Healthcare IT Market: Global Competitive Landscape and Market Forecast (2023-2029) by Component, Product, End-user, and Region

Healthcare IT Market size was valued at USD 516.74 Bn. in 2022 and the total Healthcare IT revenue is expected to grow at a CAGR of 22.8% from 2023 to 2029, reaching nearly USD 2176.02 Bn.
Healthcare IT Market Overview:
Healthcare IT is the application of information processing that uses computer hardware and software to store, retrieve, share, and utilize healthcare information, data, and knowledge for communication and decision-making. The primary purpose of the healthcare information technology industry is to store records including patient health information and securely and effectively communicate it to doctors, patients, or their families.

The use of the internet, as well as the digitization of healthcare operations, has become critical in developing a deeper knowledge of healthcare information technologies and their influence on health communication. Additionally, hospitals' strong adoption of healthcare IT is driven by benefits such as simplicity of use and time, labor, and space savings. The continual improvement of market participants' solutions to better benefit consumers is also driving the Healthcare IT industry's growth.

Change Healthcare, for example, announced Change Healthcare Stratus Imaging PACS in August 2021, a new, complete cloud software as a service (SaaS) solution for radiology clinics that is presently in beta testing with intentions to grow to hospitals in the future. Stratus Imaging PACS is the most recent addition to Change Healthcare's rapidly expanding cloud imaging business, which now offers image archiving, analytics, universal viewers, and sharing solutions.

Furthermore, initiatives taken by several governments to encourage digital health are supporting the Healthcare IT market's size. For example, Indian Prime Minister Narendra Modi launched the Pradhan Mantri Digital Health Mission in September 2021. It aims to digitalize healthcare practices across the country by establishing a national digital health ecosystem that will allow people to save, access, and consent to share health information.

Additionally, the rising global burden of chronic illnesses has a significant impact on the growth of the research industry. Healthcare IT solutions decrease the risk of misplacing health information and provide global remote access to patients' health reports. As a result, these factors are expected to drive the growth of the healthcare IT market during the forecast period. However, a scarcity of experienced specialists and expensive maintenance costs may restrict the market growth.To know about the Research Methodology :- Request Free Sample Report
Healthcare IT Market Dynamics:
Benefits associated with IT in Healthcare driving adoption across the end-users

The healthcare industry has seen a surge in innovations aiming at improving life expectancy, quality of life, diagnostic and treatment choices, as well as the healthcare system's efficiency and cost-effectiveness. Information technology has been essential in the advancement of healthcare systems. The potential influence of information technology on healthcare safety, affordability, and quality has never been stronger. The technology for creating, transmitting, storing, and managing individual health data is quickly evolving. Significantly, this potential is acknowledged at the highest levels of government and the commercial sector, as both faces growing healthcare costs and inefficiency.

Health information technology (HIT) enhances the efficiency, cost-effectiveness, quality, and safety of medical care delivery by making best practice guidelines and evidence databases available to clinicians immediately, as well as making computerized patient records available across a healthcare network. Computer-based information and communication technologies continue to revolutionize healthcare delivery, as well as the conceptualization and scientific knowledge of the human body and the diseases that afflict it.

Modern medicine would be nearly impossible to practice without the use of computers. There is a strong desire to work on groundbreaking medical discoveries that can minimize the possibility of errors, enhance the quality of healthcare service, and save lives. There are various advantages of utilizing HIT. Understanding the benefits is the only way to execute it to benefit. HIT improves patient care and reduces medical mistakes. To present, health information technology (HIT) is widely regarded as the most promising instrument for enhancing the overall quality, safety, and efficiency of the healthcare system.

Growing emergence of Big Data in Healthcare IT Market

The volume of digital information created in the healthcare business has increased to terabytes and petabytes in recent decades, owing mostly to the digitalization of administrative, clinical, and financial data. With the volume nearly doubling every year, it is likely to reach exabytes, if not zettabytes, in the future years. Aside from the increasing amount, the sheer diversity of data in healthcare provides a significant issue for healthcare professionals. Healthcare data is more difficult than data from other sectors due to its length and variability. Service providers are increasingly implementing healthcare analytics and data management solutions to meet these difficulties in the healthcare market.

Rising Privacy and Security Concerns a restraint for Healthcare IT Market

A medical record contains essential information. It may be used by hospitals to secure funding, although insurance may consider claims proprietary. Hackers, identity theft, illegal access, or corruption (or manipulation) of patient data create privacy and security threats.

There are several reasons to be concerned about these potential security risks:

• Patients may be humiliated by their medical issues.
• Employers and insurers may use the information to avoid expensive staff or enrollees.
• Drug businesses and healthcare product companies would see full information on individuals' medical treatment as a gold mine of data for marketing purposes.

Widespread HIT (Healthcare IT) must resolve privacy and security concerns to drive the Healthcare IT market. Medical records must be collected in a distributed health data network to be used successfully for comparative effectiveness research. The Health Insurance Portability and Accountability Act of 1996 (HIPAA), on the other hand, impedes the development of integrated health information networks. HIPAA standard 270/271, for example, restricts interactions between health plans and providers. It can also be costly to navigate this procedure.

Making EMRs available to remote healthcare professionals immediately makes them more accessible to the general public. Given the prevalence and consequences of identity theft, medical record security is a major concern. There are also valid worries regarding the government's access to data. Before patients trust an integrated information-sharing system, proper privacy safeguards must be in place.

Sharing records increases the danger of wrong information being replicated, making it more difficult for patients to track down and rectify. Current privacy rules compel providers and insurers to provide patients with access to health records and a mechanism for correcting inaccuracies. Patients should, without a doubt, be able to opt out of data collecting that they consider intrusive.
Healthcare IT Market Segment Analysis:
By Component, the Service segment dominated the Healthcare IT market with the largest share in 2022 and is expected to maintain its dominance at the end of the forecast period. The COVID-19 pandemic is a once-in-a-generation global public health disaster that benefited healthcare information technology services. As a result of the pandemic, there is a greater need for telemedicine and mHealth technologies to become a reality in the healthcare profession, as proper patient data, connected patient records, interoperability, and cybersecurity were among the key issues throughout the outbreak.

In the healthcare industry, information technology (IT) is primarily utilized for the recording/retrieval of medical records, patient registration, and payment activities. Although these are critical aspects of healthcare service, there are other areas of healthcare service that are equally important because they affect the quality of service rendered to the customer, thereby affecting customer satisfaction, such as nursing, customer support, food and beverage, laboratory services, and so on.

Globally, there has been a significant revolutionary change in healthcare services. Individualized treatment is often offered at the clinical level based on medical history, examination, vital signs, and evidence. However, in recent years, the emphasis on these conventional ideas has been supplanted by learning, measurement, and quality improvement. The last decade has witnessed an increase in the complexity and volume of health data created as a result of the global deployment of Electronic Health Records (EHRs). Aside from EHR-sourced conventional patient data, the shift in treatment paradigms and emphasis on lifestyle and complete healthcare has resulted in a surge of new types of health data concerning medical illnesses, lifestyle, underlying genetics, drugs, and treatment techniques.

The government provides the majority of healthcare services in Singapore, accounting for around 80% of total healthcare services. The remaining 20% of healthcare services are largely supplied by for-profit commercial companies, with a minor amount provided by a few philanthropic groups. These government initiatives raise the demand for the segment.Customers' perceptions of service quality, unlike real product quality, vary. Good service quality provides a competitive edge, whereas poor service quality costs the firm money and alienates consumers. Service providers in the healthcare business provide comparable categories of services, but with differing levels of service quality and professionalism. It is impossible to improve unless one can assess one's present level of performance.

Measuring customer satisfaction is a good measure of an organization's service quality performance. A Consumer Satisfaction Index (CSI) is defined by Eklof and Westlund as a "system to model, measure, estimate, and evaluate the interplay between consumer preferences, perceived quality, and responses on the one hand, and the company's performance on the other." As a result, one potential benefit of utilizing a CSI is that it may serve as an assessment tool in forward-thinking Management Information Systems. It can provide information on key areas for improvement and act as a benchmark against rivals through the use of a standard index.

Support and maintenance, as well as professional services, are included in the services sub segment. Since the deployment of IT in healthcare, the volume of data has been steadily rising, as have the expenses of data storage and upkeep in recent years. However, healthcare organizations require experienced IT professionals to handle this massive volume of data. As a result of the rising costs and scarcity of experienced people, some institutions have opted for the maintenance and support services supplied by healthcare IT firms, which is expected to drive the growth of the segment.

However, with the advent and implementation of cloud-based and other sophisticated technology platforms in healthcare, the need for services across healthcare IT solutions is increasing. For example, in October 2020, Infosys teamed with Mobile Health AG to set up and manage cloud and infrastructure services, as well as support, security and monitoring, and platform management services across several locations. As a result, throughout the forecast period, the share of service sub-segments is expected to dominate significantly.
Healthcare IT Market Regional Insights:
North America, being the developed region, held the largest share in Healthcare IT Market 2022, and is expected to grow at a CAGR of 20.8% and dominate the market at the end of the forecast period. The well-established healthcare business and the early adoption of IT services across healthcare systems are the key factors responsible for the region's greatest market share. The United States holds the majority of market share in the North American region; this is because of the greater adoption of digital information in healthcare in the country, along with the high concentration of major competitors and increased government funding for healthcare services and infrastructure.

Additionally, in May 2020, Microsoft developed a cloud service exclusively for healthcare to better serve physicians and patients. This industry-specific cloud service may be used by healthcare institutions to promote patient interaction, plan telehealth sessions, retain patient data, and guarantee Health Insurance Portability and Accountability Act (HIPAA) compliance. Cloud-based services benefit all parties. Most healthcare organizations do not have the time or resources to commit to cybersecurity that a well-established cloud provider does. The large frequency of data breaches necessitates more robust cloud technology adoption in the healthcare sector to increase security.In addition, after conducting a successful test at Doylestown Health in Doylestown, PA, InsiteOne LLC released the platform (V11) for public access in November 2021. The new platform marks a significant technical advancement in that it allows for the integration of various technologies into clinical workflow and gives healthcare organizations automated capabilities for putting their corporate VNA imaging data to use. As a result, these elements are expected to drive the North American regional market.

In addition, the Asia Pacific region held a substantial share in Healthcare IT Market in 2022 and is further expected to grow at a CAGR of 18.2% during the forecast period. Moreover, half of the world's population lives in the Asia Pacific, providing a massive market base. Rapid urbanization, growing disposable income, a hectic lifestyle, increasing internet penetration, and increasing smartphone penetration are some of the important macroeconomic drivers driving the growth of the Asia Pacific healthcare IT industry.

Additionally, due to the region's strong economic growth, nations such as China and India are presenting potential growth possibilities for market participants. This is due to increasing government and economic initiatives to automate and digitalize the many functions of healthcare businesses such as pharmacies, hospitals, nursing homes, and other healthcare-related enterprises.

Healthcare has grown to be one of India's most important industries, both in terms of income and jobs. The sector is increasing at a rapid pace as a result of improved coverage, improved service, and more spending by both public and private companies. This is attributable to growing affluence, improved access to high-quality healthcare facilities, and more personal health and hygiene awareness. Increased health insurance penetration supported the growth in healthcare spending, which is expected to continue in the future decade. Economic prosperity is driving the market's improvement in the affordability of generic medications.
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Healthcare IT Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 516.74 Bn.


Forecast Period 2023 to 2029 CAGR:
22.8%
Market Size in 2029:
US $ 2176.02 Bn.


 Segments Covered:
by Component
1.Service
2.Software
3.Hardware


by Product
1.Healthcare Provider Solutions
1.1.Clinical Solutions
1.2.Electronic Health/Medical Records
1.3.Vendor Neutral Archive (VNA)
1.4.Computerized Physician Order Entry
1.5.Clinical Decision Support Systems
1.6.Radiology Information Systems
1.7.Radiation Dose Management Solution
1.8.Specialty Management Information Systems
1.9.Medical Image Processing & Analysis Solution
1.10..Healthcare IT Integration Systems
1.11.Practice Management Systems
1.12.Laboratory Information Systems
1.13.Digital Pathology Solutions
1.14.Mobile Health (mHealth) Solutions
1.15.Telehealth Solutions
2.Non-clinical Solutions
2.1.Pharmacy Information Systems
2.2.Medication Management Systems
2.2.1.Electronic Medication Administration Records
2.2.2.Barcode Medication Administration
2.2.3.Medication Inventory Management Systems
2.2.4.Medication Assurance Systems
2.3.Healthcare Asset Management
2.3.1.Equipment Management Systems
2.3.2.Patient Tracking and Management
2.3.3.Temperature and Humidity Monitoring
2.4.Workforce Management Systems
2.5.Revenue Cycle Management
2.5.1.Admission Discharge Transfer/Registration
2.5.2.Computer-Assisted Coding Systems
2.5.3.Patient Scheduling
2.5.4.Patient Billing and Claims Management Solutions
2.5.5.Electronic Data Interchange
2.6.Financial Management Systems
2.7.Medical Document Management Systems
2.8.Healthcare Information Exchanges
2.9.Population Health Management
2.10.Supply Chain Management
2.10.1.Procurement Management
2.10.2.Inventory Management
2.11.Healthcare Analytics
2.11.1.Clinical Analytics
2.11.2.Financial Analytics
2.11.3.Operational and Administrative Analytics
2.12.Customer Relationship Management
3.Healthcare Payer Solutions
3.1.Pharmacy Analysis and Audit
3.2.Claims Management
3.3.Fraud Management
3.4.Computer-assisted Coding Systems
3.5.Payment Management
3.5.1.Patient Billing Management
3.5.2.Provider Billing Management
3.6.Provider Network Management
3.7.Member Eligibility Management
3.8.Customer Relationship Management
3.9.Medical Document Management
3.10.Other
4.HCIT Outsourcing Services
4.1.Provider HCIT Outsourcing Services
4.1.1.Medical Document Management Services
4.1.2.Pharmacy Information Management Services
4.1.3.Laboratory Information Management Services
4.1.4.Revenue Cycle Management Services
4.1.5.Others
5.Payer HCIT Outsourcing Services
5.1.Claim Management
5.2.Customer Relationship Management Services
5.3.Billing System
5.4.Fraud Detection
5.5.Others
6.Operational HCIT Outsourcing Services
6.1.Supply Chain Management Services
6.2.Business Process Management Services
6.3.Others
7.IT Infrastructure Management Services


by End-user
1.Healthcare Providers
1.1.Hospitals o Ambulatory Care Centers
1.2.Home Healthcare Agencies & Assisted Living Facilities
1.3.Diagnostic & Imaging Centers
1.4.Pharmacies
2.Healthcare Payers
2.1.Private Payers
2.2.Public Payers




Healthcare IT Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Healthcare IT Market Key Players
1. Optum
2.Cerner Corporation
3.Cognizant
4.Change Healthcare
5. Koninklijke Philips N.V.
6. EPIC Systems Corporation
7.Dell Technologies
8.Allscripts
9. athenahealth
10.GE Healthcare
11. Oracle Corporation
12. Wipro
13.IBM
14.eClinicaWorks
15.Infor Systems
16.Conduent
17. Conifer
18. Nuance Communications
19. 3M
20. SAS Institute
21.Carestream Health
22.Inovalon
23. Practice Fusion, Inc.
24.Intersystems
25. Tata Consultancy Services

FAQs:

1. What is the major driver for the Healthcare IT market growth?
Ans. Benefits associated with IT in Healthcare rising adoption across the end-users are expected to be a major driver for the market growth.

2. What are the restraints in the Healthcare IT market?
Ans. Rising security concerns, lack of skilled professionals, and high maintenance cost of the equipment are some of the restraining factors for the market growth.

3. Which region is expected to lead the global healthcare IT market during the forecast period?
Ans. The North American market is expected to lead the global healthcare IT market during the forecast period due to the well-established healthcare business and the early adoption of IT services across healthcare systems in the region.

4. What is the projected market size & growth rate of the Healthcare IT Market?
Ans. Healthcare IT Market size was valued at USD 516.74 Bn. in 2022 and the total Healthcare IT revenue is expected to grow at a CAGR of 22.8% from 2023 to 2029, reaching nearly USD 2176.02 Bn.

5. What segments are covered in the Healthcare IT Market report?
Ans. The segments covered are Component, Product, End-user, and Region.