Understanding the Trends in the Healthcare IT Market and Statistics

Quick Overview: Explore the latest healthcare IT statistics in our insightful blog at Radixweb. Stay informed about trends, innovations, and challenges shaping the healthcare technology landscape. From EHR adoption rates to telemedicine usage, our concise analyses provide valuable insights for industry professionals navigating the digital healthcare industry.

Do you know what happened in 2007? Apple launched its first-generation iPhone. That completely brought a new revolution in the digital era with advancements. Along with this, many technologies were born, which have changed how industries function.

Precisely, the healthcare industry has been accelerated with the implementation of technologies - Information Technology (IT). Technology-enabled medical devices have advanced at an exponential rate and started to take over our lives.

In recent times, healthcare professionals have leveraged medical software or telemedicine applications to diagnose patients without ever seeing them in person. Surgeons use AI-powered robots to perform surgery on patients with utmost accuracy.

We might soon be able to 3D print organs for surgery rather than depending on potential donors whose blood or tissue types don't match yours.

As these technologies continue to evolve, industries must stay up to date with what’s happening. Hence, this research study report – Global Healthcare Information Technology (IT) Statistics and Market, highlights a detailed insight on the impact of IT on the healthcare sector, healthcare IT industry trends, statistics, and market size.

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Healthcare IT Market Overview

Healthcare IT solutions are on the rise in popularity due to several factors.

First, federal government agencies are actively promoting technological advancements in healthcare.

Second, regulations regarding Electronic Health Records (EHR) are being enforced, compelling healthcare providers to adopt digital solutions for record-keeping.

And third, physicians are embracing the widespread use of smartphones for data collection purposes. Together, these trends move to adopting Healthcare IT solutions in modern healthcare practices.

• The global healthcare IT market is expected to reach $974.5 billion by 2027, with a CAGR of 19.8% from 2022 to 2027.
• While considering 2029, the healthcare IT solutions market is estimated to reach $728.63 billion, with a growing rate of 15.24% CAGR from 2024 to 2029.

• In 2032, the global healthcare IT market size is estimated to hit around USD 1069.13 billion at a CAGR of 18.30 from 2023 to 2032.

• With a 38% revenue share, healthcare provider solutions lead the market thanks to the widespread use of cloud computing and Electronic Health Records (EHR).
• With a 52% market share, healthcare IT services provide services like online payment systems and cybersecurity. Due to security concerns, on-premises deployment is minimal, but it’s considered more secure.
• Private payers collaborate with Medicaid/Medicare agencies to supply the infrastructure for electronic health information, and healthcare payers are anticipated to make the largest income.
• To boost market growth, major players are creating cutting-edge healthcare IT platforms. More consumers may now be able to afford healthcare IT services, thanks to rising disposable income.
• Growth in the market is impeded by cybersecurity risks, privacy issues, and data invasion.
• Possibilities include the growing need for IT in healthcare due to digitalization technologies like AI and telehealth services. Government programs that promote digital health, such as the Pradhan Mantri Digital Health Mission in India, help the market expand.
• Partnerships and mergers between payers and providers are being driven by Accountable Care Organizations (ACOs) and value-based payment models. The market was positively impacted by COVID-19, which increased demand for online consultations and digital healthcare products.
• With a 52% revenue share, North America leads the market due to its infrastructure and level of digital literacy. Because of government assistance and the adoption of AI, Europe is expected to expand at the quickest rate.
• GE Healthcare Technologies, Philips, eClinicalWorks, Carestream Health, McKesson Corporation, and many others are significant players in the healthcare IT industry.

Healthcare IT Market Size in the US

The US healthcare IT market reached USD 319.98 billion in 2022. However, it’s expected to reach around USD 857.58 billion by 2032, with a CAGR of 13.1% between 2023 to 2032.

With a more than 60% market share, Asia Pacific dominated the healthcare IT industry in 2022. In fact, because of the robust economic expansion in the region, China and India are presenting market players with potential growth opportunities.

Moreover, North America is anticipated to increase at the fastest rate. The North American healthcare IT industry has experienced significant expansion due to a number of factors, including rising internet penetration, better access to digital technologies, increased buying power, and usage of smart devices.

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Healthcare IT Market Analysis

The healthcare IT market is set for exponential growth, with revenue cycle management solutions projected to exceed USD 174.3 billion by 2032.

Healthcare facilities are prioritizing innovative solutions to streamline revenue cycle management, simplifying tasks related to revenue generation, claims processing, and payments.

The rising number of hospital admissions and the integration of automated technologies are driving the demand for healthcare revenue cycle management (RCM) software and solutions.

The healthcare IT market for providers surged past USD 191 billion in 2022. From diagnostic laboratories to hospitals and clinical units, many healthcare providers are harnessing IT tools to enhance the patient's journey. This IT infrastructure enables efficient large-scale operations and multifunctionality while maintaining cost-effectiveness, fueling the demand for healthcare IT.

The North America healthcare IT market size is set to reach USD 367.7 billion by 2032. Additionally, substantial investments in healthcare infrastructure to address disparities and unmet medical needs will further boost the industry. For example, the U.S. is projected to invest USD 36.7 billion in the next decade to upgrade State, Territorial, Local, and Tribal (STLT) public health infrastructure, as per the Healthcare Information and Management Systems Society.

Internet of Medical Things (IoMT) Statistics

• The Internet of Medical Things (IoMT) has already been implemented by about 60% of healthcare organizations.
• Grand View Research projects that, at a 19.9% annual growth rate, investment in IoT for healthcare will reach $534.3 billion by 2025. It is projected that the primary factor driving this expansion will increase demand for IoT integration in healthcare software solutions.
• IoT is already being used by six out of ten healthcare organizations, with the primary equipment linked to the network being X-ray/imaging devices (41%) and patient monitoring (64%) among them.
• Since their debut in the market, 30.3% of IoT devices have been utilized in the healthcare sector.
• According to 237 respondents who work for MedTech businesses, 71% of them feel that physicians and healthcare professionals are not prepared to use the data produced by linked medical devices. Nevertheless, 67% of them think it will take another five years for the regulatory structure to catch up with modern technological advancements.

Telehealth in Healthcare Market Statistics

• By 2025, the telemedicine market is expected to be worth more than USD 130.5 billion.
• The worldwide telemedicine market is projected to grow at a 16.8% compound annual growth rate and reach USD 56738.3 million by 2023.
• In 2015, only 5% of doctors said they had used telemedicine; today, 22% of doctors have utilized telehealth services to meet patients, a 340% increase. However, it is anticipated that between 340,000 and 590,000 doctors will be using telehealth services by 2022.
• 56% of businesses plan to offer telehealth for behavioral health services, and 96% of employers will make telehealth services virtually available in states where it is permitted in the upcoming year. The adoption rate of employee telehealth is increasing; 20% of firms report that their employees use telehealth at a rate of 8% or above.
• 76% of US hospitals use video and other technologies to communicate with both patients and consulting physicians.
• Currently, 71% of consumers prefer to use a voice assistant to look for health-related information, while nearly 70% of healthcare professionals use telehealth or telemedicine tools.

Cloud Computing in Healthcare Market Statistics

• With a compound annual growth rate (CAGR) of 17.2% over the forecast period, the worldwide healthcare cloud computing market is expected to grow from an estimated USD 23.4 billion in 2019 to USD 51.9 billion by 2024.
• With the global healthcare sector expected to expand from 19% hybrid cloud penetration to 37% in the next two years, the industry is rapidly moving toward adopting hybrid clouds.
• It is projected that the global market for cloud computing in healthcare will surpass USD 55 billion by 2025.

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mHealth Adoption Statistics

• Less than 4% of healthcare software developers are able to achieve an annual download count for their app portfolio of over one million downloads.
• As per the online public health resource, over 97,000 fitness and health applications are available for tablets and mobile devices.
• If a healthcare provider recommended digital health technology or mHealth apps, 40% of adults over 55 were more likely to utilize them than those between the ages of 18 and 34 (33% and 34%, respectively).
• The US, UK, and France account for 35%, 40%, and 40% of the rise in mHealth app downloads, respectively, as do emerging markets like Brazil, India, and Indonesia, which account for 35%, 65%, and 110% of the growth.
• 64% of Americans are open to video consultations with doctors using telemedicine.
• Patient care-related mHealth apps are expanding more quickly and currently account for 40% of all mobile healthcare solutions.

Healthcare Information Technology (IT) Based on Region

Healthcare Information Technology (IT) North America Market

In 2023, North America dominated the market with a revenue share of over 40%. The region’s market is expanding due to the widespread use of healthcare IT services and solutions, particularly in the US, as healthcare providers want to save costs while improving patient care.

One example is the widespread use of Electronic Health Records (EHR) in Oregon, where different digital divisions have an impact on healthcare providers' adoption rates.

Healthcare Information Technology (IT) Asia Pacific Market

The Asia Pacific market became the third-largest revenue share in 2021. Due to rising government spending on healthcare, Asia Pacific is predicted to have the quickest CAGR of over 22% throughout the forecast. This region also has a significant demand for healthcare IT services.

Additionally, as healthcare IT systems enable hospitals to manage their clinical, financial, and administrative operations more effectively, demand for these systems has been rising.

Japan accounted for the biggest revenue share because of its efficient and intelligent healthcare system. The government has given health and healthcare innovation in connection to aging-related illnesses a high priority, in addition to a number of other projects and regulations.

In Japan, the Public Social Assistance Program for the Poor covers 1.7% of the population, whereas the Statutory Health Insurance System (SHIS) covers 98.3% of the population. The national government sets the SHIS fee schedule and gives subsidies to prefectures, cities, insurance companies, and service providers. It also establishes and maintains extensive rules for insurers and providers.

Healthcare Information Technology (IT) Europe Market

Due to the growing use of Artificial Intelligence and the existence of businesses like Siemens Healthcare GmbH and Koninklijke Philips N.V., the European market had the second-largest revenue share in 2021.

MedTech Europe estimates that the average GDP allotment to healthcare is approximately 11%. Furthermore, the amount spent on medical technology makes up between 5% and 12% of total healthcare spending.

Due to a rise in healthcare spending, the UK market generated the greatest revenue share. As to the International Trade Association (ITA), the UK market generates approximately USD 30 billion in revenue annually. The Health and Social Care Bill was the driving force behind the transition to a healthcare system that uses partnerships, collaborations, and integrated regional services when it was first brought into Parliament in July 2021.

Healthcare IT Report Summary

Healthcare Information Technology (IT) Market Segment Analysis

Now let’s look at the global healthcare IT market report based on component, delivery mode, application, end-use, and region.

Component (Revenue, USD Billion; 2019-2030)

• Hardware
• Software
• Services

Mode of Delivery (Revenue, USD Billion; 2019-2030)

• On-Cloud
• On-Premises

Application (Revenue, USD Billion; 2019-2030)

• Electronic Health Records (EHR)
• Telemedicine
• Laboratory Information Systems (LIS)
• Clinical Decision Support System (CDSS)
• Radiology Information Systems (RIS)
• Picture Archiving and Communication System
• Others

End-Use (Revenue, USD Billion; 2019-2030)

• Providers
• Payers

Regional (Revenue, USD Billion; 2019–2030)

• North America

• U.S.

• Canada

• Mexico

• Europe

• Germany

• France

• UK

• Italy

• Spain

• Benelux

• Rest of Europe

• Asia Pacific

• China

• India

• Japan

• South Korea

• Rest of APAC

• Latin America

• Brazil

• Rest of LATAM

• Middle East & Africa

• Saudi Arabia

• UAE

• South Africa

• Turkey

• Rest of Middle East & Africa

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Recent Development and Innovation in Healthcare IT Industry

• In May 2023, Athenahealth, Inc., a leading provider of network-enabled software and services catering to medical groups and health systems, revealed that LCH Health and Community Services had adopted athenaOne.

  This comprehensive solution includes athenahealth’s integrated, cloud-based Electronic Health Record (EHR), patient engagement tools, medical billing services, and athenaOne Dental. The implementation aimed to provide a cohesive and streamlined experience for both patients and healthcare providers.

• In March 2022, Oracle Corporation unveiled a suite of new networking, computing, and storage services along with enhanced capabilities to accelerate customer workloads while ensuring heightened security at reduced expenses. These offerings furnish clients with adaptable core infrastructure services, dynamically adjusting resources to meet specific application needs, thus driving substantial cost savings.

• In October 2021, Cerner Corporation introduced Cerner RevElate patient accounting, aimed at simplifying complexity by efficiently handling data and workflows scalable for extensive health systems.

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