Healthcare IT market to reach USD 1249.91B by 2030

Brainy Insights estimates that the USD 315.87 billion in 2022 healthcare IT market will reach USD 1249.91 billion by 2030. Healthcare IT will get prevalent due to the adoption of technological advancements in the healthcare industry. The acceptance rate of the telehealth industry is an accurate indicator of the healthcare IT growth rate in different geographies. Thus, growing awareness regarding the benefits of healthcare IT among the patient population is leading to positive growth in the market. Government organizations have invested significant amounts in the healthcare information technology infrastructure in countries like the U.S., Canada, Germany, the U.K., Japan, China and India.

Key insight of healthcare IT market
North America to account for the largest market size during the forecast period.

North America is expected to have the largest market share in the healthcare IT market. Key factors favouring the growth of the healthcare IT market in North America include the high spending on healthcare infrastructure. Digital literacy is high in North American countries due to the increasing smartphone penetration and stable internet connectivity. Patient care services are enhancing their user experience models to widen access to patients residing in remote areas.

The services segment is expected to augment the healthcare IT market during the forecast period.

The component segment is divided into software, hardware and services. The services segment is expected to augment the healthcare IT market during the forecast period. The high demand for cloud-based healthcare services is the primary driver for the growth of the service segment. Digital solutions have expanded the reach of healthcare services among patients and helped them consult professionals from remote locations.

The cloud-based segment is anticipated to grow at the highest CAGR over the forecast period.

The operation mode segment is divided into web-based and cloud-based. The cloud-based segment is anticipated to grow at the highest CAGR over the forecast period. This can be attributed to the need for an accessible platform that professionals and patients can use. A cloud-based solution’s maintenance cost is lower and thus is preferred by various healthcare facilities. Diversified data can be easily managed and stored using cloud-based services.

The HCIT outsourcing services segment is likely to grow at the highest CAGR during the forecast period.

The product type segment is divided into healthcare payer solutions, healthcare provider solutions and HCIT outsourcing services. The healthcare payer solution is segmented into provider network management solutions, payment management solutions, claims management solutions, member eligibility management solutions, population health management solutions, fraud analytics solutions and others. The healthcare provider solution is further segmented into clinical solutions, non-clinical solutions, workforce management solutions, healthcare information exchanges, financial management systems and medical document management solutions. The clinical solutions segment includes EHR, HCIT integration systems, clinical decision support systems, population health management solutions, telehealth solutions, practice management solutions, cardiovascular information systems, etc. The non-clinical solutions segment further includes supply chain management solutions, healthcare quality management solutions, healthcare interoperability solutions, customer relationship management solutions, revenue cycle management solutions, healthcare asset management solutions and others. The HCIT outsourcing services segment comprises operational HCIT outsourcing services, business process management services and others. The HCIT outsourcing services segment is likely to grow at the highest CAGR during the forecast period. The preference for outsourcing such services is due to healthcare facilities’ high data volume. Hospitals in developed and some parts of developing regions are opting for HCIT solutions from third-party service providers.

The healthcare providers segment dominated the market with a revenue share of around 69.92% and was valued at USD 220.85billion in 2022.

The end-user segment includes healthcare payers and healthcare providers. The healthcare payers segment further includes public and private. The healthcare providers segment comprises hospitals, pharmacies, diagnostic and imaging centres, ambulatory care centres and others. The healthcare providers segment dominated the market with a revenue share of around 69.92% and was valued at USD 220.85billion in 2022. This can be attributed to the need for healthcare IT solutions among hospitals, clinics, ambulatory clinics, etc., to manage the volume of patient data.

Advancement in market
In June 2021, Aker Solutions and Cognizant announced their partnership to simplify and modernize their healthcare IT infrastructure, especially application development and maintenance and business technology network.

In March 2021, a significant player, Change Healthcare, collaborated with widely known Amazon Web Services. This collaboration aimed to launch the DSaaS platform, which helps improve healthcare economics and outcomes for vulnerable communities.

Market dynamics
Driver: Rising demand for digital healthcare solutions and services
The healthcare IT industry is already booming in developed regions due to the availability of advanced technologies and skilled healthcare experts. Healthcare expenditure in North American and European countries is increasing at a faster pace as compared to other regions. The government has passed initiatives that have safeguarded the introductory healthcare provisions. Also, the quality of digitalized healthcare platforms is impressive in regional countries. Most consumers are digitally skilled enough to use IT services and access the facilities from a remote location. Also, the consumers are aware of the telehealth industry and thus are willing to share personal medical data for their convenience. Many regional authorities, such as European Commission, have mentioned that the eHealth industry is among the top priorities in the states. Thus, the policies are being made likewise to support the industry. Paramedic professionals can work remotely and attend to patients through digitalized platforms.

Restraint: Lack of awareness
There is a lack of awareness regarding the benefits of healthcare IT. Developing and under-developed countries are not yet aware of the attributes of healthcare IT and cannot operate digital services. There is not much acceptance regarding the digitalization of healthcare in these regions, and consumers are unwilling to switch to such services.

Opportunity: Growing adoption of cloud-based technology
The increasing adoption of cloud-based technology is an opportunity for healthcare IT for hospitals, clinics, surgical centres, etc. Industries are increasingly moving towards automation and digital operations, propelling the market growth. The use of cloud storage has become familiar to the end-users, and thus the data can be accessed easily by the workers and stakeholders. With the rise in cloud computing, adopting a cloud management platform is also increasing owing to the compatibility between the software and hardware. Cloud-based technology helps in resource deployment, data integration, tracking and monitoring patient disease progression, etc. Healthcare organizations and research and development institutes are increasingly investing in cloud-based technology as it provides administrative control for platforms, infrastructure and data.

Challenge: Lack of uniformity in the industry standards
The healthcare IT market is highly segregated within regions. There is no such uniformity in the standard for the healthcare IT market. This creates an issue for the players willing to expand their business and are operating or planning to operate in different regions. Thus, this lack of uniformity in industry standards is a significant challenge for the companies operating in the market.

Some of the major players operating in the healthcare IT market are:

• McKesson Corporation
• Optum Health
• International Business Machine Corporation
• Allscripts Healthcare Solutions, Inc.
• Athenahealth, Inc.
• Epic Systems Corporation
• Dell Technologies Inc.
• GE Healthcare
• Cerner Corporation
• Oracle Corporation
• Cognizant Technology Solutions Corporation
• Nuance Communications, Inc.
• EClinicalWorks
• NextGen Healthcare, Inc.
• Computer Programs and Systems, Inc.
• Conifer Health Solutions, LLC.
• 3M Company
• Koninklijke Philips N.V.
• Infor, Inc

Brainy Insights