Healthcare IT Market is expected to reach $880,688.75 Million by 2030

According to a new report published by Allied Market Research, titled, “Healthcare IT Market by Product and End User: Global Opportunity Analysis and Industry Forecast, 2021-2030,” the global healthcare IT market size was valued at $250,577.15 million in 2020, and is projected to reach $880,688.75 million by 2030, registering a CAGR of 13.3% from 2021 to 2030. 

Health care IT includes the creation, development, design, and maintenance of information systems for the healthcare industry. The market is experiencing significant growth due to increase in demand for quality healthcare services and solutions, rise in acceptance of mHealth and telehealth practices, surge in demand for improved patient safety and patient care, rise in government initiative to promote HCIT, and increase in adoption of cloud technology in healthcare. However, safeguarding the confidential information related to patients or healthcare organizations is the biggest challenge for the companies, thus data security & privacy concerns restrain the market growth. The healthcare IT market in North America is in its maturity phase while the market is likely to create opportunities in the Asia-Pacific region.

The global healthcare IT market is segmented on the basis of product type, end user, and region. By product type, the healthcare IT market is bifurcated into healthcare provider solutions, healthcare payer solution, and healthcare IT outsourcing services. The healthcare provider solutions held the largest market share of 16.3% of the world healthcare IT market in 2020. The large share of this market is mainly attributed to the high penetration of EHRs and other hospital information systems, and operation & financial management systems among healthcare providers. In addition, the healthcare providers segment is estimated to grow at a fastest CAGR of 14.3% during the analysis period mainly due to the increasing demand for data accuracy to ensure patient safety through improved clinical outcomes, increasing healthcare reforms, and efforts to curb healthcare expenditure. The healthcare provider solutions market is broadly segmented into clinical solutions & non-clinical solutions. Clinical solutions accounted for the largest share of 17.11% of the world healthcare provider solutions market in 2020. On the other hand, the non-clinical solutions market is expected to register the highest CAGR of 14.6% during the analysis period, due to increasing demand for integrated healthcare systems, need for improved patient safety, and stringent regulations regarding the adoption of healthcare provider solutions.

By end user, the healthcare IT market is broadly bifurcated into healthcare providers and healthcare payers. The healthcare providers segment dominated the healthcare IT market with the share of 14.3% in 2020. The healthcare providers segment is further segmented into hospitals, ambulatory care centers, diagnostic and imaging centers, pharmacies, and others (home healthcare agencies, nursing homes, and assisted living facilities). The hospitals segment accounted for the largest share of 15.5% of the world healthcare IT market for healthcare providers in 2020, owing to the demand for numerous healthcare IT solutions among hospitals, pharmacies, and other healthcare related forms to manage the increase in amount of patient information in hospitals. The healthcare payers segment is also further divided into two segments—private payers and public payers. The private players segment held the major share of 10.8% of the global healthcare IT market for healthcare payers in 2020.

By region, the global healthcare IT market is segmented into North America, Europe, Asia-Pacific, and LAMEA regions. Asia-Pacific dominated the world healthcare IT market with the share of 18.5% in 2020.

Asia-Pacific’s dominance is attributed to the high penetration of healthcare IT solutions in the region owing to increasing demand for patient safety & stringent healthcare reforms & regulations, well-established healthcare system, and the presence of leading healthcare IT players in the region. North America is likely to be the fastest growing region at the rate of 16.2% during the forecast period. This is due to surge in economies and government initiatives for the digitalizing healthcare facilities including hospitals, pharmacies, nursing homes, and other healthcare related set-ups.

The major players in the healthcare IT market are McKesson Corporation, Allscripts Healthcare Solutions, Inc., Athenahealth, Inc., Epic System Corporation, General Electric Company, Cerner Corporation, Oracle Corporation, Koninklijke Philips N.V., UnitedHealth Group and Infor, Inc.

Key Findings Of The Study

• By product type, the healthcare provider solutions segment held the largest healthcare IT market share in 2020, while healthcare payer solutions segment is expected to grow at highest CAGR of 8.1% from 2020 to 2030.
• By end user, the healthcare providers segment held the largest market share in 2020 while healthcare payers segment is expected to grow at highest CAGR of 10.2% from 2020 to 2030.
• By region, Asia-Pacific is expected to experience growth at the highest rate, registering a CAGR of 18.5% during the forecast period. On the other hand, North America is expected to lead the market over the forecast period