The global healthcare IT services market is valued at USD 30,020.1 million and is expected to grow at a CAGR of 19.6% during the forecast period.
Healthcare IT services have a significant impact on patient care, as well as on the delivery, efficiency, and cost of healthcare. Healthcare services and infrastructure have emerged as a top priority for governments worldwide, with countries investing heavily to improve the overall healthcare landscape.
According to the Centers for Medicare and Medicaid Services, healthcare spending in the U.S. increased by 3.9% in 2017, reaching USD 3.5 trillion. Increasing funding activities for implementing various healthcare IT platforms will aid in the growth of healthcare IT services. According to PitchBook Data, Inc., the U.S. healthcare industry saw a high level of private equity investment in 2017—and equity firms in the U.S. invested USD 624 billion through July 2018.
High demand for preventive care measures and increased funding for various mobile health startups drive the market growth. Further, expanding network coverage and rising network infrastructure improvements assist the market growth. Technological advancements in healthcare for improving IT infrastructures, such as incorporating AI, IoT, and big data in healthcare processes, also fuel the market growth.
Government mandates and support for healthcare IT solutions drive the healthcare IT market growth due to the rising use of big data in healthcare, high returns on investment associated with healthcare IT solutions, the need to curtail escalating healthcare costs, the growing demand for HCIT solutions, and the growing remote patient monitoring markets.
Further, rising consumer demand for effective treatment and increased awareness of new technologies are expected to drive market growth over the forecast period.
Due to the digitalization of administrative, clinical, and financial data, the volume of electronic data created in the healthcare industry has increased tremendously. With the amount nearly doubling every year, it is projected to increase further in the coming years. Aside from the increasing amount, the sheer diversity of data in healthcare poses a significant barrier for healthcare professionals. When compared to other industries, healthcare data is more difficult due to its length and heterogeneity. Service providers are progressively using healthcare IT to meet these difficulties in the business.
As of 2017, about 90% of office-based physicians in the U.S. had implemented Electronic Health Records (EHRs), according to Practice Fusion. Various market companies, including IBM, CGI, MedeAnalytics, and Epic Systems, are developing innovative healthcare analytics solutions to meet the growing preference for EHRs. Overall, the use of EHRs is propelling the healthcare analytics market forward.
Healthcare providers are benefiting from the 'Digital Health' movement. Artificial intelligence (AI) and machine learning are now used to identify those at risk and deliver individualized treatments. Such technologies expand the scope of information technology in healthcare by providing new and innovative growth metrics. Digital transformation is an opportunity to accelerate health care performance by lowering costs and improving the quality of care.
| Study Period | 2018-2030 | CAGR | 19.6% |
| Historical Period | 2018-2020 | Forecast Period | 2022-2030 |
| Base Year | 2021 | Base Year Market Size | USD XX Billion |
| Forecast Year | 2030 | Forecast Year Market Size | USD 30020.1 Million |
| Largest Market | North America | Fastest Growing Market | Asia Pacific |
North America held the highest market share in 2020 and is predicted to grow swiftly during the forecast period. The regional market is driven by healthcare providers' increasing adoption and implementation of IT services for providing better patient care at reduced costs. Further, key manufacturing hubs and an increase in the number of hospitals, advanced research institutes, and universities are fueling market expansion.
According to the World Health Organization, Mexico's healthcare spending accounted for 5.47% of its GDP in 2016. In addition, the market is producing job opportunities in the area. According to the U.S. Bureau of Labor Statistics, demand for medical and health services managers is expected to expand by 17% until 2024, substantially faster than the national average.
The Asia-Pacific market is expected to develop at the fastest rate during the projection period. The geriatric population in Asia-Pacific is propelling the healthcare IT industry forward. According to the United Nations Economic and Social Commission for Asia and the Pacific, the region's aging population will be 1.3 billion by 2050. Further, government initiatives for HCIT adoption, aggressive private sector and non-profit investments, the prevalence of chronic diseases, rising healthcare spending, and consumer purchasing power will drive the market forward.
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The COVID-19 pandemic has created havoc in the entire world. All the sectors around the world were drastically affected. There was chaos in the healthcare sector due to the increasing number of patients worldwide. An automatic organization system had become a need for the hour in this situation. The world healthcare facilities were not prepared for this COVID-19 outbreak, and hence the demand for these systems quickly increased.
After the pandemic, the hospitals realized the need to have quality management systems for administration and overall operations. In such a difficult time, medical errors should be avoided as the number of fatal incidents was already surging in the second wave. It is also crucial for healthcare facilities to keep up with the regulatory landscape concerning the use of the software. Continuous training to understand these changes and requirements due to developing technologies has become necessary post-pandemic. Due to these reasons, the need for medical QMS software will rise in the forecast period.
