Healthcare Information Systems Market Size, Share & Trends Analysis Report By Application, By Deployment (Web-based, Cloud-based), By Component, By End Use (Hospitals, Diagnostic Centers), And Segment Forecasts, 2018 - 2025

Report Overview

The global healthcare information systems market size was estimated at USD 85.6 billion in 2016 and is anticipated to exhibit a CAGR of 7.7% over the forecast period. Increasing adoption of technologically advanced infrastructure in hospitals, diagnostic centers, clinical laboratories, and other medical facilities is one of the key factors expected to boost the market.

Digital wearable devices is one such technology that supports real-time patient monitoring. These devices have been witnessing a rise in adoption and demand by patients in recent years. In addition, growing awareness regarding e-prescriptions among practitioners and patients is positively impacting the market growth.

The benefits of installing these solutions in various medical facilities include reducing inventory management costs and decreasing the incidence of medication errors. A rising number of medical facilities are shifting from paper-based methods of keeping track of data to computer-based solutions, which is not only more effective but faster as well. This is particularly true for large databases.

An increase in the number of initiatives undertaken by various medical facilities is a crucial factor anticipated to boost this market over the forecast period. Cybersecurity in the medical field, mobile apps, biomedical informatics, telemedicine, electronic health records (EHR), virtual reality (VR), and artificial reality (AR) technologies are some of the key applications that adopt healthcare information systems.

An increase in demand for cloud computing applications in medical facilities is also anticipated to propel market growth. Currently, companies are focusing on developing high utility services that deliver personalized care. Advanced services, such as real-time locating services, self-service kiosks, report monitoring tools, portal technology, and pharmacogenomics, are helping to improve the overall patient experience.

Real-time applications such as radiofrequency identification (RFID) help hospitals in improving workflow, materials, and patient management, which ultimately enhances efficiency and cost-savings. These advancements are aimed at increasing the adoption of hospital information systems, improving healthcare IT infrastructure, and reducing inefficiencies in service delivery to patients.

Application Insights

Hospital information systems (HIS) held the largest revenue share in 2016 due to extensive usage in various applications such as computerization of financial, administrative, and patient care activities. The implementation of these solutions in hospitals has proven to be more advantageous than traditional methods. Some of these advantages are reduction in the scope of error due to the availability of analytical IT solutions, improvement in operational efficiency, and reduction in healthcare expenditure.

Pharmacy information systems accounted for the second-largest revenue share in 2o16 and is expected to witness steady growth over the forecast period. This can be attributed to factors such as an increase in the adoption of technologically advanced solutions that allow pharmacists to manage medication workflow in order to improve the effectiveness and efficiency of services. In addition, it plays a vital role in reducing medication errors and improving patient safety by evaluating patterns of drug use and side effects.

Medical imaging information systems are expected to register the highest CAGR of 9.6% over the forecast period. This is attributable to factors such as increasing demand for effective management of medical imagery and rising preference for these systems in tracking billing information. An increase in the prevalence of chronic diseases and the need to efficiently handling image archives are also expected to boost this segment through 2025.

Deployment Insights

Web-based deployment held the largest revenue share in 2016 due to the expansion of web technologies across verticals by using hypertext-based principles over traditional software-based applications. Deployment of web-based systems results in streamlined and enhanced operating processes within medical facilities, addressing several issues regarding the maintenance of large databases. Furthermore, the systems can be easily managed and updated and require only the main server for installation, through which any updates on the web-based system can be processed easily and quickly.

Cloud-based deployment held the second-largest share in 2016 and the segment is likely to progress at the fastest pace over the forecast period. Various healthcare organizations are looking forward to optimizing workflow by installing cloud-based solutions, which are known for their greater accessibility, better security, and cost-effectiveness. Easy access to and availability of these systems in urban and remote areas will contribute to the growth of the segment over the forecast period. Additionally, cloud-based deployment allows providers to save money by reducing in-house storage needs, thus, making information accessible from various locations.

End-use Insights

Hospitals held the largest revenue share in 2016 and the segment is expected to clock in a CAGR of 7.3% over the forecast period. This is owing to factors such as the presence of a large number of hospitals and the growing penetration of IT in the field. Over the years, information and communication technology has played a vital role in hospitals, by handling crucial data generated by various departments. Furthermore, the implementation of IT has revolutionized the entire workflow of data within hospitals, aiding the operating of non-patient care activities.

Diagnostic centers held the second-largest market revenue in 2016 and is anticipated to be the fastest-growing segment over the forecast period. This is largely owing to the increasing demand for these technologies, which will help in storing and feeding data in large numbers. These devices have provided flexibility in tracking patient and billing records, which has helped diagnostic centers immensely. Academic and research institutes have also played a key role in propelling the healthcare information systems market. The use of these advanced technologies has helped professionals in easily accessing data.

Component Insights

Services held the largest revenue share in 2016 and is expected to register a CAGR of 7.5% owing to rising adoption in hospitals and clinics, which will enable the administrative staff to store data in bulk. The rise in demand for the installation of software solutions in institutions for training and education purposes has also led to the largest share of the services segment.

Hardware held the second-largest revenue share in 2016. There has been high adoption of advanced hardware within medical facilities in order to store and access large databases and programs. Accessible to all individuals, they will also improve efficiency, enhance productivity, and reduce costs. For instance, NextStep Solutions. Inc. aims at providing multiple hardware configurations to meet clients’ demands. Players are also training staff on advanced programming, Internet technology, and operating systems, which is expected to boost demand over the forecast period.

Software and systems is expected to be the fastest-growing segment by 2025, due to rising demand for advanced software in hospitals, clinics, and training institutes. In addition, growing penetration of IT in the medical sector and surging adoption of technological developments in web-based software and eHealth platforms are likely to boost the market in the coming years. Significant adoption of Electronic Health Records, which is expected to assist physicians and lab assistants in storing, managing, and accessing crucial data, will also benefit the segment.

Regional Insights

In 2016, North America dominated the global market. This is due to initiatives taken by governments in order to accelerate the implementation of IT services in the sector. This eventually helped in streamlining various processes in hospitals, education centers, and clinics. An increase in the number of chronic diseases and augmentation in healthcare expenditure are some of the other factors boosting the regional market.

Europe held the second-largest revenue share in 2016 and is expected to exhibit a CAGR of 8.0%. This can be attributed to factors such as an increase in patient population and implementation of these systems in various public and private hospitals, which have shown significant improvement in daily operations. Moreover, an increase in government initiatives to promote eHealthcare, growing geriatric population, and accessibility to drugs through online channels have contributed to the market.

Asia Pacific is expected to be the fastest-growing region over the forecast period. This is owing to factors such as an increase in government initiatives and a rise in awareness regarding these systems. Moreover, massive investments in this sector by various governments and a growing population with chronic diseases are expected to boost the market through 2025.

Key Companies & Market Share Insights

Some of the key players in the market are Philips Healthcare, NextGen Healthcare, Carestream Health, Cerner Corporation, and GE Healthcare. Leading strategies that are being undertaken by these players include collaborations, mergers, and acquisitions. These help companies develop novel and innovative solutions and expand their global presence.

Healthcare Information Systems Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research, Inc. has segmented the global healthcare information systems market report on the basis of application, deployment, component, end use, and region:

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Hospital

    • Electronic health record

    • Electronic medical record

    • Real-time healthcare

    • Patient engagement solution

    • Population health management

  • Pharmacy

    • Prescription management

    • Automated dispensing systems

    • Inventory management

    • Others

  • Laboratory

  • Revenue Cycle Management

  • Medical Imaging

    • Radiology

    • Monitoring analysis software

    • Picture archiving and communication systems

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)

  • Web-based

  • On-premise

  • Cloud-based

• Component Outlook (Revenue, USD Million, 2014 - 2025)

  • Hardware

  • Software and Systems

  • Services

• End-Use Outlook (Revenue, USD Million, 2014 - 2025)

  • Hospitals

  • Diagnostic Centers

  • Academic and Research Institutes

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

    • France

    • Russia

    • Italy

    • Spain

    • Netherlands

    • Sweden

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Singapore

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa

    • Saudi Arabia