Healthcare IT Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

[Report Description]

The healthcare IT market is expected to register a CAGR of nearly 12.5% during the forecast period, with a revenue of approximately USD 95,023 million in 2020, and it is expected to reach USD 192,639 million by 2026.

The healthcare IT market is predicted to witness a positive impact during the COVID-19 pandemic. With the global lockdown and restrictions of travel and hospital visits for nonelective and non-urgent procedures, along with the reluctance of the people in visiting hospitals and clinics in fear of being contacted with the SARS-CoV2 virus, digital healthcare has witnessed a spike within the healthcare systems. The increasing adoption of teleconsultation instead of face-to-face physician consultations during the current pandemic boosted the studied market. Additionally, with the increasing number of COVID-19 patients worldwide, there exists a huge demand for the maintenance and storage of bid data related to patient information, medical reports, financial analytics, and many others. The healthcare IT solutions are expected to ease the process of storage and access of COVID-19 patient s medical reports. Also, as per the research article published in the New England Journal of Medicine 2020, the Office of Civil Rights (OCR) at the Department of Health and Human Services (HHS) announced that it would use its enforcement discretion and will not impose penalties for using HIPAA-noncompliant private communications technologies to provide telehealth services during this public health emergency, which would further enhance the usage of technology infrastructure among healthcare professionals. Thus, COVID-19 is expected to have a direct significant impact on the growth of the studied market during the pandemic.

The rise in the demand for paperless technology, the emergence of social media, and its impact on the healthcare IT industry are some of the major factors responsible for the current growth of the market studied. Along with these, increased funding from governments, various initiatives are taken by the associations for the improvement of healthcare services and infrastructure, and a good return on investments are the other factors augmenting the growth of the market.

In today’s changing healthcare landscape, the usage of the internet and digitalization of the healthcare processes has become important to develop a better understanding of healthcare information technologies and their impact on health communication. Additionally, the high adoption of hospitals toward healthcare IT is driven by the benefits, such as ease of use and saves time, labor, and space. As healthcare Information technology helps in the secure exchange of medical information between consumers, payers, and providers, the demand for healthcare IT solutions is on the rise, globally.

Also, the growing burden of chronic diseases globally plays a vital role in the growth of the studied market, as healthcare IT solutions minimize the risk of misplacement of medical records and help in remote access of patient s health report, globally. Thus, the above-mentioned factors are expected to aid in the growth of the healthcare IT market over the forecast period.

Key Market Trends

The Services Sub-segment is Expected to Hold the Highest Market Share in the Component Segment Over the Forecast Period

In the component segment of the healthcare IT market, services are believed to have the largest market size over the forecast period.

The services sub-segment includes both support and maintenance and professional services. Since the implementation of IT in healthcare, the amount of data has been increasing continuously; the storage and maintenance costs of data have increased over the last few years. Additionally, healthcare institutions lack skilled IT professionals to handle this huge amount of data. Hence, the increasing cost, along with the lack of skilled professionals, has compelled several institutions to opt for the maintenance and support services provided by healthcare IT companies.

Also, with the emergence and introduction of cloud-based and other advanced technology platforms in healthcare, the need for services across healthcare IT solutions is in great demand. For instance, in October 2020, Infosys collaborated with Mobile Health AG to set up and manage cloud and infrastructure services and support, security and monitoring, and platform management services for Mobile Health AG across multiple geographies. Thus, the share of the service sub-segments is expected to dominate significantly over the forecast period.

North America Dominates the Market and is Expected to do the Same in the Forecast Period

North America, being the developed region, is currently dominating the market for healthcare IT and is expected to continue to hold a large market share for a few more years. The major factors responsible for the region s largest market share in the future are the well-established healthcare industry and better reimbursement facilities in the region. The United States holds the majority of the market in the North American region; this is due to the higher adoption of digital healthcare in the country, along with the high concentration of key market players and rising investments by the companies in research and development activities for the launch of advanced products.

Competitive Landscape

The healthcare IT market is highly competitive and consists of several major players. In terms of market share, a few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by introducing new services at affordable prices. Companies, like GE Healthcare, Philips Healthcare, Siemens Healthcare, Cerner Corporation, and Allscripts Healthcare Solutions Inc., hold a substantial share in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format


• 3 months of analyst support