Healthcare It Market | Contrive Datum Insights

Market Overview:

The Global Healthcare Information Technology (HIT) Market Size Was Valued At USD 142.7 Billion In 2022 And USD 532.76 Billion By 2030 With A CAGR Of 17.9% During The Forecast Period 2022 To 2030.

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Healthcare Information Technology (IT) is the study of information technology and its extensive applications in the healthcare sector. These are extremely useful for making better decisions and maximizing profit potential. Clinical informatics (IT) is utilized in numerous healthcare contexts, including research institutes, hospitals, physician offices, the military, and others. Tele-healthcare was observed to have dominated the healthcare IT market in 2022, resulting in a 52.2% revenue share.

The growth of the healthcare information technology market is fueled by an increasing trend toward digitization in the healthcare industry, rising demand for preventive care solutions, the emergence of numerous entrepreneurial ventures, and expanding partnerships and funding. In addition, the development and evolution of network connectivity and network infrastructure, as well as rising healthcare IT expenditures, are driving market growth. Principal participants are focused on innovative product development strategies and are continuously advancing technologically, aided by IT infrastructure enhancements. To enhance health and medical processes, market participants are integrating big data, internet of things (IoT), artificial intelligence (AI), and machine learning (ML) algorithms into their existing solutions, fueling market growth.

COVID-19 Impact:

The COVID-19 pandemic had a positive effect on the market because it accelerated the digitization of the healthcare industry, resulting in a robust demand for digital solutions. Increasing patient preference for teleconsultation to prevent the spread of infection has accelerated the adoption of telehealth and telemedicine trends, further enhancing the healthcare IT industry. In addition, a number of developed and developing economies have reformed regulations for the effective integration of IT technologies in the field of healthcare, recognizing the current need for at-home consultations and digitalized medical records to streamline healthcare operations.

Market Dynamics:

Driving Factors:

• Increasing Number of Clinical Studies

The growing number of clinical trials is driving market expansion. Clinical Trials currently lists 430,269 studies with locations in all 50 states and 221 countries. As of October 2022, approximately 430,269 studies had been registered, with 55,700 studies having posted results. This growing number of clinical trials necessitates the use of researchers-friendly IT applications. These are the factors that contribute to the expansion of the market. Consequently, this factor promotes market expansion.

• Increasing Technological Innovations by Market Participants

Numerous market participants are developing effective healthcare information technology (IT) platforms, which are contributing to the expansion of the market. In 2020, for instance, the healthcare technology company Mednet will release software with expanded electronic patient reported outcomes (ePRO) capabilities. The ePRO module was designed to increase patient participation and permit remote participation. In 2020, Dassault Système also acquired Medidata Solutions, Inc. These initiatives contribute to the expansion of the market.

• Growing Use of Large Data

Due primarily to the digitization of administrative, clinical, and financial information, the quantity of electronic data generated by the healthcare industry has increased to petabytes and terabytes in recent years. The volumes are expected to reach exabytes and even zettabytes within the next few years, as they are virtually doubling every year. In addition to the growing volume of data in healthcare, the diversity of data poses significant challenges for healthcare providers. In comparison to data from other industries, healthcare data are more complex due to their duration and heterogeneity. Service providers progressively adopt healthcare analytics and data management solutions to address these challenges in the healthcare industry.

Restraints/Challenges:

• Data Invasion and Privacy Concerns

Despite the increased demand for these consulting services, there is still a significant problem with data invasion. For instance, there is a constant risk of hacking, which places data at risk and reduces the adoption of solutions. Consequently, this is a significant factor in the market's obstruction.

• Expensive IT Solutions

The market expansion is hindered by the expensive prices associated with the installation and acquisition of various equipment. According to HealthIT.gov, the cost of purchasing and installing an electronic health record (EHR) system for each provider ranges between $15,000 and $70,000. Consequently, the security risk and cost inhibit the growth of the market for healthcare information technology (IT).

• IT Infrastructure Limitations in Developing Nations

Cost is one of the primary obstacles to the widespread adoption of healthcare IT solutions. These systems' maintenance and software update costs exceed the expense of the software itself. Support and maintenance services, such as software enhancements in response to changing user requirements, account for nearly 30 percent of the total cost of ownership. In addition, the lack of internal IT expertise in the healthcare industry necessitates end-user training to maximize the efficacy of various healthcare IT solutions, thereby increasing the total cost of ownership for these systems. Capital is also required to construct the infrastructure required to implement healthcare IT solutions in healthcare systems in emerging economies, which significantly increases the cost of implementing healthcare IT solutions. Consequently, hospitals frequently prefer to invest in core technologies that are directly related to the quality of patient treatment over departments that are not directly related. Therefore, tiny healthcare organizations cannot invest in healthcare IT solutions due to high deployment and maintenance costs, particularly in emerging markets in APAC and Latin America.

Opportunities:

• Demand for Information Technology Growing (IT)

The growing demand for information technology is contributing to the expansion of the market. In healthcare organizations, the high adoption rate of digitalization tools such as artificial intelligence, telehealth, and others is increasing. These technologies contribute to the enhancement of systems, the facilitation of workflow, the reduction of inaccuracy, the enhancement of patient outcomes, and the reduction of service costs. Consequently, this factor promotes market expansion.

• Increased Frequency of Government Initiatives

Several initiatives undertaken by the governments of numerous countries to influence digital health are contributing to the market's expansion. In 2021, for example, the Indian prime minister launched the Pradhan Mantri Digital Health Mission. The primary objective was to digitalize healthcare practices across the country, creating a national digital health ecosystem that enables patients to store, access, and consent to share health records. Thus, it contributes to the growth of the market.

• Increasing Utilization of Healthcare IT in Outpatient Care Facilities

As the burden on the health care system to reduce the cost of care increases, the industry is turning to outpatient settings to do so. Another crucial factor driving the expansion of outpatient care is its convenience. As the number of outpatients and patient influx increases, so will the demand for and use of healthcare IT solutions in the outpatient setting.

Strategic Development:

• In May 2021 - Optum and Bassett Healthcare Network collaborated to further improve Bassett's clinical and operational performance and to advance the delivery of high-quality, convenient, and affordable healthcare to Central New York patients.
• In June 2021 - Cognizant and Aker Solutions formed a partnership to modernize and streamline the company's entire IT infrastructure, including its business technology network and application maintenance and development.
• In March 2021 - Change Healthcare and Amazon Web Services collaborated to declare the launch of a new Data Science as a Service (DSaaS) platform designed to improve outcomes and healthcare economics for vulnerable communities.
• In 2022 - Sharecare introduced Smart Omix, which enables the collection of real-world data and the development of digital biomarkers via mobile research studies. Smart Omix's capabilities play a crucial role in the evolution of clinical research's relevance, equity, and data integrity across the healthcare continuum.

Key Vendors:

Top market players include

• Optum (US)

Optum is a health services and innovation company with the mission of helping people live healthier lives and improving the health system for all. Optum, a member of the UnitedHealth Group family of companies, enables modern health care in 150 countries by connecting and servicing the entire health system.

• Cognizant (US)

Cognizant Technology Solutions U.S. Corporation offers services in the field of information technology. Solutions for analytics, business consulting, portals and content administration, enterprise risk, and security are provided by the company. Cognizant Technology Solutions US is a global company.

• Change Healthcare (US)

Change Healthcare is a leading healthcare technology company with a concentration on insights, innovation, and accelerating the transformation of the healthcare system via the Change Healthcare Platform. Change Healthcare, Inc. provides technology solutions for healthcare. The company provides software solutions for analytical, connectivity, communication, payment, consumer engagement, and workflow optimization. Change Healthcare services clients globally.

• Philips Healthcare (Netherlands)

In 1987, Philips Medical Systems Nederland B.V. was established. The corporation is engaged in the production of medical, surgical, ophthalmic, and veterinary instruments and equipment.

• Epic Systems (US)

Epic, which was founded in 1979 in a basement with 1.5 employees, develops software to help people get well, remain well, and help future generations be healthier.

• Dell Technologies (US)

Dell Technologies Inc. offers computer-related goods. The business provides notebooks, desktops, tablets, workstations, servers, monitors, printers, gateways, software, storage, and networking products. Dell Technologies services global customers.

• Allscripts (US)

Allscripts Healthcare Solutions, Inc. is a publicly traded American company that provides Practice Management and Electronic Health Record Technology to Physician Practices, Hospitals, and other healthcare providers. In addition to providing solutions for patient engagement and care coordination, Allscripts Consulting Healthcare Solutions also offers Financial and Analytics technology.

• GE Healthcare (US)

As a global leader in medical technology and digital solutions, GE HealthCare empowers clinicians to make quicker, better-informed decisions through its intelligent devices, data analytics, applications, and services, which are supported by its Edison intelligence platform.

• IBM (US)

IBM (International Business Machines) is a provider of products and services related to information technology. It provides solutions for automation, data and Intelligence, infrastructure, security, and sustainability, including enterprise content management, decision management, data management, business analytics, cloud hosting, cloud security, data security, and asset management, among others. The company serves numerous industries, including automotive, finance, energy, insurance, life sciences, manufacturing, and retail.

• athenahealth (US)

athenahealth, Inc. develops software for health services. The company provides revenue cycle management services that automate and administer billing-related platform functions. athenahealth services United States customers.

• eClinicalWorks (US)

Privately held eClinicalWorks is a pioneer in healthcare IT, offering comprehensive Electronic Health Record (EHR) and Practice Management (PM) solutions. eClinicalWorks, LLC offers clinical software systems for ambulatory care. The company provides electronic record systems for the management of patient flow, record access, electronic communication, and clinical data processing. eClinicalWorks is available across the United States.

• Oracle Corporation (US)

Oracle USA, Inc. offers integrated software and hardware systems for businesses. The company offers database, enterprise manager, application software, server and storage systems, and development tools, among other products and services. Oracle USA serves international clients.

• Conduent (US)

Conduent Business Services, LLC provides services for business processes. The business provides services for digital payments, claims processing, benefit administration, automated tolling, regulatory compliance, and distributed learning. Conduent Business Services provides services to clients in New Jersey.

Segmentation Analysis:

The global Healthcare Information Technology Market is segmented on the basis of component, product type, end-user and region.

By Healthcare IT Application: 

In 2022, tele-healthcare dominated the healthcare IT market with a 52.2% revenue share. Increased smartphone penetration and improved internet connectivity have expanded the healthcare value chain. The rapid adoption of these technologies in emerging economies has revolutionized the tele-healthcare market by accelerating the adoption of telehealth technologies and applications. Additionally, increased consumer awareness of their health and well-being contributes to the expansion and development of this market. In addition, the tele-healthcare segment is anticipated to experience the highest growth rate in the coming years, at 23.5%. The shortage of physicians, nurses, and hospital beds is adding to the strain on healthcare systems.

In addition, the rapidly growing geriatric population, the increasing prevalence of diseases, the rising cost of healthcare, and the lack of healthcare infrastructure, particularly in rural areas, are driving the demand for affordable and quality healthcare in the region. In recent years, smartphone and internet penetration has increased. Moreover, the overall digital infrastructure is improving, driven primarily by local government digitization initiatives. The telehealthcare market is anticipated to be driven by the aforementioned variables. The majority of telehealth platforms offer, among other services, online consultations, prescriptions, remote monitoring, and appointment scheduling.

• Electronic Health Records
• Computerized Provider Order Entry Systems
• Electronic Prescribing Systems
• PACS
• Laboratory Information Systems
• Clinical Information Systems
• Tele-healthcare

Regional Insights:

Geographically, the global Healthcare Information Technology (HIT) market has been analyzed in regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa (MEA).
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In 2020, Asia-Pacific was the leading market for healthcare IT, with a market share of over 60%. Asia-Pacific is home to more than half of the world's population, making it an enormous consumer market. Significant macroeconomic factors that drive the growth of the healthcare IT market in Asia Pacific include rapid urbanization, rising disposable income, busy and chaotic lifestyles, rising internet penetration, and rising smartphone adoption. In addition, countries like China and India offer optimistic growth opportunities for market participants due to the region's robust economic growth. This is a result of the increasing government and economic initiatives to automate and digitize the tasks of pharmacies, hospitals, nursing homes, and other healthcare organizations.

North America is anticipated to be the segment with the most rapid growth during the forecast period. Increasing purchasing power, improved access to digital technologies, higher internet penetration, and increased adoption of smart devices are some of the main factors driving the growth of the healthcare IT market in North America.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
  • Denmark
  • Finland
  • Iceland
  • Sweden
  • Norway
  • Belgium
  • The Netherlands
  • Luxembourg
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Benelux Union
• Rest of Europe
• Asia-Pacific
  • Indonesia
  • Thailand
  • Malaysia
  • Singapore
  • Rest of Southeast Asia
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• This report examines various categories of healthcare information technology, including electronic health records, provider order entry systems, electronic prescribing systems, picture archiving and communication systems, laboratory information systems, clinical decision systems, and telemedicine.
• The report examines the market environment for information technology in healthcare, as well as relevant regulations or laws in specific countries.
• Additionally, the report describes the market's trends and dynamics.
• The report also includes market forecasts through 2030, company profiles, and regional market segmentation.