Healthcare IT Market is Expected to Reach $974.5 billion | MarketsandMarkets.

Chicago, March 09, 2023 (GLOBE NEWSWIRE) -- The healthcare IT industry is set to experience a major transformation over the next few years, as advances in technology make it easier for healthcare providers to manage patient data, automate processes, and improve patient care. As the industry continues to grow, more companies will enter the market with innovative products and services that streamline healthcare administration and improve patient care. In particular, artificial intelligence (AI) and machine learning (ML) are expected to revolutionize the healthcare IT industry, as AI-based solutions become increasingly more accessible and affordable. These technologies can help healthcare providers make more accurate diagnoses, improve patient outcomes, and reduce costs. Additionally, cloud computing and data analytics are also expected to play a key role in the future of healthcare IT, as they enable providers to securely store and analyze patient data. As the healthcare IT industry continues to expand, providers will be able to leverage these technologies to better deliver care and improve patient outcomes.

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 according to a latest report published by MarketsandMarkets™. Growth in this market is driven by the opportunities offered by the emerging markets in healthcare and government mandates & support for HCIT solutions. However, IT infrastructural constraints in developing countries and resistance from traditional healthcare providers are expected to restrain the growth of this market to a certain extent.

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Healthcare IT Market Scope:

Report Coverage Details
Market Revenue in 2022 $394.6 billion
Estimated Value by 2027 $974.5 billion
Growth Rate Poised to grow at a CAGR of 19.8%
Market Size Available for 2020–2027
Forecast Period 2022–2027
Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered Product & Services, Component, End user, and region
Geographies Covered North America, Europe, Asia Pacific, Latin America, and Middle East and Africa
Report Highlights Updated financial information / product portfolio of players
Key Market Opportunity Rising use of healthcare IT solutions in outpatient care facilities
Key Market Drivers Growing adoption of e-prescribing, telehealth, mHealth, and other HCIT solutions due to COVID-19

Notable Healthcare IT mergers and acquisitions for 2021 – 2022 include:

  • Allscripts-Netsmart Merger: Allscripts, a provider of healthcare IT solutions, is reportedly in talks to acquire Netsmart Technologies, a behavioral health and post-acute care technology provider. The deal could be worth up to $2 billion.
  • Cerner-Allscripts Merger: Cerner Corporation, a healthcare IT company, is reportedly considering an acquisition of Allscripts. The deal could be worth up to $4 billion.
  • Epic Systems-Athenahealth Merger: Epic Systems, a healthcare IT company, is reportedly in talks to acquire Athenahealth, a provider of cloud-based electronic health record (EHR) services. The deal could be worth up to $5.5 billion.
  • IBM-Red Hat Merger: IBM is reportedly in talks to acquire Red Hat, Inc., a provider of open-source software and cloud-based solutions for the healthcare sector. The deal could be worth up to $34 billion.
  • Salesforce-MuleSoft Merger: Salesforce, a cloud-based customer-relationship management company, is reportedly in talks to acquire MuleSoft, a provider of enterprise application integration solutions. The deal could be worth up to $6.5 billion.

Growth Drivers of Healthcare IT Market from Macro to Micro:

Macro Level:

  • Increasing Demand for Connected Health: The increasing demand for connected health solutions, such as telemedicine, e-prescriptions, remote patient monitoring, and other healthcare analytics, is driving the growth of the healthcare IT market.
  • Government Initiatives: Governments around the world are taking initiatives to promote the use of healthcare IT in order to improve patient care. This includes the implementation of electronic health records (EHRs), health information exchanges (HIEs), and other related initiatives.
  • Rising Adoption of Big Data & AI: The healthcare industry is adopting Big Data and AI technologies to improve patient care and clinical operations. This is driving the growth of the healthcare IT market.

Micro Level:

  • Growing Need for Data Security: The healthcare industry is increasingly using IT to store and manage patient data. This is driving the need for data security solutions, such as advanced encryption and authentication technologies, to ensure the security of patient data.
  • Growing Demand for Wearable Devices: The increasing demand for wearable devices, such as fitness trackers, smartwatches, and medical devices, is driving the growth of the healthcare IT market.
  • Growing Demand for Cloud-based Solutions: The rising demand for cloud-based solutions, such as cloud-based EHRs and telemedicine solutions, is driving the growth of the healthcare IT market.

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Hypothetic Challenges of Healthcare IT Market in Near Future:

  • Security & Privacy: Healthcare IT systems need to be secured against malicious actors and threats, particularly as the volume of data increases and more healthcare organizations move to cloud-based systems. Additionally, patient privacy must be protected to ensure compliance with HIPAA regulations.
  • Integration of Multiple Data Sources: As more healthcare organizations adopt Electronic Health Records (EHRs) and other data systems, there needs to be a way to easily integrate and make use of the data from multiple sources.
  • Interoperability of Healthcare IT Systems: Healthcare IT systems need to be able to communicate and share data with each other, both within an organization and between different organizations.
  • Scalability of Healthcare IT Systems: As more data is collected and stored, healthcare IT systems must be able to scale to handle the increased load.
  • Cost of Healthcare IT Systems: Healthcare IT systems must be cost-effective, as organizations may not have the resources to invest in expensive systems.
  • Education & Training of Healthcare IT Professionals: As healthcare IT systems become more complex, healthcare organizations need to make sure their IT professionals have the necessary training and experience to effectively manage the systems.

Top 3 Use Cases of Healthcare IT Market:

  • Electronic Health Records (EHR): EHRs are digital versions of a patient’s medical history, containing information about their medical treatments, diagnoses, and other important health information. EHRs allow healthcare providers to easily access and share patient health information, making it easier to provide quality care.
  • Telemedicine: Telemedicine is the use of technology to provide remote healthcare services. It can be used to diagnose and treat patients, as well as provide preventive care and follow-up care. Telemedicine can provide access to healthcare services to those who may not have access to them otherwise.
  • Clinical Decision Support (CDS): CDS is a system that provides healthcare professionals with clinical decision support tools. These tools can help healthcare professionals make informed decisions regarding diagnosis and treatment options for their patients, as well as better manage their own workloads. CDS can also help reduce medical errors.

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