Hospital Information System Market

Hospital Information System Market Size

The global hospital information system market was valued at USD 48.9 billion in 2024. The market is expected to reach from USD 52.8 billion in 2025 to USD 120.8 billion in 2034, growing at a CAGR of 9.6% from 2025 to 2034, according to the latest report published by Global Market Insights Inc. The high market growth is attributed to the increasing adoption of digital health solutions, government initiatives and regulations, and surging demand for integrated healthcare systems, among other contributing factors.

Hospital Information System (HIS) is an integrated software platform designed to manage a healthcare facility’s administrative, financial, and clinical operations. It streamlines functions such as patient data management, electronic medical records, billing, scheduling, inventory control, and other critical activities. By automating these processes, HIS enhances organizational efficiency, improves patient care services, and supports informed clinical decision-making.

Leading players in the hospital information systems market include Epic Systems, Oracle, Dedalus, AGFA Healthcare, and CompuGroup Medical. These companies sustain their competitive edge through continuous solution enhancements, strong global presence, and significant investments in research and development (R&D).

The market has increased from USD 38.2 billion in 2021 and reached USD 45 billion in 2023, with the historic growth rate of 8.3%. This growth was primarily driven by the increasing need for integrated digital platforms that improve operational efficiency, patient data management, and clinical decision-making.

The adoption of the digital health solutions has been a key driver of the hospital information system market. As healthcare providers continue to implement advanced digital systems, the demand for effective and comprehensive HIS has surged. These platforms support the management of large volumes of patient data, streamline clinicians workflows, and enhance the overall efficiency and performance of healthcare facilities.

Moreover, digital health solutions enable universities, hospitals, and clinics to reduce the burden of managing extensive patient information, minimize administrative workloads, and strengthen interdepartmental coordination. Hospital Information Systems are specifically designed to address these needs by offering a centralized, easily retrievable, and analyzable patient data platform. This supports informed clinical decision-making, improves care quality, and enhances patient outcomes.

Hospital Information System Market Trends

The hospital information system market is witnessing significant growth, driven by the shift toward cloud-based, AI-enabled, and interoperable platforms that enhance clinical decision-making and patient engagement. Additionally, there is a strong move toward integrated mobile health and telemedicine modules, reflecting the growing emphasis on remote care and value-based healthcare models.

• The shift towards more sophisticated HIS solutions is crucial for handling larger patient volumes, managing complex cases, and meeting the demands of modern healthcare delivery.
  
• Higher healthcare expenditure often translates into improved quality of care, supported by robust HIS platforms. By allocating more funds to technology, hospitals can implement comprehensive systems that enable better patient data management, reduce medical errors, and enhance clinical decision-making.
  
• This results in more personalized and effective care, which is a primary goal for healthcare providers as they receive increased funding.
  
• Additionally, as healthcare spending rises, there is also an expansion in healthcare services, such as specialized treatments, new healthcare facilities, and broader patient outreach programs.
  
• HIS systems play a critical role in managing this expansion by providing the necessary tools for coordinating care across different services and locations. This ability to scale operations efficiently is vital for hospitals looking to expand their offerings and improve access to healthcare.
  

Hospital Information System Market Analysis

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Based on the system component, the hospital information system market is segmented into clinical systems, administrative/back-office systems, operational systems, patient-facing technologies, integration layers, and data and security. The clinical systems segment has asserted its dominance in the market by securing a significant market share of 52.3% in 2024 owing to the rising need for accurate patient data management and real-time clinical decision support to improve care quality and outcomes. The segment is expected to exceed USD 63.9 billion by 2034, growing at a CAGR of 9.8% during the forecast period.

On the other hand, the administrative/back-office systems segment is expected to grow with a CAGR of 8.5%. The growth of this segment can be attributed to the demand for streamlined workflows, cost optimization, and efficient resource management across hospital operations.

• The clinical systems segment continues to dominate the market. The increasing requirement for centralized patient data management and real-time access drives the adoption of clinical systems. According to the Office of the National Coordinator for Health Information Technology (ONC), in 2023, 96% of U.S. hospitals adopted certified EHR systems, up from 93% in 2021.
  
• The electronic health records (EHRs) integrated with hospital information systems (HIS) improve operational efficiency and the reduction of both workflow and administrative errors within healthcare provision and management. The Centers for Medicare & Medicaid Services reported that EHR integration reduced medical errors by 27% in 2022, with a further decrease of 35% observed in 2023.
  
• Clinical systems help reduce medical errors by providing decision-support tools, medication alerts, and automated workflows. This focus on safety and quality outcomes is a major driver as hospitals strive for accreditation and compliance, leading to the segmental growth.
  
• The administrative/back-office systems segment held a revenue of USD 7.4 billion in 2024, with projections indicating a steady expansion at 8.5% CAGR from 2025 to 2034. This segment is driven by the automation of billing, scheduling, and supply chain management, decreasing manual errors and inefficiencies. Moreover, the systems provide better oversight of the finances and the resources, enabling the hospitals to optimize costs while providing quality services.
  
• The operational systems segment held a revenue of USD 5.7 billion in 2024, with projections indicating a steady expansion at 9.4% CAGR from 2025 to 2034. The advancement in these segments is attributed to the increasing demand for real-time management of the hospital’s resources and workflows, automation of the operations, and overall management of the facility in order to streamline daily operations and patient flow.
  
• The patient-facing technologies segment held a revenue of USD 4.5 billion in 2024, with projections indicating a steady expansion at 11% CAGR from 2025 to 2034. Owing to the rising demand for digital engagement tools such as patient portals, mobile apps, and telehealth platforms that enhance access to care. They also empower patients with greater transparency, self-management, and personalized health experiences, aligning with value-based care models.
  

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Based on deployment, the hospital information system market is classified into cloud-based, web-based, and on-premise. The cloud-based segment dominated the market with a revenue share of 49.5% in 2024 and is expected to reach USD 61.9 billion within the forecast period.

• The two largest segments account for over 84% of the total market value, and cloud-based has the highest segment. Cloud-based HIS significantly reduces the need for extensive on-site IT infrastructure. Hospitals no longer need to invest heavily in servers, storage devices, or other hardware, as these are managed by the cloud service provider. This reduction in capital expenditure is a key factor contributing to the widespread adoption of cloud-based systems, particularly among smaller healthcare facilities with limited budgets.
  
• In addition, cloud-based HIS enables healthcare providers to access patient data and hospital management tools from any location with an internet connection. This is particularly valuable in the context of telehealth and remote care, where medical professionals need to collaborate across different locations. The ability to access information in real time enhances the efficiency of care delivery and supports better patient outcomes.
  
• The web-based segment held a revenue of USD 17.3 billion in 2024, with projections indicating a steady expansion at 9.8% CAGR from 2025 to 2034. Owing to their cost-effectiveness and easier deployment, making them attractive for small and mid-sized healthcare facilities. They offer remote accessibility and real-time data sharing, improving collaboration among clinicians and staff. Additionally, the lower infrastructure requirements compared to on-premise systems support faster adoption in emerging markets.
  

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North America dominated the global hospital information system market with the highest market share of 42.3% in 2024.

• The U.S. hospital information system market was valued at USD 15.6 billion and USD 16.8 billion in 2021 and 2022, respectively. The market size reached USD 19.5 billion in 2024, growing from USD 18.1 billion in 2023, and is anticipated to grow at a CAGR of 8.8% between 2025 to 2034.
  
• There is accelerating HIS adoption in North America because of regulations such as HIPAA, HITECH, and EHR incentive programs. These regulations mandate secure and standardized patient data stored in systems with interoperability capabilities, enabling market growth.
  
• The region's healthcare ecosystem is comprised of comprehensive hospital systems, specialty clinics, and research institutions. The American Hospital Association (AHA) states that in 2022 the U.S. had 6,093 hospitals with more than 36.3 million annual admissions.
  
• In addition, the U.S. Department of Health and Human Services reported that 96% of hospitals used certified electronic health record systems in 2023, this reflects the sustained infrastructure to comprehensively streamline the clinical and administrative workflows with health information systems.
  
• Moreover, both private and public sectors are investing heavily into the digitization of the healthcare sector. These investments support innovation in cloud-based HIS, AI-driven analytics, and cybersecurity upgrades to enhance system efficiency, thereby leading to regional growth.
  

Europe hospital information system market accounted for USD 15.1 billion in 2024 and is anticipated to show lucrative growth over the forecast period.

• The European Union Medical Device Regulation (EU MDR) and General Data Protection Regulation (GDPR) mandate the use of HIS in hospitals, which enables the interfaces to preserve data accuracy compliance, as well as regulation mandates. According to the European Commission's 2023 report, GDPR enforcement actions increased by 42% in 2022 compared to 2021, with healthcare data breaches accounting for 23% of all reported incidents.
  
• In 2023, EU regulatory bodies imposed fines totaling EUR 2.1 billion for non-compliance, a 38% increase from 2022. The European Medical Device Coordination Group reported that by 2024, 89% of healthcare facilities must upgrade their systems to meet the new MDR requirements.
  
• Europe has one of the highest proportions of elderly populations globally. The growing demand for geriatric and long-term care is driving hospitals to implement HIS for chronic disease management and efficient resource utilization.
  

The Asia Pacific hospital information system market is anticipated to grow at the highest CAGR of 11.1% during the analysis timeframe.

• The Asia Pacific region is witnessing significant investments in new hospitals, specialty centers, and smart healthcare facilities. In 2023, China announced plans to build 500 new hospitals by 2025, while India allocated USD 9.7 billion for healthcare infrastructure development in its 2023–2024 budget.
  
• Japan invested USD 3.2 billion in smart healthcare facilities during 2022, and Singapore committed USD 4 billion for healthcare infrastructure expansion between 2021 and 2024. This large-scale expansion is fueling the demand for Hospital Information Systems (HIS) to streamline operations and clinical workflows.
  
• In addition, countries such as India, China, and Singapore are rolling out national health digitization programs like the Ayushman Bharat Digital Mission (India) and Healthy China 2030, which are accelerating HIS adoption across both urban and rural healthcare ecosystems, further supporting market growth.
  

The Latin America hospital information system market is experiencing robust growth over the analysis timeframe.

• In Latin America, countries such as Brazil, Mexico, and Argentina are modernizing outdated hospital infrastructures. This modernization drive is fueling demand for Hospital Information Systems (HIS) to improve efficiency, transparency, and patient data management.
  
• Globally, the expansion of universal healthcare and public insurance programs is also boosting HIS adoption. For example, in 2023 the U.S. government expanded Medicaid coverage to an additional 3.5 million Americans under the Affordable Care Act.
  
• Similarly, in 2022, the European Union reported that 95% of its population had access to public healthcare coverage. By 2023, public healthcare systems that had implemented HIS solutions reported a 40% reduction in administrative processing time, highlighting their value in claims management, billing, and patient recordkeeping. These improvements are reinforcing regional growth opportunities for the HIS market.
  

The Middle East & Africa (MEA) hospital information system market is experiencing robust growth over the analysis timeframe.

• National initiatives such as Saudi Vision 2030 and the UAE’s Smart Health strategy are pushing hospitals to adopt HIS. These programs aim to digitize healthcare infrastructure, improve service delivery, and reduce dependency on traditional paper-based systems.
  
• MEA is witnessing significant investments in new hospitals, specialty clinics, and medical cities, particularly in the Gulf states. These modern facilities are adopting HIS from the ground up to ensure digital-first operations.
  
• Further, the growing prevalence of diabetes, cardiovascular diseases, and obesity in the Middle East is creating demand for long-term patient management solutions. HIS enables better care coordination and monitoring across hospitals, thereby contributing to regional market growth.
  

Hospital Information System Market Share

The global hospital information system (HIS) market is marked by intense competition among global leaders, regional vendors, and emerging technology providers. Companies are increasingly developing integrated, cloud-based, and AI-driven solutions to address the rising demand for seamless healthcare delivery and data-driven decision-making.

Key players such as Epic Systems, Oracle, Dedalus, AGFA Healthcare, and CompuGroup Medical collectively account for 64.3% of the market share. These leaders differentiate themselves through robust product portfolios, strong regional footprints, and sustained investments in interoperability and advanced analytics.

Beyond global giants, several regional and niche players are gaining traction by delivering customized HIS platforms tailored to local healthcare requirements and regulatory frameworks. The competitive landscape is further shaped by partnerships, mergers, and acquisitions, which enable companies to expand geographic reach and strengthen technological capabilities.

At the same time, startups and health-tech innovators are emerging with solutions emphasizing patient engagement, mobile health, and cybersecurity, further intensifying competition and driving innovation across the sector.

Hospital Information System Market Companies

Few of the prominent players operating in the hospital information system industry include:

• AGFA Healthcare
• CAMBIO
• ChipSoft
• CompuGroup Medical
• Dedalus
• Docaposte
• Engineering Ingegneria Informatica
• Epic Systems
• InterSystems
• Meierhofer AG
• NextGen
• Nexus
• Oracle
• SECTRA
• Veradigm
  
  
• Epic Systems

Epic leads the hospital information system market with a 27.3% share in 2024. Its USP lies in a comprehensive, fully integrated EHR ecosystem that unifies clinical, administrative, and patient-facing functions on a single platform. Epic’s dominance in U.S. hospital networks, combined with strong interoperability tools such as Care Everywhere and MyChart, provides unmatched scale and connectivity.

• Oracle (Cerner/Oracle Health)

Oracle leverages Cerner’s established HIS/EHR footprint together with its own strengths in cloud computing, data analytics, and AI. This integration enables healthcare providers to achieve advanced data management, predictive insights, and scalability across diverse global healthcare systems.

• Dedalus

Dedalus is a European market leader known for its strong emphasis on interoperability and open digital health ecosystems. Its solutions prioritize regional compliance, cross-border health data exchange, and modular integration, positioning it strongly in Europe while driving expansion into emerging markets.

Hospital Information System Industry News:

• In December 2024, AGFA HealthCare entered into a strategic collaboration with Rad AI to enhance AI-powered radiology solutions and improve workflow efficiency. This partnership is expected to strengthen the HIS market by integrating AI-driven diagnostics, boosting clinical decision-making, and improving overall hospital efficiency and accuracy.
  
• In May 2024, Athenahealth launched athenaOne for Women’s Health and athenaOne for Urgent Care to expand its specialty-focused solutions. This development is anticipated to drive HIS adoption by enhancing specialty care management, patient workflows, and overall efficiency in medical practices.
  
• In April 2023, Microsoft and Epic Systems expanded their long-standing collaboration to integrate generative AI into healthcare by combining the Azure OpenAI Service with Epic’s electronic health record (EHR) platform. This initiative has strengthened Epic’s competitive position by driving innovation, increasing revenue opportunities, and enhancing clinical decision support capabilities.
  

The hospital information system market research report includes an in-depth coverage of the industry with estimates and forecasts in terms of revenue in USD Million from 2021 - 2034 for the following segments:

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Market, By System Component

• Clinical systems
  • Electronic medical records (EMR)/electronic health records (EHR)
  • Radiology information system (RIS)
  • Pharmacy information system
  • Laboratory information system (LIS)
  • Other clinical systems 
• Administrative/back-office systems
  • Finance and billing
  • Supply chain management
  • Facilities management/Human resources
• Operational systems
  • Admission, discharge, and transfer (ADT)/bed management systems (BMS)
  • Operational standards support/scheduling systems
• Patient-facing technologies
  • Mobile health applications
  • Patient portals
• Integration layer
  • Interface engines/APIs
  • Health information exchange (HIE)
• Data and security
  • Clinical data repository
  • Identity and access management (IAM)
  • General data protection regulation (GDPR)

Market, By Deployment

• Cloud-based
• Web-based
• On-premise

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

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