Healthcare IT Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

Healthcare IT Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

The Healthcare IT market is expected to register a CAGR of nearly 12.5% during the forecast period, 2022-2027.

The healthcare IT market witnessed incremental growth during the COVID-19 pandemic. With the global lockdown and restrictions on travel and hospital visits for nonelective and non-urgent procedures, along with the reluctance of people to visit hospitals and clinics in fear of being contacted with the SARS-CoV2 virus, digital healthcare has witnessed a spike within the healthcare system. The increasing adoption of teleconsultation instead of face-to-face physician consultations during the current pandemic boosted the studied market. Additionally, with the growing number of COVID-19 patients worldwide, a massive demand exists for the maintenance and storage of big data related to patient information, medical reports, financial analytics, and many others. The healthcare IT solutions are expected to ease the storage and access of COVID-19 patients' medical reports. Also, as per the research article published in the New England Journal of Medicine 2020, the Office of Civil Rights (OCR) at the Department of Health and Human Services (HHS) announced that it would use its enforcement discretion and would not impose penalties for using HIPAA-noncompliant private communications technologies to provide telehealth services during this public health emergency, which would further enhance the usage of technological infrastructure among healthcare professionals. Thus, COVID-19 is expected to have a significant direct impact on the growth of the studied market throughout the pandemic phase.

The usage of the internet and digitalization of healthcare processes has become essential to develop a better understanding of healthcare information technologies and their impact on health communication. Additionally, the high adoption of hospitals toward healthcare IT is driven by the benefits, such as ease of use and saving time, labor, and space. The continuous upgradation of the solutions provided by the market players to better benefit the users is also propelling the growth of the market. For instance, in August 2021, Change Healthcare introduced Change Healthcare Stratus Imaging PACS, a new, comprehensive cloud software as a service (SaaS) solution for radiology practices, now in beta testing with plans to extend to hospitals in the future. Stratus Imaging PACS is one of the latest solutions to be introduced by Change Healthcare’s rapidly growing cloud imaging business, which includes image archiving, analytics, universal viewers, and sharing solutions.

Furthermore, initiatives taken by the governments of various nations to promote digital health are also contributing to the growth of the market. For instance, in September 2021, Indian Prime Minister Narendra Modi rolled out the Pradhan Mantri Digital Health Mission. It is aimed at digitalizing healthcare practices across the nation, creating a country-wide digital health ecosystem that will enable patients to store, access, and consent to share health records.

Also, the growing burden of chronic diseases globally plays a vital role in the growth of the studied market. Healthcare IT solutions minimize the risk of misplacing medical records and help in remote access of patients' health reports globally. Thus, the above-mentioned factors are expected to aid the growth of the healthcare IT market over the forecast period. However, a lack of skilled professionals and high maintenance costs may hinder the growth of the market.

In the component segment of the healthcare IT market, services are believed to have the largest market size over the forecast period. The COVID-19 pandemic is a once-in-a-generation worldwide public health crisis that is expected to benefit healthcare IT services. The pandemic has heightened the need for telemedicine and mHealth technologies to become a reality in the healthcare profession, as correct patient data, linked patient records, interoperability, and cybersecurity were a few of the major concerns amid the outbreak.

The services sub-segment includes both support and maintenance and professional services. Since the implementation of IT in healthcare, the amount of data has been increasing continuously, and 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 and lack of skilled professionals have compelled several institutions to opt for the maintenance and support services provided by healthcare IT companies, which is in turn expected to drive the segmental growth for services.

Also, with the emergence and introduction of cloud-based and other advanced technology platforms in healthcare, the need for services across healthcare IT solutions is in great demand. For instance, in October 2020, Infosys collaborated with Mobile Health AG to set up and manage cloud and infrastructure services and support, security and monitoring, and platform management services for Mobile Health AG across multiple geographies. Thus, the share of the service sub-segments is expected to dominate significantly over the forecast period.

North America, being the developed region, is currently dominating the healthcare IT market and is expected to hold a significant market share for a few more years. The major factors responsible for the region's largest market share are the well-established healthcare industry and the early adoption of IT services across healthcare settings. 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, along with the high concentration of key market players and increased government funding for healthcare services and infrastructure.

Moreover, to better support providers and patients, Microsoft launched a cloud service specifically for healthcare in May 2020. Healthcare systems can leverage this industry-specific cloud service to increase patient engagement, schedule telehealth visits, maintain patient data, and ensure Health Insurance Portability and Accountability Act (HIPAA) compliance. Cloud-based services are helpful for all stakeholders. Most healthcare institutions neither have the time nor the resources to devote attention to cybersecurity that an established cloud provider may have. The huge number of data breaches calls for more robust implementation of cloud technology in the healthcare sector to improve security.

Additionally, in November 2021, InsiteOne LLC released the platform (V11) for general availability after a successful pilot at Doylestown Health, Doylestown, PA. The new platform represents a major technological step forward and supports the integration of various tools into clinical workflow and provides healthcare institutions with automation tools designed to put their enterprise VNA imaging data to work.

Thus, owing to the abovementioned factors, the North American region is expected to project growth over the forecast period.

The healthcare IT market is highly competitive and consists of several major players. In terms of market share, a few 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.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support