Healthcare IT Market Size, Share & Trends Analysis Report By Application (EHR, CPOE, PACS, Tele-healthcare, Clinical Information Systems), By Region (North America, APAC), And Segment Forecasts, 2021 - 2028

Report Overview

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.

COVID19 healthcare IT market impact: 10.0% increase in sales growth

The Covid-19 pandemic has boosted the demand and adoption of online or virtual medical consultancy globally, owing to developments and innovations in internet-based technology, growing prevalence of chronic diseases, and increasing adoption and positive consumer behavior pertaining to newer technologies in healthcare. According to a 2020 survey conducted by Deloitte, the pandemic propelled the adoption of virtual health. For instance, percent of consumers or respondents utilizing virtual visits increased from 15% in 2019 to 19% in the initial months of 2020 and a sudden spike of around 28% was witnessed in April 2020. Thus, such instances are likely to support the growth of the market in the coming years.

Application Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

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

Healthcare IT 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 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