The global healthcare IT market was at USD 66.23 Billion in 2019 and is projected to reach USD 125.23 with a CAGR of 10.7 % by 2026. The growth of the market is heavily credited to the increasing concern of several nations in respect of public healthcare, record-keeping, data maintenance, and storage of patient data. The rising demand for tech-enabled healthcare solutions and communication devices among healthcare providers, patients, and their attendants are going to be a significant growth factor for the relevant market in the forecast period.
Source: BlueWeave Consulting
Global Healthcare IT Market Overview
Health information technology (HIT) refers to the area of healthcare that deals with the IT systems that healthcare professionals utilize for handling patient data. In simple words, it refers to the computerized systems used by healthcare providers, patients, or their attendants for storing, sharing, and interpreting health information. Information technologies play a crucial role in communications. Healthcare Information Technology standards, patient privacy rights, and well-being call for a reliable, stable, and secure network that is simple to use. At the same time, it should be but opaque enough and well-protected from unauthorized users, hackers, and the like.
Global Healthcare IT Market Forecast and Trends
Increasing prevalence of chronic diseases
Chronic diseases such as heart ailments, cancer, and diabetes are rising worldwide owing to an increase in the elderly population, changes in lifestyle, deteriorating environmental factors, and pollution. Such chronic conditions call for long-term medical attention. Moreover, a majority of chronic diseases are also potentially debilitating. In response to these growing concerns, some health care organizations are instituting chronic disease management (CDM) with the help of healthcare IT. These programs will help reduce the incidences of preventable hospitalizations and also prevent adverse events by managing the health of patients with chronic conditions more effectively and comprehensively. Many organizations are implementing health information technology (health IT) to facilitate their chronic disease management programs. This would drive the market growth in the forecast timeframe.
Artificial intelligence to integrate with Healthcare
With time, the demand for performing tasks promptly and effectively, while providing valuable insights, is growing by leaps and bounds in the healthcare industry. The companies are looking to integrate Artificial Intelligence (AI) with the latest technology to analyze big data sets with predictive analysis. 30% of the healthcare cost is associated with administrative tasks. With AI, some of these tasks can be automated to reduce labor costs and save money. Fitness products such as FitBits and Smart Watches use AI technology to analyze data and alert users and their physicians about potential health issues and risks. Moreover, by integrating AI in healthcare research studies, researchers are trying to analyze the neurological codes. For example, by using Brain-computer interfaces (BCIs) backed by AI, researchers are trying to decode the neural activities associated with the intended movement of a particular body part so as to control the movement of that particular body part manually. This shows how much AI can contribute to the healthcare IT market in the upcoming years. IT giants like IBM and Google are already using AI for the healthcare industry. For example, IBM’s Watson is used for determining the treatment location for cancer patients, while Google Cloud’s Healthcare API makes it easier for HealthCare apps to collect, store and access the health data of the customers.
Cyber-attacks in the healthcare sector
The healthcare industry faces major threats like cybersecurity-related issues which may act as the major restraining factor for the market. These issues crop up from various malware that compromises the integrity of systems as well as privacy issues of patients, and distributed denial of service (DDoS) attacks that make it impossible for healthcare facilities to provide patient care. Furthermore, health data is considered sensitive personal data and is subject to stringent rules. However, since the chances of cyberattacks in the healthcare sector are getting more frequent, such attacks can have ramifications beyond financial loss and breach of privacy. Hence, this factor may hamper the growth of the global healthcare IT market.
Impact of COVID 19 on Global Healthcare IT Market
COVID-19 has had a positive impact on the Global Healthcare IT market due to the rising awareness and deployment of digital tools and technology in Hospitals & Clinics. Under the pressure of the pandemic, healthcare providers across the globe started embracing AI-powered digital healthcare tools on a large scale for preventing new transmission of coronavirus. For example, UC San Diego Health developed an AI-based algorithm for more than 2,000 lung X-ray images for assisting radiologists to detect early signs of pneumonia in COVID-19 patients. Additionally, with the help of CT imaging interpretation tools powered by Artificial Intelligence (AI) radiologists were able to minimize CT-scan reading time from hours to seconds. Similar tools also allowed community clinic patients to get their CT scan read by healthcare specialists thousands of miles away. What’s more, COVID-19 also affected drug trials all around the world. The tests were conducted using Healthcare AI software that helped in drug betterment without the need for clinical trials.
Global Healthcare IT Market Segmentation: By Application Type
Based on Application, the global healthcare IT market is segmented into- electronic health records, computerized provider order entry systems, electronic prescribing systems, PACS, laboratory information systems, clinical information systems, tele healthcare, and others. In 2019, the EHR segment led the market with a share of USD 19,400.16 million, largely due to the increase in demand for EHR-integrated tools, EHR streamlining, and information technology developments. The Growing acceptance of healthcare IT in healthcare centers and an increasing number of programs promoting the introduction of EHR are driving the EHR sector. During the forecast period, e-prescription systems are anticipated to be the fastest-growing segment. One of the major factors driving demand for e-prescription services on the market is the rising demand for better patient care and decreasing medical errors.
Global Healthcare IT Market Segmentation: Regional Analysis
North America is likely to gain substantial growth in electronic health records and e-prescription segments. North America’s dominance in these segments is driven by the growing acceptance of healthcare centers with an increase in the number of programs promoting the introduction of EHR. High EHR adoption, combined government measures (such as Medicare and Medicaid EHR Incentive Programs) are also driving the market growth. Apart from North America, the Healthcare IT market in the Asia-Pacific is the fastest-growing region among others due to the region's rapidly rising demand for healthcare. The elderly population in Asia-Pacific is growing at an unprecedented rate. Additionally, ambitious healthcare schemes introduced by the governments have been immensely successful in APAC countries such as India, the Philippines, Thailand, and Singapore. At the same time, Germany and Italy are likely to hold the highest of market shares in Europe due to the presence of well-established healthcare infrastructure, along with the growing number of private medical service providers such as Sana & Helios, are growth-imparting drivers for this industry.
Key significant players for the global healthcare IT market are Allscripts Healthcare Solutions, Inc., Athenahealth, Inc., Carestream Health, Inc, Cerner Corporation, eClinicalWorks, LLC, Epic Systems Corporation, GE Healthcare Limited, McKesson Health Solutions LLC, Philips Healthcare Informatics, Inc., amongst several others.
- In January 2021, athenahealth and Humana announced their multi-year collaboration deal. The collaboration is to deliver value-added member insights through athenahealth’s electronic health record (EHR) software, AthenaClinicals.
- In December 2020, DRX-Compass X-ray system, developed by Carestream, was installed at Edward-Elmhurst Health Hospital in Naperville. The system supports mid-tier hospitals and medical imaging centers worldwide. The system also offers a flexible and scalable approach to digital imaging, increases workflow efficiency and reduces cost.
- In November 2020, eMDs and Homecare Homebase (HCHB) announced their partnership. As part of the partnership HCHB will offer integrated EHR solutions for home care/hospice facilities and care providers.
- In January 2020, Agfa-Gevaert Group and Dedalus Holding S.p.A announced that they have signed the share purchase agreement. As part of the agreement, Dedalus Holdings would acquire 100% of the Business at an enterprise value of 975 million euros in the DACH region (Austria, Germany, and Switzerland), France, and Brazil.
Scope of the Report
Historical data – 2016-2019
Base Year – 2019
Forecast – 2020 – 2026
Revenue in USD Billion
U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, Argentina, UAE, South Africa, Saudi Arabia.
By Application, By Region
Allscripts Healthcare Solutions, Inc., Athenahealth, Inc., Carestream Health, Inc, Cerner Corporation, eClinicalWorks, LLC, Epic Systems Corporation, GE Healthcare Limited, McKesson Health Solutions LLC, Philips Healthcare Informatics, Inc.
Scope of the Report
- Electronic Health Record
- Computerized Provider Order Entry Systems
- Electronic Prescribing Systems
- PACS, Laboratory Information Systems
- Clinical Information Systems
- Tele-Healthcare, Others
- The Asia-Pacific
- North America
- The Middle-East & Africa
- Latin America
Frequently Asked Questions
1: What is the current size of the global healthcare IT market?
Answer: The global healthcare IT market has reached USD 66.23 Billion in 2019 and is projected to reach USD 125.23 with a CAGR of 10.7% by 2026.
2: What are the major factors driving the growth of global healthcare IT market?
Answer: The major factors driving the growth of global healthcare IT market are
- The integration of AI with healthcare
- Increase in the number of chronically ill patients globally
3: Who are the key players in the global healthcare IT market?
Answer:Allscripts Healthcare Solutions, Inc., Athenahealth, Inc., Carestream Health, Inc, Cerner Corporation, eClinicalWorks, LLC, Epic Systems Corporation, GE Healthcare Limited, McKesson Health Solutions LLC, Philips Healthcare Informatics, Inc.
4: Which segment accounted for the largest global healthcare IT market share under application segmentation?
Answer: The segment that accounted for the largest global healthcare IT market share under application segmentation is the Electronic Health Records segment.
5: Which segment(s) is expected to witness most of the technological advancements for the projected timeframe for the global healthcare IT market?
Answer: The segment(s) which is expected to witness most of the technological advancements for the projected timeframe for the global healthcare IT market are TeleHealthcare and EHR- Electronic Health Records segment.
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