Healthcare IT Market – Major Revenue Surge is Predicted by 2027
Major Growth Influencing Factors:
Drivers: growing adoption of e-prescribing, telehealth, mHealth, and other HCIT solutions.
The pandemic has resulted in a significant increase in the burden on healthcare organisations across the globe. Healthcare facilities face immense pressure to create a well-coordinated environment where all clinical devices are connected internally and the organisation operates in coordination with other healthcare units. According to Worldometer, there were around 650 million confirmed COVID-19 cases and 66 million deaths globally as of December 5, 2022.
Considering the high and growing number of cases, the healthcare systems of several countries are facing a major shortage of hospital beds, healthcare providers, and basic medical equipment. This is compelling hospitals and other care facilities to deploy capacity management solutions to track COVID-19 patients and monitor and manage disease progression.
Restraints: IT infrastructure constraints in developing countries
Emerging countries experience a shortage of skilled IT personnel that impacts the adoption and usage of HCIT solutions in these countries. Furthermore, cost issues are one of the major obstacles to the adoption of HCIT solutions. The maintenance and software costs of these solutions are greater than the cost of the software. Additionally, software upgrades, per changing user requirements, represent a recurring expenditure amounting to almost 30% of the total cost of ownership. The aforementioned factors limit market growth in emerging countries to some extent.
Furthermore, the organisational impacts and benefits of HCIT are often intangible, and their realisation may take longer. The implementation cost of HCIT solutions in the healthcare systems of emerging economies is even higher, as they require capital to build the infrastructure needed for implementing HCIT solutions. Therefore, hospitals often prefer investing in the core technologies directly linked to patient care quality rather than in allied departments. Thus, the high cost of deployment and maintenance restricts smaller healthcare organisations from investing in HCIT solutions, especially in emerging markets across APAC and Latin America.
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Projected Surge in Revenue Generation:
The global healthcare IT market in terms of revenue was estimated to be worth $394.6 billion in 2022 and is poised to reach $974.5 billion by 2027, growing at a CAGR of 19.8% from 2022 to 2027.
The services segment accounted for the largest share in the healthcare IT market, by component
The healthcare IT market, by component, is segmented into hardware, software, and services. In 2021, the services segment accounted for the largest market share. The growth of the services segment can be attributed to the introduction of complex software and the need to ensure integration and interoperability of software, which requires extensive training and regular upgrades. Moreover, the need to implement software updates and upgrades, given the changing healthcare regulations, is further fueling the demand for HCIT services.
By type, the clinical HCIT solutions segment registered the highest growth in the healthcare provider solutions market during the forecast period
The clinical HCIT solutions segment is projected to register the highest growth in the healthcare IT market. The need to control the growing healthcare costs and improve the efficiency of healthcare services by reducing medical errors is a major driver for the growth of this market. However, high installation costs and a shortage of skilled medical professionals are restraining the growth of this market.
Asia Pacific is expected to exhibit the highest growth during the forecast period
The APAC market is expected to register the highest CAGR during the forecast period. Factors such as a large patient population, especially in China and India, growing per capita income, increasing investments in the healthcare industry by key market players, and rising awareness of advanced technologies are driving the growth of the APAC HCIT market.
Global Leading Companies:
Optum (US), Cerner Corporation (US), Cognizant (US), Change Healthcare (US), Philips (US), Epic Systems Corporation (US), Dell Technologies (US), Allscripts (US), athenahealth (US), GE Healthcare (US), Oracle Corporation (US), Wipro (India), IBM(US), eClinicalWorks (US), Infor Systems (US), Conduent (US), Conifer (US), Nuance (US), 3M (US), SAS (US), Carestream Health (US), Inovalon (US), Practice Fusion, Inc. (US), InterSystems (US), and Tata Consultancy Services (India) are the major players in this market.
Different Growth Strategies Adopted by Leading Companies:
These companies are majorly focusing on the strategies such as acquisitions, product launches, agreements, collaborations, partnerships, and expansions in order to remain competitive and further increase their share in the market.
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Opportunities: Rising use of healthcare IT solutions in outpatient care facilities
In response to the rising pressures on health systems to lower the cost of care, the industry is shifting toward outpatient settings to reduce care costs. An outpatient surgery centre procedure is estimated to cost 30% to 60% less than an inpatient hospital setting. In addition, convenience is another important factor driving the rise of ambulatory care. With the increase in outpatient settings and patient influx, the demand for and usage of HCIT solutions in outpatient settings will increase.
According to a survey sponsored by United Health (US), around 10% of US hospitals had dedicated HCIT clinical documentation improvement programmes for their outpatient settings. An additional 10% is planned to implement these services in the next six months. Furthermore, 14% of hospitals planned to implement advanced solutions in the near future. This trend is expected to drive the use of HCIT solutions, such as RCM solutions, in outpatient settings in the coming years.
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