The global healthcare information system market size was valued at USD 258.5 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 9.9% from 2021 to 2028. Rising government initiatives and healthcare IT investments to develop and deploy IT systems in the healthcare industry are among the key factors increasing the adoption of healthcare information systems. Region-specific funding initiatives being undertaken are promoting the usage of digital health platforms for information management, clinical decision support, and improving the overall healthcare outcomes. In January 2020, a California-based company DrChrono received USD 20 million from Orix Growth Capital for developing the company’s mobile, EHR, and medical billing services to expand its sales, support, and engineering teams.
Increasing penetration of technologically advanced healthcare services is further aiding the market growth. Recently, various IT companies and healthcare institutes are collaborating at a greater level to focus on developing high-utility services and solutions to improve the delivery of personalized care, streamlining data storage, and making effective use of data analytics. Moreover, the growing adoption of EHR systems is expected to significantly boost the market growth over the next few years. In January 2020, NXGN Management, LLC announced the signing of an exclusive partnership with Doctible. This partnership would allow Doctible to integrate its service with the NextGen Office cloud-based EHR (Electronic Health Record) and PM (Practice Management) systems to aid small businesses in sustaining loyalty, supporting growth, and providing improved patient care.
The increasing adoption of cloud-based healthcare information systems has been a key trend prevailing in the healthcare industry. Before the advent of cloud-based systems, hospitals relied heavily on on-premises technology systems for information management and streamlining the flow of data across the hospital system. However, several healthcare institutions are replacing on-premises and web-based systems owing to several benefits offered by cloud systems such as decreased data storage and management costs, streamlined access to patient data, improved protection and backup capabilities from data loss, smarter usage of big data to treat patients and improve outcomes, improved access to true data interoperability, and access to new telehealth capabilities.
Pandemic Impact |
Post-COVID Outlook |
The healthcare information system market size increased by 13.2% from 2019 to 2020. |
The market is estimated to witness a year-over-year growth of approximately 8.0% to 10.0% in the next 5 years. |
The rising incidence of COVID-19 forcing upgraded government mandates and the growing support and initiatives for healthcare IT solutions have pushed the adoption of various healthcare information systems in hospitals, diagnostic centers, and academic and research institutes. |
The COVID-19 pandemic has increased the degree of automation and digitalization in the healthcare industry. Many hospitals and other health providers are implementing different digital technologies, such as telemedicine and remote patient monitoring, and thereby generating opportunities in the healthcare information system market. |
Healthcare information systems during the pandemic enabled effective data management. Additionally, healthcare IT solutions such as telehealth solutions have gained significant growth during the COVID-19 pandemic to minimize exposure by facilitating home monitoring services. |
The pandemic exposed the shortcomings of old systems. Thus, healthcare providers are focused on improving operations and looking for new technology to move the organization ahead and survive the tough competition in the coming years. |
The sudden outbreak of COVID-19 significantly transformed the healthcare systems, impacting the workforce, infrastructure, and equipment worldwide. The ongoing pandemic has significantly increased the demand for healthcare information systems among consumers and healthcare providers. In addition, the increase in the number of partnerships between private and public players and the presence of many players are some of the factors anticipated to drive the market. For instance, in January 2019, Cerner Corporation collaborated with CoverMyMeds to integrate patient-specific information into the EHR for healthcare providers to view pricing information at point-of-care.
In addition, the success of eHealth systems, such as hospital information systems, primarily depends upon a country’s readiness, which can be evaluated based on the adoption rate and acceptance of the technology. Over the past few years, several developing nations scored low on e-Health readiness. However, public and private healthcare spending is expected to increase over the next several years to improve the IT infrastructure, strengthen data security and privacy laws, and increase the adoption of high cyber security standards. It is expected to remove the barriers to the expansion of the market in emerging regions.
The revenue cycle management grabbed the largest share of over 60.0% in 2020. Government reforms play a crucial role in boosting the adoption of RCM systems globally. For instance, the Affordable Care Act (ACA) in the U.S. is focused on providing health insurance coverage to individuals with low income and improving quality while reducing the cost of healthcare. Expanding insurance coverage is further expected to increase the number of reimbursement approvals and denials that require management. Therefore, the demand for efficient systems for the management of reimbursement processes is expected to rise, thereby driving the adoption of RCM solutions.
In addition, the revenue cycle management segment is anticipated to register the fastest growth rate during the forecast period owing to the increasing technological advancements that play a key role in altering the RCM process. Moreover, the growth can be credited to the ability of RCM systems to aid the management of billing and reimbursements and data analysis across the healthcare industry requires skilled professionals to manage these complex functions. Thus, hospitals and other healthcare facilities are outsourcing either a whole or a part of their RCM process to minimize the impact of a lack of skilled professionals.
Web-based deployment held the largest share of over 40.0% in 2020 owing to a large number of users of web-based deployments as compared to the other two deployments. The web-based platform technology witnesses high demand from small and medium healthcare enterprises/organizations to improve the overall workflow process. In addition, cost-effective development of web-based applications, the advantage of remote access depending on the availability of internet connection, and easy installation and maintenance are some of the key reasons supporting the segment growth.
The cloud-based segment is anticipated to expand at the fastest growth rate during the forecast period owing to the growing demand for cloud technology across large-, medium-, and small-scale hospitals for enterprise information technology to streamline business operations, improve patient services, and enhance data management. Cloud-based technology enables hosting applications, software and systems, and services remotely and can be freely accessed or used through the internet. The utilization of cloud-based technology has increased over the past few years due to various security breaches in on-premises and web-based deployment.
The services segment accounted for the largest share of more than 45.0% in 2020 owing to the lack of knowledge regarding IT applications among healthcare professionals. The high demand for experts in IT and communication services and the growing adoption of technologically advanced solutions and IT infrastructure in healthcare organizations are some of the key factors responsible for the segment growth. The key players operating in the market offer various services to health facilities for optimizing workflows, thereby helping achieve the objective of cost control. Many companies provide a range of services from hosting, optimization, consulting, to revenue cycle services, which can help hospitals and health centers in managing information systems.
The software and systems segment is anticipated to exhibit the fastest growth rate during the forecast period. The increasing need to rapidly reduce the rising medical costs, growing requirement for accurate and timely information procurement, and rising patient care costs are the key reasons for the segment growth. Moreover, adoption of various healthcare software and systems, including electronic health records (EHRs)/electronic medical records (EMRs), and revenue cycle management solutions, has significantly increased owing to the assistance provided to the medical practitioners in storing, creating, managing, and accessing medical records, such as electronic prescriptions, patient results, and lab orders.
The hospitals segment held the largest share of more than 75.0% in 2020. An increase in the adoption of information systems in hospitals for improving the clinical, financial, and administrative efficiency and a rise in the need for enhancing information systems in hospitals are some of the key factors responsible for the segment growth. The shift in trend from volume-based care to value-based care is leading to an increase in the demand for information systems in hospitals. The availability of funds for the development of healthcare IT infrastructure is increasing globally. Moreover, advancements in healthcare IT, such as the development of cloud-based systems, are boosting the adoption of information systems in hospitals.
The diagnostic centers segment is anticipated to expand at the fastest growth rate during the forecast period. The rising geriatric population, the growing prevalence of chronic diseases globally, and the rising adoption of healthcare IT services in diagnostic facilities are some of the key factors driving the segment. The rise in demand for automated services, the growing need for integration of health-related data of individuals for efficient care delivery, and the introduction of the laboratory information system are some other factors expected to fuel the segment growth.
North America accounted for the largest share of over 45.0% in 2020 primarily due to the high demand for technologically advanced solutions and services in healthcare systems and the presence of a large number of vendors, such as Accenture, Cerner, GE Healthcare, McKesson, Oracle, and Microsoft. The presence of large health settings in this region is a contributor to the market growth. Technologically advanced products offer a more effective way of operating hospital processes and administration. The enactment of laws and legislation to increase the adoption of EHR is an important factor, which is boosting market growth.
Asia Pacific is expected to be the fastest-growing segment over the forecast period. Technological advancements such as eHealth platforms and cloud computing are playing a major role in driving the regional market. The healthcare data is subject to stringent regulatory oversight to ensure confidentiality of the information, safe and secure storage, user-level authorization, traceability of information, and mitigation of other cyber security threats.
Investments and funding raised by startups are utilized for the new technology solutions development in the healthcare industry. Many players are investing in startups that complement their product portfolios. Key players are offering the highest quality service, ensured renewal of existing software subscriptions, and implementation of novel healthcare software solutions, such as revenue cycle management solutions and patient management solutions. Moreover, companies are offering resources for product usage and taking up strategies to accelerate digitalization. Some prominent players in the global healthcare information system market include:
McKesson Corporation
Cerner Corporation
Allscripts
Agfa Gevaert NV
Medidata Solutions Inc.
GE Healthcare
Siemens Healthineers
athenahealth, Inc.
Epic Systems Corporation
NextGen Healthcare
Report Attribute |
Details |
Market size value in 2021 |
USD 279.4 billion |
Revenue forecast in 2028 |
USD 539.3 billion |
Growth Rate |
CAGR of 9.9% from 2021 to 2028 |
Base year for estimation |
2020 |
Historical data |
2016 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Application, deployment, component, end-use, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; Germany; U.K.; Spain; Italy; France; Russia; Sweden; Netherlands; Japan; China; India; Australia; Singapore; Brazil; Mexico; Argentina; South Africa; Saudi Arabia; UAE |
Key companies profiled |
McKesson Corporation; Cerner Corporation; athenahealth, Inc.; Allscripts; Medidata Solutions Inc.; Agfa Gevaert NV; GE Healthcare; Siemens Healthineers; Epic Systems Corporation; NextGen Healthcare |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research, Inc. has segmented the global healthcare information system market report on the basis of application, deployment, component, end-use, and region:
Application Outlook (Revenue, USD Million, 2016 - 2028)
Hospital Information System
Electronic Health Record
Electronic Medical Record
Real-time Healthcare
Patient Engagement Solution
Population Health Management
Pharmacy Information Systems
Prescription Management
Automated Dispensing Systems
Inventory Management
Others
Laboratory Information Systems
Revenue Cycle Management
Medical Imaging Information System
Radiology Information Systems
Monitoring Analysis Software
Picture Archiving and Communication Systems
Deployment Outlook (Revenue, USD Million, 2016 - 2028)
Web-based
On-premises
Cloud-based
Component Outlook (Revenue, USD Million, 2016 - 2028)
Hardware
Software and Systems
Services
End-use Outlook (Revenue, USD Million, 2016 - 2028)
Hospitals
Diagnostic Centers
Academic and Research Institutes
Regional Outlook (Revenue, USD Million, 2016 - 2028)
North America
U.S.
Canada
Europe
U.K.
Germany
France
Russia
Italy
Spain
Netherlands
Sweden
Asia Pacific
Japan
China
India
Australia
Singapore
Latin America
Brazil
Mexico
Argentina
MEA
South Africa
Saudi Arabia
UAE
b. Key factors that are driving the healthcare information system market growth include increasing adoption of technologically advanced infrastructure in hospitals, diagnostic centers, clinical laboratories, growing awareness regarding e-prescriptions among practitioners and patients.
b. The global healthcare information system market size was estimated at USD 258.5 billion in 2020 and is expected to reach USD 279.4 billion in 2021.
b. The global healthcare information system market is expected to grow at a compound annual growth rate of 9.9% from 2021 to 2028 to reach USD 539.3 billion by 2028.
b. Services dominated the healthcare information system market with a share of 46.1% in 2020. This is attributable to rising adoption in hospitals and clinics, which will enable the administrative staff to store data in bulk.
b. Some key players operating in the healthcare information system market include Philips Healthcare; NextGen Healthcare; Carestream Health; Cerner Corporation; GE Healthcare; McKesson Corporation; Athenahealth, Inc.; Allscripts; Medidata Solutions Inc.; and Siemens Healthineers.
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