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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}), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

  • Report ID: GMI232
  • Base Year: 2020
  • Report Format: PDF

Industry trends

Healthcare IT Market size surpassed USD 224.5 billion in 2020 and is anticipated to grow at a CAGR of over 15% between 2021 and 2027. The introduction of interoperable system and cloud-based computing system for detection and identification of diseases will as serve a positive impact rendering factor for the market growth.
 

Healthcare IT Market Overview

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Further, 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 expansion.
 

The healthcare IT sector has been at the epicentre of unprecedented pandemic challenges across the globe. The virtual care & data technologies and IT systems including digitalization and analytical technologies are few structural factors that have influenced industry expansion during the COVID-19 outbreak. Also, in response to COVID-19 pandemic, electronic health record (EHR) and telemedicine has been increasingly adopted across the globe to deliver patient care in homecare settings. Moreover, integrated and standardized EHR system across hospitals and various health institutes guide healthcare professionals to deliver services more efficiently during the outbreak. Furthermore, market players focusing on R&D investments will lead to innovations in healthcare information technology, thereby supplementing the industry growth.
 

Favourable government initiatives to spur the market progression

Favourable initiatives by the public authorities are set to encourage the healthcare IT market value 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. Strict guidelines have been established by the Office of the National Coordinator for Health Information Technology stating that hospitals should demonstrate doctors using EHR systems to improve patient care in specific ways. Similarly, European commission had launched a public consultation project to promote digital health care and innovation for European citizens.
 

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

The cost of installation and maintenance of digital health solutions such as EHR, EMR is one of the prominent barriers for its adoption. It is estimated that the implementation of an EMR/EHR system can cost over USD 160,000 to a single physician. Additionally, elevated security threats and privacy concerns are adding to the increasing cost structure. The average cost of a data breach in healthcare industry has been volatile and increased sharply over the years.
 

Government initiatives to integrate electronic health record (EHR) system will drive the industry value

Healthcare IT Market Size

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The electronic health record segment accounted for 20.7% of the market share in 2020. Implementation of favourable regulatory policies and programs by the government to integrate electronic health record system within the existing healthcare infrastructure is expected to spur the EHR industry progression. 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 exceeded USD 62 billion in 2020 and is slated to register 14.6% growth rate through 2027. It is noted that hospitals are the early adopters amongst all the healthcare providers. Large-scale operations, multifunctionality, need to manage huge amount of information and cost efficiency are some of the prominent factors leading to high acceptance of healthcare IT solutions in hospitals. Further, IT solutions such as electronic health record and electronic medical record systems are known to be installed in several hospitals globally.
 

North America healthcare IT dominated the overall market revenue

Global Healthcare IT Market

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North America healthcare IT market captured 38.7% of revenue share in 2020. Numerous innovations and expansion of systematic approaches to healthcare IT have been established and have been completed through HIMSS, AMIA and several technical and IT standardization bodies. Similarly, The Canadian Health Infostructure initiative is aimed at the employment of the consumers, creation of information resources as well as ensuring privacy, among other goals. In addition, growing awareness regarding the advantages of implementation of IT in healthcare such as electronic medical records for augmenting the consistency and comprehensiveness of the medical documentation are poised to further positively impact the regional growth.
 

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

Prominent companies operating in the market include Siemens Healthineers, Cerner Corporation, SAP, GE Healthcare, Oracle Corporation Agfa Healthcare, Allscripts Healthcare Solutions and elicnicalWorks. 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 October 2021, Medtronic launched its new Open Innovation Platform (OIP) to address patient needs in the Asia-Pacific. The OIP is aimed at bringing strategic collaboration in healthcare technologies from various innovators and stakeholders across the APAC regions in the areas of medical technology and digital health. This strategy is predicted to add value to its business portfolio as well as maintain long term business relations, thereby strengthening its market presence.
     

The healthcare IT market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027, 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

 

Authors: Sumant Ugalmugle, Rupali Swain

Frequently Asked Questions (FAQ) :

Market size of healthcare IT surpassed USD 224.5 billion in 2020 and will observe an impressive CAGR of around 15% from 2021 to 2027 on account of adoption of advanced solutions, such as EHR/EMR.

Hospitals segment will grow at a CAGR of around 14.6% up to 2027 due to multifunctionality, large-scale operations and cost-efficiency.

North America captured around 38.7% of the market share in 2020 and will witness a similar trend with the presence of leading companies and investments in innovations.

GE Healthcare, Siemens Healthineers, Oracle Corporation Agfa Healthcare, SAP, Cerner Corporation, Siemens Healthineers and elicnicalWorks are some of the leading companies in the market.

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Premium Report Details

  • Published Date: Nov 2021
  • Companies covered: 15
  • Tables & Figures: 259
  • Countries covered: 18
  • Pages: 230

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