Healthcare IT Market Analysis

Global Healthcare IT Market Overview

The Healthcare IT Market is projected to reach USD 377.98 Billion by 2032 at 13.2% CAGR during the forecast period 2024-2032. 

The market is expanding due to factors such as the expanding trend of digitization in healthcare, the increased need for preventative care solutions, the creation of numerous entrepreneurial initiatives, and expanding collaborations & funding. 

Also, rising healthcare IT spending, changes and improvements in network connectivity and infrastructure are propelling the market's expansion, thus driving the market growth of the Healthcare IT. These are just a few of the market drivers that are driving the market.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The Indian division of Wipro GE Healthcare, a well-known leader in the medical technology industry, plans to launch 40 new items by 2024 as it concentrates on developing and producing goods in India for both domestic and international markets. We introduced nearly forty new items in November of last year, spanning the categories of patient care devices, MRI, CT, PET/CT, and ultrasound. Also, we are releasing an increasing number of software programs with AI capabilities.

A global collaborator in the development of polypropylene plastics, Ducor Petrochemicals has created a product line especially intended for the manufacturing of medical devices and other Life Science applications in 2023. The DuCare product line was created especially for healthcare and life science applications, and it has ISO 13485 certification.

In an effort to address healthcare cost, PayZen, a US-based fintech company with a focus on healthcare, partnered with Geisinger and the University of Texas Medical Branch to introduce the PayZen Care Card in 2023. PayZen, a 2019 startup with its headquarters in San Francisco, California, offers "zero-cost" solutions on their affordability financing platform to patients in order to assist them pay for their medical expenditures. Its platform integrates with medical providers' current revenue cycle management systems, and it provides customers with customized payment plans that lessen patients' post-treatment financial stress.

Healthcare IT Market Trends

• Increase in the geriatric population worldwide to propel market growth

The rising prevalence of chronic diseases, rising health and medical costs, and rising demand for home health care services like remote patient monitoring are all expected to encourage IT services and drive market expansion. The demand for cutting-edge IT solutions is rising as chronic diseases, including diabetes, hypertension, cancer, and cardiovascular disorders, become more common. 

The adoption of these technological solutions is fueled by the numerous advantages of healthcare IT, including lower medical mistake rates, decreased operational costs, and improved clinical outcomes. Growth is also anticipated to be fueled by rising government recognition, positive actions in emerging nations to promote the adoption of IT solutions, and expanding infrastructure.

The ongoing Covid-19 pandemic strained the current healthcare system and disrupted its operation. In addition, the pandemic increased the demand for online consultation and virtual care services worldwide. Growing digital literacy, innovations and advances in the IT sector and favorable shifts in consumer technological behavior helped meet this expanding demand. Thus, this factor is driving the market CAGR.

The market is expanding and developing due to rising healthcare spending and escalating consumer desire for cutting-edge, effective, and efficient treatment options. The market will rise as customer awareness of novel and improved solutions increases in the next years. 

Recent data indicates a surge in Remote Patient Monitoring (RPM) adoption, largely driven by the shift towards telehealth and digital healthcare solutions post-COVID-19. As of 2024, approximately 66% of healthcare leaders acknowledge RPM’s effectiveness in bridging care gaps, especially for managing chronic conditions such as heart failure, hypertension, and diabetes. This has resulted in improved patient outcomes and increased engagement, with RPM adoption expected to become a standard of care in the coming years.

Furthermore, a recent study involving 55 healthcare systems found that 70% have already implemented at least one RPM solution, while more than half have integrated multiple solutions. This demonstrates RPM’s growing role in chronic disease management, helping reduce emergency room visits, lower hospital readmission rates, and support better overall healthcare delivery​.

Thus, it is anticipated that this aspect will accelerate Healthcare IT market revenue globally.

Healthcare IT Market Segment Insights

Healthcare IT Products and Services Insights

The market segments of Healthcare IT, based on products and services includes, healthcare provider solutions, healthcare payer solutions. The healthcare provider solutions segment held the majority share in 2023 in the Healthcare IT market data. 

The largest share of this segment was driven by growing demand for integrated healthcare solutions, growing emphasis on patient safety and care, growing number of government initiatives and regulatory mandates on implementing eHealth solutions, growing investments in building out healthcare infrastructure in emerging nations, growing demand for high-quality healthcare, and growing awareness of electronic health records (EHRs).

Healthcare IT Component Insights

The market segmentation of Healthcare IT, based on component, includes services, software. The services segment dominated the market growth in 2023 and is projected to be the faster-growing segment during the forecast period, 2024-2032. The shift drove the largest share of this segment to cloud-based services, growing demand to rein in soaring healthcare costs, rising adoption of digital solutions across healthcare organizations, growing demand to cut back on administrative costs in the healthcare sector, and growing demand to boost the productivity of healthcare operations., hence contributing in the market growth of the Healthcare IT.

Figure 1: Healthcare IT Market, by Component, 2023 & 2032 (USD Billion) 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Healthcare IT End-User Insights

The Healthcare IT market segmentation, based on end-user includes, healthcare providers, healthcare payers, research centers. The healthcare provider segment held the majority share of 2022 in the market data. The healthcare provider segment will likely experience the next-fastest growth during the analysis period. Moreover, the healthcare payers segment is anticipated to develop rapidly through 2030. Hospitals make up the largest group of healthcare providers in the HCIT request. This is because hospitals are requesting various HCIT outcomes to manage the growing load of managing patient information in hospitals.

Healthcare IT Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Healthcare IT market accounted for USD 56.56 billion in 2022 with a share of around 45.80% and is expected to exhibit a significant CAGR growth during the study period. This is due to growing government initiatives to implement electronic health record systems in healthcare and the region's early embrace of IT services. Due to the expanding use of digitalized healthcare, the presence of important companies, and greater government spending in the U.S., the market there accounted for the greatest revenue share. 

For instance, Amazon continues to make significant strides in healthcare following its $3.9 billion acquisition of One Medical. Recently, Amazon rebranded its standalone Amazon Clinic telehealth service into the One Medical platform, now known as Amazon One Medical Pay-per-visit telehealth. This move simplifies access to care for over 30 common conditions, allowing patients to choose between a pay-per-visit model or an annual membership plan. With more than 150 primary care clinics across the U.S. and services like same-day appointments, virtual visits, and prescription management, Amazon aims to streamline healthcare delivery and provide greater convenience and affordability.

One Medical memberships are now offered at a discounted rate for Amazon Prime members ($99/year) or at a standard price of $199/year. This membership includes 24/7 access to virtual care, annual wellness visits, and in-app services for managing health records and booking appointments. 

Furthermore, Amazon has strengthened its healthcare footprint through partnerships with organizations like Health Transformation Alliance and CommonSpirit Health, expanding access to its primary care services for millions of employees and patients nationwide​.

The major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: HEALTHCARE IT MARKET SHARE BY REGION 2023 (%) 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Healthcare IT market accounts for the second-largest market share. It can be attributed to the growing use of artificial intelligence and the presence of businesses like Koninklijke Philips N.V. and Siemens Healthcare GmbH. MedTech Europe estimates that healthcare expenditures as a percentage of GDP hover around 11% on average. 

In addition, between 5% and 12% of all healthcare spending goes into medical technology. Due to increased healthcare spending, the UK market had the greatest revenue share. Moreover, UK market of Healthcare IT held the largest market share, and the Germany market of Healthcare IT was the fastest growing market in the region.

Asia Pacific Healthcare IT Market is expected to grow at the fastest CAGR from 2023 to 2030. Increased investments in the development of healthcare infrastructure, a growing trend towards the digitization of patient records, the accelerated economic growth of many countries in the region, the growing need to rein in soaring healthcare costs, and a sharp increase in the number of patients with chronic and infectious diseases are all expected to contribute to this market's growth. 

Further, the China market of Healthcare IT held the largest market share, and the India market of Healthcare IT was the fastest-growing market in the region.

Healthcare IT Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the market of Healthcare IT grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, mergers and acquisitions, contractual agreements, increased investments, and collaboration with other organizations. Competitors in the Healthcare IT industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the Healthcare IT industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, Healthcare IT industry has provided medicine with some of the most significant benefits. The Healthcare IT market major player such Epic Systems Corporation, Cerner Corporation, Allscripts Healthcare Solutions Inc., McKesson Corporation, Oracle Corporation.

Healthcare software provider Epic Systems Company is based in the United States and is privately held. In 2022, the company estimated that hospitals using its software would have access to the medical records of 78% of Americans and more than 3% of people worldwide. 

To increase its market share in the clinical decision support system market, Epic Systems Corporation, a U.S.-based healthcare company, partnered with Foundation Medicine, Inc. in August 2021. This was done by integrating Foundation Medicine, Inc.'s Comprehensive Genomic Profiling (CGP) platform with Epic Systems Corporation's medical record system. 

This made it easier for healthcare providers to access a wide range of oncological data and records from a single platform, improving the quality of therapy.

Private American business Athenahealth offers point-of-care mobile apps and network-enabled healthcare services nationwide. The business was started in San Diego in 1997 but currently has its main office in Watertown, Massachusetts. Athena Telehealth, a new embedded solution enabling healthcare professionals to conduct telemedicine visits with their patients easily, was announced on June 2020 to physician groups and physician groups' health systems across the country. 

With the system's integration of video conferencing with athenaOne, doctors may examine patients while instantly updating their charts, enabling them to increase visitation and financial success.

Key Companies in the Healthcare IT market includes

• Epic Systems Corporation


• Cerner Corporation


• Allscripts Healthcare Solutions Inc.


• McKesson Corporation


• Oracle Corporation


• Infor Inc.


• Cognizant Technology Solutions Corporation

Healthcare IT Industry Developments

September 2022: Sharecare unveiled Smart Omix, a patented digital clinical research solution that enables mobile research studies to collect real-world data and develop digital biomarkers. The features of Smart Omix are critical in expanding clinical research's relevance, equity, and data integrity throughout the healthcare continuum.

May 2022: Modmed introduced an OBGYN-specific software suite. Obstetrics and gynecology will see practice and workflow innovation thanks to ModMed OBGYN, an all-in-one EHR, practice management, patient engagement, payments, image and inventory management, and analytics solutions.

Healthcare IT Market Segmentation

Healthcare IT Products and Services Outlook (USD Billion, 2018-2032)

• Healthcare Provider Solutions


• Healthcare Payer Solutions

Healthcare IT Component Outlook (USD Billion, 2018-2032)

• Services


• Software

Healthcare IT End-User Outlook (USD Billion, 2018-2032)

• Healthcare Providers


• Healthcare Payers


• Research Centers

Healthcare IT Regional Outlook (USD Billion, 2018-2032)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America