Healthcare Information System Market Size, Share & Trends Analysis Report By Application, By Deployment, By Component, By End-use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global healthcare information system market size was valued at USD 359.8 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.2% from 2022 to 2030. Rise in healthcare expenditure and advancements in its IT infrastructure are some of the primary drivers boosting the market. High demand for remote patient monitoring is also significantly driving its adoption rate. According to a report published in The Lancet journal, in 2016, global expenditure on health is anticipated to increase to USD 18.3 trillion by 2040 across the globe.

Patient-centered care management, population health management, and point-of-care solutions assist providers in cutting down healthcare expenditure and improving outcomes through the development of patient registries and patient portals. Technological advancements in healthcare IT infrastructure, such as the use of IoT, big data, and AI is one of the significant factors propelling the market growth. Companies are developing newer technologies, which have increased the number of healthcare IT solutions for cybersecurity and AI applications. Data interoperability, AI, and machine learning (ML) are some of the promising ones.

Rise in the prevalence of chronic diseases such as diabetes, cancer, and congestive heart failure is significantly contributing to the adoption of remote patient monitoring services, which in turn is expected to boost the demand for IT solutions in the industry. According to International Diabetes Federation (IDF) data, people living with diabetes are expected to rise to 643 million by 2030 and 783 million by 2045. American Cancer Society estimated that around 1.9 million new diagnosed cancer cases were registered in the U.S. in 2021.

Many companies and healthcare institutions are launching mHealth programs for remote patient monitoring, which is leading to an increase in the adoption of IT solutions for remote patient monitoring services. For instance, in 2019, Wisconsin’s Marshfield Clinic Health System will use mHealth devices for remote monitoring of patients with congestive heart failure. eHealth efforts span across developing current IT infrastructure and promoting the adoption of patient engagement as well as patient-physician coordination tools. The number of initiatives being undertaken for the implementation of eHealth is rising globally.

Europe is one of the regions that invest heavily to develop eHealth infrastructure. As a result of these initiatives, the use of eHealth in the EU to improve health service delivery and public health is increasing. According to a WHO report released in 2016, providing an overview of the eHealth status of the EU, 30-member states out of 53 have a national eHealth policy. Developing countries are also adopting eHealth through various initiatives undertaken by them. In October 2020, India and Netherlands collaborated in the field of eHealth to provide digital health facilities and security to Indians and also aid the Netherlands in accelerating the digital transformation of health.

Increasing applications of smartphones, such as telemedicine, remote disease management, Health Management Information Systems (HMIS), and others, are expanding the scope of IT, especially in healthcare. Technological advancements in smartphone technology for improving disease diagnosis are anticipated to drive the growth of IT in this sector. For instance, as per data published in 2017, researchers at the University of Illinois have developed a camera to improve the diagnostic features of smartphones.

During the COVID-19 pandemic, upgraded government mandates with growing support and initiatives for healthcare IT solutions have boosted the adoption of information systems in hospitals, laboratories, academic institutes, and diagnostic centers. With the implementation of telemedicine and remote patient monitoring, these facilities are creating opportunities in the healthcare information system market. The COVID-19 pandemic exposed some vital opportunities to identify the strengths and weaknesses of the existing healthcare information system.

Application Insights

The revenue cycle management (RCM) segment accounted for the largest market share of 67.6% in 2021. This is attributed to the need for reducing medical billing errors, reducing reimbursements in healthcare, shifting the trend toward the development of synchronized management systems, and increasing the need for optimization of workflow in healthcare facilities. Based on a 2020 study, around 67% of providers are using AI for RCM and almost 100% of the surveyed executives are projected to incorporate AI for RCM within the next 3 years. This is further expected to increase the growth rate of RCM over the forecast period.

Increase in adoption of hospital information systems to improve operational efficiency, growing awareness regarding technologically advanced services, and the subsequent need for reducing healthcare costs are among the key factors that can be attributed to the market growth of hospital information system. Owing to several benefits associated with technology, such as low healthcare expenditure and high operational efficiency, the demand for analytical IT solutions is increasing in healthcare.

Deployment Insights

Web-based deployment segment dominated the market in 2021 with a 43.1% share. The use of web-based systems significantly reduces operational hassles encountered due to processing large volumes of data. However, the capability of web-based deployments to support software and systems depends on the availability of the required technical needs and operational aspects of the systems. Web-based applications are custom-built to the needs of the healthcare organization, which facilitates improved business workflows resulting in generating maximum value for the business.

Cloud-based deployment segment is anticipated to showcase the fastest CAGR during the forecast period. Cloud-based technology enables software & systems, hosting applications, and services remotely, which can be accessed or used freely through the internet. The utilization of cloud-based technology has increased due to various security breaches in on-premises and web-based deployment. With the advancements in edge computing, data processing at the edge has been easier, thus, leading to high processing efficiency that enable transfer of required data to the private or public cloud for further analytics.

Component Insights

The services segment held the largest market share of 46.3% in 2021 among the component category. This is mainly due to the various services provided by the companies such as optimization, hosting, consulting, and revenue cycle services to manage the information systems in the healthcare facilities. Rise in need for IT and communication services in healthcare information systems has further boosted the market demand for information system services in this industry. Other services such as installation, education & training, and upgradation also play an important part in driving the market segment.

The software and systems segment is expected to witness a maximum growth rate over the forecast period. Increasing need for efficient management of organizational workflows in healthcare organizations, shift toward value-based care in developed economies, and the rising number of initiatives being undertaken by private & public players for supporting healthcare IT infrastructure are boosting the market for software used in healthcare systems.

End-use Insights

Hospitals segment dominated the market in 2021 with a share of 76.8%. Growing adoption of healthcare information system in hospitals has led to increased efficiency of the professionals resulting in easy and organized patient care. It helps in managing administrative, financial, and clinical aspects of hospitals, which in turn helps in maintaining hospital inventory and patient records efficiently. Technological advancements of cloud-based systems have also resulted in rising hospital information systems adoption.

Diagnostic centers are projected to witness the highest CAGR over the forecast period due to the increasing need for laboratory information systems for services such as sample collection and machine interfacing. Healthcare information systems used in diagnostic centers allows healthcare providers to make informed decisions, which will help in preparing diagnoses or predicting medical conditions like drug interactions and reactions.

Regional Insights

North America dominated the market in 2021 with a 52.6% share mainly due to factors such as high economic development and the presence of hospitals, advanced research centers, universities, & medical device manufacturers in this region. Large hospitals and research centers, such as Cleveland Clinic, University of Maryland Medical Center, John Hopkins Medicine, St. Jude Children’s Research Hospital, and Mayo Clinic create potential growth opportunities in terms of healthcare IT services for market players.

Asia Pacific is the fastest-growing regional market, with high demand for healthcare IT services, owing to an increase in government spending on healthcare. In addition, increase in healthcare expenditure in developing Asian countries & improvement in healthcare infrastructure, owing to growth in adoption of advanced technology to streamline hospital workflow & cut down medical costs, are the key drivers of demand for IT-based healthcare solutions in this region.

Key Companies & Market Share Insights

Various strategic initiatives such as collaborations, product launches, and investments are increasingly being undertaken by the key providers to capture maximum market share. For instance, in March 2021, McKesson launched a pharmacy management solution, ScriptPAS for oncology care. It is based on the fee-for-service model that helps Medically Integrated Dispensing (MID)-equipped practices to offer rapid patient care through increased speed to therapy. In March 2021, athenahealth also introduced an EHR coding solution, athenaOne Medical Coding. This solution will help in mitigating clinician coding-related work and eventually will facilitate a reduction in clinician burnout. Some of the prominent players in the healthcare information system market include:

• athenahealth, Inc.

• Agfa Gevaert Group

• eClinicalWorks

• Philips Healthcare

• Hewlett Packard

• McKesson Corporation

• Allscripts Healthcare, LLC

• GE Healthcare

• Cerner Corporation

• Epic Systems Corporation

• Carestream Health

• Novarad Corporation

• e-MDs Incorporation

• Medidata Solutions Inc.

• Siemens Healthineers

• NextGen Healthcare

• Ada Health GmbH,

• SWORD Health,

• Siilo,

• Oracle,

• NXGN Management, LLC,

• GREENWAY HEALTH, LLC.,

• Infor

Healthcare Information System Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of industry trends in each of the subsegments from 2016 to 2030. For 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 - 2030)

  • Hospital Information System

    • Electronic Health Record

    • Electronic Medical Record

    • Real-time Healthcare

    • Patient Engagement Solution

    • Population Health Management

  • Pharmacy Information Systems

    • Medication Dispensing System

    • Packaging & Labeling System

    • Storage & Retrieval System

    • Automated Medication Compounding System

    • Tabletop Tablet Counters

  • 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 - 2030)

  • Web-based

  • On-premises

  • Cloud-based

• Component Outlook (Revenue, USD Million, 2016 - 2030)

  • Hardware

  • Software & Systems

  • Services

• End-use Outlook (Revenue, USD Million, 2016 - 2030)

  • Hospitals

  • Diagnostic Centers

  • Academic and Research Institutes

• Regional Outlook (Revenue, USD Million, 2016 – 2030)

  • North America

  • U.S.

  • Canada

  • Europe

  • U.K.

  • Germany

  • France

  • Italy

  • Spain

  • Russia

  • Netherlands

  • Switzerland

  • Belgium

  • Asia Pacific

  • Japan

  • China

  • India

  • Singapore

  • Australia

  • South Korea

  • Malaysia

  • Thailand

  • Indonesia

  • Philippines

  • Latin America

  • Brazil

  • Mexico

  • Argentina

  • MEA

  • South Africa

  • Saudi Arabia

  • UAE