IT valued at USD 187 billion in 2019.
The industry share of healthcare IT is expected to grow at over 15.6% CAGR between 2020 and 2026.
Initiation of supportive government norms to integrate EHR systems will propel the segment growth. The electronic health record segment held 20% of the market share in 2019.
These solutions will be massively deployed across hospitals, owing to the requirement to manage considerable information, multifunctionality, large-scale operations, and cost-cutting. Hospital end-use segment was dominant in 2019 with 44% market share.
North America market held 39.1% of revenue share in 2019 owing to the high adoption rate of EHR systems in tandem with rising number of government initiatives.
Major industry players include elicnicalWorks, Siemens Healthineers, Oracle Corporation, McKesson Corporation, Agfa Healthcare, GE Healthcare, Cerner Corporation, and Allscripts Healthcare Solutions.

Premium Report Details

  • Published Date: Aug 2020
  • Pages: 227
  • Tables: 248
  • Charts / Figures: 8
  • Companies covered: 17
  • Countries covered: 18

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