The global healthcare IT market size was estimated at USD 199.5 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 18.7% from 2024 to 2030. Increasing usage of smartphones, a growing demand for remote patient monitoring for improved out-of-hospital care, technologically advanced healthcare IT infrastructure, and an increase in the number of initiatives and investments supporting eHealth and digital are driving overall market growth. For instance, in May 2022, Microsoft collaborated with BeeKeeperAI, a healthcare AI solutions developer, enabling Microsoft Azure users to explore confidential computing's advantages in healthcare AI solutions.
Ease of use, cost-effectiveness, and time efficiency are driving the widespread adoption of healthcare IT in hospitals. The market's expansion is also supported by continuous improvements in services provided by industry players to cater to consumer demands. For example, in August 2021, Change Healthcare introduced its cloud-based software as a service (SaaS) solution, Change Healthcare Stratus Imaging PACS, tailored for radiological practices. This innovative solution is in beta testing, with plans for future expansion into hospitals in the coming years.
Rising government initiatives to promote technologically advanced systems, including those addressing COVID-19 and other primary healthcare challenges, are also driving overall market expansion. For instance, growing economies such as India, have taken significant steps towards digitalization. In September 2021, India's Prime Minister introduced the Pradhan Mantri Digital Health Mission, an initiative aimed at digitizing healthcare services nationwide. This mission seeks to establish a secure and accessible digital healthcare system, enabling individuals to store, access, and authorize the sharing of their health records.
Growing smartphone penetration and improving internet coverage are directly contributing to the adoption of healthcare IT solutions. Smartphone penetration has improved chronic disease management, owing to an extensive usage of mHealth applications. As per a Mass Media Data report, 5.31 billion unique consumers were using mobile phones at the beginning of 2022, indicating that over two-thirds of the global population is currently utilizing these devices. Moreover, at the beginning of 2022, the number of Internet users worldwide stood at 4.95 billion, indicating that 62.5% of the global population had Internet access.
Surging demand for centralized medical records to help improve care delivery, particularly in developed nations such as the United States, where there has been a noticeable shift towards value-based care, is enabling the adoption of health management systems such as EHR. This contributes greatly to market expansion. For instance, in March 2022, Google Health collaborated with MEDITECH with an aim to use its search & summarization capabilities within MEDITECH's Expanse EHR platform to help clinicians provide the best care via easy and quick access to information from multiple sources.
Based on application, the market is segmented into electronic health records (EHR), computerized provider order entry systems (CPOE), electronic prescribing systems, medical imaging information systems, laboratory informatics, clinical information systems, and telehealthcare. The tele-healthcare segment is further divided into tele-care and telehealth. The segment dominated the market with a revenue share of 58.6% in 2023. This growth can be attributed to increasing demand for streamlined electronic healthcare systems, advancements in healthcare IT, and the need for technology-integrated tools.
The increasing health consciousness, rising demand for cost-effective care, and growing geriatric population are other key factors contributing to tele-healthcare segment growth. For instance, Independa, a TV-based platform specializing in remote engagement, care, and education, conducted a survey in November 2022 to examine smart TV users' behavior & attitude toward telehealth. Findings released in March 2023 revealed that over 90% of Americans had utilized telehealth services in the past year, with a satisfaction rate of 90%. These services included doctor's appointments, tele-dentistry, and vision appointments. The survey also highlighted the significance of increased smartphone penetration, as 71% of users accessed telehealth services using their smartphones. These findings indicate a growing awareness and positive reception of telehealth, which is expected to drive market growth, as telehealth adoption continues to rise during the forecast period.
The electronic prescribing system segment is anticipated to experience the fastest CAGR of 26.8% over the forecast period. An increase in awareness of the advantages of e-prescribing is fueling the adoption of e-prescribing systems. In a study titled “Perception of physicians towards electronic prescription systems and associated factors at resource-limited settings" published in PLOS ONE in March 2021, survey participants expressed positive perceptions of electronic prescriptions, with 76.5% providing a favorable response. Furthermore, approximately 70.8% of participants had over 5 years of computer usage experience. The study also revealed that nearly 90% of participants considered their electronic prescriptions to be legible.
The medical imaging information systems segment is subdivided into radiology information systems, monitoring analysis software, and picture archiving and communication systems (PACS). Factors such as an increasing need for streamlining healthcare operations, rising awareness about these systems in tracking billing information and orders of radiology imaging, and a growing prevalence of chronic diseases globally are significantly contributing to the overall medical imaging information systems segment growth.
North America dominated the market with a revenue share of 48.0% in 2023. The region's market growth is fueled by extensive adoption of healthcare IT solutions and services, especially in the U.S., as providers strive to enhance patient care while reducing costs. Adoption of healthcare IT solutions varies among providers due to various factors. A case in point is the high adoption of Electronic Health Records (EHR) in Oregon, where healthcare providers demonstrate varying adoption rates influenced by distinct digital divisions.
The increase in adoption of electronic health records is increasing significantly in the U.S. As per Health IT reports, until 2021, nearly 9 out of 10 U.S.-based physicians had adopted EHR. Thus, high adoption rates also play a crucial role in boosting market growth.
Asia Pacific is anticipated to hold the fastest CAGR of over 22.8% during the forecast, with high demand for healthcare IT services, owing to increased government spending on healthcare. Furthermore, demand for healthcare IT systems has been increasing, as it enables efficient management of clinical, financial, and administrative aspects of hospitals.
Several government initiatives and supportive programs are also boosting the adoption of such technologies. For instance, in Australia, state as well as federal governments support healthcare IT at their level. State-level programs, such as HealthSmart, and nationwide programs, such as HealthConnect, are examples of government programs undertaken to increase the integration of IT in healthcare. In addition, South Africa is also focusing on the development of fully integrated health record systems via its careconnect.sa program. Such initiatives and policies in various nations are supporting market growth in the region, and expanding business opportunities are leading to many players entering the market.
Notable market players are implementing different strategies, including new product development, collaborations, and partnerships, to bolster their market presence. For instance, in May 2023, athenahealth made a significant announcement regarding its 'athenaOne' integrated cloud-based EHR, medical billing, and patient engagement solution. This solution, along with 'athenaOne Dental,' was chosen by LCH Health and Community Services to enhance provider and patient experiences while advancing its growth strategy.
In October 2023, Carestream Health partnered with EXAMION, a Germany-based medical imaging solutions provider. Through this partnership, Carestream would focus on strengthening its product capabilities and expertise in medical imaging solutions.
In June 2022, athenahealth expanded its mobile EHR voice capabilities for healthcare providers. The voice assistant will help healthcare professionals improve documentation accuracy, provide better patient experience, and save time.
In March 2022, Constellation Software’s N. Harris Computer Corporation entered into an agreement with Allscripts Healthcare, wherein it would acquire Allscripts electronic health record business segments including tools such as Opal, Paragon, dbMotion, Sunrise, and TouchWorks.
In March 2022, athenahealth and MedWise entered into a partnership, wherein MedWise will use athenaOne’s medical coding solutions to maintain & enhance patient experience, reduce administrative burden, and improve financial performance.
The market is highly competitive, offering diverse applications such as EHR and e-prescribing, with multiple vendors offering tailored solutions.
Report Attribute |
Details |
Market size value in 2024 |
USD 230.3 billion |
Revenue forecast in 2030 |
USD 644.9 billion |
Growth rate |
CAGR of 18.7% from 2024 to 2030 |
Base year for estimation |
2023 |
Historical data |
2018 - 2022 |
Forecast period |
2024 - 2030 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2024 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Application, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; Spain; Russia; Sweden; Norway; Denmark; China; Japan; India; Australia; South Korea; Thailand; Singapore; Brazil; Mexico; Argentina; South Africa; Saudi Arabia; UAE; Kuwait |
Key companies profiled |
Philips Healthcare; McKesson Corporation; eMDs, Inc.; Veradigm Inc. (formerly Allscripts Healthcare Solutions, Inc.); Athenahealth, Inc. (Acquired by Hellman & Friedman and Bain Capital); Carestream Health; GE Healthcare; Agfa- Gevaert Group; Hewlett Packard Enterprise Development LP; eClinicalWorks; Novarad |
Customization scope |
Free report customization (equivalent up to 8 analyst’s 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 and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the global healthcare IT market report based on application and region:
Application Outlook (Revenue, USD Million, 2018 - 2030)
Electronic Health Records
Computerized Provider Order Entry Systems
Electronic Prescribing Systems
Laboratory Informatics
Clinical Information Systems
Medical Imaging Information Systems
Radiology Information Systems
Monitoring Analysis Software
Picture Archiving and Communication Systems
Tele-healthcare
Tele-care
Tele-Health
Regional Outlook (Revenue, USD Million, 2018 - 2030)
North America
U.S.
Canada
Europe
U.K.
Germany
France
Italy
Spain
Sweden
Norway
Denmark
Russia
Asia Pacific
China
India
Japan
Australia
South Korea
Singapore
Thailand
Latin America
Brazil
Mexico
Argentina
Middle East and Africa (MEA)
South Africa
Saudi Arabia
UAE
Kuwait
b. The global healthcare IT market size was estimated at USD 199.5 billion in 2023 and is expected to reach USD 230.3 billion in 2024
b. The global healthcare IT market is expected to grow at a compound annual growth rate of 18.7% from 2024 to 2030 to reach USD 644.9 billion by 2030.
b. North America dominated healthcare IT market in 2023 with the revenue share of 48.0%. The region's market growth is fueled by the extensive adoption of healthcare IT solutions and services, especially in the U.S., as providers strive to enhance patient care while reducing costs.
b. Some key players operating in the healthcare IT market include Philips Healthcare; McKesson Corporation; eMDs, Inc.; Veradigm Inc. (formerly Allscripts Healthcare Solutions, Inc.); Athenahealth, Inc. (Acquired by Hellman & Friedman and Bain Capital); Carestream Health; GE Healthcare; Agfa- Gevaert Group; Hewlett Packard Enterprise Development LP; eClinicalWorks; Novarad.
b. Key factors that are driving the healthcare IT market growth include the increasing usage of smartphones, growing demand for remote patient monitoring for improved out-of-hospital care, technologically advanced healthcare IT infrastructure, and increase in number of initiatives and investments supporting eHealth and digital health.
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