Healthcare IT Market Size
Healthcare IT Market Size reached US$ 399.48 billion in 2024 and is expected to reach US$ 1,431.79 billion by 2032, growing with a CAGR of 17.30% during the forecast period 2025-2032.
Blockchain, artificial intelligence and the internet of things have advanced exponentially in healthcare. New devices and infrastructures offer doctors, health care organizations and patients instant access to health care information, enabling improved decision-making and treatments.
Increased government initiatives toward encouraging technologically up-to-date systems, including those targeting COVID-19 and other core health issues, are driving overall market expansion. In May 2022, for instance, Microsoft partnered with BeeKeeperAI, a healthcare AI solutions company, enabling Microsoft Azure customers to explore the potential of secret computing in healthcare AI solutions.
Healthcare IT Market Trend
One of the major trends across the global healthcare IT market is the rising use of smartphones. Expansion in smartphone usage and better internet penetration are primarily stimulating adoption of healthcare IT solutions. Smartphone coverage has enhanced chronic illness management through the extensive adoption of mHealth applications.
Based on a Mass Media Data estimate, 5.31 billion distinct users utilized mobile telephones during early 2022, which was over two-thirds of the world's population. Also, as of the start of 2022, the number of Internet users around the world was 4.95 billion, which means that 62.5% of the world's population possessed Internet access.
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Market Scope
| Metrics | Details |
| By Type | Laboratory Information Systems (LIS), Picture Archiving and Communication System (PACS) and Vendor Neutral Archive (VNA), Radiology Information Systems (RIS), Cardiovascular Information System (CVIS), Electronic Health Records (EHR), Telemedicine, Clinical Decision Support System (CDSS), Claims Management Solutions, Population Health Management Solutions, Fraud Analytics, Provider Management Services, Billing and Accounts Management Services, Other Types |
| By Component | Software, Hardware, Services |
| By Delivery Mode | On-premise, Cloud-based |
| By End-User | Payers, Providers |
| By Region | North America, South America, Europe, Asia-Pacific, Middle East and Africa |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth |
Healthcare IT Market Dynamics
Rising Chronic Diseases and Aging Population
The increasing prevalence of chronic diseases like cancer, cardiovascular diseases, diabetes and others has increased the demand for healthcare information technology to support treatment options. Also, the growing number of hospital visits is building awareness regarding the possible applications of such technologies, hence building up the market growth. Statistics released by the CDC in August of 2023 show that 60% of the population in the US has chronic diseases. In addition, the expanding number of elderly people in US is expected to cause a greater number of diseases to increase, thus driving the growth of the healthcare information technology market.
Recently, the US Centers for Disease Control and Prevention revealed that 54.1 million living in US were 65 and older, representing 16% of the total population. Additionally, it is projected that the geriatric population will be 80.8 million by 2040. In fact, the healthcare system puts a lot of emphasis on managing chronic disease due to the complexity and whopping costs of taking care of such diseases.
Shortage of Skilled Workforce
The swift advancement in the technology industry is creating an immense demand for effective technology experts. However, the chronic lack of healthcare staff poses a tremendous challenge for healthcare organizations. Adverse effects on patient outcomes result due to issues like staff burnout, appointment overflow, plateauing growth and ineffective processes.
According to the figures published by Oracle in 2023, it predicted that healthcare will face a severe shortage of up to 124,000 doctors by 2033. Additionally, rural areas have a high shortage of professionally trained staff due to poor quality of healthcare facilities. The availability of these staff shortages increases the rate of occurrence of errors and hinders the embracement of advanced technologies.
Healthcare IT Market Segment Analysis
The global healthcare IT market is segmented based on type, component, delivery mode, end-user and region.
The Integration Of Support, Maintenance And Professional Service Drives Segment Growth
The services segment includes both maintenance and support services as well as professional services. The adoption of information technology (IT) in healthcare has contributed to an enormous surge in the amount of data generated. As such, the cost of storing and keeping this data has skyrocketed in the last 10 years, placing an additional financial burden on healthcare facilities.
Additionally, the growing use and deployment of cloud-based and other advanced technological platforms in the healthcare industry have generated a huge demand for healthcare IT solution-related services. For example, in August 2022, Happiest Minds Tech launched information security solutions tailored for the healthcare sector. Using cutting-edge technologies like artificial intelligence, big data, behavioral analytics and others, these services will assist clients in keeping themselves abreast of changing government policies and strengthening their healthcare security features.
Healthcare IT Market Geographical Share
Established Healthcare Sector And Early Integration Of It Services In North America
Being the industrialized bloc, North America commands the healthcare IT market nowadays and is estimated to retain a huge market share for a couple of years. The major drivers accountable for the region's large market share are the established health sector and adoption of IT services in healthcare settings in advance.
US is a leading market in North America due to its higher adoption of digital healthcare, high concentration of major market players and increased government expenditure on healthcare services and infrastructure. Medicare primary care visits through telehealth rose from less than 1% pre-pandemic to 43.5% during the initial pandemic period, according to the US Department of Health and Human Services (HHS).
In addition to this, a legally binding deal was signed in April 2021 between Nuance Communications, Inc. and Microsoft Corp. Microsoft accelerated its efforts to provide cloud solutions specific to the healthcare business, to help clients and partners tackle transformation and future opportunities within the industry. Expected from the rise in the consumption of these products, these collaborations are envisioned to drive North American market growth.
Sustainability Analysis
The international healthcare IT market is a driving force behind promoting sustainability in the healthcare industry. Through the application of digital technologies, healthcare institutions can obtain tangible environmental returns, such as decreased emissions and waste, while also improving economic efficiency as well as patient care. As the market keeps expanding, constant investment in sustainable IT solutions will be imperative in overcoming the twin challenges of environmental stewardship and healthcare delivery efficiency.
Health IT helps to ensure environmental sustainability through the minimization of paper-dependent systems by implementing electronic health records (EHRs), which ensure less paper usage and increased data accessibility. The use of telemedicine and remote monitoring also helps to decrease patient and staff travel, thus ensuring lower carbon emissions from transportation. Finally, the adoption of cloud-based solutions and energy-efficient data centers helps ensure that the carbon footprint of the healthcare industry is minimized.
Healthcare IT Market Major Players
The major global players in the market include GE Healthcare, Koninklijke Philips NV, Siemens Healthineers, Allscripts Healthcare Solutions Inc. (Altera Digital Health Inc), Wipro oracle Corporation, IBM, SAS Institute Inc., Dell Technologies Inc., Mckesson Corporation, Optum Inc., Cognizant Corporation, Conduent Inc., Conifer Health Solutions LLC and 3M.
Key Developments
In May 2023, Athenahealth launched their 'athenaOne' all-inclusive cloud-based electronic health record (EHR), medical billing and patient engagement solution. This solution, along with 'athenaOne Dental,' was chosen by LCH Health and Community Services to enhance providers' and patients' experiences as well as drive its growth objective.
In April 2023, Epic and Microsoft partnered in April 2023 to leverage generative AI to enhance Electronic Health Records (EHRs). This partnership involves integrating the Microsoft Azure OpenAI Service with Epic's Electronic Health Record (EHR) platform.
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Target Audience 2024
Manufacturers/ Buyers
Industry Investors/Investment Bankers
Research Professionals
Emerging Companies
