Market Research Report
Healthcare IT Market - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||390845|
|Published||Content info||116 Pages
Delivery time: 2-3 business days
|Healthcare IT Market - Growth, Trends, and Forecast (2019 - 2024)|
|Published: February 1, 2019||Content info: 116 Pages||
The global healthcare IT market was valued at USD 75,080.5 million in 2018, and is estimated to be valued at USD 15,0474.78 million in 2024, witnessing a CAGR of 12.29%. The rise in the demand for paperless technology, the emergence of social media and its impact on the healthcare IT industry are some of the major factors responsible for the current growth of the market studied. Along with these, increased funding from governments, various initiatives taken by the associations for the improvement of healthcare services and infrastructure, and a good return on investments are the other factors augmenting the growth of the market.
In today's changing healthcare landscape, the usage of internet and social media has become important to develop a better understanding of healthcare information technologies and their impact on health communication. From 2005 to 2017, the participation in social networking sites had more than quadrupled and the adoption rate had gone high, which showed a positive impact on the growth of the market studied. According to CMS, the US National health expenditures represent approximately 18% of the GDP (Gross Domestic Product), which is expected to reach roughly 20%, by 2020. The majority of the growth is anticipated to be fuelled by public sector spending, specifically by Medicare and Medicaid. Medicaid and social security are expected to exceed government revenues. Thus, increasing investments in healthcare are likely to drive product innovation and technology acceptance, which, in turn, may propel the market studied, globally.
According to the United States Department of Health and Human Services, healthcare IT is defined as the application of information processing involving both computer hardware and software that deals with the storage, retrieval, sharing, and use of healthcare information, data, and knowledge for communication and decision-making. The main goal of the health information technology market is to maintain records containing the patients' health information and delivering it to doctors, patients, or their families, in a safe and efficient way.
In the component segment of the healthcare IT market, services are believed to have the largest market size and are expected to witness a CAGR of 12.77% during the forecast period.
The services sub-segment includes both support and maintenance and professional services. The services sub-segment held the largest market share in 2017 and is expected to grow significantly during the forecast period. Since the implementation of IT in healthcare, the amount of data has been increasing continuously; the storage and maintenance costs of data have increased over the last few years. Additionally, healthcare institutions lack skilled IT professionals to handle this huge amount of data. Hence, the increasing cost, along with lack of skilled professionals, has compelled several institutions to opt for the maintenance and support services provided by healthcare IT companies.
In addition to the maintaining and supporting services, analytics, which holds a significant market share, is also being provided by the leading players, such as IBM, GE Healthcare, Philips, etc. With the emergence and introduction of cloud-based technology in healthcare, the share of the services sub-segment has gone up significantly.
North America, being the developed region, is currently dominating the market for healthcare IT and is expected to continue to hold the large market share for a few more years. The major factors responsible for the region's largest market share in the future are the well-established healthcare industry and better reimbursement facilities in the region. The United States holds the majority of the market in the North American region; this is due to the higher adoption of digital healthcare in the country and the rising investments done by the companies over there.
The healthcare IT market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by introducing new services at affordable prices. Companies, like GE Healthcare, Philips Healthcare, Siemens Healthcare, Cerner Corporation, and Allscripts Healthcare Solutions Inc., hold a substantial share in the market.