The global healthcare IT market size was valued at USD 74.2 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 10.7% over the forecast period. High demand and adoption of preventive care along with increasing funding for various mobile health startups is advancing the market growth. In addition, growing network coverage and rising improvements in network infrastructure are supporting the growth of this market. Technological advancements, with respect to healthcare, for improving the IT infrastructure, such as the implementation of AI, IoT, and big data in healthcare processes, are also fueling the market growth. Furthermore, growing consumer demand for effective & efficient treatment coupled with increasing awareness regarding new and upgraded technologies is anticipated to boost market growth over the forecast period.
According to a recent report by AMA and data quoted in an article published in Healthcare IT News in 2020, there is a rise in the adoption of healthcare IT services in recent years. For instance, as per the report, remote monitoring for improved care increased from 13% in 2016 to 22% in 2019. In addition, rising smartphone penetration and internet connectivity are expected to contribute towards the adoption and growth of IT in the healthcare sector.
For instance, according to the Mobile Economy 2020, unique mobile subscribers were around 5.2 billion in 2019 and are expected to reach around 5.8 billion by 2025. In addition, the number of internet users increased from 250 million in 2018 to around 3.8 billion in 2019. Moreover, advancements in technologies associated with smartphones and the internet for improving disease diagnosis, treatment, and patient engagement & satisfaction are anticipated to drive the market.
Growing geriatric population; increasing cost of hospital equipment, majorly for advanced treatment & care; and rising demand for home healthcare services are also projected to augment the adoption of IT services. In addition, the rising prevalence of chronic diseases, such as cancer, diabetes, and heart failure, is fueling the demand for various IT-based services pertaining to this sector. Benefits of healthcare IT, such as minimalizing errors in a medical facility, reduction in operational cost, and increasing rate of successful outcomes, are estimated to fuel market growth. In addition, favorable initiatives by the governments of various countries for the developments of healthcare infrastructure and IT implementations in the existing establishments are anticipated to boost the growth during the forecast period.
The Electronic Health Records (EHRs) application segment dominated the healthcare IT market in 2020 with a revenue share of over 40% owing to a surge in demand for streamlining EHR, EHR-integrated tools, and advancements in information technology. The segment is projected to expand at a steady CAGR from 2021 to 2028 due to the growing awareness and adoption of EHR in healthcare facilities, strategic initiatives by various players in the market, and an increasing number of initiatives supporting its implementation.
E-Prescribing system is anticipated to be the fastest-growing application segment during the forecast period. Growing demand for improved patient care and reduction in the occurrence of medical and prescribing errors are some of the major factors fueling the demand for e-prescription systems in the market. For instance, according to Statista, the percentage of e-prescriptions in the U.S. increased from 66% in 2017 to 80% in 2019. Moreover, the rising implementation of EHRs in clinics, hospitals, and other healthcare facilities coupled with an increasing number of prescriptions dispensed are contributing to the segment growth.
In 2020, North America accounted for the largest market share of over 40% and is also expected to register the fastest CAGR over the forecast period. The rising adoption and implementation of IT services and solutions by healthcare providers for delivering enhanced patient care at lower expenses are the key factors driving the regional market. Moreover, the presence of major manufacturing hubs and the rise in the number of hospitals, advanced research centers, and universities are boosting the market growth.
Major hospitals and research centers in this region, such as Cleveland Clinic, University of Maryland Medical Center, John Hopkins Medicine, St. Jude Children’s Research Hospital, and Mayo Clinic, provide potential growth opportunities for these systems. In addition, an increase in healthcare-associated costs and a rising need to streamline hospital workflow & improve efficiency are also contributing to the growth in the region’s market share.
The market is consolidated and constant strategic collaborations, mergers, and acquisitions are likely to increase the visibility and adoption of healthcare IT services in the coming years. The Covid-19 pandemic is further offering new opportunities to market players to gain a competitive edge. For instance, in June 2020, Athenahealth, Inc. announced the launch of its Telehealth Solution named athenaTelehealth. This solution will provide secure scheduling of the billing process for clinicians as well as patients. Some of the key companies in the global healthcare IT market include:
Philips Healthcare
Agfa Healthcare
Hewlett-Packard Enterprise
Carestream Health
GE Healthcare
E-MDS, Inc.
Athenahealth, Inc.
eClinicalworks
McKesson Corporation
Report Attribute |
Details |
Market size value in 2021 |
USD 81.4 billion |
Revenue forecast in 2028 |
USD 166.0 billion |
Growth Rate |
CAGR of 10.7% from 2021 to 2028 |
Base year for estimation |
2020 |
Historical data |
2016 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Revenue in USD million and CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
Segment Covered |
Application, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; Spain; Russia; China; Japan; India; Singapore; Australia; Brazil; Mexico; South Africa; Saudi Arabia |
Key companies profiled |
Philips Healthcare; Agfa Healthcare; Hewlett-Packard Enterprise; Carestream Health; GE Healthcare; E-MDS, Inc.; Athenahealth, Inc.; eClinicalworks; McKesson Corporation |
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 global, regional, and country levels and provides an analysis of the latest industry trends 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 IT market report on the basis of application and region:
Application Outlook (Revenue, USD Million, 2016 - 2028)
Electronic Health Records (EHRs)
Computerized Provider Order Entry Systems
Electronic Prescribing Systems
PACS
Laboratory Information Systems
Clinical Information Systems
Tele-healthcare
Regional Outlook (Revenue, USD Million, 2016 - 2028)
North America
U.S.
Canada
Europe
U.K.
Germany
France
Italy
Spain
Russia
Asia Pacific
China
Japan
India
Australia
Singapore
Latin America
Brazil
Mexico
Middle East & Africa
South Africa
Saudi Arabia
b. The global healthcare IT market size was estimated at USD 74.2 billion in 2020 and is expected to reach USD 81.4 billion in 2021.
b. The global healthcare IT market is expected to grow at a compound annual growth rate of 10.7% from 2021 till 2028 to reach USD 166.0 billion by 2028.
b. The electronic health record (EHR) segment dominated the healthcare IT market with a share of 27.8% in 2019. This is attributable to the rising demand for integrated information systems in the field of healthcare IT, faster accessibility, and low maintenance cost.
b. Some key players operating in the healthcare IT market include Athenahealth Inc., GE Healthcare, Agfa Healthcare, Philips Healthcare, E-MDS Inc., Carestream Health McKesson Corporation, Carestream Health eClinicalworks, and Hewlett-Packard.
b. Key factors that are driving the healthcare IT market growth include the growing adoption rate of Computerized Physician Order Entry (CPOE), increasing the prevalence of chronic diseases, growing global patient base, and technological advancements in this field.
b. E-prescribing system is anticipated to be the fastest-growing application segment in the healthcare IT market till 2028, on account of the growing demand for improved patient care and reduction in the occurrence of medical and prescribing errors.
b. In 2020, North America accounted for the largest share in the healthcare IT market of over 40% and is also expected to register the fastest CAGR over the forecast period. It was the result of the rising adoption and implementation of IT services and solutions by healthcare providers.
b. In June 2020, Athenahealth, Inc. announced the launch of its Telehealth Solution named athenaTelehealth. This solution will provide secure scheduling of the billing process for clinicians as well as patients, making it an important development in the healthcare IT market.
b. Factors such as the presence of major manufacturing hubs, hospitals & research centers in this region, the tendency to adopt IT solutions to streamline workflow, and boost efficiency in healthcare are fueling the growth rate of the healthcare IT market in North America.
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