Healthcare IT Industry

The global healthcare IT market size is projected to reach USD 1,834.3 billion by 2030, growing at a compound annual growth rate (CAGR) of 15.8% from 2024 to 2030, according to a new report by Grand View Research, Inc. The rising demand for advanced healthcare IT solutions, particularly Electronic Health Record (EHR) systems, combined with the increased usage of smartphones and the growing necessity for remote patient monitoring to enhance out-of-hospital care, are key factors driving the overall market growth.

For example, a 2021 article published in the Journal of Medical Internet Research, titled 'Adoption of EHRs in China over the Past Decade: A Comparative Study with the U.S.', highlights the significant increase in EHR adoption in both the United States and China. However, the rates of adoption differ between the two countries, mainly due to varying strategic approaches at the national level. Hospitals in the U.S. demonstrated an annual EHR adoption rate of 9.6%, whereas in China, the rate stood at 6.1%. In terms of numbers, an average of 534 hospitals in the U.S. adopted EHRs each year, while in China, the figure was significantly higher, with approximately 1,500 hospitals adopting EHR systems annually, emphasizing a greater effort and momentum in EHR adoption in China.

A global rise in healthcare spending is also driving the demand for the implementation of Internet of Things (IoT) solutions in the healthcare sector. According to estimates published by the World Health Organization (WHO) in 2020, global healthcare expenditures surged significantly, accounting for approximately 11% (USD 9 trillion) of the global Gross Domestic Product (GDP). The healthcare industry is undergoing a paradigm shift from a fee-for-service model to a value-based care model, where reimbursement is increasingly linked to treatment outcomes. This shift is further intensified by the rising pressure to reduce healthcare costs globally, as healthcare expenses are increasing at a pace that outstrips economic growth.

Technological advancements in healthcare IT are creating numerous opportunities to reduce healthcare spending by enhancing the quality of care delivery and clinical outcomes. Timely data aggregation allows for best possible interventions, while increased patient engagement through chronic care management portals leads to improved health outcomes and cost efficiencies. Additionally, the application of IoT in clinical trials presents an opportunity to streamline trial processes, simplify endpoint capture, and ultimately reduce associated costs. Remote patient monitoring solutions are instrumental in managing non-critical patients in home settings, thus reducing the need for hospital admissions and improving hospital workflow efficiency. Moreover, IoT-based solutions enhance clinical operations through asset tracking and improved data capturing, contributing further to significant cost savings across healthcare organizations.

Market players are increasingly focusing on innovative product development strategies to maintain competitiveness. Notably, companies are integrating cutting-edge technologies such as big data analytics, the Internet of Things (IoT), Artificial Intelligence (AI), and Machine Learning (ML) algorithms into their existing healthcare solutions, thereby enhancing healthcare and medical processes. For instance, in April 2023, eClinicalWorks announced the integration of its Practice Management and EHR solutions with cognitive services, including ChatGPT and machine learning models from the Azure OpenAI Service, to elevate its technological offerings. This strategic initiative followed eClinicalWorks’ major investment of USD 100 million into Microsoft Azure cloud services, providing the company with access to the latest innovations available within the Microsoft Cloud ecosystem.

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Healthcare IT Market Segments Highlights:

1. Based on application, the electronic prescribing systems segment is expected to exhibit the fastest CAGR of 26.8% from 2024 to 2030. An increase in awareness of the advantages of e-prescribing is fueling the adoption of e-prescribing systems

2. North America dominated with a revenue share of 40.0% in 2023. This 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

3. Asia Pacific is anticipated to grow at the fastest CAGR of 22.0% from 2024 to 2030, due to the high demand for healthcare IT services, owing to increased government spending on healthcare

Healthcare IT Market Report Segmentation

Grand View Research has segmented the global healthcare IT market based on application, delivery mode, end use and region:

Healthcare IT Application Outlook (Revenue, USD Million, 2018 - 2030)

1. Computerized Provider Order Entry Systems

2. Electronic Prescribing Systems (E-Prescribing Solutions)

3. Laboratory Information

4. Clinical Information Systems

5. Regulatory Information Management (RIM) Systems

6. Medical Imaging Information Systems

   1. Radiology Information Systems

   2. Monitoring Analysis Software

   3. Picture Archiving and Communication Systems

7. Electronic Health Records

   1. Licensed Software

   2. Technology Resale

   3. Subscriptions

   4. Professional Services

   5. Others

8. Tele-healthcare

   1. Tele-care

   2. Tele-Health

9. Revenue Cycle Management

   1. Integrated

   2. Standalone

10. eClinical Solutions

    1. Electronic Clinical Outcome Assessment (eCOA)

    2. Electronic Data Capture (EDC) & CDMS

    3. Clinical Analytics Platforms

    4. Clinical Data Integration Platforms

    5. Safety Solutions

    6. Clinical Trial Management System (CTMS)

    7. Randomization and Trial Supply Management (RTSM)

    8. Electronic Trial Master File (eTMF)

    9. eConsent

11. Population Health Management (PHM)

12. Digital Healthcare Supply Chain Management

    1. Software

    2. Hardware

       1. Barcodes

       2. RFID Tags

    3. Services

13. Clinical alarm management

    1. Nurse Call Systems

    2. Physiological Monitors

    3. Bed Alarms

    4. EMR Integration Systems

    5. Ventilators

    6. Others

14. Healthcare Customer relationship management (CRM)

    1. Customer Service and Support

    2. Digital Commerce

    3. Marketing

    4. Sales

    5. Cross -CRM

15. Technology Solutions in the Healthcare Payers

    1. Enrollment and Member Management

    2. Provider Management

    3. Claims Management

    4. Value based Payments

    5. Revenue Management and Billing

    6. Analytics

    7. Personalize/CRM

    8. Clinical Decision Support

    9. Data management and support

    10. Others

16. Healthcare Analytics

    1. Descriptive Analysis

    2. Predictive Analysis

    3. Prescriptive Analysis

Healthcare IT Delivery Mode Outlook (Revenue, USD Million, 2018 - 2030)

1. Solutions

   1. Software

      1. On-Demand/On-premise

      2. Cloud-based/ Web-based

   2. Services

2. Hardware

Healthcare IT End Use Outlook (Revenue, USD Million, 2018 - 2030)

1. Healthcare Providers

   1. Hospitals & Clinics

   2. Home Care Settings

   3. Outpatient Facilities

      1. Ambulatory surgery centers (ASCs)

      2. Physician’s Clinic

      3. Others (Laboratories, Pharmacy, etc.)

   4. Long-term Care Facilities

   5. Specialty Centers

2. Healthcare Payers

   1. Government

   2. Commercial

3. Life Sciences Industry

   1. Pharma & Biotech Organizations

   2. Medical Device Manufacturers

   3. Contract Research Organizations (CROs)

   4. Academic institutes

Healthcare IT regional Outlook by (Revenue, USD Million, 2018 - 2030)

1. North America

   1. US

   2. Canada

2. Europe

   1. UK

   2. Germany

   3. France

   4. Italy

   5. Spain

   6. Russia

   7. Sweden

   8. Denmark

   9. Norway

3. Asia-Pacific

   1. Japan

   2. China

   3. India

   4. Australia

   5. Singapore

   6. Thailand

   7. South Korea

4. Latin America

   1. Brazil

   2. Mexico

   3. Argentina

5. MEA

   1. South Africa

   2. Saudi Arabia

   3. UAE

   4. Kuwait

Key Healthcare IT Company Insights

1. Philips Healthcare

2. McKesson Corporation

3. eMDs, Inc.

4. Veradigm Inc. (formerly Allscripts Healthcare Solutions, Inc.)

5. Athenahealth, Inc. (Acquired by Hellman & Friedman and Bain Capital)

6. Carestream Health

7. GE Healthcare

8. Agfa- Gevaert Group

9. Hewlett Packard Enterprise Development LP

10. Novarad

11. Optum, Inc.

12. IBM

13. Oracle

14. SAS Institute, Inc.

15. IQVIA

16. Verisk Analytics, Inc.

17. Cerner Corporation

18. SAP

19. Accenture

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