Healthcare IT Market Research Report – Forecast to 2027

Healthcare IT Market Research Report: By Products and Services (Healthcare Provider Solutions, Healthcare Payer Solutions) Component (Services, Software) End-User (Healthcare Providers, Healthcare Payers, Research Centers)- Forecast Till 2027

ID: MRFR/HCIT/4494-HCR | February 2021 | Region: Global | 120 pages         

Healthcare IT Market

The healthcare IT market size is anticipated to reach USD 1,92,638.5 Million at a CAGR of 12% during the forecast period of 2020 to 2027.

Segmentation

By Products and Services Healthcare Provider Solutions Healthcare Payer Solutions
By Component Services Software
By End-User Healthcare Providers Healthcare Payers Research Centers

Key Players

  • Epic Systems Corporation (U.S.)
  • Cerner Corporation (U.S.)
  • Allscripts Healthcare Solutions Inc. (U.S.)
  • McKesson Corporation (U.S.)
  • Oracle Corporation (U.S.)
  • Infor Inc. (U.S.)
  • Cognizant Technology Solutions Corporation (U.S.)

Drivers

  • Regulatory compliance through healthcare IT solutions
  • The increasing need to curtail healthcare costs
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Healthcare IT Market Overview


The healthcare IT market size is anticipated to reach USD 1,92,638.5 Million at a CAGR of 12% during the forecast period of 2020 to 2027. Healthcare information technology or healthcare IT is a significant branch of IT that deals with designing, creating, developing, and maintaining information systems in clinics, hospitals, and other healthcare organizations. Healthcare IT provides various opportunities and advantages to transform and improve the healthcare industry. The Healthcare IT Market Trends can reduce human errors, improve clinical outcomes, facilitate better care coordination, enhance efficiencies of healthcare practice, and track data effectively. 


In the ever-changing healthcare landscape of the present day, the use of the internet and the digitalization of different healthcare processes are important. The adoption of healthcare IT by the hospitals offers a number of benefits such as increased productivity, ease of use, and better delivery of care services. It allows the healthcare industry to save time, costs, and manual labor. Healthcare information technology facilitates the secure exchanges of vital medical information between payers, providers, and consumers. The increase in the burden of various chronic diseases globally necessitates the adoption of healthcare IT. 


Healthcare information technology helps minimize the chances of misplacing medical records and allows healthcare professionals to access health reports of the patient from different remote locations. Healthcare IT allows healthcare organizations to create a paperless environment and enable healthcare professionals to always access patient data. It helps in the effective management of hospital workflows and allows error-free and high-quality care delivery in effective and efficient ways. The increase in the demand for value-based care is likely to positively influence the market. The increasing awareness about the benefits of digital health will further propel the growth of the healthcare IT market. 


Covid 19 Analysis


The healthcare IT market size has been positively impacted by the outbreak of the coronavirus pandemic. The Covid-19 pandemic led to nationwide lockdowns, affecting different industry verticals. According to the United Nations Human Rights report, the pandemic has posed a threat for all members of society. The healthcare systems were affected, and the delivery of treatments and medical care to the patients became a challenge globally. Healthcare IT evolved as an optimal solution to meet the care needs of the patients during pandemic times. The Covid-19 situation resulted in the growth of the healthcare IT market by 10% from 2019 to 2020. 


The key driving factors for the health IT market growth during Covid-19 include the increase in Covid-19 cases worldwide, HCIT solution initiatives, support and mandates of the government, and the need for reducing healthcare costs. Healthcare organizations' rise in the adoption of big data is another important driver of the health IT market. The developments made by the key players further accelerate the health IT market growth. 


Market Dynamics


Major Market Drivers


The increase in demand for quality care is a major factor that drives the healthcare IT market size. Remote monitoring for quality care improved to 22% in 2019 from 13% in 2016. The increase in the geriatric population worldwide, the rising cost of hospital equipment, and the rise in demand for healthcare services at home are other significant drivers of the market. The increase in the number of individuals suffering from chronic illnesses such as diabetes, heart failure, and cancer is fueling the market. The rise in internet users and smartphone penetration is anticipated to contribute to increasing healthcare IT market value. The number of mobile subscribers globally was nearly 5.2 billion in 2019. The internet users worldwide in 2019 were nearly 3.8 billion. 



  • Major Market Opportunities


The use of healthcare IT to overcome potential issues relating to effective management of huge volumes of patient data creates an opportunity for health IT market growth in the future. The government's various initiatives to mandate IT implementations and develop the healthcare industry further provide opportunities for the growth of the market. 



  • Market Restraints


According to the Healthcare IT Market Outlook, the increasing concerns relating to the security and privacy of confidential patient information are a major restraint of the market. More than 20 million records of patients were breached globally in 2019. The increase in cyberattack cases across the world hampers the growth of the healthcare IT market. 



  • Market Challenges


The existing constraints relating to IT infrastructure in several developing countries are a major challenge to expanding the market. However, the new developments and changing market trends will assist in overcoming the potential challenges of the market. 



  • Cumulative Growth Analysis


According to the healthcare IT market analysis, the global market will experience unprecedented growth in the coming years. The market value has significantly increased, and the continuous increase in demand for healthcare IT will enable the market to reach the highest level. The global market is likely to witness an excellent growth rate during the forecast period. 


Segment Overview


 The healthcare IT market is divided into different segments based on product and services, end-user, delivery mode, component, and geographical region.



  • By Product and Services


The global healthcare IT market is classified into healthcare provider solutions, HCIT outsourcing services, and healthcare payer solutions based on product. The Healthcare provider solutions segment is further segmented into non-clinical and clinical. The Healthcare payer solutions segment is classified into fraud management solutions, customer relationship management solutions, computer-assisted coding systems, claims management solutions, payment management, pharmacy analysis, audit solutions, and medical document management solutions. HCIT outsourcing services segment is divided into payer HCIT outsourcing services, IT infrastructure management services, and operational HCIT outsourcing services. 


Healthcare provider solution is expected to occupy the largest healthcare IT market share during the forecast period. The increase in the adoption and use of electronic health records (EHR) and other digital information systems by global healthcare providers accounts for the market segment's growth. The rise in demand for high-quality patient care and the increase in the use of cloud technology are other prominent driving factors for the market segment's growth.



  • By End-User


The healthcare IT market is divided into healthcare providers, hospitals and clinics, research centers, healthcare payers, government institutions, and third-party administrators based on end-users. The healthcare provider segment is expected to become the largest segment in the global market during the forecast period. The increase in the complexity of managing patient information is a prominent factor that accounts for the segment's growth. The healthcare payer segment is anticipated to register the highest growth rate during the forecast period.



  • By Delivery Mode


Based on delivery mode, the healthcare IT market is divided into cloud platforms and on-premise.



  • By Component


Based on components, the market is classified into hardware, software, and services. 



  • By Region


The healthcare IT market is divided into North America, Asia Pacific, Europe, the Middle East, and Africa based on region.


Figure 1: - Healthcare IT Market Share, by Region

 healthcare IT Market


Geographical Region Analysis


North America occupies the leading position in the global healthcare IT market owing to high technological advancements in the healthcare field in the region. 


According to the market forecast report, the geographical region analysis includes Asia Pacific, Europe, North America, the Middle East, and Africa. Asia Pacific region is expected to experience the fastest growth in the forecast period. The increase in investments in the development of healthcare infrastructure, emerging trends of digitalizing patient records, and the need to reduce healthcare costs are the factors accounting for the increase in the market size of the Asia Pacific region. 


Competitive Landscape


The leading players of healthcare IT market are:



  • 3M Company (U.S.)

  • GE Healthcare (U.S)

  • Cerner Corporation (U.S)

  • Koninklijke Philips N.V. (The Netherlands )

  • Conifer Health Solutions, LLC. (U.S )

  • McKesson Corporation (U.S)

  • NextGen Healthcare, Inc. (U.S. )

  • EClinicalworks (U.S)

  • Allscripts Healthcare Solutions, Inc. (U.S.)

  • Optum Health (U.S.)

  • International Business Machine Corporation (IBM) (U.S)


Recent Developments



  • In October 2020, Microsoft rolled out Microsoft Cloud for Healthcare to provide greater support to healthcare firms.

  • In 2019, Philips announced the launch of the Cares Aging & Caregiving service.


Report Overview


The healthcare IT market forecast report covers detailed market analysis and presents various factors accelerating the market growth. It focuses on the market trends and sheds light on the market dynamics, includes the opportunities, market drivers, challenges, and restraints of the market. The report also highlights the recent developments in the field and provides insights into the market's key players.



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: 1,92,638.5 MN
  CAGR   2020-2027: 12%
  Base Year   2019
  Forecast Period   2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Products and Services, Component, and End-user
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Epic Systems Corporation (U.S.), Cerner Corporation (U.S.), Allscripts Healthcare Solutions, Inc. (U.S.), McKesson Corporation, (U.S.), Oracle Corporation (U.S.), Infor, Inc. (U.S.). Cognizant Technology Solutions Corporation (U.S.), athenahealth, Inc. (U.S.), Dell Technologies (U.S.), McKesson Corporation (U.S.), United Healthcare Group (U.S.), GE Healthcare (UK), Koninklijke Philips N.V. (The Netherlands), Wolters Kluwer (Netherland), IBM (U.S.), 3M health Information Systems (U.S.), Conifer Health Solutions (U.S.), Kronos Incorporated (U.S.), Anthelio Healthcare Solutions Inc. (U.S.), Lexmark Healthcare (U.S.), Orion Health (New Zealand), CSI Healthcare IT (U.S.), Syntel Inc. (U.S.), Spok Inc. (U.S.)
  Key Market Opportunities   Adopt advanced healthcare IT tools
  Key Market Drivers

  • Regulatory compliance through healthcare IT solutions
  • The increasing need to curtail healthcare costs
  • Government support for HCIT solutions
  • High return on investment for HCIT solutions


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    Frequently Asked Questions (FAQ) :

    Healthcare IT Market size is expected to have a CAGR of approximately 12% with USD 1,92,638.5MN by 2027.

    Healthcare Information Technology (IT) is a vast field that applies IT for creating, designing, using, and maintaining the data systems in the field of healthcare.

    High deployment and installation costs are the major restraining factor of the global healthcare IT market.

    The Americas can dominate the global healthcare IT market due to high-quality healthcare systems and upgradation of medical equipment.

    The APAC region can display the fastest growth rate in the global healthcare IT market till 2023.

    Anthelio Healthcare Solutions Inc., Spok Inc., Wolters Kluwer, Syntel Inc., Allscripts Healthcare Solutions, Inc., Cerner Corporation, Kronos Incorporated, Lexmark Healthcare, Oracle Corporation, McKesson Corporation, GE Healthcare, Conifer Health Solutions, IBM, CSI Healthcare IT, Infor, Inc., athenahealth, Inc., Cognizant Technology Solutions Corporation, Koninklijke Philips N.V., Dell Technologies, Epic Systems Corporation, Orion Health, United Healthcare Group, McKesson Corporation, and 3M health Information Systems are key players in the global healthcare IT market.

    Global healthcare IT market is expected to grow at a CAGR of 12% by 2027

    Global healthcare IT market is driven by demands for improved healthcare facilities.