Hospital Information System Market Size, Share & Trends Analysis Report By Type, By Deployment, By Component, By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2021 - 2028

Report Overview

The global hospital information system market size was valued at USD 57.1 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.9% from 2021 to 2028. Rising government initiatives and increasing demand from hospitals to deploy advanced IT solutions for effective operational efficiency are some of the key factors for the increase in the adoption of hospital information systems (HIS). The increasing need to reduce healthcare expenditure due to hospital workflow inefficiencies is expected to increase hospital information systems implementation worldwide. Thus, the growing demand for reduced healthcare costs and effective clinical outcomes is one of the key factors responsible for the adoption of information systems in developed economies and also in emerging economies, such as India, China, the Philippines, and Brazil.

Developing and developed regions are struggling to achieve high care delivery standards, which are both cost-effective and quality-oriented with minimum medical errors. With the help of HIS, providers are now able to streamline their workflows by offering enhanced patient outcomes about costs through investigational mining of electronic patient records for identifying inherent medical inaccuracies in the system. It enables them to offer cost-effective services to patients while reducing resources wastage. Moreover, increasing penetration of technologically advanced hospital management solutions is also aiding the market growth.

The increased implementation of healthcare IT solutions and services by hospitals to provide enhanced patient care at reduced expenses, coupled with the growing need to upgrade already existing information systems, is likely to be a key driving factor. Moreover, consistent upgrades in healthcare and IT infrastructures along with increased adoption of cloud computing in hospital settings are also contributing significantly to the market growth. Since, healthcare data is subject to stringent regulatory oversight to ensure patient confidentiality, safe and secure storage, user-level authorization, traceability of information, and mitigation of other cybersecurity threats. Thus, hospitals are switching from on-premises deployments to cloud-based information systems to maintain high data security and avoid security breaches.

In addition, the growing adoption of EHR systems among developing economies owing to increased utilization of electronic health records for patient-centric care is expected to significantly boost the market growth over the next few years. EHR emerged as one of the key potential segments in hospital information systems, primarily owing to the rising demand for streamlining electronic healthcare solutions, technological advancements in healthcare information IT, and growing demand for EHR-integrated tools. Also, government initiatives promoting EHR are likely to propel the demand for electronic systems. EHRs offer a range of advantages to hospitals and patients, ultimately leading to increased system productivity and patient satisfaction.

COVID19 Hospital Information System Market Impact: a decline of 3.6% between 2019 and 2020

Furthermore, associated benefits with these information systems, such as operational cost-reduction minimized errors in the end-use facility, and increased successful operational outcomes, are expected to propel market growth. Moreover, government initiatives supporting eHealth programs in developed as well as developing regions and incentives promoting information systems implementation in hospital settings in certain countries are further expected to drive the market over the forecast period.

Type Insights

The electronic health record segment dominated the market and accounted for the largest revenue share of 49.1% in 2020. The segment growth can be attributed to the growing usage of EHR software which is expected to boost the adoption of the hospital information solutions market over the next few years. EHR software has a variety of applications in hospitals, wherein the key functions of EHR software include storage of patients’ previous medical history and medical condition at the time of admission, diagnostic tests and investigation summary, treatment regimen, discharge summary, and entry of other vital information. In addition, increasing government support for the adoption of EHR systems in hospital settings is further expected to boost the segment growth. For instance, as part of the American Recovery and Reinvestment Act in 2009, Health Information Technology for Economic and Clinical Health (HITECH) Act was enacted. According to a study published by Harvard Business Review, in 2020, nearly 89% of office-based physicians worldwide are using EHR software.

The patient engagement solutions segment is anticipated to register the fastest growth during the forecast period. The growing burden of chronic diseases and the rising geriatric population are some of the key factors increasing the adoption of patient engagement solutions globally. For instance, according to the American Diabetes Association 2020, approximately 1.5 million new diabetes cases are registered annually in the U.S. In response to the growing diabetes incidence, the majority of companies are focusing on the development of patient-centric engagement solutions, which is expected to boost the market. In December 2020, Roche released a Diabetes Care digital platform that offers personalized diabetes management solutions to diabetic individuals in Thailand.

Deployment Insights

The web-based deployment segment dominated the market and accounted for the largest revenue share of 41.9% in 2020 due to the surging number of hospitals opting for web-based deployments as compared to the on-premises. The web-based platform technology, including web-based electronic medical records and other information systems, witness high demand for information systems from small and medium-sized healthcare providers to improve the overall operational workflow. In addition, cost-effective web-based application development, easy installation, and maintenance are some of the key reasons supporting segment growth.

The cloud-based segment is anticipated to register the fastest growth during the forecast period owing to the growing demand for cloud technology across large, medium, and small-scale hospitals to streamline business operations, including financial, administrational, and legal operations, along with improved patient services. The cloud-based information system is an apt choice among hospital settings with the key requirement for data accessibility and convenient maintenance. The adoption of cloud-based information systems is witnessing high growth over the past few years due to various security breaches encountered in on-premises and web-based hospital information systems and high upfront infrastructure and setup costs.

Component Insights

The software segment dominated the market and accounted for the largest revenue share of 45.4% in 2020 due to the increasing demand for comprehensive integrated software solutions in hospital settings. These hospital information software solutions can perform critical functions, such as data capture, storage, interpretation, and analysis. Periodic up-gradation of these software solutions is necessary to be in the sync with the latest analytics methods, which enable the facilities to manage the hospital workflows efficiently. The companies, such as IBM, Cerner, and Siemens Healthineers, are the key software vendors in this industry.

The services segment is anticipated to register the fastest growth during the forecast period owing to the high demand for experts in IT and communication services. Moreover, the growing adoption of technologically advanced solutions and IT infrastructure in hospitals are some of the key factors responsible for the fastest segment growth. The key players offering these solutions provide various services to hospital facilities for cost-effective and easy installations. Several IT vendors offer various services, including hosting, optimization, installation, and consulting, which aid hospitals in managing their information systems.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 50.3% in 2020 due to the high demand for technologically advanced information systems in U.S. hospitals coupled with the high presence of IT vendors, such as Cerner, GE Healthcare, McKesson, Carestream Health, and NextGen Healthcare. The presence of large hospital settings in this region is a key contributor to the market growth. Large hospitals, 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 hospital information systems in the region.

However, Asia Pacific is expected to be the fastest-growing market over the forecast period. The demand for hospital information systems has been increasing as they enable the efficient management of clinical, financial, and administrative aspects. Various hospitals in Malaysia, Japan, South Korea, and Australia have implemented these systems. An increase in healthcare expenditures in developing Asian countries and improvement in healthcare infrastructure facilities owing to growth in the adoption of advanced technology to streamline hospital workflow and cut down medical costs are among key drivers for the growth of the market in the region.

Key Companies & Market Share Insights

An increase in the number of partnerships between private and public players and the presence of a large number of players are some of the factors anticipated to drive the hospital information system market. For instance, in January 2019, Cerner Corporation collaborated with CoverMyMeds to integrate patient-specific information into the EHR for healthcare providers to view pricing information at point-of-care. Moreover, the majority of IT companies are collaborating with healthcare institutions at a greater level to focus on the development of high utility services and software to streamline data storage and offer improved patient engagement. Some of the prominent players in the hospital information system market include:

• Carestream Health

• Siemens Healthineers

• McKesson Corporation

• Philips Healthcare

• Merge Healthcare Inc. (IBM)

• GE Healthcare

• Cerner Corporation

• Allscripts

• NextGen Healthcare

Hospital Information System 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 hospital information system market report on the basis of type, deployment, component, and region:

• Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Electronic health record

  • Electronic medical record

  • Real-time healthcare

  • Patient engagement solution

  • Population health management

• Deployment Outlook (Revenue, USD Million, 2016 - 2028)

  • Web-based

  • On-premises

  • Cloud-based

• Component Outlook (Revenue, USD Million, 2016 - 2028)

  • Software

  • Hardware

  • Services

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Russia

    • Italy

    • Spain

    • Netherlands

    • Sweden

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Singapore

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE