Healthcare IT Market Size, Share & Trends Analysis Report By Application (EHR, CPOE, Electronic Prescribing Systems, PACS, Lab Information Systems, Clinical Information Systems, Tele-healthcare), By Region, And Segment Forecasts, 2020 - 2027

Report Overview                

The global healthcare IT market size was valued at USD 67.5 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 10.3% over the forecast period. The adoption of healthcare IT systems has gained momentum over recent years in order to improve Chronic Disease Management (CDM) owing to the increasing prevalence of chronic diseases globally. Growing demand for preventive care coupled with a rise in funding for various mHealth startups is boosting the market growth. Ongoing improvements in network infrastructure and growing network coverage are further creating various growth opportunities for the market players. In addition, increasing demand for curbing healthcare costs and workflow efficiency is propelling the demand for remote monitoring solutions, which in turn, is positively impacting the market growth. 

Rise in technological advancements to improve IT infrastructure, such as the implementation of IoT, AI, and big data is one of the significant factors propelling market growth. Growing consumer demand for efficient and effective treatment and increasing awareness regarding upgraded technology is further anticipated to boost the market over the forecast period. Moreover, continuous update in the existing IT infrastructures coupled with adoption of cloud computing in healthcare is significantly contributing towards market growth. However, poor network coverage, data security concerns, and other associated issues are anticipated to hamper the market growth.

Increasing the geriatric and pediatric population, growing demand for home healthcare services, and the rising cost of advanced hospital equipment is driving the demand for remote patient monitoring and thus anticipated to boost the market growth. In addition, increasing prevalence of chronic diseases such as diabetes, cancer, and congestive heart failure is further boosting the demand for healthcare IT. As per the American College of Cardiology, 6.5 million people in the U.S. suffered a heart failure in 2018.

Higher smartphone penetration is likely to contribute to the growth of the healthcare IT sector. As per The Mobile Economy 2018, smartphone penetration was 57.0% in 2017 and is expected to reach 77.0% by 2025. Increasing mobile subscriptions is leading to an increase in the demand for healthcare IT solutions. Moreover, technological advancements associated with smartphone technology for improving disease diagnosis anticipated driving the market. For instance, in 2017, researchers at the University of Illinois had developed a camera to improve the diagnostic features of smartphones.

Moreover, benefits associated with healthcare IT such as minimizing errors in a medical facility operational cost reduction, and increased successful outcomes, are anticipated to drive the industry. In addition, favorable government initiatives pertaining to the development of healthcare infrastructure and the implementation of IT in existing establishments are expected to fuel industry growth over the forecast period. The COVID-19 crisis has bolstered the demand for online medical consultancy globally, owing to innovations in online technology, a growing burden for chronic diseases, and increasing consumerism in healthcare.

Application Insights

In terms of revenue, the (Electronic Health Records) EHR segment dominated the market with a share of 41.4% in 2019, primarily owing to the surge in demand for EHR-integrated tools, streamlining EHR, and advancements in information technology. The EHR market is majorly driven by growing adoption in healthcare centers and an increasing number of initiatives supporting the implementation of EHR. For instance, Health Information Technology for Economic and Clinical Health Act, (HITECH Act), 2009, aimed at promoting the adoption of EHR and supporting the use of technology in the U.S. Increasing adoption of software solutions, such as clinical decision support system, data mining, and clinical trial management systems, is anticipated to drive the demand for electronic health records in the forthcoming years.

E-prescription systems are anticipated to be the fastest-growing segment during the forecast period. Growing demand for enhanced patient care and reduction in medical errors is one of the key factors boosting the demand for e-prescription systems in the market. According to an article published by the University of York in 2018, over 200.0 million medication errors occur in NHS annually. Moreover, the rise in the implementation of EHRs in hospitals and clinics coupled with an increase in the number of prescriptions dispensed is further driving the demand for e-prescription systems to reduce administrative burden and enhance workflow efficiencies in healthcare systems.

Regional Insights

In 2019, North America accounted for the largest market share of 41.4% and is expected to register significant growth over the forecast period. Increasing implementation of IT solutions and services by healthcare providers to deliver enhanced patient care at lower expenses, coupled with the presence of large manufacturing hubs, are driving the regional market. Moreover, a rise in the number of hospitals, universities, advanced research centers, and medical device manufacturers has further propelled market growth in this region. The presenters of well-established health settings in this region are significantly contributing to the growth of the market.

The COVID-19 pandemic has opened up major opportunities in telehealth solutions, given that social distancing is the best solution for minimizing exposure. In addition, rising geriatric population, a growing volume of patient data,  increasing consumer shift from volume-based to value-based care, technological advancements, government mandates & financial incentives for adoption of HCIT solutions, increasing awareness regarding the importance of digital health, and high returns on IT investments is likely to boost market growth amidst the pandemic.

In Asia Pacific, the market is anticipated to witness a CAGR of 15.5% over the forecast period, owing to the development of IT infrastructure in healthcare facilities, implementation of technology-based BI solutions in various Asian countries, and increasing public and private funding for development of advanced BI tools. In addition, the growing adoption of advanced technology to streamline hospital workflow & cut down medical costs is driving the demand for IT-based healthcare solutions in the region.

Key Companies & Market Share Insights

The market is consolidated in nature, marked by constant strategic collaborations, mergers, and acquisitions. The ongoing COVID-19 pandemic is further opening various opportunities for market players to gain a competitive advantage by investing in available untapped opportunities. For instance, in July 2020, Allscripts announced the extension of its alliance with Microsoft to support cloud-based Sunrise EHR and provide co-innovation opportunities for transforming healthcare with smarter and more scalable technology. Some of the prominent players in the 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 2014 to 2027. 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, 2014 - 2027)

  • Electronic Health Records

  • Computerized Provider Order Entry Systems

  • Electronic Prescribing Systems

  • PACS

  • Laboratory Information Systems

  • Clinical Information Systems

  • Tele-healthcare

• Regional Outlook (Revenue, USD Million, 2014 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Singapore

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • South Africa

    • Saudi Arabia