PUBLISHER: The Business Research Company | PRODUCT CODE: 1889488
PUBLISHER: The Business Research Company | PRODUCT CODE: 1889488
Information technology (IT) spending in healthcare refers to the total investment made by healthcare organizations in digital technologies, systems, and services to improve clinical, administrative, and operational processes. It includes investments in cloud systems, data management, and cybersecurity tools that support clinical and administrative functions. It helps enhance patient care quality, increase efficiency, ensure data security, and support informed decision-making in healthcare delivery.
The key components of information technology (IT) spending in healthcare are hardware, software, and services. Hardware refers to physical devices such as servers, computers, networking systems, and medical equipment that support digital healthcare operations and data management. It is deployed through on-premise, cloud-based, and hybrid modes and is utilized by large enterprises as well as small and medium-sized enterprises (SMEs). It finds application in electronic health records, telemedicine, healthcare analytics, cybersecurity, and other areas, serving end users such as hospitals, clinics, diagnostic centers, and ambulatory surgical centers.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the healthcare sector, particularly in the supply of critical medical devices, diagnostic equipment, and pharmaceuticals. Hospitals and healthcare providers are facing higher costs for imported surgical instruments, imaging equipment, and consumables such as syringes and catheters, many of which have limited domestic alternatives. These increased costs are straining healthcare budgets, leading some providers to delay equipment upgrades or pass on expenses to patients. Additionally, tariffs on raw materials and components are disrupting the production of essential drugs and devices, causing supply chain bottlenecks. In response, the industry is diversifying sourcing strategies, boosting local manufacturing where possible, and advocating for tariff exemptions on life-saving medical products.
The information technology (IT) spending in healthcare market research report is one of a series of new reports from The Business Research Company that provides information technology (IT) spending in healthcare market statistics, including information technology (IT) spending in healthcare industry global market size, regional shares, competitors with an information technology (IT) spending in healthcare market share, detailed information technology (IT) spending in healthcare market segments, market trends and opportunities, and any further data you may need to thrive in the information technology (IT) spending in healthcare industry. This information technology (IT) spending in healthcare market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The information technology (IT) Spending in healthcare market size has grown rapidly in recent years. It will grow from $169.90 billion in 2024 to $191.83 billion in 2025 at a compound annual growth rate (CAGR) of 12.9%. The growth in the historic period can be attributed to increasing adoption of electronic health records, rising demand for telemedicine services, growing need for efficient healthcare data management, expansion of cloud-based healthcare solutions, and increasing healthcare digitization initiatives.
The information technology (IT) Spending in healthcare market size is expected to see rapid growth in the next few years. It will grow to $307.88 billion in 2029 at a compound annual growth rate (CAGR) of 12.6%. The growth in the forecast period can be attributed to growing adoption of internet of things (IoT) medical devices, rising demand for remote patient monitoring, expansion of cloud and edge computing in healthcare, and increasing focus on healthcare data security. Key trends in the forecast period include innovations in telehealth and virtual care technologies, developments in wearable and remote monitoring devices, research and development in precision medicine platforms, and technological advancements in cloud-based healthcare systems.
The increasing emphasis on electronic health records (EHRs) is expected to drive the growth of the information technology (IT) spending in healthcare market in the coming period. Electronic health records are digital versions of patients' medical histories maintained and updated by healthcare providers over time. The rising focus on EHRs is driven by the need for improved interoperability, enabling seamless data exchange and better coordination across healthcare systems. Information technology (IT) spending in healthcare supports EHRs by enabling secure and efficient data management, improving patient information accessibility across systems. It reduces administrative workload through digital documentation, enhances care coordination, and contributes to better clinical decision-making and patient outcomes. For example, in June 2022, according to the Department of Health and Social Care, a UK-based government department, 90 percent of National Health Service (NHS) trusts had adopted electronic health records by December 2023, with projections to reach 100 percent by March 2025. Therefore, the increasing emphasis on electronic health records is fueling the growth of the information technology (IT) spending in healthcare market.
Key companies in the information technology (IT) spending in healthcare market are focusing on developing advanced algorithms, such as automated disease detection algorithms, to enhance diagnostic speed, improve patient outcomes, and reduce clinical workflow burden. Automated disease detection algorithms refer to sophisticated software that uses artificial intelligence to analyze medical data and identify signs of specific conditions, often flagging them for urgent clinical review. For example, in August 2023, Viz.ai, a US-based medical software company, launched Viz HCM following FDA De Novo classification. The system analyzes 12-lead ECG recordings, detects signs associated with hypertrophic cardiomyopathy, and provides clinician-facing analysis and notification capabilities integrated with existing ECG workflows.
In August 2025, CareCloud Inc., a US-based healthcare technology and AI-powered solutions provider, acquired Medsphere Systems Corporation for an undisclosed amount. Through this acquisition, CareCloud aims to expand into the hospital IT market and offer a comprehensive, full-stack solution encompassing both ambulatory and inpatient EHR and RCM systems to better serve small and mid-sized hospitals. Medsphere Systems Corporation is a US-based healthcare information technology (IT) company contributing to information technology (IT) spending in healthcare.
Major companies operating in the information technology (it) spending in healthcare market are Huawei Technologies Co. Ltd., Dell Technologies Inc., Siemens AG, Hitachi Ltd., Accenture plc, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, SAP S.E., Tata Consultancy Services Limited, Capgemini S.E., Koninklijke Philips N.V., Cognizant Technology Solutions Corporation, GE HealthCare Technologies Inc., Infosys Limited, DXC Technology Company, ALTEN SA., InterSystems Corporation, Veradigm Inc., CareCloud Inc.
North America was the largest region in the information technology (IT) spending in healthcare market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered information technology (IT) spending in healthcare report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in information technology (IT) spending in healthcarecare market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Sp
The information technology (IT) spending in healthcare market consists of revenues earned by entities by providing services such as developing healthcare data analytics platforms, offering cybersecurity and data protection solutions, cloud-based healthcare infrastructure, IT infrastructure management, and system integration and support services. The market value includes the value of related goods sold by the service provider or included within the service offering. The information technology (IT) spending in healthcare market also includes sales of wearable health monitoring devices, mobile health (mHealth) applications, healthcare information exchange platforms, imaging and diagnostic software, and artificial intelligence (AI)-based healthcare solutions. Values in this market are 'factory gate' values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Information Technology (IT) Spending In Healthcare Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on information technology (it) spending in healthcare market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for information technology (it) spending in healthcare ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The information technology (it) spending in healthcare market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.